Some Names on My Radar

Yesterday morning, Europe was strong and we gapped up. The news out of Europe was the same as the news we’ve been hearing for 18 months. They finally got “some sort of a deal.” I gotta tell you. I don’t think I’m even going to mention Europe anymore because I don’t know what the heck is going on over there. It seems like every time they say they’re saved—they’re not. But the market couldn’t care less. As I have told you the market has completely ignored Europe.

Even though we had a gap up today, it could have been better as the market sold off after the close. But still, it was overall a pretty darn good day.

WE GOT A FEW NAMES ON THE RADAR

Yesterday, we got stocks that broke out into the new high list…and most importantly–off of earnings reports. They must go on a watch list now.  That’s what we look for at all times.

• Earnings reports beat Wall Street’s estimates handily.
• Gapped out of bases or broke out of bases and all the bases in a trading range…an elongated one where something trades between two different points.
• And then moves out with excruciatingly high volume.

That is for us to recognize. That’s all we can ask for. We got a few names today. These are on my radar screen. Keep in mind I am not advocating. I’M JUST REPORTING THE NEWS.

• Interactive Corp (IACI)
• Biogen (BIIB)
• Seagate Tech (STX)
• F5 Networks (FFIV)

If more of these show up, I’ll be glad because it shows the market has conviction.

The other part of the equation… financials were strong. Zero percent interest rates still. I mean they literally have pure profit. In fact, I saw this letter today from one Fed Head to somebody about negative yields. Seriously. Lend the United States money on a short-term basis and you pay them for the right to lend their money. You think things are screwy? You see in the real world, when you are the one doing the borrowing…over the top borrowing—you’re supposed to have to pay up on those borrowings. But because the Fed keeps interfering with the markets…well you get the point. When that ends, I have I have no idea. When the markets decide to bite back, I have no idea. I just know what’s going on.

AND….

Without trying to get too technical, something occurred on Tuesday. On the S&P 500, the 50-day moving average crossed back above the 200-day moving average. The term for that is a “Golden Cross.” That is a good occurrence. 100% a good occurrence. Just keep in mind that it happened in 2008. And then the market within a couple weeks, crapped out and cracked badly. But just remember what I have told you over the years, when things are above a 50-day moving average, bad things tend not to happen.