To know that we have seen the end of the bear, we will need to see selling in the indices without a corresponding rising number of stocks with new lows. In the meantime, maybe we can put a rally together for longer than just a few days.
The market internals improved significantly Friday. Not only was the market up, but it was up on a Friday and the NASDAQ was up two consecutive days! So can we go for three? Working in the bulls favor are the spikes in the volatility index, no earnings warnings of significance Friday, and a screened stock ratio that saw volume coming into rising stocks at 12 to 6 favoring buying.
The stock screening and watchlist is loaded with semiconductor stocks, but that is where we found the best combination of technicals, volume and future earnings growth. So, despite the bad book-to-bill ratio and John Chamber's economic comments, we packed the watchlist with the prospects that one or more may move on Monday.
Longs: AAPL, AEIS, AW, BLS, DRI, EC, FRX, HELX, ICST and VTS.
Good Trading!!
Sam
savvy-trader.com |
