Ready To RIP!?

Well, that would certainly count as "a brief dip" and hopefully this answers the questions as to why I didn't hedge. Sure, it could've gone the other way, but I liked my odds and was willing to suffer through a little pain to get to this point. I'm as fully invested as I get at 80% and ready to participate in the next leg higher. So far, so good!

Prices on the S&P are now back above all short term moving averages and ready to push to new highs. Overhead resistance sits at 1150...

The Nasdaq is struggling to break above 2313 and found resistance at that level again today. Prices were able to climb back above all short term moving averages and may look to breakout tomorrow...

New highs for the DOW and perfect trend alignment...

Dollar weakness is once again giving the market a lift. The dollar had a breakdown from the channel we were highlighting and I can envision a pop back up to test the lower channel line from the underside... if we're to see any strength in the greenback. Perhaps we will also see a test of the declining 5 dma before rolling back over, but the path of least resistance here is down...


As I scrolled through my charts tonight, the number of stocks testing their 50 day moving averages jumped out at me. China names, in particular, were pulling back to test this important level of support. A few examples...

ASIA

CTRP


RINO


HRBN - I believe this name tipped the hand of what type of support to expect. Check out the bounce...

The chinese stocks aren't the only names testing 50 day support. A few others of note...

GOOG

GS


PCLN

I could take positions in any of the above names, on strength, and use the 50 dma to manage my risk. I'd also watch these names carefully as a leading indicator for overall market direction. Other than that, I'd keep an eye on CMG for a breakout from this monster double bottom pattern...

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