Stocks Extend Rally
The market finished the day a percent higher to close at 1115 resistance. This will be the first major test for the bulls. Although 1085 and later 1100 were target resistance areas, 1115 will determine how committed buyers are at this moment. The market trades at areas where it encountered substantial selling only a few weeks ago. If buyers can't muster the strength to take out key resistance over the next few days, the chances of an extended rally increase tenfold.
I had thought about taking on a few hedges this morning, but passed. Instead, I sold out of our position in ValueClick for 6.5% and purchased two stocks. Our portfolio is all long and I plan on adding new positions on any low-volume weakness. One of the positions that was added this morning is from a recent report I issued to subscribers on the commercial real estate market. The last time I gave out a report like this 2 of the picks doubled in five weeks. A similar situation is unfolding now, and you can find out more by reading the report right here.
Although today was a great day for the SPX bulls, the big test will be at 1115 tomorrow. Also, durable orders on Wednesday morning could shake things up. The market has been moving ahead of economic data so tomorrow could be an active day. Durable goods are a big stat to watch, and the market may price in a better than expected number on Tuesday.
The Chart of the Day
Telestone Technologies (Nasdaq: TSTC)
(CHART) finished the day almost 15% higher.
We covered this stock in my
TradeMaster Daily Stock Alerts' weekend video for current subscribers. In this week's video I updated my
price target to account for the breakout from the bearish channel formation.
Volume was a concern on the break, but it picked up late last week and hasn't
looked back.
With today's huge gain, shares now trade close to my first target of $15.50.
My secondary target calls for a move to $18.50. At this point only aggressive
traders should initiate a position and be ready to sell near $15. That said,
if you can get shares below $11.50, give it a shot.
Watch List
The TradeMaster watch list was all higher
today.
Leading the way higher were small cap China stocks Telestone
(Nasdaq:TSTC) up 15%, China Gas (Nasdaq:CHNG) and Netlist (Nasdaq:NLST) up 9%
and Agritech (Nasdaq:SEED) up 7%. The weekend video, which is only
available to subscribers, covered those charts in extensive detail. It was a
great start to the final week of July.
Send comments anytime editor@trademasterstocks.com
