Wednesday, February 11, 2009

Bullish Charts

After yesterday's precipitous drop, today was kind of a snoozer. The S&P 500 finished with an inside day, closing up about 6 points. We're still within the midst of the symmetrical triangle previously mentioned. In the short term keep an eye on the low of yesterday & today (823 ish), as well as about 837 on the SPX. We really need to pierce below 800 for the bears to get the party started.
In addition to the relative strength exhibited in technology recently (AAPL, AMZN, GOOG, etc..), two other stocks that may be worth keeping an eye on are POT and MOS.

POT is in the midst of a short term uptrend above it's 20 and 50 day moving averages and recently formed a higher pivot high. Assuming the market doesn't fall apart, POT will be an interesting stock to watch and see whether or not it develops a clean retracement and bounce off support.

MOS has moved pretty much in lockstep with POT, recently forming a higher pivot high and starting to pullback to a potential support level. Assuming MOS continues it's current pullback it may provide a low risk/reward entry for a bullish play