Markets Reverse From Early Morning Gains, Closing Mixed On Mixed Volume; A Good Day Of Consolidation After Yesterday's Gains.

The markets didn't do much today as it took the day to consolidate gains from yesterday's strong move. The consolidation today and inability to give back much of the gains shows that the bulls are in no hurry to sell after a big uptick. However, what you heard from the media bloodhounds was that stocks didn't keep on going up because of inflation scares. Whatever they can do to spin it negatively, they will do.

The Nasdaq rose .1%, Nasdaq 1oo .3%, the SP 400 was flat, and the DJ, SP 600, and SP 500 fell between .1 to .6%. Volume was lower on the Nasdaq and slightly higher on the NYSE, according to my TCNet charts. IBD has volume lower on the NYSE and the Nasdaq. Whatever. It doesn't matter. The volume change is so tiny it is irrelevant. Breadth was negative on both exchanges with decliners beating advancers 9-7 on the NYSE and 8-7 on the Nasdaq.

Gold hit 25 year highs today and Silver hit 23 year highs. By taking a look at the Gold longs in my portfolio you will see that they have been very good to me: ERS GRS GNA SIM KGC AUY. At the same time silver stocks have started to show up and breakout the past two months: AKS MT ZEUS. This shows that there is still plenty of strength left in this leading sector.

This positive action in Gold, Tech stocks, and my personal holdings today show that underneath the averages today was a very positive day even with the negative breadth. It is obvious that the Tech rotation has played out somewhat and is still playing out. That action along with old leaders still leading show how strong this market is currently. Just take a look at all the Telecom, Internet, Computer stock charts hitting new highs.

Like I said yesterday and RevShark said today, there are a lot of traders that simply think this is an End-Of-Quarter markup that will simply fail. The problem with that theory is that there are too many beautiful or nice charts out there. EOQ markups don't deal with a wide variety of stocks. It deals with the stocks that are favored by top funds. It is the stocks that they have to buy to make their portfolio look good. If only a few stocks were causing the indexes to rise and more ugly charts existed out there, I might say that "yes, this is a markup." But I can not. Not with all the nice charts I have.

It is Thursday night. That can only mean one thing. Panko Crusted Ahi at Sansei Restaurant in Napili. Delicious!!

Have a great Friday!

New Swing Longs: AVII GISX -- To learn more about these longs go to Investors Paradise and scroll down to Josh and go to 'longs.'

New Swing Shorts: NONE

Longs Outperforming Market(number is % gain since purchase): LPSN SMSI-54 CYBS NTES STX-25 WIRE-129 ERS-273 CTXS-40 NMR-38 BWLD ATHR-122 SCHK-40 SAY-37 ASF-212 VIMC-84 NTAP KNXA-57 KDN BOOM-405 ILSE CIB-45 UVN KEX-33 UIC-50 PETS-134 MDCC-41 NVDA-91 DECK FRGB NGPS ARS-58 VTS ROK SEAB LTM FFIV-26 CLZR-60 IVAC-33 CBG-121 CVO-82 SBAC-41 PNRG-60 MMK-50 IONA NVAX-80 GRS-111 GBN-37 AKS-33 MERX-27 MTU DRH ARXX BKHM-68 KGC-42 EGO AGT-27 MSPD-40 SWW-27 NXG-69 BFT STTS PPCO WTSLA LWSN DB TMTA ING-25 AUY-103 QUIK EVST-65 CDE-37 GEMS BGO-37 UBS SA ECIL MNG-142 AIX TFR-85 SIM-32 CTEC LMLP-25 SF

Shorts Outperforming Market: NONE

Stocks On Radar Screen: PPHM GAN

Big Winners I Am Selling: CRDN--39% gain

Big Winners Selling Partial: MFLX--196% gain

Another Perfect Sell Example Of A Current Long: TXI--7% gain

Bears Get What They Deserve As The Markets Rally On Higher Trade; Nasdaq Makes Five Year Highs and SP 600/400 Make New All Time Highs

Markets rallied across the board today with the Nasdaq 100 up 1.8%, IBD100 up 1.6%, Nasdaq up 1.5%, SP 600 up 1.4%, SP 400 up 1%, SP 500 up .8%, and the Dow up .6%.

Volume was higher on the NYSE and the Nasdaq. On the Nasdaq, volume was well over the 50 dva. That price move with that volume should tell you something about this market. This strong accumulation day and new highs on the Nasdaq wipe out the distribution days that the Nasdaq has seen the past four weeks. They are still there but the effectiveness is obviously gone with the markets at new highs. Advancers outnumbered decliners by a 8-3 margin on the NYSE and a 7-3 margin on the Nasdaq.

Leading sectors included Internet-Content, ISP stocks, Computer Hardware stocks, and Consumer-Appliances. The leadership in tech stocks continues to confirm the rotation into these stocks that I have been discussing for a while now. The rotation that I was talking about has finally been proven to the disbelievers. Silly that the bears have to wait till it is too late and obvious before they finally see that it happened. That is when they decide to buy. That then gives us the last of the buyers to sell into.

The strong advance by stocks today took many market players by surprise. The media told us that the rally was due to some brokerages upgrades on tech stocks. Good story. But it isn't the truth. The truth is funds have been accumulating stocks for a while and today they took advantage of the pessimistic news headlines to buy what the uninformed traders (bears) were selling. This once again shows it pays to pay attention to what the market is doing and not what the media tells you the market should do. The market is constantly changing and you have to be prepared for anything. You can't just believe something will happen and then hope it will happen.

All the doom and gloom that I saw in the headlines today was replaced by real buyers. It was very obvious, early on, that the bears and pseudo-bulls were either on the wrong side or underinvested as the day went on. I heard it in the chatrooms. Many traders were not ready for this!

With all that negative talk something bad must have happened today? Nope, nothing. Instead they are saying this isn't a real move, it is only a fakeout, it is window dressing, and this is the final fakeout before the "real" fall. Don't believe the hype. It is obvious they are on the wrong side of the trade AGAIN! And with all these guys still trying to short a market hitting all time highs, you can bet that the upside momentum can get a lot stronger. This is the greatest gift of the perma-bears. They help set us up with that wall-of-worry. And as everyone knows the markets love to climb that wall.

I actually am not finding a lot of stocks I want to sell or take partial profits in. That tells me more upside is coming. If I had stocks showing blowoff tops and multiple new highs on low volume I might not be that confident. But with most of my charts in the middle of uptrends or just bouncing off the 50 dma in a strong uptrend, it appears the rally has plenty of legs to keep moving higher.

In saying that, I am always looking to play defense. Remember, I am ready for a crash all the time. If I woke up and the market was down 5% tomorrow, I would be cool as a cucumber. Most of my stocks have big gains and I can afford to take them off and still have big gains. The charts simply don't have the downtrend in place that happen before a crash so I am not too worried about that.

