After a long holiday weekend filled with constant coverage of the mess in Europe, I thought for sure the market was headed south this morning. However, as is usually the case when I think the market HAS to do something, it did exactly the opposite. All three averages shot higher in increased volume.
Every stock on the Sector Leaders list was up except for ALXN. ALGN and TDG were the only two with increased volume though.
There was some pretty significant action among my IBD 50 Watchlist stocks today. TSCO dropped 7% in very heavy volume slicing through its 50 day moving average. This will almost definitely ruin the base it had been building. On the other side, CRUS broke out in volume. Today was not a follow through day, so this isn’t a buying opportunity, but it’s always nice to see stocks on the watch list break out.
I’ve been noticing that a lot of the bases forming right now are square box and flat bases and not cup with handle or saucer bases. I have been interpreting that to mean that this correction has been neither long enough or steep enough. I still look for things to get worse before they get better.
I have also begun following FB just because I think the whole thing is hysterical. It was down almost 10% again today. I wish I could say I feel bad for people who got suckered into buying it, but I don’t. They took a stupid risk and it went against them.