Tuesday, April 01, 2014

Market and Leading Growth Stocks Surge Over 1% in Higher Volume Confirming Rally Attempt

For the second day in a row, the Nasdaq gapped and closed up over one percent in higher volume, while the Standard and Poor's 500 and New York Stock Exchange closed at new all time highs, further confirming the recent rally attempt.

Leading growth stocks out performed for the second straight day, following through to fifty two week highs and bouncing off major moving averages in higher volume. New setups develop daily and intra day market shake outs have had little effect and are over come by the close with ease, closing at the highs of the day. ARM Holdings (ARMH) and US Silica Holdings (SLCA) followed through on yesterday's breakouts, and Zulily Inc (ZU), YY (YY), and Taser International (TASR) bounced off their fifty day moving averages.

The past two days have left no doubt that the market rally attempt is for real,  leading growth stocks are breaking out, bouncing off major moving averages, following through in above average volume, and holding firm during any shakeout attempts. Traders should be out of all short positions and accumulating long positions, especially during intra-day shakeout attempts.

TRADING IDEAS

Insys Therapeutics (INSY) more then doubled in price, in less then two months, after bouncing off the fifty day moving average at the beginning of the year. The stock has spent the past five week consolidating into the fifty day moving average in lower volume. A breakout attempt above the recent down trend could propel the stock back to fifty two week highs.



Taser International (TASR) more then tripled in price since breaking out of a first stage, cup and handle base in October 2012. The stock has spend the last six months consolidating sideways, forming a flat base pullback to the fifty day moving average, on top of another flat base. Today, the stock bounced off the fifty day moving average and pullback to the down trend line the stock broke above March 25th in heavy volume, and still within a buy able range.



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