US Stocks: Indexes Sell Off Early Thursday But Close Strong
From WorldWideMarkets Online Trading
(written by CapitalistBull.blogspot.com)
Thursday Wrap Up
Today was no different than most other days since the market bottomed on February 5th. An early sell off is quickly supported and the market rally's strongly for the rest of the day to close up on higher volume after weak economic data...Philly Fed came in well below expectations at 10 am. Rumors pre-market that Moody's would upgrade Italy were also met with aggressive buying. Good news is good news, bad news is good news continues.
Traders need to be patient with existing positions, except for those that are trading significantly higher from their breakouts out of late stage consolidations. Protect those profits, many of these moves could be final climax runs and will last, on average, only two to four weeks. Be selective about adding to or initiating new positions. Most of the strong stocks have already broken out. Few will offer an additional entry point before the next major pullback. No need to risk already hard earned profits to over trading.
LEADING STOCKS ANALYSIS
Leading growth stocks continued to power ahead but most recent short term setups have either failed to breakout or are volatile and shakeout traders. The strong action is in stocks already extended from breakouts or reporting earnings. Horizon Pharma (HZNP), Questcor Pharmaceuticals (QCOR), Valeant Pharmaceuticals (VRX), Qihoo 360 Technology (QIHU), and Diamondback Energy (FANG) added to recent gains and Portfolio Recovery Associates (PRAA), Tesla Motors (TSLA), Actavis (ACT), and ARRIS Group (ARRS) gapped up on strong earning's reports and added to recent gains.
Keep an eye on recently discussed setups in Chipotle Mexican Grill (CMG), Under Armour (UA), NQ Mobile (NQ), Hovnanian (HOV) and Blackstone Group (BX). Few other setups have managed to stay tight and worth the risk.