A minor pullback across the board today on good volume, for the indexes. The amount of charts that came up in the scan indicate to me that the high volume was buying power hidden underneath a heavy market because of DELL being down 8%. So this is no distribution day. Another positive, along with the charts (facts not opinions) is the amount of bears still saying this rally is marked up. We will see in time but for now we are going higher and I see plenty of good charts in Biotech, Tech, and Insurance. Those have some stocks with some HOT HOT HOT growth. So I am not sure why the bears are so negative right now but we will see if their prophecies come true. You know what would be the best? If the market goes sideways right here for a while before going up again. That will ensure the bears will overextend themselves and help launch a powerful rally. But just as cool would be to rollover. Unfortunately, the bears are so negative that it makes me sick. So I hope that doesnt happen. Either way, lets play.
With earnings starting to rap-up and all the bears in the chat rooms and message boards it feels like we might have crashed the past week. Instead we are up from then and still above the October lows. Until those lows are broken it is foolish to be bearish when there are so many good charts showing up.
A history lesson: During seven straight hikes by the Fed from 1994 - 1995, while people were very bearish, the SP 500 looked ahead and rallied 54% from Dec 1994 - May 1996. The Nasdaq rallied 61%. It didn't pay for those bears then and when this raps up it probably wont pay for the bears also.
However, we could rollover and all of this is wrong. Hah! LOL! Then it is time to short.
You have to be ready for anything.
New Swing Longs: GOL BAP MNST LOGI RTLX MDCC CPSI ZUMZ RVSN HSKA RTK UBS NMR
Longs Outperforming Market: ASF-160% PRLS-223% NDAQ-203% BRLC-78% ASGN-45% PETS CNVR OXPS EDS CKFR PAYX ESLR BKHM SHOO GES LWSN
New Swing Shorts: RTI
Shorts Outperforming Market: PRAA
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