A Good Day

It was an interesting day of action and, despite some late-day weakness, the bulls had a pretty solid win. Breadth was solidly over 2-to-1 positive with the strongest action coming from some of the high-beat, big-cap names such as PCLN, AAPL, NFLX, BUCY, FFIV and GMCR.

Even though the point gains in the major indices were fairly mild, there was some exceptional momentum to be found under the surface. Some things closed a bit weak as the market became a little nervous this afternoon due to the Fed's Beige Book and President Obama's latest stimulus plan, but dip buyers were sufficiently interested to keep us from doing the big U-turn.

Technically, the S&P 500 failed to recapture the 1100 level at the close, but we are working off the overbought conditions created by last week's big, three-day rally. We still have some substantial overhead looming at 1115 and higher but we are well above the key support at 1082. We can safely call this a trading range right now and whoever takes control is going to determine the trend.

One big positive that I see is good trading in individual stocks. There is obviously some speculative money out there that is chasing the hot action, and that makes for some interesting plays. If there is speculative money out there, then that means that confidence is increasing and that, of course, is bullish.

long NFLX, AAPL