For all the negative spin I heard yesterday after the markets closed you would have thought today was a given down day in the books. However, this should prove once again that the media does not have YOUR best interest in mind. They are simply spinning their socialist agenda on the medium that they control. Please, never fall for their games.

Capitalism is the only path to financial freedom! There is no other way. Socialism will never help a society. Look at France. Lazy kids. Try to help them get work and they protest. Fools.

Long and strong, staying with the trend, with a smile on my face, cashing my money at the bank, and then spending it on goods that will provide an income for a man that needs to feed his family.

BULLS ARE STILL IN CONTROL! See you tomorrow; great luck.

New Swing Longs: QUIK TTES -- To learn more about these longs go to Investors Paradise and scroll down to Josh Hayes and click on 'longs.'

New Swing Shorts: NONE

Longs Outperforming Market: SLAB ERS-261 AKAM-96 WIRE-121 CLZR-60 TRAD-41 ATHR-118 STX NVDA-90 SLW-136 WNR XRTX-68 RMBS STMP-48 ARS-57 FFIV-26 MFLX-231 CYBS ASVI-33 DECK NTES BGC-65 RATE-148 KDN VTS RUSHA HEIA-33 KEYS-36 MORN SIRF-134 MDCC-40 NMR-36 CTXS-36 NTAP CBG-120 PEC BEAV-44 SEAB KNXA-54 BWLD FRGB LTM BBD-118 BOOM-399 UIC-49 PNRG-60 ILSE SAY-34 HOM CHE COGO RUTH SCHK-37 CIB-44 SMSI-45 ROK LPSN CVO-82 IHS-38 AAU SPWR-42 TGC-101 TGB-47 IVAC-33 TVIA PEIX AGT LMIA-95 RBY TOMO ZEUS-52 BWNG-134 GNA CPST NKTR COSI CDE-35 AKS-25 CRUS HOMS-39 CONR-25 MDII MSPD-34 WTSLA MXWL PWR STTS GEMS IIP CNXT-54 OPLK RCNI IMMR JDSU-74 STD LIOX NEWP TNOX-25 ESLR-118 MERX DRH TFSM-44 SA FDRY-37 LCC-83 OMNI STKL SIM VSL SF LMLP TGE ICTG-93 FSP DEG

Shorts Outperforming Market: NONE

Stocks On Radar Screen: MDV MED IIN

Perfect Example of When To Partial Sell Some Of Your Long Term Gains: PETS

Major Market Indexes Suffer A Distribution Day; Markets Do Not React Kindly To The New Fed Head.

For the 15th straight time the FOMC did their thing, raising the Fed fund rate to 4.75%. The headlines of the day said, "stocks fell due to the Fed signaling more hikes are coming." Wonderful. I am glad we got that stunning news. There was already an 80% chance that the Fed was going to go one more time after today, before the decision was made. So once again CNBC and the rest of the gang spin the story to try to keep viewers awake. LOL. It doesn't help.

Stocks were rising for most of the day, until the decision hit. Then the markets fell for the last 90 minutes into the close. The DJ-30 fell .9%, SP 500 was down .6%, the Nasdaq fell .5%, followed by the SP 600 and 400 with drops of .4% and .3% respectively.

Volume was higher, across the board. Giving all indexes a distribution day. The distribution day was the Nasdaq's fourth in four weeks and the SP 500's thrid in four weeks. Breadth was pretty poor, to go along with the volume, with the decliners over advancers 9.5 to 5 on the NYSE and 3 to 2 on the Nasdaq.

After reviewing my charts and studying the indexes for a little while tonight, I have come to the conclusion that most bears are nuts. By the tone of the day, I thought we were down 2% and that I was going to have a lot of stocks take big hits. Then I reviewed my stocks. Quite impressive, to be honest. I had one blowup out of the whole bunch and that one wasn't that bad. The only really ugly sector or area of the stock market was Brazilian stocks and that was due to the finance minister resigning.

So after that I decided to go through the top stocks in IBD. After doing that I feel confident things are going to be OK. I would rather be long than short here with markets hitting new highs, all-time highs, and leading stocks making good gains. Until that changes there is just no reason to be short or even think about shorting.

If and when the market rolls over we will have plenty of warnings and red flags. These red flags simply aren't happening yet. Can they happen in the future? Absolutely. But we can't make money in the future. We have to make money now!

So today helped pickup the negative chit-chat. I still hear a lot of bearishness from traders and most if they are not bearish are hesitant to buy stocks (this does not include the semi-pros/pros that read this site) here due to all the "so called" uncertanties. I am going to just listen to my charts and go with the trend till it changes.

Now does that mean I haven't been selling? Obviously not. I am locking in gains on stocks ALL the time. Read below and you will see two big winners being sold off to lock in gains after the charts show pattern breakdowns. There have been climax tops I have sold into--TWTC. Then there have been stocks I have completely sold off just to watch them go higher--NWRE ANAD PRLS OXPS. I still am glad I sold them for I was being disciplined and following my signals. All gave me at least a 60% gain on final sells.

Let's see what Mr. Market throws at us tomorrow. Whatever it is I am ready for it! Are you?

New Swing Longs: COSI -- To learn more about new longs go to Investors Paradise and scroll down to Josh Hayes and click on 'longs.'

Adding To Current Holdings: NHWK TVIA

New Swing Shorts: NONE

Longs Outperforming Market: WNR MORN ILSE HOM ASVI-29 TMI-28 CIB-43 UVN ORA-74 CBG-116 ERS-230 IVAC NGPS PETS-163 KEX-32 NVDA-80 KDN SCHK-37 KNXA-51 UIC-47 LPSN STRL EAGL-60 RUTH ATHR-105 FRGB KEYS-33 FFIV CVO-82 VTS MEK-57 NHWK IHS SSW TGC-71 TWTC-157 PEIX GNBT-114 TVIA OMNI WTSLA CRXL HOMS-33 MXWL ACTG-26 CPST TGB-29 AKN LIOX BKHM-60 MGLN GIGM-105 LMIA-79 SFE CNXT-56 JDSU-71 GEMS FDRY-36 HTI SF FSP (numbers after stocks indicate % increase since entry).

Shorts Outperforming Market: NONE

Stocks On Radar Screen: MED

Perfect Example Of When To Sell/Partial Sell Some Of Your Big Winners: BBD RAIL

Retreat! Retreat!: BBC

Stocks Spend All Day Boring Traders; Investors Wait For The FOMC Rate Decision.

We basically did nothing on the indexes today.

I had a difficult night so there will not be any commentary today.

However, tomorrow should be filled with fireworks as the FOMC makes there key interest rate decision. Everyone basically knows what is going to happen but you never know.

I will be back tomorrow. Ready to tackle whatever the Fed sends our way!

I apologize for not being able to write commentary today. Please, excuse me.

