Monday Market Moves Higher...

DJIA + 214.33, +2.61% SP500 + 29.72, +3.39% NASDAQ Comp. + 44.36, +2.58% Russell 2000 + 19.84, +4.07% Exchange NYSE NASD Advancing 3,171 2,152 Declining 613 648 Oil $54.47 +$1.27 Gold $901.60 +$14.00 SOX 272.31 +14.12 VIX 34.53 -0.77 The VIX moved down and did confirm the move up in the SPX on Monday. Strongest Sectors: XLF +10.14%...XLB +5.64%...XLE +4.00% Weakest Sectors: XLU +1.51%...XLP +1.54%...XLV +1.66% All nine Sectors moved higher on Monday. Financials, Materials and Energy moved more than the SPX +3.39%. Financial stocks stronger than XLF +10.14% include: RF, WFC, ZION, KEY, BAC, PNC, USB, AXP, JPM and ETF’S UYG and FAS. Leading tech stocks stronger than XLK, +1.83% include: INTC, AMAT, GLW, AAPL, DELL, MA, EMC, T, TXN, and GOOG. Tech stocks weaker include: HPQ, QCOM, VZ, IBM, EBAY, YHOO, MSFT, SYMC, CSCO, ADP, ORCL, ADBE and AMT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI Down Trending: XLU Monday saw a major breakout in the direction of the recent up trend. There were hundreds of support bounce (bull flag) and resistance breakout trades on the charts. The SPX closed four points above its Dec. 31 close and the RUT closed 3 points above its year end close as they joined the Nasdaq in being positive for 2009. I’ll have more to comment on this tomorrow. If you read and understood the guidance we gave you in Friday’s post you were prepared for what happened on today and were in a position to take action. We wrote: “The trend is still up. Look for a continuation of the one to two days thrust and one to two days pause (pullback), which has been the pattern of the past 8 weeks, to continue until it doesn’t. “Short term traders have a Yellow Alert because Thursday was the high day. In the SPX, Nasdaq and DJIA and they did have lower highs and lower lows but higher closes. Only the RUT had a lower close and it was weak confirmation of Thursday’s shooting star like candle. “Stay mentally flexible because Thursday was a high day and a reversal day. A portion of Thursday and Friday can be viewed as pause or pullback days. “Intermediate term traders the 8 week intermediate term trend is still up. Use higher lows as setups and entry opportunities. As always, trade according to your trading rules.” Index Commentary The DJIA broke out of horizontal resistance at 8,405 with a large white candle…three month chart target 10,340…volume was average at 354 million shares and higher than the previous five days…closed above its 20, 30 and 50 DMA. The SPX broke out of horizontal resistance of 875 with a large white candle…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq closed above it 200 DMA with a large white candle…closed within two points of short term chart price target of 1,765…3 month chart target of 2,65…closed above its 20, 30 and 50 DMA. The RUT formed a large white candle…approached the January 519 horizontal resistance level…3 month chart target 606…closed above its 20, 30 and 50 DMA On Monday 14 out of 15 At the Open stocks rose significantly… At the Open on Tuesday SPY – large white candle +3.40% SCHN – large white candle +5.11% KOL – large white candle +12.26% MEE – large white candle +21.14% SNDA – spinning top at resistance +4.44 ADBE – spinning top/hammer -2.80% on analyst downgrade EBAY –white spinning top in horizontal flag +1.39% SHLD – large white candle +4.28% ISRG – white candle +4.17% DHR – large white candle at 200 DMA +3.63% DE – white candle breakout of 200 DMA +5.13% RIMM – spinning top +2.77% SPG – large white candle +9.31% QLD – white candle +4.23% FAS – large white candle +26.85% Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, HDB, PCP, UYG, FSLR, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, GXDX, TDG, NIHD, RCI, STRA, ACN, AMED, EZPW, JOYG, MON, MUR, PSYS, SPWRA, PETS, NTLS Moving Above 30 DMA = 5 CHL, DECK, DLTR, MOS, NFLX Moving Below 30 DMA = 1 GME Staying Below 30 DMA CPLA, GILD, GPRO, JEC, MCD, BDX, CBST, MYGN, DV, SLGN, BIIB, WMT, BKC, APEI, BLUD, ESI Intermediate Term Market Trend: Neutral Short Term Market Trend: Up