Last Year's Favorites Retake the Lead

It has been a while since we have had a day like this, when traders are chasing the momentum favorites from last year.

Stocks such as Baidu (BIDU - commentary - Cramer's Take), Google (GOOG - commentary - Cramer's Take), First Solar (FSLR - commentary - Cramer's Take), Las Vegas Sands (LVS - commentary - Cramer's Take), MasterCard (MA - commentary - Cramer's Take), Research In Motion (RIMM - commentary - Cramer's Take), Wynn Resorts (WYNN - commentary - Cramer's Take), Apple (AAPL - commentary - Cramer's Take), Guess? (GES - commentary - Cramer's Take), Amazon (AMZN - commentary - Cramer's Take) and so on are leading the charge today. Breadth is quite good, but volume is down quite a bit.

I run various scans of the market, looking for things that have good relative strength and are up on increased volume. I'm surprised that there aren't more stocks meeting my criteria today, given the point move and breadth, but it seems to primarily be a function of lower volume.

I've added a few longs today, but I'm struggling with the flu once again. I've learned in the past that trying to trade when you aren't feeling well can lead to mistakes, so I'm taking it easy.

The indices have technical setups that support further upside, so I'm not going to be too quick to look for shorts at this point. I suspect that now that we've had two big days in a row, performance anxiety is going to kick in, and that may hold us up for a while as folks scramble for some long exposure.

At the time of publications, De Porre had no positions in stocks mentioned.

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James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.