Going higher? Futures point to a more upside

The market's ability to cut its losses in the final hour of trading and this morning's semi-positive jobs report point to a positive trading day. The markets are all still making higher highs and higher lows so until proven otherwise it looks like we are pushing forward. As long as people continue to anxiously wait for a pullback stocks could head higher.

Some stocks on my radar are: FCX (again the stock fell down yesterday would have been a great buy opportunity but may not continue the pullback)and possibly some bio-pharma and healthcare picks... Probably won't add any new positions today unless we have some sort of mild pullback that doesn't violate any supports.

Major indexes cross 200 day moving average

In recent days there has been a lot of chatter about the indexes crossing thier 200 day moving averages. Technicians believe that there is much less resitance going up further then there is for a significant down move as the charts stand. As I am not soley a techincal trader, I will not make my trading decisions based only on these techincal signals. But I will remain aware of the signals when cosidering a play.

The biggest thing I am looking at right now is how big the retracement should be from the 400 point up move on the dow we saw since last Thursday. I would be comftorble with a 50% retracement before we continue higher. I suspect that we may enter a trading range soon, but this is pure speculation. If we do retrace more than the 50% I my become more nervouse for a bigger down move, as this would take us back below the 200 day moving average.

I guess we will see.

Does the Market still have room for another leg up?

Stocks gained 4.1 % during the month of May. And since the March lows we have rallied about 38% off of our lows. The question is, does the market still have enough going power to continue higher before a really healthy pull back. The price action between the Bulls and Bears is becoming less and less directionless, leaving us in a range bound market. But according to the technicians we have not quite violated the uptrend. But Many market participants still anticipate healthy pull back before the market can continue higher. Others believe that there is too much money sitting on the sidelines that will keep the market higher into the summers ans money managers chase performance. What about the "Sell and May and go Away", it may be a bit more active this summer than historically so. Only time will tell. I personally think that this rally may still have some steam to go higher if the Dow can stay above 8200, but then again I am no fortune teller.

On this very topic, a blog that I follow discusses the current market actions vs a previous time in history. Here is the discussion:

"A little comparison between today and 1938. The market rallied 50% off it’s lows before pulling back 14% and then continuing higher. Currently we’ve rallied about 38% off the lows. Maybe we have one last upleg before the pullback that everyone on Wall Street is waiting for?"