Well, I had planned to stay away from the markets until the weekend, but I just can't get myself to do that. Damn these markets! Firstly, a very Happy Thanksgiving to all you readers. I hope you all have a great time with your family and loved ones.
Yesterday saw quite a comeback by the bulls and momentum stocks, in particular, did exceedingly well. All the three stocks in the watchlist posted yesterday did rather well, particularly ATML, and I hope these lists are of some help to you readers. But looking at the larger picture, it is important not to get carried away by yesterday's action. The S&P closed below 1200, the immediate resistance level. Until 1207 is broken to the upside or 1173 to the downside, expect more choppy days ahead with gap ups and gap downs being the norm as we have seen in the past few days.
Like I had stated a few days before, I believe this is a stock picker's market. Until the levels mentioned in the previous paragraph are broken, one can just ignore the overall markets and concentrate on individual stocks. Momentum stocks are doing rather well with there being breakouts abound. I will be back with some tips on playing momentum stocks later in the day. Finally, I am not planning to short these markets, at least for now.
Keep an eye on the trendline shown in the 30 minute chart of S&P below. It had been acting rather well.
I will be back with a watchlist later in the day.