Friday, February 17, 2006

Markets End The Week With A Pullback On Lower Volume

Markets pulled back across the board, as traders took profits before the long weekend on an option expiration Friday. The Nasdaq fell .5%, SP 500 .2%, and the SP 600 and DOW less than .1%. Volume came in lower than the day before which is basically a positive for the markets after the previous gains following the Dow's follow through.

The markets are still acting quite healthy, overall, with all the major indexes trading above their 50 day moving average.

Leading stocks are also doing really well, to go along with the positive action in the indexes. The few stocks that broke hard did so on earnings and so many other stocks remained in solid uptrends that more gains seem plausible.

If you know how to pick the right growth stocks this past week was pretty good and gave some relief to the underfperforming markets of the previous three weeks.

As IBD said this weekend, growth investors have had a wonderful past two years while the markets have basically returned modest gains.

That is the power of following histories biggest winners and just repeating the same technique over and over. While people try to bottom fish, guess on earnings, short a strong stock, and invest in yesterday's winners like DELL INTC CSCO and MSFT, traders who follow the CANSLIM method or something similar WILL ALWAYS OUTPERFORM THE REST.

Earnings season is almost over and so the violent stock reactions that muck up the charts should be abating. We shall see what Tuesday brings.

I hope everyone had a great Presidents Day Weekend and spent some time with your family or friends.

My personal thank you to President Washington, President Lincoln, President Truman, and President Reagan for everything they did to make The United States of America the greatest nation on Earth. And don't think you will ever convince me any other way. Too many people have tried and they all have and will fail in the future.

New Swing Longs: IDEV CCUR ARBA VTRU

New Swing Shorts: NONE

Longs Outperforming Market: ERS-123% XRTX-35% SCHK-28% ATHR-70% MDCC-42% TRO FFIV PNRG PETS-140% GOL-76% ARS-37% IHS-32% LDSH-42% STX-29% RVSN-35% NGPS ASF-177% ASVI-26% COGO GMXR-207% MORN KEX KNXA-30% CBG-87% MSCC-69% NVDA-58% CKCM CHE KLIC-39% JBL RAIL-60% RUSHA NNDS MEK SPWR-38% QCC FWLT-70% IKAN-46% ITRN DRH SXC LJPC TGB GNBT NAK OPLK DEZ-108% ANAD-103% JDSU-27% NVAX CUP STXN-53% EDS IT RSTI-26% Q-36% MERX CMPX BGO KNOL ING ICGE HSP-32% STD SMDI-62% PKE BLD KDN PPCO-30% HPOL HEIA LTRX-35% FC ZVXI

Shorts Outperforming Market: NONE

Stocks On Radar Screen: CTRP HEB DXCM

17 comments:

Anonymous said...

Josh,

you somteimes mention that you monitor chatrooms to get a feel for the mkt...would you mind sharing a few that u are in or monitor? thx

paul

Joshua_NControl said...

I monitor multiple rooms to guage sentiment. The two best to guage sentiment are both on mIRC. One is on Othernet the other is on Financialnet. To remain politically correct I will not....lol, yeah right. It is #activetrader on Financialnet and #daytraders on Othernet.

Enjoy watching the sheep trade!

These rooms are hilarious.

If you want to go to a room with great traders and see me online in realtime sometimes, go to #stockmarket on Othernet.

I am StraightFlush, RoyalFlush, NControl, and JNC.

Anonymous said...

identity crisis josh?

Joshua_NControl said...

LOL. Not usually, but when I am in those rooms, YES! LOL.

Have a great day!

Market Speculator said...

My man, whats up bud? Sun getting to you???

Looking forward to your commentary...

Joshua_NControl said...

If this was a paid site, it would be updated right after market close.

However, this is free and fun for me.

I celebrated my 27th birthday this weekend and my girlfriend's (who I am practicly married to) grandma turned 75 the day after.

That along with the President Day weekend was the reason for the delay.

Family is more important than this blog.

My three day weekend was fun fun fun. I hope everyone else only had as much fun as me.

And I got to surf all day today and watch whales.

Not a bad day at all!

Anonymous said...

Hey, Josh, thoughts on the news about TRAD and the naked shorting investigation going on now? How does something like this affect a stock normally? Is this no big deal or something to run from? Thanks.

Joshua_NControl said...

News is news. We can worry and be scared about any news story, if we want to be. Think about the current market and the CNN morons feeding you that dribble they call news.

Unless it shows up on the charts, it should be ignored. The chart will tell you if this is something to worry about.

I ignore all news events. They are junk. The charts will have you in or out of a stock and will know the news before you EVER hear it.

Don't be so cocky and ever think you know more about the stock market than the market knows about itself.

That was a rhetorical comment.

Naked shorts. LOL. Ignore it.

TRAD: the current chart is showing what could turn out to be churning. If the stock breaks through the 50 dma you should definitely do some selling. If you have a 40% gain or more on this stock, hopefully you have already locked in some profits. If you have not, you should.

Anonymous said...

You never mentioned your birthday over the weekend! Happy birthday mate!!! Glad to hear you had a great weekend, keep up the great work with the blog :-).

- WC

Market Speculator said...

Josh...happy birthday bro...

Glad you were able to enjoy the best of Maui!

Thoughts on TSTA?

How does the "practically wife" think about you getting up a the crack a** of dawn to trade?

Joshua_NControl said...

Thank you very much, WC and market. I think I was rambling on about other stuff and just plain forgot.

She doesn't mind at all because I dont watch the market intraday normally. I am never awake when the bell opens.

I am an EOD trader that does ALL work after hours. I dont make any trades during the day, unless limit orders are filled.

Intraday, there are so many violent reversals that shakeout traders on small caps that if I watched intraday I could go nuts.

EOD is the way to go. Trading intraday is dangerous, for my method.

Right now, I am awake for a bathroom break...time to go back to bed.

Aloha

Anonymous said...

Is SOMX showing a high, tight flag pattern according to William O'Neill? I've been trying to improve my chart reading and wondered about this when I saw this stock. Thanks.

Anonymous said...

thoughts on HOM?

Joshua_NControl said...

SOMX: Yes. It is building either a high tight flag or you could just call it a flat base after a run up. Why not a high tight flag outright? Because this is a new issue and it has not come out of a "real" base yet. The early base is from a period of no prior price history. So you can call it either way. Flat base or high tight flag.

HOM: LOL. Still in a base.

Joshua_NControl said...

re SOMX: To be honest after looking a bit harder, I dont think I would call it a high tight flag because this base is wider than the first base it ran up from. TEchnically for this to be a high tight flag it should be basing between the 20-21 range. It has come outside of that and does not look symetrically correct when compared to the first base.

Anonymous said...

Not sure I like HOM is acting around its 50dma...

Thoughts

Joshua_NControl said...

HOM is making a base. It looks fine to me. Until it cracks either way, I don't know. I can not predict the future.

There are some tiny things I dont like about it but overall it is acting quite well. This base could keep building for another 5 months. We dont know. Just keep watching it and move on.