New Swing Longs: SA EGO LNUX VCP -- To learn more about these longs go to Investors Paradise and scroll down to Josh Hayes and click on 'longs.'

New Swing Shorts: NONE

Longs Outperforming Market: PNRG-62% ERS-223% CLZR-50% STRL CYBS RUTH LPSN NTES NVDA-78% ASF-210% ILSE UIC-46% RATE-143% AKAM-83% ATHR-104% VTS VIMC-93% ASVI BOOM-409% WNR CBG-111% PEC RMBS KEYS-32% TMI SEAB FRGB EAGL-59% ROK SAY-34% NTAP BWLD CHE NGPS MMK-42% AAU TWPG QCC SPWR-44% MEK-49% RBY SMSI-52% TGE TWTC-139% TGB-25% GIGM-100% TFSM-37% TOMO TMTA KNOL-55% AUY-99% RNAI-37% FDRY-35% FMTI MDII SPSX NANX KGC-34% CDE-34% RADN-32% IMMR CRXL EMKR-162% NTO-50% NXG-60% HOMS-27% STKL WTSLA MNG-120% ZEUS-42% LCC-91% PWR ARS-54% BEAS EDS GEMS ECIL NVAX-66% LMIA-75% ICTG-89%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: VOXW CYTR GRZ XING WEDX

Ouch!: HSKA -- forced to sell remaining half of position with a 9% loss. As you can see it wasn't a big deal. When you buy right, you normally will not get hit with a huge loss when a day like today happens.

Stocks End The Week On A Positive Note, As We Await The FOMC Rate Decision; SP 600 Hits Another All-Time High

The Nasdaq did the exact opposite of what it did the day before, staying on theme. Other indexes continued with there upside, however choppy, bias. All major indexes were up, with the Nasdaq leading the way up .6%, SP 400 and 600 up .5% reaching all-time highs, and the Dow Jones and SP500 finishing up .1%.

The FOMC meeting was the reason the buyers didn't take stocks up more after GOOG being added to the SP and ALA and LU merging, according to the CNBC talking heads. I doubt that was the reason, lol. We have known forever that the hikes were going to 4.75%. This was just a regular day with institutions not doing that much and taking a bit of an early weekend break.

Volume was mixed from the day before, with NYSE volume just a tad higher and the Nasdaq lower. Breadth was positve on both exchanges, with leaders beating losers by a 5-3 margin on the NYSE and a 2-1 margin on the Nasdaq.

The minor gains in the index hid the action that was happening underneath. Silver, Semiconductor, Metals, Steels, Internets, and Heavy Construction sectors showed many strong stocks making good moves in uptrends. This kind of action has been going on the past two days, while the markets dont do much. This is a sign of rotation and if this keeps up should spring the indexes to even more new highs. Especially, when you see broad strength in the Techs, Metals, and Transportation stocks like we had the past week.

However, most people saw this week as nothing but a bunch of random choppiness. With the SP600 going up 10 out of the last 11 days, I am not sure if there is a new definition for the word chop or if traders just get so used to hearing the same thing over and over that we forget to think for ourselves.

Why do I say that? Because all week long I heard how bearish this market is going to be, yet at the same time those pundits were saying that "everyone" is bullish. Really? They are? Well not according to this weeks Investment Intelligence Survery of Advisors. According to that survey--which has a historically good correlation of spotting market bottoms when advisors are too bearish and are not bullish--the amount of advisors bearish is at three year highs at 28% and bullish advisors dropped this week to 43%. This is not bearish; this is bullish. Especially with the SP 600 hitting new all time highs. The last time bears were this high was in March 2003. Do you remember what has happened since then? We have had a three year bull market run that is still going on. And if bulls were at 65% and bears at 15% then I might not have a whole lot of confidence in the words I just typed. But I have my charts, the morons at CNN, the bullish/bearish surverys, and the SP 600 hitting new highs to help me with my convictions. The only thing I could ask for was for the % of bears to be higher than the % of bulls. But that happens only after big long downtrend like the one that ended in October 2002 that then leads to the final March 2003 bottom.

And if you still don't think there is that much bearishness out there go read anything Barry Ritholtz of realmoney.com has written or posted. He can find tons and tons of negative articles but I bet he doesn't post any positive articles because the angry people that make most of these have a negative bias before they start reporting. On that note, I have a feeling, Barry Ritholtz is the next Bill Fleckenstein. If you don't know Bill, he got the crash right. OOPS! Two years before it happened. Do you know how many stocks went on to produce 500% plus gains those next two years? TONS AND TONS. However, if you believed the bearish propoganda Bill was spreading before the indexes actually topped, you missed out on a great great bull market run. You could have just waited till March of 2000 when the distribution days and all the failing charts would have gotten you out. That way you could have locked in those gains THEN have gotten bearish. So it is best to wait for the actual decline to start than trying to look like some intelligent market advisor that knows more than the markets. What ends up happening if you do that and get it as wrong as Bill did and Barry is doing now is that you end up looking like a world class douche bag.

Just some thoughts to consider while you hear all the bearish stories this week of why the market is near a top.

So now we focus on the FOMC meeting. I wonder what is going to happen? Oh, yeah, they are going to raise rates again. Is there really anything surprising here? No. Then I am for sure we will not hear or see anything about it and instead will focus on more current and dynamic issues in the media. However, I don't think I will hold my breath.

New Swing Longs: MANT TWPG UVN CRUS AMRN RBY -- To learn more about these longs go to Investors Paradise and scroll down to Josh Hayes then click on longs.

New Swing Shorts: NONE

Longs Outperforming Market: LPSN SLW-141% ICTG-77% ERS-191% XRTX-65% SIRF-138% TRAD-39% SCHK-36% LCRD-105% BEAV-42% NVDA-73% RAIL-78% RATE-138% BOOM-401% RMBS VIMC-90% PNRG-40% CBG-108% ARS-53% BGC-64% ASVI DECK NMR-36% STMP-48% CYBS MTU NGPS SBAC-46% PETS-160% EAGL-58% UIC-43% ORA-72% SEAB STX CVO-82% SAY-33% KDN VTS CRDN-54% STRL LTM RSTI-31% IVAC SLAB BAM WNR CIB-42% ROK NNDS-32% FFIV-25% CVN RUTH AAU MMK-30% SSW MEK-49% SPWR-42% WGRD TXCO-72% EMKR-155% CPST BTUI-98% SATC FMTI TWTC-122% STXN-80% SFE GNBT-153% CHINA ECIL SIL TMTA TFSM-39% CRXL KGC-30% BWNG-133% ARXX SMSI-37% NYX-25% TTEK JDSU-67% TXI IMMR MXWL DRH BGO-34% OPLK-30% ANX-48% LMIA-75% RNT MGLN TGE COMS PAY-39% RNAI-31% FDRY-29% LMLP

Shorts Outperforming Market: NONE

Stocks On Radar Screen: LAYN SSD PFWD NSTC TXCC WEBM INVX NPSI MIKR

Big Caps Fall, Small Caps Rise, Volume Was Lower, And The Market Bored Me To Death

Can you believe it! We did the exact opposite from the day before. Shocking, I know. However, today's decline was the fault of home sales, oil, rates, and inflation, according to the morons in the media.

