A strong short covering rally from incredibly oversold conditions last week and most stocks surged strongly higher today with gains of $2 to as much as $111 each as was the case with Amazon (AMZN). Stocks like my selection Datadog (DDOG) lifted past the TBA on good volume to close $7 higher as well. Many other stocks noted in the chat room rallied higher into the closing bell. While this is good news for a few of our recent selections many stocks are waiting for earnings and will need more time to develop better bases and patterns to buy.

Let’s begin the charts with a look at two leading indexes.

My short-term trading oscillator lifted from extreme oversold readings and today closed at -1 which is a neutral reading. Since this is neither an overbought or oversold reading we need to keep our ear to the track on where the market decides to trend. This is one of the areas that our chat room can be of enormous benefit.

Now let’s review some charts knowing that the market made a very large move up over the last two sessions so be cautious when making new purchases.

I look forward to seeing you in the chat room on Tuesday and Wednesday and then back here on Wednesday night for an update on the charts.

Daniel J. Zanger