Market Update

So far a lot of the stocks I have been watching are making the run, DDD, NFLX, PCLN and many more, I've been splitting my time between the market and these stocks and setting price alerts.

What we have this morning is a good old fashioned short squeeze, take a look...

 This is the QQQ 1 min and below yesterday's close it's acting normally like a stock on a gap fill mission, it rallies and pulls back and rallies, higher highs/higher lows, normal market action. As soon as price crosses yesterday's close there's a near diagonal line with no pullbacks and no pronounced volume, the HALLMARKS OF A SHORT SQUEEZE.

 You see the same in the SPY which has an intraday chart that has been in line, you'll notice that averages or the average SPY has this in line chart so far because it is close enough that it is possible for it to make a new breakout move like the Q's or the Russell 2000 already did.

However, even though the Q's and IWM are both showing the same short squeeze behavior, they are not showing in line signals as they've already made it through to the new high.

More recent intraday charts look like at least a consolidation is coming, they may be running out of shorts to squeeze which is another part of the head fake concept, Wall St. can't make money trading on the same side as retail, the Goldman Sachs USD/JPY short call I featured last night is a perfect example of that.

The DIA is not within reasonable distance of making that new breakout high and the chart here doesn't look like they are even trying for that reason.

The TICK chart is hitting +1000, which is respectable, but it's not +1500 where there's a real imbalance of stocks moving higher, this looks and feels exactly like a short squeeze, it started at the right place (yesterday's close).

I'm going to try to spend a little more time on market analysis as the market is responsible for about 65% of any given stock's directionality, so where the market goes, stocks follow. This is a point I make often, most traders have it backwards and look pick a stock and then watch the market, since the market has more influence they should analyze the market and the Industry groups first, then pick a stock.