It’s no mystery that the market’s been in melt-up mode lately. Through the first several weeks of the new year, the bears were warning that the lack of further progress was sure proof that the buyers had run out of juice, and it was only a matter of time before stock simply fell apart under their own weight. What they didn’t seem to take into account was the fact that the sideways action was giving the market time to digest the big gains from early December, the media blamed the upside acceleration on hints about an imminent tax plan from the new administration, but the simple fact is that the broader technical profile supported further gains, and that’s exactly what we got.
At this point, there’s no question that the indices are extended and need another rest. Naturally, there simply aren’t many charts out there right now that aren’t super-extended. The challenge right now is finding new names, but we continue to dig as we look for the next opportunities.
Let’s take a look at some charts:
Amazon.com, Inc. (NASDAQ:AMZN)
Dominion Diamond Corp (NYSE:DDC)
Boyd Gaming Corporation (NYSE:BYD)
Star Bulk Carriers Corp. (NASDAQ:SBLK)
At the time of this post, RevShark had no position in any of the stocks mentioned.