The Nasdaq was down .1%, SP 500 down .3%, and the DJ down .4%. The SP 600 and 400 rose .3% and .1% respectively. Not a bad day, not a good day, just another day of one up, one down, one up, and one down.

Volume was lower today and breadth was pretty much flat on both the exchanges today. Basically this tells us that the market was not active with buyers or sellers and was just another day of biding time. Biding time till what? Well, the media says it is the FOMC meeting. However, don't we already know that rate hikes will be raised again another quarter of a point. Oh well, you got to have a reason, I guess.

There was some positives to go along with the red closes on the Nassy and NYSE. The Semiconductors and Internet stocks did real well today and most of my charts continue to act really well. That to go along with what I saw in GOOG's stock tonight tells me that maybe we could see a bid tomorrow.

So the market is just drifting and showing a lack of excitement. That is enough reason to cause new traders to keep powder dry. It is best to operate when the markets are in an obvious uptrend and there is a clear advantage. Trading just to trade is a sign of ignorance and immaturaty. Especially when there is this much rotation going on among all different sectors.

This market has been confusing for everyone. I am no exception. Me, bulls, and the bears are all confused and do not know which way the market IS going to go. They may tell you they know but NOBODY knows.

Since we were down today, we should be up tomorrow. Down, up, down, up, down, and up. Please, read the past ten post, to get a really good idea of where we currently stand in the stock market. And that is all you really need to know.

Good luck I shall see you on Friday. It is Thursday. That means only one thing. Sansei night!!


New Swing Longs: CRXL FSP

Adding To Long: SLAB -- To read more about these longs go to Investors Paradise and click on Josh Hayes then go to 'longs.'

New Swing Shorts: NONE

Longs Outperforming Market: XRTX-57% IVAC SLW-123% ORA-70% ERS-173% PNRG-36% NGPS MORN WNR VTS CYBS CLZR-42% LCRD-97% WIRE-121% PETS-156% STRL COGO-28% STMP-45% NVDA-67% BBC DECK CTXS-37% RSTI-30% FFIV-25% TMI-26% CBG-102% BWLD FRGB CIB-42% UIC-41% ATHR-101% RMBS STX RUSHA NTAP RAIL-73% BOOM-386% PEC VIMC-84% PKE MDCC-44% LTM MMK-29% FWLT-62% GIGM-97% GNBT-142% SATC Q-52% CDE NTO-49% HOMS AMKR HOM AIX PWR WTSLA SMSI-33% COMS TXCO-51% GEMS AUY-84% TXI IIP EDS TWTC-107% MERX BWNG-125% TYL BFT HTI BEAS

Shorts Outperforming Market: NONE

Stocks On Radar Screen: LVLT HWAY CRUS TXCC DITC IG

Retreat! Retreat!: IMGC BOT

Markets Rally On Lower Volume; One Up, One Down With Upside Bias Remains The Theme.

Major stock market averages played the same tune today, by doing the exact opposite of the previous day. Who didn't think we were going to be up today? The markets started the morning with a gap lower that was followed by a lower volume rally into the close. The SP 600 rose 1.2%, SP 400 was up .8%, SP 500 gained .6%, the Nasdaq was up .4%, and the Dow Jones was up .7%.

The disappointing news, however, was that volume came in lower across the board. Normally you want to see higher volume following a previous higher volume drop. Oh well, we can't have it all, I guess. Advancers beat decliners on both the NYSE and Nasdaq by a 2 to 1 margin.

The funny thing about today was the same thing last night that was supposed to hurt the market today was used as the reason why the market rose. MSFT was put into perspective and the market rallied after it realized the impact of the anouncement. LOL. That is hilarious. Once again, the truth is not what the media told you. MSFT doesn't mean anything to any real market player anymore. You want proof? MSFT closed down 2.1% today. How did the rest of the stock market do?

Despite the negative news out there, the Dow Jones and SP 600 hit 4 3/4 highs. The DJ is only 2% away from all time highs. What a terrible market (sarcasm)! With that and all the good to great looking charts I am still long, I will keep my bullish bias and let others worry for me.

Great luck tomorrow. We need it with this tape.

New Swing Longs: MS ILSE MGLN HTI SATC -- For more info on longs go to Investors Paradise and scroll down to Josh Hayes and click on 'longs.'

Adding To Long/Reestablishing Position: AIX

New Swing Shorts: NONE

Longs Outperforming Market: BOOM-383% CRDN-57% IMGC KEX-33% CYBS ASVI SLW-109% SLAB ASF-215% RAIL-71% IHS KNXA-58% WNR STMP-42% TMI-25% ARS-49% EAGL-59% DECK CHE CLZR-38% NGPS UIC-39% RMBS PKE BWLD MDCC-43% CIB-40% BGC-60% SAY-34% BBD-137% KEYS-31% PEC CTXS-35% TNOX-30% NTAP NNDS-34% SIRF-129% RSTI-28% BOT CBG-99% HEIA-31% SEAB BBC KDN SBAC-45% RATE-134% FRGB CVO-81% LCRD-92% MTU VTS MEK-49% NHWK RUTH SMSI-30% MDII LCC-93% SURG OPLK-30% GEMS ANX-51% WTSLA STKL NTO-42% CDE TXI WGRD AIX BEAS ECIL GIGM-77% TWTC-105% TMTA PWR ING-25% Q-45% MSPD-30% BFT SCVL

Shorts Outperforming Market: NONE

Stocks On Radar Screen: CBEY SMOD SEED EDGR KRY ANDS TXCC INVX GEL

Ugly Afternoon Reversal Slams Indexes With A Distribution Day; More Flop And Chop

The stock market suffered a nasty intraday reversal, across the board. The Nasdaq fell .9%, SP 400 fell .9%, SP 600 was down .8%, NYSE down .7%, the SP 500 down .6%, and the Dow Jones down .4%. The markets were rallying on good volume early then just dumped all the way to the closing bell. A bad day for the markets, without a doubt.

Volume picked up by quite a lot, on all exchanges. The higher volume is a distribution day on all indexes and that gives the Nasdaq four distribution days in four weeks. That to go along with what might be churning action should be enough reason for new traders to keep their powder dry. Breadth was also quite negative for the day with decliners beating advancers by 8 to 3 on the NYSE and 2 to 1 on the Nasdaq. Breadth was, in fact, negative all day long, even as the indexes were higher earlier in the day. That foretold of the coming intraday swoon.

