· The broad market is obviously overbought, but can stay that way for a while given the trillions being printed and placed into stocks to hold the “economy” up.
I still see short-term market weakness, but until market leaders like AAPL, PCLN, EBAY, MSFT, and the Oil companies break their strong uptrends, we are going higher after any weakness. I don’t believe we will go to new highs however. If the leaders break their uptrend, we will re-evaluate.
I see a lot more long candidates than short candidates, and commodities (oil, metals) have broken a downtrend and should move higher over the next few years as Banks print new money and support the markets. Understand however, that gold/silver moving higher is a threat to the banks, so Bankers will continue to suppress the physical price.
New Long:
ROYL (5.43): using limit order at 5.43, sell stop 4.91; next earnings due Mar 5; we’ll have to be careful there
New Short:
BPL (60.09): using limit order at 60.09; protective buy stop 63.6
Buy Candidates:
TCX, IPAS, BCRX, BLDP, DMD, SSN, CSCD, SWHC, ASIA, OCZ, LCAV, TGC, LEDS, AMED, USHS, BDCO, LRE, NEP, TBT, THM, REE, UGA, OSH, STX, KMR, DSCO, CEMP, PDO, AVL, FPP, AGRO, MPC, NLST, MSI, CAB
Short Candidates:
WSM, TGT, and the QQQ/SPY if it gaps higher at the open
