I bought LCC from my watchlist yesterday. In addition I own LL, FLT, CELG and ALXN short. There would be no problem just covering the short at a small profit in the current market conditions but as long as it remains under the declining 200-day I am okay with it. Most of the stocks on my watchlist are becoming extended now. Other interesting long candidates are: AWAY, TRIP and UTHR.

In the meantime I am wondering if the market is getting a little ahead of itself. Exponential moves are linear structures on a log-scale chart. We may be starting something super-exponential. If so it will set up an instability as super-exponential moves cannot continue for ever. Using Didier Sornette methods described in Why Markets Crash by fitting log periodic power law equation to the NASDAQ nothing is obvious prior to early June assuming the move continues. The attached chart show the fit using June 7 as the date of criticality.

Name: NASDAQ LPPL.JPG Views: 868 Size: 111.3 KB