Leaders did not escape the smack either. The IBD 100 fell 1.2% and some stocks took decent hits. However, I did not have ONE stock in my large portfolio take a plunge or crash. So despite the ugly action on the exterior, my portfolio doesn't show an obscene amount of damage. So despite the weak market, most stocks just did not get the smackdown that most traders would have thought they would have today. That can only be taken as a bullish sign.

It is still hard to tell if the Nasdaq is churning or rotating into real new leaders. There is no clear evidence to make a solid judgment yet. Only time will tell. But the pessimism is thick and that along with a lot of my stocks looking good still shows evidence that it is rotation. However, on the index alone it definitely looks like churning. Conflicting signals indeed. Funny thing though, while we focus on the Nasdaq and Semiconductor stocks, the NYSE is still in a very obvious uptrend. I don't see how that is bearish. Even though commentators are calling this "near the end for the indexes." I don't think it is wise to write off an index that is still in a sub-intermediate term uptrend.

What I have given you above are the facts. What the media gave you today was the excuse that the markets fell because we now think Bernanke and the crew will raise rates at least two more times, the yield curve inverted, bond yields rose, and the market is overbought. All of it is not true. The fact is there were more sellers than buyers. That is it. Doesn't make a good news story but it is the TRUTH.

Now I get to play the media. Is the market about to crash? Is the "sure to happen" civil war in Iraq going to cause the economy to go into a recession? NO. Today's action is what has been typical all year long. Flop and chop with an upside bias. Nothing more, nothing less.

This was a negative day, but stay positive and keep your head up. The sun will come out tomorrow as sure as there is always a bull market after a bear market. History never changes in the stock market.

Aloha!

New Swing Longs: WNR SIL INB

New Swing Shorts: NONE

Longs Outperforming Market: BOT RMBS NVDA-69% KNXA-54% KEX-29% STRL TMI LCRD-92% WIRE-119% BWLD MFLX-230% BGC-58% AKAM-82% CRDN-52% UIC-37% DECK PEC SLAB CVN SPWR-44% GNBT-187% BFT MSPD-30% SFE RADN TYL STXN-67% STKL IIP-33% ISV-28% TXCO-43% WGRD OPLK SYKE CNXT-43% ANX-43% PWR WST BEAS BEAV-40% ECOL GEMS TVIA AMKR ICTG-96% LTRX-28%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: CNH CACS XING HEB AUDC DIL MVC

Sidenote: When I set up a free and pay for structure for the blog I will have a new web site. Mind you this is still a while away. It is all free for now STILL. I have registered bigwavetrading.com, .org, and .net.

So now we have a name. Next is finding a good web designer!

I will be back soon!

Mixed Close On Low Volume Hides The Strength In Leading Stocks

It was a slow and boring day for the stock market. The media decided the reason behind it was due to the speech Mr. Bernanke was to give to an audience in NYC. If the markets would have been up a lot today, I bet they would have said it was because oil fell 3.7%. Anyhow, the Nasdaq closed up .3%, DJ-30 up .05%, SP 600 up .03%, and the SP 500 was down .2% and the SP 400 down .3%.

Volume came in lower across the board as breadth was positive on the Nasdaq and negative on the NYSE. The low volume has to be expected after the quadruple-witching Friday. It was overall a nice day to consolidate gains made last week.

Despite the mixed action in the market indexes, leaders took the lead as the IBD 100 rose .8%. Internet, Semiconductor, Computer Mfg., Biotech, and Medical stocks led. That is very bullish, in my opinion. These are the sectors that lead bull markets. And they are leading indeed.

Besides that there is nothing else to add. Please read the previous weeks post for more market insight.

Hopefully, tomorrow will not be as boring on the surface as this market was. But at the same time I hope underneath the surface stays just as active as it was today. It was a good day for my portfolio. We can only wish the same tomorrow. Good luck out there!

New Swing Longs: BBC IMGC BOT SFE WTSLA TMTA--To get more info on these longs go to Investors Paradise and scroll down to Josh Hayes and click on the 'longs' thread.

New Swing Shorts: NONE

Longs Outperforming Market: ERS-168% STRL NTES COGO-34% WIRE-116% VIMC-89% FFIV-28% XRTX-38% ATHR-106% IVAC MFLX-228% DECK RMBS NGPS LTM BGC-57% BWLD SCHK-37% SIRF-133% ASF-211% STX KDN MDCC-42% EAGL-57% MTU SAY-32% CRDN-51% HEIA-31% CHE ASVI RATE-144% PKE MEK-51% SSW FWLT-67% KNXA-48% RUTH TGC-53% BWNG-133% GNBT-127% NVAX-83% IIP-28% ANX-41% GIGM-81% CUP TFSM-41% WSTC LCC-80% MDII NMR-37% EMKR-132% AKAM-81% LWSN ORCC HOM CVO-83% RCNI STNR SBAC-46% UBS ING-25% WST AKN GEMS MT TWTC-110% LMLP ICTG-82% SF

Shorts Outperforming Market: NONE

Stocks On Radar Screen: TXCC HET LNUX LVLT HEB LYV

Retreat!, Retreat!: KNDL

Major Market Indexes Finish With Slight Gains; Options Expiration Skews Volume Figures.

Happy St. Patrick's Day!!

Stocks finished the week with small gains, with the Nasdaq up .3%, SP 600 up .3%, SP 400 up .3%, Dow Jones up .2%, and the SP 500 up .1%. It was a good week for stocks, overall, with most indexes up around 2% for the week.

Volume was much higher today but you can't call it an accumulation day because the indexes were not up .5% and it was quadruple witching Friday. Quadruple witching is a day on which contracts for stock index futures, stock index options, stock options, and single stock futures all expire. The high volume is caused by all option players being forced to exercise options on the last day their contract is worth anything. They can either roll it over, have it expire worthless, or exercise the contract. Back when I was trading options I usually was out of positions well before this day. Time decay is one of the most important things to understand when trading options. Obviously, a lot of traders don't understand it.

NYSE advancers beat decliners by a 6 to 5 margin and the Nasdaq had 8 advancing for every 7 declining.

Computer-Hardware, Biotech, Investment Brokerage, REITs, and Airlines did well today and the Semiconductor sector found some bids today. With technology stocks bouncing it could help attract speculative money to go along with the boring (REIT, Big-Caps) money. Even if the speculative money doesn't come in the action in the old Big-Caps is good enough for me. They have been doing very well, even during the pullback and old leaders Copper and Steel are showing some leadership too.

So everyone can keep worrying about the Semiconductors and the Nasdaq. I will be paying attention to the NYSE and watching the Nasdaq for signs of life. The Nasdaq still looks like it could take a while to get going. A rotation of tech leaders into new tech leaders can take some time. The heavy volume might not be churning--though technically it looks very much like it is--and could be the high volume needed to rotate into new leaders. They both look the same in the middle or near the end runs of a bull market. Like I said yesterday though, take a look at all the four letter words that I am still long. Obviously, the Nasdaq isn't as weak as the "professionals" say it is.

