The market had a tight consolidation this week while stocks in good up trends continued higher. Tuesday the NASDAQ and Russell put in a swing low against the 30 minute trend and it ended up being the holding point for the consolidation that took place. Not putting in lower highs and lows allowed for stocks to continue to trend and trigger moves higher. The S&P was steadily moving higher during the consolidation period in the NASDAQ and that likely prompted some strength in individual names as well.
For this move to continue like it has been the low put in Tuesday should hold and we should see new highs out of this consolidation. It wouldn't surprise me to see this happen. The Russell is holding this consolidation above the YTD break even line so they got that one back in the green as well, taking out the previous high at $118 would be the next benchmark for the bulls. It is still using a 65 minute trend as well.
The watch list once again hasn't changed much. The stocks here are doing well and that's all I need. There are thousands of stocks out there and I cant catch everything with discipline so I stick to the good setups in my list and it's working for me. YHOO and BABA has been a wonderful pairs trade, long both of them lol. I'm being serious though, go open 30 minute charts on both of them and look at how well the swing points are holding. That's all I need for good trades. ESRX is another great one that's still going.
That about covers it for this week I mean there isn't much else to say. This is when you push winners and trail stops with discipline. Take new setups as they come and try to ride the trend. Take care and thanks for reading.
-Michael
