For those of you that sat there yesterday not believing what you saw here is an interesting article from Dr. Brett Steenbarger (Author of “The Psychology of Trading”). Be sure to read the Big Picture here for an overall take on the market action.
What a day we had Monday. Many of the setups that I removed after Fridays swoon triggered and ran nicely. AAPL was the best one. I am not putting AAPL on the Watchlist today but its worth watching and perhaps holding a position as it breaks to new highs. AAPL has earnings on Monday of next week so keep that in mind if you do take the trade. As we saw from INTC and IBM the market is selling excellent earnings and guidance in the large caps. Another stock in play today is CREE. CREE had blowout earnings and guidance. I listened to the conference call and they are set to continue to grow for a long time to come. Their main business is LED lighting which is very low energy compared to common lighting and this can be a significant sector.
HLF triggered yesterday but hasn’t run. Hopefully some more volume will come in to support a continuation up.
There are two additions to the watchlist for today. BCSI and MAS long. MAS is of particular interest because it is in the process of breaking out of a multi month base (bring up a monthly chart).
BCSI long over 31
MAS long over 15.70