The market is still very emotionally draining. Therefore, it is very important to stay disciplined, have a plan, and execute on it. Ignore the CNBC and CNN and pay attention to your charts.

An interesting note is in today's 'Big Picture' in IBD: Please read it on your own.

I will summarize it by saying after the crash in 1929 (2000) we finally bottomed in 1932 (March 2003). We then rallied for a whole year from 1932-1933 (March. 03 to Jan. 04) and then went sideways for two years 1933-1935 (Jan 04-Nov 05 to now). That then led to the two year rally into year 1937 (now to 2008) where the Dow Jones was up 94%. Friday was the three year anniversary of the beginning of the March 2003 rally. I wonder if history will repeat itself. Then and now, doom and gloom was thick in the air!

Another possibility is the end of rate hikes. The last time rates were hiked this much and then stopped was in 1995. If you go back and look at the rate hike cycle and the performance of the stock market you will see we are matching pretty closely (not exactly, but closely). As you can also see when rate hikes ended at the beginning of 1995 stocks made one of the biggest rallies in the history of the stock market. I doubt that will happen this time. But something to remember. HISTORY REPEATS ITSELF OFTEN. You never know if it could again.

But I thought with all this doom and gloom talk being placed on us by the biased liberal media that these scenarios could bring comfort to shaky investors.

We shall see what Monday brings. Have a great weekend and I should have the reasons behind all the longs posted on Investors Paradise by the end of Saturday night.


New Swing Longs: LPSN RMBS KNDL BWLD FMTI COMS WST WGRD

Adding To Current Long: MT

New Swing Shorts: NONE

Longs Outperforming Market: ATHR-98% KNXA-48% ERS-143% SEAB RATE-144% CHE CLZR-40% UIC-38% FFIV RAIL-71% CYBS BOOM-395% CTXS-37% IVAC MTU MDCC-40% NTAP TMI MFLX-218% SLW-106% ROK RUTH PETS-162% LCRD-88% ASVI CRDN-50% TRAD-46% NVDA-62% KEX-26% SCVL CIB-42% STRL SLAB HEIA-31% ASF-208% BBD-146% FRGB STX XRTX-32% SAY-32% KDN BGC-55% IHS-27% CBG-100% SCHK-35% AAU PEC MEK-43% SSW ALTU FWLT-66% IIP AKN GNBT-100% SBAC-45% MDII ECIL MT GEMS AKS LMIA-90% ASGN-80% BWNG-100% RNT NTO-35% VRTX-204% DRH CKR VTSS JDSU-68% ECOL ARBA LSI CDE MNST-48% RSTI-31% BE NENG-38% CONR RIMM RBAK-172% GNA CVO-81% AXE NVAX-62% AIX PWR A BEAV-39% HPOL SF SMF

Shorts Outperforming Market: NONE

Stocks On Radar Screen: WXS AIS TXCC HET ABMD HBE ERICY

A Tale Of Two Tapes: Nasdaq Reverses To Close Lower On Heavy Volume. NYSE Keeps Making New Highs.

I am having a lot of trouble with Blogger tonight and don't know if it is on my end or their end. I am going to that great restaurant tonight called Sansei so I can get the Panko Crusted Ahi.

I will be back to post later on. Bottom line is I am not too worried about the pullback in the Nasdaq. That index is still churing and rotating into new leaders. Rember, we already knew the Semiconductors might be topping. I just didn't know if they were going to bounce. I still don't. But other Technology stocks are taking the lead and there are other pockets of leadership.

It isn't the greatest tape but it isn't the worst either. We have all-time highs and new highs being made in the other indexes.

We don't always need to focus on the Nasdaq. But if you look at all the four letter words in my blog the past week you will see plenty of pretty charts.

I'll update some more before opening bell, hopefully. It's up to blogger.

New Swing Longs: VSL DEG LMLP -- Go to Investors Paradise for more information on these longs.

New Swing Shorts: NONE

Longs Outperforming Market: VIMC-92% NNDS-34% SCVL COGO-28% LTM RATE-135% BOOM-385% VTS UHAL-105% SAY-31% PETS-159% PNRG-26% MFLX-214% RAIL-67% ASVI CHE ARS-52% NTAP XRTX-32% CTXS-34% SLW-106% BBD-145% CIB-41% IHS-27% ASF-206% TNOX-34% NGPS UIC-34% QCC PEC ALTU SSW GNBT-85% ISV-25% PEIX PWR MDII STAA NVAX-61% LPTH TWTC-123% EAGL-56% MXWL NENG-36% Q-54% CONR TOMO IMMR TSCM-67% IINT-30% LSI CVO-79% ECIL BGC-54% GNA BEAS HOM RNT A NNI OPLK RBAK-169% STD SMF CHRK SF

Shorts Outperforming Market: NONE

Stocks On Radar Screen: AIS TXCC IBIS ILA

Disappointing Ending: KLIC VLTR -- Neither one did much damage. It was just sad.

RETREAT! RETREAT!: VSAT

Strong Rally On Higher Volume Confirms Yesterday's Move; Leading Stocks Help Lead The Market Higher.

Just as you thought the market was going to continue its chop and flop it instead continues to rally. For the second day in a row major market indexes came under good accumulation from institutional investors. However, the media will have told you that the Fed's beige book report was the reason for the upside move. Believe what you want.

Major market indexes all closed near the HODs, with the Russell 2k up .9%, SP 600 up .8%, Nasdaq up .7%, SP 400 up .7%, DJ up .5%, and the SP 500 up .4%. The Russell 2k and the SP 600 made all time highs today and the SP 500 and Dow Jones almost made new 5 year highs.

Volume was higher on both the NYSE and the Nasdaq. Obviously, this is what you want to see as markets rally. Breadth was 2-1 positive on the NYSE and 3-2 positive on the Nasdaq. Overall, a very nice day. Not the best but a lot better than the choppy action we have seen the past two weeks.

The leading sectors today resided in the Transportation-Railroad and Airlines, Retail-Department Stores and Restaurants, and Building-Supplies and Materials. Along with those good sectors, leading stocks led the rally with the IBD 100 rising 1.7%. The constant mix of new leaders leading sectors, and the IBD 100 full of leading stocks making good gains the past two days are very bullish for stocks.

The most incredible thing about this rally is the fact that bears are at their highest levels since April 2003 and bulls are at their lowest level since August 2004 according to the Institutional Investor survey of newsletter writers. Bearishness this thick is exactly what you want to see when a market starts a new rally. Markets rise best when they have a big wall of worry to climb. This market is full of worries. I just read an IBD article saying that even though there was 2.5 million new jobs added last year and unemployment is lower than 5% over half of the stories, on ABC, NBC, and CBS, covering jobs was NEGATIVE! Surprise!!!!

