Well that was a quick Naz break out

The naz will need to regain the potentially historic breakout line quickly for the rally to continue (I know, very complex).  For longer term investors, the 50 week average can be used as your worst case stop loss.  If you want to get cute, sell now as you can always get back in above the line.  The lost profits can be thought of as an insurance policy against giving back a bunch of gains.  The last time the 50 week MA really failed (except for twice in 2010) was the week of 1/4/08.  Remember, from failed moves come fast moves as all the people who piled in expecting the breakout to hold find themselves on the loosing side of the trade.  This is similar to the failed break downs in July 2010 and September 2010, the latter which led to an amazing 30% rally in what used to take 2 years or more.  For more evidence, I look at the nasdaq head honchos (see below).  They make of 42% of the nasdaq 100 and provide clues to what is going on.

And here are the leaders.  Some have already broken the 50 day MA, and one CSCO has already broken down hard on earnings.

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