Just Tell ’em Large MRGE Sent Ya!

____________

The healthcare IT space is seeing some impressive price action. However, the real noteworthy aspect of the group’s run up is the heavy buying volume, indicating accumulation by institutions. In the abstract, these plays seem like “can’t miss” opportunities. After all, it is inevitable that medical records will undergo the process of shifting from pen and paper to residing entirely in electronic databases and servers. As usual, though, I will wait for the market to tell me when to start really believing in a fundamental thesis.

In this case, the price action and volume patterns are too strong to ignore. CERN MRGE (Just tell ’em large Marge sent ya!) and QSII are too extended for me to chase right here, right now. MDRX, though, is at the top of my watchlist. With that said, I am watching all four names closely for entries, and would welcome any benign dip or flag to ride alongside the buyers of size who apparently want in badly to the medical records electronic overhaul thesis.

____________

____________

____________

____________

Comments »

Direct Link Click Here

Comments »

Needless to say, I am very impressed with the continued outperformance of the silver to gold miners. With that said, the junior gold miners look ready to break out in their own right. I did a video for 12631 subscribers over the weekend discussing both.

________

________

Comments »

See my notes on the chart.

___________

___________

___________

Comments »

The intraday 5 minute chart of the SPY tells the story of a quiet and orderly session, thus far today. We may be working through a symmetrical triangle as well. Consistent with the work that I did over the weekend, the technology sector continues to lag the rest of the market, as you can see with an intraday chart of the QQQ ETF. However, there are still plenty of other stocks and sectors that appear firm and are worth watching, such as the precious metals miners and several areas inside the industrial/energy complex. I am also on watch for strength in the financials.

While we definitely have some notable fatigue going on after the sharp run up over past few weeks, that is not a good enough reason alone to turn bearish on the broad market.

__________

__________

Comments »

__________

Fresh off their Cricket World Cup win over Sri Lanka, India’s stock market appears set up in the coming weeks and months for another victory. As you can see on the monthly chart of the Bombay Sensex Index below, we are looking at a massive, multi-year cup and handle bullish formation. To be sure, 21,000 is the key level on the upside to watch. On the downside, you’d like to see 17,000 hold as a line in the sand to keep the “cricket” and handle pattern intact, if it even comes to that.  I have also included the charts of several high beta India ADR’s that are worth watching.

As I detailed last evening, the ideas are always flowing inside the 12631 State of the Art Chat Room. Big Hat Tips to 12631 Members: @The Idiot @thewife @spinner for the great India ideas.

__________

__________

__________

__________

Comments »