Weak Empire State manufacturing and consumer sentiment numbers are being greeted positively as hope grows that the bad news will prompt the Federal Reserve to roll out QE3 soon. The G-20 nations have already promised to take coordinated action to deal with Greece, and the U.K. is doing the same to boost its economy, so why wouldn't the Fed join the money-printing party as well?
Nothing has driven this market more in the last few years than central bank action, and we have it in spades right now. The irony is that the worse the economic news, the more the bankers will throw cheap money at it, and there are few places for it to go other than the market.
There's a likelihood of a great amount of volatility next week as the Greek drama plays out, but at the moment, we are riding the liquidity wave.
I'm sticking with my focus on day trading, and I don't have much money at work. One stock I'm buying this morning is MModal (MODL), which provides clinical documentation solutions for hospitals and doctors. It has a solid valuation, but I like the way the chart has had a pickup in volume over the last couple of weeks and is testing highs around $13.10. A move through that level should attract breakout buyers.
Another one on my radar is VirnetX (VHC), which is a play on technology patents. It is volatile but holding up well in a high-level base. I'd like to see a higher-volume move toward the highs before adding there.