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Stocks Soar

Jason Cimpl
July 7, 2010
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Stocks Soar

The U.S. Indices exploded higher today. The charge higher was led by energy and financials which ended the day 4% higher. While financials and energy stocks led the charge, the buying was broad based. Market internals were great with advancers outnumbering decliners by over 5 to 1 today. Volume was also higher than average indicating buying pressure. There were no particular catalysts for today's bullish bounce, but buyers continued to protect SPX 1019 support and that needs to be respected.

The Chart of the Day

While I wanted to cover shares of Virginia Bank (CVBK) which were up 52% today, I owe it to Netlist (Nasdaq: NLST) (CHART) which has provided subscribers with huge gains this year. Members of my TradeMaster Daily Stock Alerts' recently purchased shares of Netlist last month and locked in a 35% gain. I reminded my readers to pick shares up last week on any weakness. Today the stock gapped up 25% and looks ready to move higher.

Shares continue to have difficulty taking out heavy lateral price resistance near $2.95, but the late day buying today signals buyers are ready to take it out. After a move past $2.95 shares will target previous highs near $3.25 then $5. My $5 target will take time to achieve but today's 25% gain gets shares that much closer to a double. The gap today should be protected by buyers so your downside is limited.

Watch List

The TradeMaster watch list was up across the board today. Leading the way was Abercrombie Fitch (NYSE: ANF), which we covered yesterday, up 7%. Shares continue to find support from the blue channel as seen in the chart. The top end, and resistance, is $34. Shares should make their way towards that target, and if it is taken, I am looking for a move to $37 which is the 50 day moving average.

Yesterday we closed two picks, but we added one right back and it is up 4% today. Earlier today we added two new positions. One finished up 1% while the other ended the day up 5% and I expect to make another 20% from each of those trades. Let's see if the market can follow through after today's bullish activity.

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