Thursday, February 16, 2006

Markets Rally; Leaders Starting To Show Their Leadership Again.

Stocks rallied across the board, on Thursday, with the Nasdaq and SP 600 leading. The Nassy and SP 600 was up .8%, SP 500 up .7%, and the DOW up .6%. The Nasdaq's volume was higher than the day before, while the NYSE's volume came in lower. The accumulation day on the Nasdaq is a helpful confirmation of the DJ-30 follow through.

Leading stocks and my portfolio were on fire today. Almost my entire portfolio rose today, without the indexes even rising 1%. I find that not only abnormal but very very positive. I can not remember if I have ever seen my whole portfolio up without the indexes up at least 1%. This tells me I am in the right stocks, once again, if a big rally is starting.

When you hold as many stocks as I do and see them all go up, you can be sure the market is very bullish and the bears are very wrong right here. That along with the IBD 100 up 1.9% shows me that this market could have legs, even if it was the Dow Jones Index that followed through.

The Semiconductors, Biotechs, Financials, Transportation, Steel, and Retail stocks are leading this rally and seeing the rotation of money from the Gold and Oil stocks. This is apparant when looking at the charts of individual companies in each of the above named sectors. The other good thing is that the leaders that are starting to take shape are the same ones that started showing up in the April to May and October to January rally. These are the sectors that lead healthy markets. Like I said earlier, it is hard to be bearish when stocks like GS, MER, LEH, and every other Financial stock is hitting new all-time highs.

There is still plenty of bearishness out there and I have a feeling that most investors are not properly positioned for a rally. I know many traders who have gotten very negative the past month and their bearishness is what helps propel a good rally. And the traders who are bullish are not completely invested so their money still needs to find a home. That also will help fuel a rally.

I can only hope everyone had an amazing day like I did. I was taking some small constant hits the past four weeks but after today I can erase the losses of the past two weeks. That is the power of smart disciplined momentum investing. When you get it right, you get it really right. When you get it wrong, you get it a little wrong.

If I could only play poker like I trade stocks, life would be darn near perfect. Good luck out there!

New Swing Longs: MEK NTAP TNE HPOL CONR MT

Adding To Existing Positions: NKTR NVAX TBH KNOL

New Swing Shorts: NONE

Longs Outperforming Market: ASF-173% ERS-111% PNRG BBD-154% SCHK CKCM NVDA-57% ASVI-25% GMXR-202% TRO TRAD-62% SAY-30% NNDS XRTX-30% SNPS KEX ADBE CBG-86% MSCC-68% SLAB CIB-33% PETS-134% GOL-73% PRPX WIRE-114% MFLX-167% ARS-34% OXPS-77% IHS-29% AXE-28% NGPS MDCC-37% JBL STX-27% KNXA-29% BEAV-39% CHE AIX LTM STMP-29% RVSN-33% FFIV CNTF KLIC-38% BOOM-321% RUSHA MORN TMI VSEC-39% KEYS-37% CRDN-61% IKAN-44% PAY SPWR-32% FWLT-67% SXC VIMC PEC ITRN DRH UEPS TFSM RTK-65% FLML ZEUS-43% KNOL CMPX AMKR MNTA Q-33% DIET-46% BGO CHRD AKAM-67% CTXS SMDI-61% IED-54% RBAK-189% NOVL-29% BTUI-121% SPSX-28% CUP TGB HGRD ADLR-71% AMCS TWTC-78% NKTR BKUNA MU-28% SBAC-33% AU BE DMX KDN RCNI PPCO-30% BGC-55% BEAS UBS IT TXCO-34% CVO-66% ASGN-90% ACTG BAM HEIA TBH LTRX-30% AMPL GIGM-57% APAC MEDX VTSS NVAX ROK DB

Shorts Outperforming Market: NONE

Stocks On Radar Screen: KEYW ILI HEB VERT STTS DSCP

3 comments:

Anonymous said...

why don't throw an add on this page...

there is a service out there that you register your blog and if enough people click on your blog you get paid...

I'll look out for it!

Anonymous said...

Thoughts on HOM?

Joshua_NControl said...

HOM is still basing. Nothing to do yet. Not great, not bad.

.....................................

Thank you, anonymous. I just added a adsense ad to my page. I should contact TCNet and see if they would let me advertise for them. If you know of anything to help me advertise my blog also that would be welcome.

I truely believe more people should be reading this than what do. I just don't have a strong plan, do to my lack of time towards this part of my financial hobby.