The S&P 500 Large Cap Index (SPX) - Daily chart
As you can see from the daily chart, the SPX is in an ascending triangle pattern. The short term pattern is bullish and the trend is bullish. Price target remains 1304 at the low end to 1334 at the high end. Furthermore, you can see that the SPX is rising on expanding volume. Indicators and oscillators are bullish; the PPO has broken out, and the stochastics are bull flagging. The SPX has been parabolic ever since it broke out of the symmetrical triangle pattern. I continue to stress that you stay on the long side and be sure that you are in the strongest sectors.
The Internet Index (IIX)- Daily chart
As you can see by looking at the daily chart of the IIX, it is forming an ascending triangle. It has completed a wave (3 ) to (4) pullback, and is now reversing upwards. The IIX remains in a bearish trend reversal; indicators and oscillators are still bearish, but I expect that to change soon. This is one index that is not on 52 week highs. The Internets are weak. However, I want to point out that there is no bearish divergence in the PPO and stochastics. The following Internets are strong: AKAM, NTES, ARBA, FFIV, & CKCM.
Retail Holders ETF (RTH)- Daily Chart
The daily chart illustrates that the RTH has broken out of a symmetrical triangle pattern. Today the RTH is up 1.71% at 98.64. Again, indicators and oscillators are bullish and this ETF is poised to go higher.
Meritage Homes Corp. (MTH) - Daily Chart
The daily chart of MTH shows that it is in a bullish falling wedge reversal. As you can see, MTH is in a wave (3) to (4) pullback. I want to add MTH to the portfolio table because the building sector is showing signs of a bullish reversal. The chart shows that MTH is still in a bearish Aroon cross, but the Williams % and PPO are bullish. If the pattern fails, the downside risk is $2.00 from entry. The short term price target $65.00. Medium term price target is at the 50% Fibonacci retracement level at $74.00. Catalysts should be coming soon. The stock has not been added yet, we have to wait until it breaks the down trend line. Wait for the alert for the buy trigger.
Cephalon, Inc. (CEPH)- Monthly Chart
CEPH is in a monthly slim jim pattern. It has been in a rectangle for 6 years! I added CEPH last month. I believe it is going to break out of this rectangle. The bottom is in the $30.00 and the top is at $80.00, if you subtract both you get $50.00, you then add $50.00 to $80.00 and you get a price target of $130.00. This chart look bullish you can see expanding volume along with price and the indicators and oscillators are bullish. However, if you are a short term trader I would take some profits off the table here.
Gen-Probe Inc. (GPRO)- Monthly Chart
On the monthly chart, GPRO is in a long rectangle / slim jim. In addition, it held the uptrend line on the weekly. GPRO is bullish on all time frames. It is one of my favorite stocks. Again, indicators and oscillators are bullish. My target is in the $70.00 - $80.00 range once it breaks out above $53.00. There is also huge short interest in this stock which should propel it higher. GPRO will not get momentum until all the biotech's start to make 52 week highs together.
$SPX--I lost Internet connection shortly after the close and waited all evening for it to come back up so I will have an extended pre-market update covering the $DAX and overseas markets along with the some upcoming HOT SECTORS that more money will start rotating into.
$IIX--Not many picks in this area yet but I will have some new ones. I do expect to "tweak" the portfolio table and cut some under performers and add some hit juicy new stocks!
RTH--When retail starts cooking things become much more fun
MTH--If this breaks out and we start seeing RYL and other front runners join the party they will go parabolic before option expiration.
CEPH--It's ok to take a partial but don't forget the big picture worrying about the fast nickel.
GPRO--Remains one of my top picks
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