I've been yammering about V-shaped bounces quite a bit over the past couple days, and the action this morning supports my persistence. Despite disappointing weekly unemployment numbers, the buyers are very active, driving us straight up so far. We have taken out yesterday's highs, and the S&P 500 has moved through resistance at 1374, which is the 50-day simple moving average.
Some are attributing the strength to renewed hope for further quantitative easing after the poor jobs report, while others say it's just anticipation of good earnings reports over the next couple weeks.
Whatever the reason might be, it has resulted in more V-ish action. This sort of movement tends to gain further traction when it come on the heels of a lackluster bounce such as we had yesterday. The inability to gain any traction after the initial gap up yesterday made it look like we might actually see a failed bounce for a change, but now everyone is scrambling to reposition on the sudden vigor, which makes the V-ish move even more V-ish.
I'm trying to add some long exposure, and so far I don't have much new. Some of my favorites like Velti (VELT), Web.com (WWWW), Tangoe (TNGO), Glu Mobile (GLUU) and Clean Energy Fuels (CLNE) continue to bounce but I'm hesitant to add to aggressively at this point. An old favorite, Zoltec (ZOLT), is active on news of a carbon fiber venture by Ford (F), and I'm tracking that for potential continued momentum.
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