Thursday's Game Plan

The SPY held well yesterday and formed a melted candle on the daily after a strong move up the day before. Yesterdays price action in the SPY was a sign of strength especial the action in the afternoon where Prices became well bid on all time frames furher emphasizing yesterdays price action as a pause in the pig picture. However, there have been some divergences among the ETF's as the QQQQ closed weaker then the SPY and the DIA closing stronger then the SPY. The QQQQ is yet to break out of its pause at 49.80, its lagging behind the leading ETF's. XLK seemed weak yesterday but the candle on the daily chart indicates that a different story is taking place as the XLK again tested its key level at 23.35 without breaching it, the more we test it the more likely we are to break it. I remain bullish after yesterdays price action, and wont consider any B shorts as the market is clearly bullish. The market would have to seriously roll over for me to look at bearish stocks.

Longs:

ABX: A long after yesterdays price action, ill be looking for a continuation at a preferable R/R area.

GE: Broke out of its daily resistance going back to May on good volume and an energy candle on the daily. IPT at 17.40.

DOW: A long with room to go. IPT at 29.90.

HON: A long with room to go after two strong up days. IPT at 46.50.

COP: A long with room to go. IPT at 60.50.

COST: A Long that fomr a major energy candle on the daily with ultra high volume after it gapped down. Buyers stepped in and hit the offers agressively This indicates strength and a clear direction and thats what I look for when trading an instrument.

Breakouts:

GG> 45.20 is the level to watch as this stock is clearly an A long. IPT at 46.

SLB> 64.70 it has room after that as the next IPT is at 66.

NTAP < 47.20 as the stock seems to have formed a 1-2-3 top on the daily. This stock should be trader though unless the XLK is weak which is the opposite of what it is right now.

Shorts:

AKAM: Another weak tech stoch that has declined even though the sectors isnt that weak when looking at the XLK. Before trading this stock it should be wise to wait for it to clear 43.20 first.

ADBE: A sell short that has some room to go. Again it should only be traded if markets roll over and XLK is weak.

AXP: A sell shor that seems to have bottomed out at 37.33. If I trade this stock ill target a retest of the 37.33 low as this stock is clearly weak and should only be considered short till it proves otherwise.