4-23-2013 Close Comments

In addition to fun and games with the fake twitter crash we had two NASDAQ MEM buy signals to put in the back pocket in case we get a FTD in the days ahead. A near-term FTD would turn the buy switch on with a +2 count (55% invested) until the restraint is removed at which time the count would be +3. A close 1.25% above the FTD close or a B4 (trending above the 21-day) turns the restraint off.

The lows are above the 21-day ema and the 50-day (B3 B6). The higher volume today was constructive. With the very many pocket pivots it appears we are setting up for me to cover my short positions and focus long.
24% of the IBD 50 met pocket pivot volume signatures today.

Pocket pivots of note today:
DHI, CLMT, FLT, ATVI, LEN, AWAY, FLT, GNC, ORLY, LAD, LGF, TGP, ALDW, STK, HTZ, TUP, PKG, DDD, INGR, PNRA, TSCO, GMCR, IPAR, LAD

Of concern is that few stocks have been in correction long enough to set up classic buy points from sound bases. So I halfway expect to be forced to cover shorts then to be greeted with another pull back.

In analyzing the S&P Market School model and the NASDAQ Market School model, a NASDAQ portfolio that buys and sells the NASDAQ at the recommended exposure is seriously lagging a S&P500 portfolio. This lagging is the largest lag since 2000. This tells me to stay with very liquid stocks as that is where the institutions are playing. CELG, PCLN, LNKD, VRX and possibly FLT are leaders with liquidity.