The market closed 2.3% higher on good volume. The SPX broke important resistance around 1085. Advancers beat decliners by 6 to 1, which is highly bullish behavior. We added long positions yesterday now that SPX looks ready to challenge 1130. The close was weak, but the market needed to slowdown eventually. Stocks rallied after positive economic data in both Europe and the U.S. and strong earnings results.
I have said it before and I will say it again, earnings have been great. Although some stocks missed analysts estimates, no one is decreasing guidance. Earnings season is not close to being over, so that may change. In addition to strong corporate earnings, the euro will be another critical factor in the rise of the U.S. market. A falling dollar tends to raise equities. Continued momentum for the euro argues strongly for a continued rally in the market. Tomorrow will be a big day for the currency.
Now that the bulls have 1085 the group will need to keep it.
The Chart of the Day
Portfolio Position Jazz Pharmaceuticals (Nasdaq: JAZZ) finished the day 1.7% higher.
This tiny little biotech could be on the brink of a nice run. We began following the stock ten months ago as it ran from $6 to $13. Shares sank over the past few months, but two very bullish reversal candles in May got us interested in the long side. Members of TradeMaster Daily Stock Alerts' purchased shares a few weeks ago as JAZZ bounced on high volume.
The stock is having difficulties taking out $8.79 price resistance, but it could happen any minute now. JAZZ broke a bull flag pattern a few weeks ago and is finding support above the break-out price. Additionally, RSI has been defended by bulls. Volume has increased over the past couple session and price has stabilized. This could translate into a big move to the upside. If volume picks up as shares take out resistance we should be looking at an $11 stock in the near-term.
The TradeMaster watch list was mostly higher today, similar to the market.
My subscribers were treated to fantastic gains today. Ahead of the open I urged readers to buy energy stocks because oil was going to have a great day. Crude finished 3% higher, but the stocks from this morning's alert finished
Abraxas Corporation (NASDAQ:AXAS) -0.35%
Warren Resources (NASDAQ:WRES) +2.36%
Portfolio Position (XXXX) +3.81%
ChinaWind (NYSEARCA:CWS) -3.6%
Brigham Exploration (BEXP) +5.87%
Portfolio Position (XXX) +7.37%
Venoco (NYSE:VQ) +7.03%