The last time bears were this high was in April, as I have said before. What did the stock market do from March/April 2003 - January 2004?

Now will this be the same rally as the March rally was? I don't know. The underlying technicals on the indexes are weakening and this could just be an oversold bounce (based on McClellan oscillator). However, earnings season is over and this could be the moment that stocks go on a run like 2003. Either way, it does not matter. Just follow the charts and react accordingly.

As you know if you have been reading my blog, I am one commentator that did not capitulate during the recent market downtrend. I stayed somewhat bullish with a cautious bias. That was the proper play, since both the long-term and intermediate trends were ALL up on ALL indexes. How can you get so darn bearish when the intermediate trend is still up? It just didn't make sense.

But the media has brainwashed everyone into believing the market sucks, the economy sucks, the President sucks, Iraq sucks, Afghanistan sucks, Iran sucks, and everything in life just plain sucks. You want to know what? CNN, CBS, ABC, NBC, and PBS, YOU GUYS HAVE LOST ALL CREDIBILITY. They do not report all of the news. You are getting selected stories that fit their anti-Bush agenda. It is getting to the point of absurdity.

If you want facts, you better go somewhere else. The BS that comes out of these once decent news sources is just totally disgusting. Yeah, they may be right two years from now but that hasn't helped you make money the past three years in one of the GREATEST economies recorded in US history.

If you just follow the charts, watch the indexes, and stop trying to predict the future you will become a better disciplined investor.

And if you turn off the TV, you might find that life is great and we live in the greatest country on Earth. No where else do you have the freedom and opportunity that exist in this country.

I hope you enjoyed that, if you are a bear. I will join your camp when the time is right. Right now, you guys are wrong AGAIN. Three years and counting...

Great luck and I shall see you tomorrow!


New Swing Longs: NTES RIMM PWR ECIL VSAT CKR LPTH MDII--Go to Investors Paradise to read about these longs. Scroll down to Josh Hayes, click on longs, and read the most recent post.

New Swing Shorts: NONE

Longs Outperforming Market: VIMC-63% RAIL-65% COGO KEX-26% IHS-26% MFLX-209% SCHK-39% CYBS SLW-104% BAM STMP-47% CBG-103% CRDN-54% ERS-137% PETS-155% IVAC ARS-50% STX XRTX-31% UIC-34% BBD-144% CTXS-33% SAY-29% CHE NNDS-27% RUSHA BOOM-373% CIB-40% NVDA-67% TMI KDN NGPS LTM CLZR-36% LCRD-93% PKE NTAP WIRE-148% MDCC-39% RUTH FFIV ROK VLG HEIA-31% FRGB MMK-41% SPWR-51% FWLT-65% ALTU PEC SSW WBMD SURG LMIA-90% EMKR-142% SWW JDSU-67% TOMO NVAX-54% RBAK-168% FDRY-28% GNA VRTX-195% ECOL LRCX-34% GEMS ECLP NYX-43% NDAQ-321% GNBT-69% OPLK ISV LCC-71% SYKE KLIC-29% ACTG-28% IIP IT TXI EAGL-51% AXE IED-85% STKL SNPS A Q-49% KNOL-45% VLTR BE BEAS BWNG-96% STTS TBH MT HOM ELMG IMMR TFR-59% SF VTRU

Shorts Outperforming Market: NONE

Stocks On Radar Screen: PENN CMG CHNR CTDC IBIS TXCC FRD

Major Stock Averages Follow-Through On Heavier Volume To Confirm Current Rally; SP 500, DJ, And NYSE Hit New Multi-Year Highs.

Another day, another opposite of the previous day. Bonds and Financial stocks were the reason the markets rallied today, according to the media. The Nasdaq was up 1.3%, SP 600 up 1.1%, SP 400 up 1.05, SP 500 up 1%, and the Dow Jones up .7%. The biggest winners however were in the Semiconductor Index, which was up 2.2%, and the IBD 100 up 1.4%.

The breadth behind the rally was very strong, with 2.5 stocks positive for every 1 down. Volume was also higher than the day before, confirming the current rally, after the March downtrend we have been in. The volume, however, was below the 50 day volume average on both indexes. This indicates institutions were hungry for stocks, after the downtrend, but not hungry enough to step over each other in trying to bid them up.

One thing that was unequivecably bullish is the fact the NYSE, SP 500, and Dow Jones keep making new 5 year highs while market participants talk a bearish game. Those new highs along with the Financial stocks roaring and Telecom, Medical, Computer stocks moving suggest the bears are still wrong and will be for some time to come still.

The pullback is starting to look like it was in fact a rotation of leadership from the leaders from October into some fresh names in some of the industries mentioned above. This rotation with the continued leadership of Financial stocks is what some of the best bull markets are made of. Look at ET, AMTD, TRAD, LEH, GS, MER, MEL, UBS, BBD, and BSC. They have been moving higher the entire bull market that started in October 2002 and after every significant pullback the market has they take off again. They just do it with a new batch of leadership, each time.

There are still plenty of very good looking green charts out there and there is still plenty of negativity out there by market participants. These two factors help create that proverbial wall-of-worry the markets like to climb.

The fact that all of the reasons the market should have crashed by now have not actually caused the market to crack should be a wake up call to the bears. However, they are stubborn and hate the current President no matter what that they are willing to cloud their judgement with their hatred and try shorting stocks when the right play has been to be long stocks all the way from the 2002 bottom.

I wish everyone the best. Good luck out there and stay positive. This is a great country and Capitalism is the best chance for the poor to become rich. And becoming rich isn't what it is all about. But, darn it, it helps a lot!!!

New Swing Longs: FRGB IVAC MXWL ORCC ELMG--To read more about these longs go to Investors Paradise and scroll down to Josh Hayes and then go to the 'Longs' thread.

New Swing Shorts: NONE

Longs Outperforming Market: MFLX-195% RATE-128% BOOM-365% SCHK-33% CBG-96% UHAL-102% RUTH ERS-129% CYBS XRTX-27% TRAD-51% IHS STX NVDA-64% CLZR-34% LCRD-90% NTAP BBD-139% PKE KDN SCVL VTS CIB-38% WIRE-146% TMI CTXS-30% MTU KEYS-40% ROK FFIV ASVI LTM MDCC-37% VIMC-39% RUSHA HEIA-31% TNOX-33% SLW-97% CVN SPWR-47% MMK-38% FWLT-62% IKAN-36% PEC DRH ALTU SSW NVAX-46% EVST-63% ISV EMKR-122% KNOL-42% GNBT-57% OPLK LRCX-29% GEMS STXN-54% LSI UBS CVO-79% CHRD IED-81% EAGL-47% EDS SWW MT CONR RCNI GNA BAM FDRY ARS-45% BEL-25% IMMR TISA ICTG-73%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: RMBS CMG PTIE POL

Stock Indexes Reverse Off Of Morning Highs Leaving Most Indexes With Small Gains On Lower Volume

It was the same stuff as last week as stocks ran out of steam, after the early morning gap, and reversed to close with small gains. The SP 400 was up .4%, the SP 500, SP 600 and Nasdaq were up .2%, and the Dow Jones was basically unchanged. The blame of the day went on oil prices, bond yields, and AMD as the cause for the early morning reversal.

