Tuesday, January 4, 2011

CORRECTION COMING?

We could start to get a correction soon, but I also think that the market could run up a bit more. There are some nice bullish ABC patterns out there. I think that today did show weakness in a few sectors. The agricultural chemical stocks (MOS, POT, MON, AGU, CF) could start to roll over and sell off soon. Lock in some of those profits if you haven't already done so. Coal stocks look a bit bearish. GS and MS look very bullish and the financials might be getting ready to break out to the upside. LVS (needs a bit of confirmation) and WYNN also look pretty bullish. SLW look bullish. GDXJ looks bullish with some confirmation. AAPL looks to be breaking out again. For the rest of the tech sector, I like bullish trades on AMZN and YHOO. I really like the bullish patterns on MRVL and MU. AA has earnings coming up in a few days, but today's price action was bery bearish. You could buy puts on AA and place a stop above today's high. BA looks bearish (with confirmation). DIS, HPQ, IBM look very bullish. I like JBLU and LCC for bullish trades in the airline sector. SINA and CRM both look very bullish. CMG looks very bullish if the stock can get back above its 10 day ma. I think the market will move higher this week...and possibly though this next earnings season that starts in about a week. I'll be watching the price action very closely. If I see anything major about to take place, I will let you know.

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