The bulls were fighting to hold gains today. The market looked strong early on but it did give a lot back at the end of the day. Today's move was done without the help of the financial stocks. Most of the financial stocks finished the day with very weak price patterns. Whenever a stock gaps up then sells off, it is usually a sign of weakness. Look for some of these financial stocks to sell off a bit within the next few days. This doesn't necessarily mean I would buy put options on them, but I would probably wait for a pull back and find a nice new bullish entry point. There is a lot of short interest in the market right now. We saw some evidence of that as the market sold off near the end of the day. With the S&P 500 and the QQQQ at recent resistance levels, we could get a small pullback. However, if we break above these resistance levels, the short positions would get squeezed and the market could really take off. The strength of such a move would also encourage a lot of money on the sidelines to come back into the market. I am keeping a close eye on the VIX. I'm looking for it to drop (and close) below 40. There were some nice bullish patterns that triggered "buy" signals today. I found many of them using Jesse's new trend finding software program. It is a fantastic program. If you are interested in a trial subscription, go to www.orbisadvisors.com and sign up for the free 30 day trial. Let him know that you heard about it on my blog. AAPL had another strong move today and it still has more room to roam. FSLR is also looking pretty good.
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