Indices continue to power forward with the NDX leading way (up nearly 3% on Friday).  The move was due, mainly, to three of the big tech stocks in the index that came out with strong earnings.  The Russell 2000 (IWM) is in a bull flag pattern.  If the major indices continue to go then small caps should follow.  

Semiconductors continue to lead the market higher as well.  It continues on a powerful uptrend after breaking its base pattern in early September.  

Financials (FAS) had been building a bull flag pattern and last week broke out above that flag and look to be trending higher.  

Biotefchs (LABU, BIB, XBI) have been getting whacked of late.  The have been in a steep down trend since early October.  Much of that drop, I feel, is coming from the negative drug pricing talk coming from Washington.  The trend is still intact but they are at important support area.

Gold is not trending as I thought it would.  The junior miners (JNUG) is trading down at its all time low.  I am staying away from precious metal stocks until gold gives a direction on where this market is going.

Long

AXTI: Semiconductor stock that is trading right up against resistance.  On Friday it broke out of the down trending tops line and traded as high as $9.55 closing at $9.50.  It needs to trade through $9.70 with $11.00 and $12.00 as price targets.  Short ratio, 4.8 days to cover.

CBAY:  Stock is trading right up at overhead resistance and appears to be starting wave 5 of a 5 wave pattern.  It is trading at the bottom of its long term up trending channel but it needs to trade though $9.30 with $10.00, $11.00 and $15.00 as price targets.

CSTM: An aluminum stock that on Thursday broke out of its basing pattern, traded up to $12.45 but closed at the bottom of the range.  When a stock does that, it needs to recover the next day if there is to be any hope.  And this stock did recover trading back up to $12.20 and closing at $12.15.  I would look to go long over $12.45 with $15.00 as the price target.  

DAIO: Major break away move on Friday gapping up above a major base it had been building.  The stock traded as high as $12.14 and closed at $11.98.  It is at a minor resistance level and I would look to go long over $12.15 with $15.00 as a price target.  

HUN:  Super strong chemical stock broke a 12 year quadruple top on Friday.  It traded as high as $31.16 closing at $31.06.  Over Friday's highs and $32.00 and $35.00 are price targets.  Short ratio, 3.1 days to cover.

IRDM:  Strong follow through on Friday breaking through a multiyear multi top level.  Stock traded as high as $12.90 closing at $12.70.  I will look to go long over Friday's high with $14.00 and $16.00 as price targets.  Short ratio, a whopping 35 days to cover.  This could develop into a major short squeeze and add to the momentum.

MNOV:  On Thursday the stock spiked yet closed down on the day.  On Friday, though, it held support at $6.75, traded as high as $7.48 closing at $7.21 on bigger volume than the down day on Thursday.  That is a bullish reversal.  I would look to go long this stock over $7.75 with $8.75 and $9.50 as the price target.  Short ratio, 38.6 days to cover so the shorts could get squeezed in here.

XNET: Stock traded as high as $8.98  but closed down on the day at $7.99.  Last time it had a similar pattern (Monday/Tuesday last week) the next day it took off again.  Ill be watching to see if it does reverse for an entry opportunity.  Price target $9.75.

Shorts

CATM: The more times the stock tests the #23.00 level, the more likely it will trade below it.  Below $23.00 and $20.00 is my price target.

DKS: Terrible long term chart that looks like it is headed lower.  I will be looking for a short entry opportunity with $21.00 as my price target.

FNSR: Stock is in long term down trending channel and forming a bear flag.  When it breaks below the flag $19.00 and $16.00 are price targets.  

PCMI:  Stock continues to form a bear flag, extending a little longer than I would like.  But, a break below the flag pattern and $11.75, $10.00 and $9.00 are price targets.