The broader market continues to set new highs with small cap stocks and financials bullishly leading the way. While the bearish materials sector is creating some drag on the market, it is not enough to chase investors out of the most bullish sectors of the market. I continue to focus on the bullish side of the market until some sort of technical topping is seen other than short term overbought.
From a trade standpoint, BAC and FCX are polar opposites. BAC is up nicely, bouncing off its 7 day moving average and pushing higher. After holding the $12 level on Friday, all signs point higher for the stock. FCX is not so nice. It has weakened down to its bottom bollinger band and trades below the 7 day moving average. For now, breaking my rules on FCX is not paying off but I continue to hold. I am still targeting the $38 price level and I expect other trades to make up for the FCX loss until FCX turns around.
In regards to other trades, I entered GOOG on the open this morning. The stock is setting a new 52 week high and with stock futures and goog trading fractionally higher in the premarket, GOOG was a safe bet to push up to the $800 level. I expect GOOG to break above $810 and depending on the price action, I will look to take profits there. GOOG and BAC are responsible for a small growth in account value today as they are overcoming the loss of FCX.