Wednesday, October 27, 2010

Here we go again... Amazing momentum in Tech (SMH QQQQ)

Its becoming a common practice to open lower and recover to close either unchanged or even higher (in case of QQQQ). The strength in technology is just amazing. The charts speak for themselves, just look at SMH XLK QQQQ. SMH broke out today making new highs. Key stocks to watch in that sectors - LRCX KLAC BRCM and so many others. Until stocks like PCLN CMG FFIV BIDU AMZN RVBD and many more hot ones that are just heading higher no matter what break down hard, this market seems to be wanting to touch the previous highs (in case of $SPX that comes out to be 1220)... $NDX is already officially making new highs.

Unless something changes soon, this market is setting up to make a parabolic move higher. The catalysts that I will be watching in the near future that can actually change the character of this market are the Fed's meeting announcement and the Employment report. Past these two major events and the election, we will get a clear idea of where this market wants to go. But the trick is it will be too late to take positions by then. So, the best bet is to play put spreads and not be a hero. I am cashing out on my trades every morning and sometimes get back in if I get lucky or just stay on the sideline. This is a traders market.

Tech stocks: NETL MRVL ATHR INTC MSFT ARUN SIMG LLNW CTXS VMW NTAP RHT DRIV CAVM ODFL CRM ILMN NTGR EQIX FFIV RVBD AKAM RFMD CREE BCSI ARMH IACI TQNT QLGC SYNA AEHR CSCD FORM STEC QTM XRTX WDC STX ANAD WFR KLAC LRCX BRCM QCOM JNPR HPQ IBM CTSH INFY CRUS FCS TXN NSM CSCO ACN NVDA ORCL ADBE VRSN RIMM AAPL BIDU PCLN TZOO EXPE INFN DELL YHOO EBAY GRMN GOOG SNE AMD XLNX ADSK SNDK ASML LLTC

Others: SGG JO UTA BIIB CSTR