Stock market indexes finally rested today, as the indexes sold off early then spent the rest of the day with an upward basing bias. The SP500 was down .2%, Nas. down .7%, SP600 down .5%, and the DOW down .4%. Bredth was 5-3 neg on NYSE and 3-2 neg on Nasdaq. The volume was higher on the SP500/NYSE and lower on the Nasdaq. The higher volume on the SP500 is not a distribution day either. The index closed in the upper half of its intraday range, indicating strong support and finished only down .2%. Overall, the markets enjoyed very healthy pullbacks today.
Pullbacks are what this market needs. It is not healthy to go straight up everyday. These pullbacks help work off the extreme short-term overbought conditions of the market. The profit taking today was healthy and all trends are up. If the selling continues tomorrow, take proper defensive action to lock in partial gains. I don't think anything is out there to stop this trend so stay strong and long till you get a signal to leave this party.
New Swing Longs: ELN RTLX
Longs Outperforming Market: BOOM-313% GMXR-107% BBD-105% ANAD-87% ASGN-86% RES-80% ACR-72% THOR-66% SILCF-48% BNT-44% LMIA-43% MIDD-35% TRAD-34% TFR-28% RTK-26% CTHR CRED SLW STJ CAMP TIII ICTG ELOS MNST CPSI SRCL RADN CKFR OXM CLZR TSCO ROK AKAM NXTP MDCC ASVI AATI ISE RAIL TSCM MRB ERS LCRD AUY ALY ZEUS ACTG PPCO STXN DSGX CDI
New Swing Shorts: AV
Shorts Outperforming Market: NONE
Stocks On Radar Screen: WBMD TS IRBT ASYS MRTN BTM EURO
6 comments:
I just wanted to thank you for publishing this blog; I find it to be an invaluable resource. I am relatively new to active investing and was wondering if you could recommend some other books/resources that you have found useful. I am currently reading some of William O’Neil’s books and I am a daily reader of IBD.
Someday I wish to emulate your lifestyle, Maui is my favorite place in the world. I try to get there at least once every two years. I dream about the sushi at Sansei and the Teriyaki steak at the Okazuya deli in Honokowai.
Thanks again.
Brad M
CMTL, can it recover? Was this thing just way oversold?
It can recover, but I could care less now.
I am out and long gone never to look back. Sold final amount at 25% gain from original entry in March.
CMTL is ugly and I probably wont see that stock for at least another 3 months on my scans.
This is why buying from late bases is dangerous.
Josh, I've just noticed TFSM pulling back again, while IBD gives it a low fundamental rating its sales growth is near 50% over 3 years. Technically the charts is forming a nice tight handle above the left side of its cup back late Sept.
My thinking is this would be a good buy on a break of the 7.75 pivot and its coming out of either 1st or second base. Any comments would be appreciated!
Thanks again for the terrific blog, keep up the good work mate!
TFSM-You are absolutely right about that stock. If that stock can break out above the most recent pivot point on heavy volume it would make a nice long.
I first purchased the stock on Sept. 26, cut the loss on half on 10/17 at -10%, and am holding the rest for a current 11% gain.
Not the best stock but a great longer term chart pattern that could reap big rewards. I expect a double in this stock. But I expect that with all of them.
Hey Brad, Thank you for the very flattering comments. I have to admit, my life is the shizzle. I dont think I would want any differently...
...except I would rather play poker for a living. But maybe that is a fleeting moment. Except the moment is now three years strong and I was dealt my first hand at the age of 4.
Anyways, I will post this weekend a list of all the books I have read that really made a BIG difference in my trading.
I was involved in a major car accident when I was 17 and was bed ridden for about a full six months. Along with that, it ended up taking a whole year to heal my left arm. During that time I purchased and read over 50 books. Along with the other 50+ I have read, I have come to the conclusion I wasted a lot of time reading pure crap. LOL. Less than 15% of my collection is worth anything.
I will this weekend list the books that will help you master trading and master yourself.
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