The Wrap for 11/28/12 New Set Ups

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Round and round we go and where we stop nobody knows.  We had a dismal open, but then a very nice afternoon, as the S&P rallied from the lows of 1385 to a close of around 1410, so a solid 25 handles from bottom to top.

Boehner came out with some happy talk (not really, he just did say anything bad) and Obama followed with rhetoric that was obviously interpreted as a positive by the market.  Both sides at this point are just trying not to lose the game at this point.  I think these brainiacs saw what Harry Reid did to the tape yesterday and they were both trying to walk some of that back.

Regardless, the market acted well, and we all want to know if we can get a follow through day tomorrow. The SPY put in a bullish engulfing candle today which is very bullish, (but only if there is a follow through tomorrow). Many get excited about this pattern only to be disappointed the following day, as the second day is really the confirmation and validation of that bullish candle.

We had some names trigger today: HTZ, RAX, AMCC, and TIF

Please check the P&L tonight as I have added new names and have adjusted stops.

SNTS- buy 10.10 level

CFNL- buy between 14.80-15.20

CLF- 29.25-30  This is a very oversold stock, but the candle that it put in today may have been a bottoming candle (dragonfly doji) to be technical. Buy the range and adhere to the stop.

CRUS- buy between 30.30-31.20

What is a bullish engulfing candle? Here you go.

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