Thursday's plan

The bulls seemed to have returned to the markets at least temporarily as Wednesday posted our third straight session of gains, albeit small gains. Wednesday’s day got catapulted by a decent round of earnings and a gap up at the opening bell. After a quick gap fade move, the markets rallied for the rest of the day and closed at the highs.

Now for the bad news. The recent push up still resembles bear-flag like consolidations, so I would still be prepared for a move lower shortly and a possible test of the January lows. In fact, I might look for some weakness today . A gap up would be an inviting fade opportunity or an early rally could spark an afternoon reversal move, so watch for those setups.

Can we say BIDU!!!

BIDU IS UP $30 after hours on beating earnings. Wasn't that an awesome play from sunday's call on it- almost $70 gain in 4 days totally awesome.
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New HIghs

New Highs for the day. Extremely nice move with Nasdaq showing relative strength. Whether it is the signing of the stimulus package or just option expiration this move seem to have a little energy in it.

Nice move

Well seem to have hit it on the head. Market getting it bounce this week. The DOW is up 138 for the day with some of the financials and techs showing relative strength. BIDU is up beautiful off the recommendation Sunday. We can still more higher in my opinion and I am looking for such a move. Lets see how far we go.

When we hit some resistance I will be playing the QID's just as a heads up.

Wednesday

More upside should be in the cards today but early strength should be shorted. The nasdaq seem to be forming out a bear flag which put me in caution mode especially if we do gap up and see a fill of the gap.

UPSIDE

Well here is what is was saying. The upside move I was expecting happened this morning. It is just one hour into todays trading but I can definitely see the uptrend coming in with us being +180 points on the DOW. BIDU ANOTHER $10 and FSLR ANOTHER $5. Lets see where we finish today but I definitely think we get over that 12500 area this week

Tuesday

We’ll we did bounce a little yesterday although it took another flush out of the market open to do it. Following the mid-morning reversal off the lows, we rallied nicely into the close finishing near the highs of the session. The early down-leg kept us from advancing too far on the daily charts; absorption I call it as volatility and gaps absorb most of the buying pressure and it’s a market tone we have been witnessed the past couple of weeks, especially in the last few sessions. In fact we seem to be digesting the recent push-down forming bear flag/pennant consolidations and still look to me like we will make a move lower.

I wouldn’t rule out the possibility of continued upside for another day first, but I think the more likely scenario is a pull-back for Tuesday or another narrow range session. If we do break to the downside on the daily market charts, I would be prepared for more short-setups. A rally would have to clear the last swing highs from 2/1 before I look for a prolonged upside move.

Gold is currently morphing a bearish pattern at the highs and although we are in a bullish commodity run I am still looking for a pulback in GOLD to the $860 area of support. Also lets see if Oil decides to take another go at $100.