Happy Monday to you all! Futures are coming out of the gates on a mission, with the Dow, so far up, 54 points, the NASDAQ up 8 points and the S&P up 7 points. Overnight, the Asian markets were up about 1.3% on average while the European markets are currently trading with gains in excess of 1%. On the economic front, we have Retail Sales (8:30am EST), Empire State Manufacturing Survey (8:30) and a report on Business Inventories (10).

With the latest run up that we have seen in the market, I have to admit that I am thoroughly unimpressed by what the bulls have put forth. Reasons for such, is that the volume has been excessively low, there has been noticeable difficulty in the ability of the markets to push through and beyond its previous highs, and just about every important indicator that I follow is showing significant divergences from the action we are getting in price. That doesn’t mean that the markets can’t still continue to demoralize the bears, but the efforts in which they are attempting to do so has been pathetic over the last couple of weeks.

Here are Today’s Trade Setups…


Bullish Candle Setups: VCI

Bearish Candle Setups: K

Stocks Ready to Bounce: SIGM, FLO (some very nice lower shadows on the candles), AMCN, EPR

Stocks Ready to Pullback: None 🙁

Breakout Stocks: URS, CRM, CLF, CPA

Breakdown Stocks: NTRS, EBS, MATW