Its a battle!

BUY FUQI $19.28
BUY ARM $4.39

FUQI has been forming a nice pennant over the last few weeks and gapped higher today. Volume looks to be picking up on this breakout as well. I also like this because its involved in the precious metals industry in China as I'm bullish on both the precious metals and the continued growth prospects in China.

ARM moving up nicely along the trendline and looks good to breakout here. I've owned this in the past and its done well for me. If it can close strong today with good volume, I may add to my position.

Markets are non trending and trading relatively sideways these days, normal going into the summer months as trading slows down. This recent rally over the last week or two looks to me like it is forming the right shoulder of a head and shoulders formation. If this rally fails and doesn't make new highs against the early June highs, this market could retest the lows of mid May. So I'm neutral on this market right now, not taking on too many long positions and being very selective in my picks. My stops are tight and if these markets correct or don't make new highs, I will look to scale out of my positions and possibly look to short the broader market.