Markets Stage A Big Rally On Very Heavy Volume. Most Markets Close Near Their HOD's.

The SP600 was up 2.1%, Nasdaq 1.4%, and the SP500 up 1% for the day. Volume came in much higher than the day before and well above all the indexes 50 day volume average. The markets rallied with great breadth also, with the NYSE having a positive ratio of 3 to 1 and the Nasdaq with positive ratio of 5 to 2. The above indexes have also now all crossed their 50 day moving averages to the upside. Reversing a trend of the previous two months when the indexes would fail at that key line. Also the downtrend line on the Nasdaq chart connecting the tops of the past 3 months has been broken to the upside. Overall a very BUSY and bullish day.

I would prefer to see some nice consolidation right now before further upside. That would help set up some properly formed and pretty bases that would help power a stocks launch. But a coninued move up would be wonderful too as there are plenty of current longs that are breaking out or about ready to again.

Days like today can make a traders year. My year was made today! This is the reason you buy great stocks breaking out of great bases in strong sectors no matter how bearish the crowd is.

Another thing about GDP. GDP has been growing at over 3% for the past 10 quarters in a row. That is extremely strong considering how we just went through a recession. Dont foget, right after the tax cuts in 2003, GDP was 8% higher than the year before. That along with 10 quarters of 3% higher growth is very bullish for the economy and I am not sure why people stress the deficit over the GDP growth. The deficit is very important and we need to get spending under control cause it is out of control. But the current GDP growth we are seeing along with the great earnings show that this economy is strong. How the media likes to scare people out of buying stocks. Even I hate the current spending by the administration but that has nothing to do RIGHT NOW in the stock market. The GDP is way more important.

Silly bears, bearishness is for GWB haters. If you bears could stop hating the President for a little while and instead focus on the facts of the stock market-Tech, Financial Firms, Insurance, and Biotech/Medical stocks leading-you might have been long for the advance also. When these sectors show leadership at the same time that can make for a very powerful rally. I am not sure why or how you could be bearish, after today, if you were bearish still the past week. Remember I was a bear when we were going down but now we are going up. So why fight the trend? Especially when you have all these stocks breaking out and making good moves.

Bottom line: I have never met a "rich" bear.

New Swing Longs: AMED NNDS MOT PNRA HXM CNXT BCO KFRC IDCC Q MPS DB MU BNT TGS LQU ABMC

Longs Outperforming Market(stocks with % show the price performance since initial entry): NDAQ-247% BOOM-245% PRLS-226% ASF-172% BTUI-86% VRTX-80% BBSI-58% ESLR-36% AAPL-36% MESA-34% ACR-33% LLC-31% OXPS-28% FCN SMTS MDCC GOL WOOF SUPX STJ KG CNQR ADSK SIGI CPSI BBBB NWRE OXM FAST HITK MRGE MNST KEX WSTC CTXS RLI TRAD IINT RBAK IVIL LRCX IT PGR RVSN SYNT

New Swing Shorts: NONE

Shorts Outperforming Market: NONE