The market bounced last week as shorts scrambled to cover and the bulls came out to play. This morning, the futures are opening higher signaling players are still optimistic about the market. The market is a stone throw away from June highs so we may see a consolidation before challenging that level, but stay tuned for when that test comes. In individual stocks we have a variety of different set-ups to look at. GOOG came out with good earnings that were likely priced in, so now we have a nice range in the stock to trade the two-way action. BIDU looks more unpredictable, as it did not show the strength of some other tech stocks recently and looks like a tougher trade. POT looks like it has made a new range, and looks likely to head higher if it is to make a decisive move. It looks hard to initiate long positions in OIH considering its recent move, but pay close attention to new price levels for two-way action. MS again looks compelling above its pivot high and JPM could see a delayed bounce after good earnings last week. GLD looks to be turning back up so we are getting into tier one for the trade. Again, the market may need to digest some of the recent move, but do not be surprised if we soon test June highs.
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