10-7-11 Comments

This morning I traded short setup watch lists with another person. It was interesting to me that his list and my list had no overlaps. There are many-many stocks with topping patterns that have rallied into places of logical resistance. Does this mean the rally will stall here? Not necessisarily. We are headed into seasonally bullish period and one person's bear flag pattern could be another person's launch pad for a sustained rally. Price and volume going forward will have to tell us where the market is going.

We have gone up three days in a row and this has been met in recent history with more selling. Today is day-4 of an unconfirmed rally. Day 4 and later is where we look for evidence of institutional buying pressure, after most of the shorts have been covered. I chose to go long TNA two days ago with an eye toward caution of a possible rally stall. My CANSLIM long watch list is: ALXN, ATHN, AZO, CELG, CPHD, DLTR, JAZZ, LULU, NUS, PII, PRGO, QSII, ULTA. I also have a long-term position in GLD. I notice that this morning that ten-year interest rates ($TNX) are back up over 2%. This could indicate flight to saftey is coming out of the market with that money looking for a place to land.

My short set up watch list is rather long. If the market stalls, this is where my focus will be.

AAPL
AMZN
ARUN
AVGO
BIIB
BKI
CEVA
COH
CRM
CRUS
CSH
CTSH
DECK
DISCA
DTV
EZPW
FFIV
FNSR
HS
INFA
MRX
NOG
PCLN
PII
RAX
SBUX
SCSS
SNDK
SPRD
TIBX
TIF
TPX
TVIX
UA
WTW