US Stocks: Market Closes At New Highs Tuesday Volume Significantly Higher
From WorldWideMarkets Online Trading
Tuesday Wrap Up
After selling off the past two days, the market rallied strongly back to new highs on higher, above average volume. News that Russia test fired an ICBM missile spooked the market around two o'clock, but the selling was short lived as the U.S. confirmed it received proper notice to test fire the missile and the market closed at the day's high.
Leading growth stocks continued to breakout to new fifty two week highs and bounce off moving averages, on strong volume, after selling off on Monday, on lower volume. Most of these breakout came from shorter consolidations.
Oil and gas stocks, Kodiak Oil and Gas (KOG) and Oasis Petroleum (OAS) are rounding up the right side of their cup shaped bases, Chipotle Mexican Gill (CMG) rose 5% and added to its recent breakout out of a double bottom with high handle, NVR (NVR) continued its bounce off the twenty day moving average, Taser International (TASR), YY (YY), and Netflix (NFLX) bounced off their ten day moving averages, and VipShops (VIPS) and Insys Therapeutics (INSY) exploded on strong earning's reports. After hours YY was up over 10% on a strong earning's report.
The market seems intent on rallying until the DOW reaches new highs and the Nasdaq tests above 4,400 around the upper trendline. Traders should continue to hold strong positions that survived the two day sell off and tighten stops on over extended positions to recent lows. Short setups continue but need more time and few low risk long setups remain, so keep stops tight even though it may mean being shaken out.
LEADING GROWTH STOCKS ANALYSIS - THE SETUP
Gastor Exploration (GST) has formed a double bottom with high handle base after running up over 400% in the last year. The stock has pulled back over the last two weeks on light volume. A breakout above the current down trend line or handle high could see the stock appreciate an additional 20%.