This amazing QQQQ short term up-trend reached its 54th day on Monday. While some recent up-trends have lasted as long as 80 days, we need to remember that the most recent prior up-trend lasted 51 days. The intervening down-trend lasted only 2 days. So, while the longer term trends are intact I remain cautious and am maintaining tight sell stops on my long positions. I do not know what will propel this market higher in the short term once most 4th quarter earnings have been released. Stocks usually are driven higher by expectations of higher earnings.
Below is a stock that came up in my scan last night. It will report earnings today. It has already doubled since the end of May and it came public in July, 2009. MDSO is in the business of healthcare information technology. It has good fundamentals, with an ROE of 42.49% and last quarterly earnings were up 201%. 71% of its shares are held by institutions and 3.4% of its float is currently sold short. MDSO has an IBD composite rating of 87. MDSO is an RWB rocket stock that came up on my TC2007 scan because it has bounced off of support after being oversold. It will be interesting to see how it reacts today to earnings.
