The Nasdaq’s pattern is at a crossroads and while it appears to be bearish at this moment it wouldn’t take to big of a push to the upside to make yearly highs. Prudence is required as tomorrow is the first of the month which in recent months has been very bullish. I wouldn’t be surprised to see this go up or down 40 points tomorrow, but for now I’m sticking to the short side as that’s what my timing signal is telling me. The contrarian in me believes that the market will go down tomorrow just to spite all the bulls who went long because tomorrow is the 1st and it has been a big rallying point.

Below are some of the highlights from my scans tonight and a few observations that I’m drawing after considering the types of stocks that are showing up.

The catalyst in EGPT that looked as if it was going to bring down the markets in January, looks like it’s about to start a new leg down with today’s high volume selloff. Any way you spin this it’s going to be bearish for the markets. I’m slightly surprised that this wasn’t a talker on Twitter today.

AUGT is one of the most bullish charts that I’ve seen in a few days.  It’s a picturesque base on base pattern, with high volume accumulation in all the right areas. It’s too bad that there aren’t more tech stocks breaking out to new highs to give one confidence that the Nasdaq isn’t going to continue to under-perform.

DRV and other REITS were a bit of a head scratcher for me today as the 3x Real Estate ETF hit new highs and looks extremely bullish. I included many REITs that showed up on my scans tonight and this will be interesting to see if this is a fake out or legitimate breakout. It can’t go both ways.

There were many smaller speculative gold stocks that had big moves today. This is very typical of a top when these types of stocks start to have large moves. AZC BULM GPL MDW are a few that I noticed and outside of CDE…I’d be very weary of this type of action.

Energy is also looking frothy with stocks like BDCO DPTR SSN PSTR PDO ROYL are starting to have large moves. VYOG looks like the real deal as it’s hitting new multi-yr highs…but I would be very skeptical of low volume/low priced stocks start having 5, 10, 20% moves.

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One Response to “Lack of Quality Long Setups”

  1. stemcellcure Says:

    Check out the extreme RSI and 25% short interest on CEPH

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