Even though we just ran an article about the market folling the bearish pattern of 2010, that pattern was busted today with a breakout on the Dow Jones Industrial Average ($INDU).  We are now in “buy ” mode once again and will be looking to get into stocks with good setups, or add to recent Company Invest stock picks.  When the market is at a pivot point you need to be ready to trade both long and short.  The shorts lose for now though.

Current Technical Analysis for the $INDU

The 20 day Relative Stength Index (RSI) is above 50 which is the sign of a healthy, bullish market.  When the RSI is over 50 and the market is trading above its 50 day moving average (which it is now), these are very bullish conditions.

The daily candlestick price chart flashed an extremely bullish signal today.  The powerful 13/34 golden cross.  This signal hasn’t occured since September 10, 2010. If you had bought in then, you would have made 19% before then next sell signal.  This is a good signal!  Also, as earlier mentioned, the 200 day moving average is a granddaddy of health in technical analysis for the stock market.  When this line is sloping upward and the market is trading above it, it is a very bullish environment.

The MACD indicator is well above the zero line, and the MACD bullish cross is still well intact.

Finally, the ADX momentum indicator got a bullish cross three sessions ago and was confirmed the very next day.

RECENT COMPANY INVEST PICKS

Ford Motor Company (F).  This recent Company Invest pick is a dandy right now.  We have rock solid support above the 200 day moving average, and there is a stair step uptrend in place now.  This stock could have a 20%+ move over the next 4-8 weeks.

Darling Intl (DAR).  Looking very bullish was well.  It has already moved up nicely since we suggested it and all indicators are pointing to new highs above $15.50 in this stock.

A-Power Energy Generation (APWR). We suggested this stock a while back and got stopped out with a small loss.  However, there is support at the $4.50 area and this stock is a high beta play with heavy short interest, so it could rocket forward in a hurry.  It’s worth a stab here with a stop below that $4.50 support.

www.companyinvest.com