Written by Patrick McCubbin
Exact Stock Picks
Good Afternoon,
Stocks extended their September rally into a fourth week Monday as investors hoped for more moves by the Federal Reserve to prop up the economy.
Buying accelerated after the Standard & Poor’s 500 index, the market measure most often used by professional traders, broke through the high end of its recent range. Technical analysts see that as a bullish sign for the market.
The Dow Jones industrial average jumped 146 points to its highest close since May. Buyers were also encouraged by an announcement from a group of economists declaring that the most recent recession ended in June 2009.
Nice day in the markets today. Nice day in the portfolio as well.
Anaren Inc (ANEN) was up a nice 5.36% and almost 9% since our entry on 9/7/10. If you recall, we set a resistance level at $15.75. Today this level was tested and held until the end of the session. The only thing we would like to see is more volume. Shares traded today were below average so tomorrow’s action will be very important in determining whether or not we take profits.
DG FastChannel, Inc. (DGIT) also had a nice move today up almost 2%. We are now holding a gain in this stock of over 5%. Another nice move on this stock tomorrow and we should hit our initial target price.
We entered one new position today. We sold short Kensey Nash Corp (KNSY). This stock has been on a 30% run off good earnings and that coupled with a hot overall market made it a good time for entry. Not being able to remain positive on a day like this is also a good indication the run may be over.
The SPX broke and held an important resistance level at 1131. Tomorrow’s trading session will be one of the most important in the last few months. For this market to continue higher, it will be necessary to hold that level tomorrow. Although we are still cautiously bullish, being at the high end of a many month trend does give us slight cause for concern. As we have learned in the past, it only takes one bad apple to spoil the whole darn bunch.
We look forward to the events tomorrow, and we will be ready to take advantage of any and all opportunities. That is what we have been doing, and will continue to do. Have a great evening!
TEN Exclusive: Market Wrap Up – 9/20/2010 is an article from: 
