Mixed volume took all the major market indexes higher, and futures this morning indicate that the a move up and out of the current sideways flag formation that the indexes have formed since January 2 is potentially underway. As we have already identified several actionable buy ideas over recent days, at this point it is a matter of seeing where the trend takes you.
LinkedIn (LNKD) is looking to break out of a cup-with-handle formation this morning on a gap-up move based on pre-open trade. The stock has been holding tight within a three-week handle in anticipation of earnings in early February.
Apple (AAPL) is gapping up about 2% this morning, which may indicate that the "Wyckoffian low" may be in force as yesterday's pullback occurred on the lightest downside volume in the pattern so far. A reflex rally by AAPL, helped along by news this morning of a potential deal to sell the iPhone in China, would be logical within the context of a continued market uptrend - eventually the tide will drag everything along with it.
Regeneron Pharamaceuticals (REGN) has recovered all of Tuesday's gap-down move that took the stock under the 170 price level, briefly, and has in fact moved to a higher-high. This is an example of giving a stock a day or two following a news sell-off to give it time to recover, particularly when the news relates to better-than-expected sales of its flagship drug, Eyelea.
In general we are seeing more breakouts in potential leading stocks as well as a number of constructive bases, such as that seen in LNKD, which adds to the positive tone of the market.