Technical Picture - Accumulation Day

The markets gapped higher on better than expected initial claims in anticipation of a good jobs report tomorrow. We had broad based buying (accumulation) across most sectors except precious metals which are affected negatively on good jobs data due to higher interest rates. Subsequent downticks in oil off of overnight highs also contributed to the bullish tone. Bullish price action persisted until late afternoon. Small and midcaps outperformed today.

In reviewing my usual suspects charts EOD, I don't see a lot names that hit it out of the park today, the exception being momo stocks which had big Q1 earnings gaps and maintained relative strength throughout the recent pullback. Names such as ARUN, PNRA, TUP, TBL, PCLN...

A weak jobs report could set the tone for some early downticks, however, it's how we close that's more important - how we close the session and the week. I'm not saying that investors will be indifferent to a lousy jobs report, I'm just wondering if today's momentum will carry-over into the end of the week despite a weak jobs report. The bears have made their presence known over the past two weeks and until we make a higher high, I'm still leaning bearish.

ARUN formed a bullish handle at the base of resistance and pushed through to the next resistance by midday.

AGU formed a C&H with a very tight handle for a rally into the close.

JDSU printed NR7 NRIB on the daily. I'll be watching for expansion tomorrow.

Momentum Day Trades - APKT, TUP, WFR, BRCM CCK

TUP - continuation from yesterday's big move.

APKT - Momo earnings gap

CCK - Failed bull flag BO.

WFR - Handle and extension

BRCM was a low risk short. I was looking for an extension to daily support at $42.00. Price formed a long handle at the base of weekly S2 and head faked lower. I covered the short and took it long into the close. Shorts were squeezed when price broke back above $43.00.

Technical Picture - Markets Mixed

The markets gapped down on European debt concerns and made a fast move lower. The Nasdaq and S&P held above support of Friday's lows, while the DOW breached but held 20 EMA. Selling subsided after the first half hour and it was a slow grind after that, with tech and small caps outperforming.

The S&P carved out an inside day, another hanging man, in addition to the two from last week. Momentum has slowed, but supports are holding and the bulls have been persistent in owning close, so the bulls still have the edge. The rounded topping formation over the last week, however, is bearish looking. Rounded tops imply too much supply. Cautious trading as we await the inevitable correction.

HLS was spotted on the Esignal hot list. I placed the Fib. extension tool from PDC to early swing high and back down to retracement low. A very low risk entry at the base. Took a partial near 62% FE and let the rest run to full extension.

Above average volume indicates momentum. Price/volume contraction ahead of expansion gives us confidence in the setup.

AAPL was also a low risk entry after about 45 minutes of coiling.

SPRD was tweeted by GTOTOY and I followed at the next consolidation level - carved out nice handle.

Technical Picture - Follow Through and Base Break-Out

Yesterday stocks held resistance at their 200 SMA, but today's strong start led to a broad based rally with all major sectors participating, climbing past the key technicals to settle at a three week high. Euro strength was the primary catalyst.

FSLR gap and go, followed by a shallow retracement. Wait till it signals it wants to go higher. Partial 50% extension.

CELG bullish flag. Partial at 50% Fib. extension. Stopped out on balance.

INFY (gapper from yesterday) briefly took out ORH, then formed a handle to go long.

Gap B&B - Apple Inc. (Public, NASDAQ:AAPL)

AAPL gapped up yesterday on a huge earnings beat. It took a day and a half to consolidate the wide gap and form a perfect B&B setup this afternoon. Sweet!

CYD formed a bullish handle at resistance. Rally formed a bull flag shortly out of the base, after which it reached full extension of the week's trading range. I'm targeting $25.00 near term if it can hold these gains.

STEC finally succeeded in breaking out of its base, but the trade was choppy to say the least.

QCOM - wide earnings gap but couldn't extend below $39.00.

AMZN rallied ahead of earnings, but at these lofty levels, the whisper numbers were well beyond consensus. AMZN issued an earnings beat of just $0.05 and guided Q2 in line, hence the stock gave back all of the week's gains after hours as depicted on the chart below. I'll be watching to see if the daily trendline gets taken out tomorrow.

Handle - Cephalon, Inc. (Public, NASDAQ:CEPH)

CEPH gapped up, printed a wide, bullish OR, followed by a handle in the upper range. The handle leads to price expansion and a full measured move as measured using the Fibonacci tool from the ORL to the ORH.

REGN was found through the Trade-Ideas scanner using the momentum scan. Again, a small, tight handle with NR7, leads to a full measured move of the last leg up.