A better than expected jobs report on Friday sent the market higher before profit taking in the afternoon. Oil rebounded on Friday as well, and a lot of the oil and energy stocks that were breaking down putting in some nice moves.
Both the Dow and the S&P 500 broke out of wedge patterns late last week.
The Dow now sits at the 200 MA. It’ not hard to imagine a pull back occurring here very soon.
There were two stocks (actually three) that broke out from the Watchlist on Friday. The first was GNK, which moved nicely.
The other was BLL. It broke out, but closed slightly lower.
Now I said there were actually three stocks that broke out on Friday. I had this stock on the Watchlist on Thursday night, but removed it Friday morning. I had this as both a long and short pick. It triggered short on Thursday, but closed very strong, and I made the comment that it now looks strong here. I am talking abut BZP, which put it in a huge day on Friday. I caught this one, but didn’t put it in the Past Performance page, since I moved it from the Watchlist.
Another stock I had removed from the Watchlist last week just before it broke out was ITU, it has made an incredible move since.
Lesson: No more ad hoc removal of stocks from the Watchlist. I’m not removing stocks unless they trigger or the pattern is no longer valid.
Friday also provided some nice continuation for a pick that triggered don Thursday. GGB:
By the way, IBD has the following stocks blackboxed for Monday, May 5, 2008:
RIMM, SID, ABB, BBD, DE, BAP
We are of course still in a confirmed rally, which has been impressive, and the market is showing good signs that a bottom is forming. The only thing lacking though it volume. Will volume start coming into the market, or has a bear trap been set? We shall see.
Good luck and good trading!
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