I think we may have seen a bit of rotation into technology stocks today as the NASDAQ had a strong day while the S&P 500 and Dow looked tired. Although the NASDAQ put in a good percentage gain and broke the 1900 barrier I have to point out that it appeared to struggle with its upper Bollinger Band and closed at about the midpoint of its intraday range. Although it’s showing strength I still have to wait for it to cool off a bit before I get interested in the long side. Here’s a chart with the multiple moving averages (MMAs) which shows how the Naz just broke above the long term group of averages:
If I could make the market do my bidding I’d have the NASDAQ pull back and test its middle Bollinger Band before going higher. That would likely give me some better entry points on that list of potential longs I’m watching, as well as give the long term group of MMAs a chance to converge and invert into a bullish formation.
Here’s a chart of the S&P 500 showing today’s shooting star which occurred right at resistance. Not the place to initiate longs…
There’s not much for me to do at this juncture but sit and wait for my scans to find some better opportunities. I’m definitely more interested in longs than shorts since the (intermediate term) trend is up. Maybe the options expiration games will shake things out a bit for me.
I was gonna make another note about TZOO, but MaoXian covered it nicely today. Rest assured it’s nothing but a (huge) short squeeze, and judging by the comments in the Yahoo message board there are more people who want to join in on the pain of shorting that bad boy. I have little doubt that it will ‘come back to earth’ some time but there could be a lot more pain for shorts before that happens. 
