Market and Stock Picks Updates – NTAP, CRM, VQ, CTSH
The S&P 500 pulled off the break through 1100 but did so on lower volume which leaves me once again scratching my head. This whole rally has been lower volume; where is the confirmation?
More strong earnings are lined up for this week and the market is technically overbought at this time. That may not matter though as conventional wisdom is thrown out the window. The daily price volatility will continue to make heads spin.
For me personally I am sitting in 100% cash and am not participating even though several of my stocks from last week’s post, 7 Great Stocks Ready to Run if the Market Moves Up, hit their buy points. I have full analysis for the bulls participating below.
Last piece to note is that over the weekend it was announced that BP’s CEO, Tony Hayward, is being removed from his post. Now he will have lots of time to yacht race. Not sure if you are aware Tony, but there are millions of gallons of oil in the gulf of Mexico. You might want to avoid that while you are racing at sea. Just letting you know…
S&P 500 (SPX) – Breaking the 1100 mark but done on lower volume which continues to be the story for up days recently. Technically we should move higher but I would pursue this rally with extreme caution.
Netapp Inc (NTAP) – Nice breakout through $42 on good volume. Stops at $40.50. Let’s see what happens.
Salesforce.com Inc (CRM) – Nice breakout through my buypoint of $96.50. Stops as tight as $95 for now. Note the strong volume.
Venoco (VQ) – This kind of price action is very tricky and tough to play. First the stock broke out through my $19 buypoint and then reversed itself on heavy volume to close in the red. The next day though (alongside the market) it jumps and runs. Discipline would have had me selling this on the reversal. It happens.
Cognizant Technology Solutions (CTSH) – Nice break through my buypoint of $55 and nice volume to compliment it. Stops can be placed as tight as $53.50. Keep in mind earnings are due out next Tuesday August 3rd.
Stay frosty out there 
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