With the powerful reversal off the $SPY 200 day and then the comeback after the reversal day I am ready to go long. The European Union headline risk was hanging over the market causing a lot of uncertainty and confusion but with the loan to the Spanish banks approved much of this will subside. The last problem on the plate is the Greek elections. For now it appears that the EU has done what is needed to keep the markets going, while an endgame my eventually emerge for this debt strapped area it looks like the bulls will be freed up to run more for the time being. As I write this the futures are gearing up for a big up side. This appears to be a new short term trend leading up to the Greek elections.

My favorite way to play this? I will be long Apple on a break out of its current price base and above its 50 day moving average that holds. This is where earnings are still flowing. It is still #6 on the IBD 50. It is showing a Accumulation/Distribution on IBD of D which could be taken as a contrarian indicator that the main sellers are already out. I will sell on a close below the 50 day, if a trend emerges I will trail it with the 5 day ema or 10 day sma which ever emerges as end of day support. (Currently the 10 day sma is acting as resistance and support).

I also like the charts of $CMG as a break out above the 50 day, $MNST is an excellent chart, $LULU is a great buy at the 200 day, $SHW is an amazing chart (Thanks to Steve Lee for the find even before it was on the IBD 50), and $PETM is shaping up to be a monster stock.

For the moment the world markets have been saved we can wade back into the waters being long with proper position sizing and risk management and see if the center holds.