Don't fight the trend

I monitor around nine chat rooms throughout the day sometimes and have noticed that there are a lot of bullish or people that want the market to be bullish. Stop that. The market is going to do whatever it wants to do. The best thing is to not fight the current downtrend. Keep cash handy for when the turn comes.

Today the indexes all fell on an increase in volume than the day before. The pattern remains the same: days down on heavy volume, days up on low volume. Shorts keep on working really well so I'm not going to change my plan of attack yet. Keeping with the shorting theme here are some daily charts to check out on the short side.

USNA PTR HCSG POS JAKK JPM MO Y CYMI SGTL XRTX SEE CCK KBH USB SIE MDTH TCB

There are many more shorts that are ready to go again but I have mentioned them in my blog before. If you are really curious you can go back over the past week and get some more ideas. Some of the charts I mentioned above I have actually mentioned before. Remember that is a good thing. Not a bad thing.

Longs for tomorrow are a little short but that is the point the market is NOT bullish but two of the charts I mention below are both already up big for me but they are breaking out or bouncing off key moving averages on good volume. Will they continue to work? How do I know. The only thing you can do is have tight cut losses. To be honest you shouldn't be going long anyway in this market if you are newbie.

CVV volume has come into it this month. Some fund/institution has taken a likeing to this stock and is willing to bid it up. After having such quiet action before this month, consistently having activity now while creating a nice rounding base, BOP being very strong, and having this as one of the better acting sectors I have decided to take a speculative position in this stock.

INNO I am long this stock from 1/31/2005. The stock has once again broken out from its base on heavy volume. The BOP on this stock is green and has been maxed to almost maxed out since January. The stock consistently rises on good volume, pulls back on low volume, and keeps its price action tight in its base. I am up over 40% on this and still have not sold a single share. The chart was beautiful before (and at) its first breakout on the 31st and it is still looking good now with its second breakout.

OPMR has pulled back to its 50 dma and is bouncing on strong volume. This is a very pretty chart since its late September rocket move. The breakout to a new high on 1/25/2005 was the first buy opportunity since then it has steadily trended up on high volume, green strong BOP, but has not given a good safe buy since the 25th. Today we got it. Cut loss with a move below 50dma.

Here are some more longs I want to add to if they can make new highs: CNU ICUI TZIX OFIX. Notice three of them are health services. Medical leads in bear markets.

ALOHA.