The Market. The new highs on Nasdaq were also disappointing with only 36 new highs vs. 57 just yesterday.

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1 Page 1 Page 3 Page 6 Page 7 Page 8 The Market: More Upside at Week's End New Ideas: VOD, NUGT, IBM Updates: GOOG, BIDU, CLF, CRUS, LINKD Today s Indicator Reader Feedback & Questions: CNK, CRM, EA The Market Early this morning, my call for a rally later in the week was looking awfully dicey. In fact it was looking as though I was going to be dead wrong. But then the market saved itself at the 200-day moving average, when congressmen came out and said something nice. Now the question is: Will there be any follow through to the upside? I lean toward believing there will be. The market will not be at a maximum overbought reading until early next week. I have one indicator that says the day will be Friday; one that says Monday; and one that says Tuesday. So I will hedge my forecast here by noting that it should run out of steam on the upside sometime in that three-day period. There were some positive factors in today's action and some negative ones. I want to note the negatives first, because if they are not corrected by the time we are maximum overbought, it puts much more weight on the overbought reading than if they are corrected. The main statistic I am focused on is the new highs. Last week there were 108 stocks at new highs on the New York Stock Exchange when the S&P 500 was up here at 1409, as it is now. Today there were only 92. If the index goes over 1409 in the next two days, it's possible this number will correct itself, and then the overbought reading would probably not be as severe as it would be if we don't see an increase in new highs. The new highs on Nasdaq were also disappointing with only 36 new highs vs. 57 just yesterday. The other factor that is somewhat bothersome is that the Index put/call ratio fell back under 100% today. It had been tracking to the upside all day, as was the total put/call ratio, but in the end it fell down. I would prefer to see it higher as it was early in the morning. (Continued on the next page) PLEASE SEE IMPORTANT LEGAL DISCLAIMER ON LAST PAGE

2 On the positive side, it is possible the oscillator will make a higher high. I did not expect that. We'll monitor it. If it does occur we'll discuss the implications in full. For now, I will just stick with the view that there should be some more upside into the end of the week. Everyone will have their eyes on the 50-day moving average around But our measured target you might recall is closer to 1430-ish, so for now we'll couch it in there, , if it can manage to get through these highs at (For a look at the latest RealMoney column, click here.) 2

3 New Ideas As you can see from the Feedback section these last few days, someone keeps asking about the phone stocks. They have not asked about Vodafone (VOD). But since I was looking at the phone stocks, I took a look at this chart and thought, now there's a stock that is oversold and ripe for a bounce. I can see this getting to that $26-$26.50 area if it gets into that gap over The stop is $25, but you should lift it if it gets over $ Shares closed Wednesday at $ (Continued on the next page) 3

4 As you know, I have been lukewarm on gold for some time now. I am still pretty lukewarm on it. But the action in the stocks was impressive today. The Direxion Daily Gold Miners Bull 3X Shares ETF (NUGT) had a terrific comeback to close green on the day while gold itself languished at the lows. If NUGT can stay over today's low at $11, that would be impressive. It's an uphill battle to get through $13 and then to the next resistance at $14, but the first step is holding over $11. I don't intend to follow this up; it was just a discussion on gold/gold stocks. Let me know if you want a follow-up. Shares ended Wednesday at $ (Continued on the next page) 4

5 When we looked at IBM (IBM) recently, I said I thought it would likely trade between $190 and $200 for quite some time. I was wrong because it fell to $185 but it did zip right back up over $190. There is a lot of resistance overhead but if it can stay over $190 then it has a chance at trying for $195-$198 again. But it needs follow through from today's bounce. Shares closed Wednesday at $

6 Updates (Based on reader feedback, I m going to try to keep a list of all the stocks mentioned in New Ideas, accompanied with stops and targets. As always, feel free to me with any questions.) Ticker Support Resistance Comment GOOG (long) $675 and $680 $690-ish Support was raised. BIDU (long) CLF (long) $94 $98-$100 Respect the stop. If it gets over $97, raise the stop $29.75 $32 & $34 You were stopped out, but if the stock can recapture $30, it would be due for a bounce. CRUS (long) $30 $34 and $36 * * * LNKD (short) $104 $109 & $110 It did not give you the chance to short it yet. You want to do it at $109. The stop is $110. 6

7 Today s Indicator The Volume Indicator is still heading up. It is not yet overbought. * * * (For an explanation of the methodology I use for TheStreet, Inc. s Top Stocks newsletter, please click here.) 7

8 Reader Feedback and Questions TheStreet's Top Stocks is intended to provide technical analysis and opinions about stocks and markets. Helene welcomes your questions about TheStreet's Top Stocks and her charting strategy and techniques. Please send an directly to Helene with your questions. However, please remember that TheStreet's Top Stocks is not intended to provide personalized investment advice. Do not Helene seeking personalized investment advice, which she cannot provide. Cinemark (CNK) has been a terrific stock and might continue to be one. There is a measured target around $27, so it would not be surprising if the stock ekes out a higher high just over $27 and moves sideways to digest the gains. You should only become concerned if it breaks under $25. Shares closed Wednesday at $ (Continued on the next page) 8

9 The question on salesforce.com (CRM) is whether $165 is a breakout. I do not think it is. The breakout would be over that line around $160, and if the stock gets over that line, it would probably stop around $165, pull back, and test the line. If it manages to enjoy a real breakout, its next target would eventually be -- gulp -- $180. Shares ended Wednesday at $ (Continued on the next page) 9

10 While Electronic Arts (EA) has resistance all the way up, you cannot fault the breakout. The only fault I can find right now is that the stock hasn't had a rest or pause the whole time it has moved up. Let's just do a measured target of the base. That is around $16, and if you glance at the chart readings from March and April, you can see that is an area of some resistance. Longer term, it might measure to $17 so let's call the target $16-$17. A pullback next week toward $14 to test the line would be welcome. Shares ended Wednesday at $

11 Contact Information Customer Service: Please or call TSCM (8726) Mon. Fri. 8 a.m. to 6 p.m. ET; or outside the U.S. and in Canada, call Reader Feedback and Questions: Please send an directly to Helene. Again, please direct all account-related inquiries to customer service. Legal Information Please see the Terms of Use. 11