Volume came in lower which is very disappointing for the bulls. Lower volume and a gap reversal in the morning can only be taken as a sign the markets big boys are not in any hurry to bid stocks higher. The advance/decline line stayed positive after the reversal as leaders beat decliners by an 8.5-7 margin. Small consolation to an otherwise poor day.

The tech leaders from the October rally and the Semiconductors are still struggling and not participating in the rally we have had the past two days. That along with the lack of strong chart patterns and no new longs today gives me reason to watch the market very closely here. It is already under pressure and the failure of this bounce to produce anything special should be enough reason for new traders to start selling laggards. This was suggested over the weekend by a smart trader and I concur newbies should sell the weak stocks. However, I would hold the winners that are still acting well and not showing any signs of damage.

My new longs should have better starts than what they are having. I should have a lot more BEL, NENG, ISV and WDHD acting stocks than what all these new buys are producing. This along with the previous paragraph just shows how crazy the market is right now. It isn't weak enough to give up on it yet or strong enough to get behind. It just is.

Good luck and I will see you tomorrow for more of the same stuff.

New Swing Longs: NONE

New Swing Shorts: NONE

Longs Outperforming Market: STMP-43% ERS-123% FFIV CTXS-29% XRTX CYBS NNDS-26% MFLX-181% CLZR-31% KNXA-51% SAY-29% TRAD-44% WIRE-143% SCHK-28% PETS-155% RATE-116% SLW-95% RUSHA TNOX-33% ASVI MTU VTS NVDA-60% BBD-133% LTM ROK CIB-36% PKE MDCC-37% CHE NGPS VLG IKAN-33% MEK-67% MMK-35% PEC FWLT-59% ALTU SSW NHWK WBMD NYX-32% ISV EVST-52% NVAX-35% EMKR-108% BWNG-102% NRPH-103% HOM KNOL-33% ICU GEMS APAC-43% IIP VLTR FDRY MERX NENG-27% ASF-195% PAY-40% GNA NANX A BKHM-49% UBS STEL TGE JDSU-54% EAGL-44% NNI LMIA-73% BEL UIC-31% WDHD TISA ICTG-72%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: ANO SCMR IMOS

How I Use Investors Business Daily With TCNet

IBD is the greatest investing tool I have ever seen in my life, to this day. I was blessed that my father mentioned this newspaper to me when I was 16. How he mentioned it and introduced me still is amazing to me. He only knew of "this Investors paper" his mom mentioned once to him. He said that she said that this was the greatest thing she has ever seen in her life for investments. My grandmother died in 1985 and IBD was only created in 1984. Fortunately, for me, he remembered this conversation and got me a one year subscription to "this Investors paper." The rest is personal history for me.

With that introduction and eleven years experience with this newspaper I will now show you how I personally use it.

First off you must understand I am an after-hours trader. I don't like doing ANYTHING during market hours, except watch the first 30 minutes of the trading day and the last 30 minutes of the trading day. During the first 30 minutes I make sure all orders I have entered into my IB and Scottrade platforms execute properly; during the last 30 minutes I do quick scans to make early buys of swing longs and sell disaster stocks like PANL on Friday. If I miss the last 30 minutes of the day, it is no big deal. I will just execute the orders the next morning. It changes nothing, whatsoever, if I am there the last 30 minutes or not.

Ding, ding, ding....so now the market closes. I am at home spending time with my girlfriend, playing poker, or out surfing the beautiful waves of Maui. Either way I still can not do anything with TCNet because the TCNet live or delayed service does not get all the stocks in my scan until the exchanges close all stocks for the trading day. So let's say that right now it is noon on Hawaii (market closes at 11am)--this is the time I will start my IBD scans.

First off: During the past week IBD will makes important stock list: IBD Top Composite 200, IBD 100, Your Weekly Review, Top New Buys of Mutual Funds(monthly), Screen of the Day, CANSLIM select, and of course the daily and most important Where The Big Money is Flowing. These list must be updated always. As soon as a new list is out, I delete the old one and add the stocks in the most recent list.

These list are made separately and put into there own personal watchlist. These list are then combined into one "master list." This is the list that is the most crucial to my stock trading. This "master list" is then sorted by price % change.

I then scroll through this list one by one and when I see a new long I flag it. It is not often, besides the very beginning of a bull market, to find a lot of brand new longs in one day. Therefore it is almost basically a check of my current holdings and gives a great gauge of how leaders are acting in the current market environment. If I do flag a stock I then place it on an order list on IB or place a limit on Scottrade. I don't care if market makers can see my orders. I am not that paranoid. This is a delusion traders have...that the market makers are out for their order. Come on, get real.

After scanning the "master list" and placing the possible orders, it might be around, let's say, 1pm. Time to play poker till 2pm when the TCNet database will be completely updated with all the final stock data from the exchanges. When that is done, I then scan my TCNet easyscans that I have created. You can find what those are by clicking the link below

How I Scan For My Stocks

After that is done, I then place my orders on paper to place in the morning, place the actual market or limit order, or put them on a list to execute when I wake up.

During this whole time scanning for IBD and "my" stocks, I physically write the tickers symbols into a diary and place the price % change behind them. I have been doing that for years, already. So it seemed plausible to start a blog and do two diaries--one online and one off. The hope is that someday this will help me either start a business for myself or get hired by a professional so that I may receive side-income from my trading business.

All of this is normally finished by 4pm if I move very slow and methodically. So there is literally four hours of work and most of the time it is less. This combines monitoring my current positions, taking action on my current holdings according to the charts, scanning the new charts, entering my new orders, and writing my stocks in the book and on this blog.

After that, I can do whatever I want. If I want to read IBD front to back. I DO. And I do that at least three times a week. But no matter what, if I can not read the whole paper because I have been surfing all day, hanging with friends at the beach, doing something wonderful with my girlfriend, or drinking at a bar (take a camera, it is rare), I will read Trends and Innovations, Leaders and Success, New America, and Issues and Insights. If I was forced to read only one section it would be the Issues and Insights section. I have 5 years of Issues and Insights in one of my desk drawers. EVERY SINGLE ONE IS MARKED UP. After living in NYC and Maui for the past 9+ years, Issues and Insights helps keep my mind in great shape. I love this island but the political depth of conversations don't usually get pass the Bush is the devil hate-speech.

So that is how I use IBD. I don't use the charts in the newspaper because I have Daily Graphs Premium and TCNet charts. I just need the list that appear in the "Making Money" section.

I am not sure if that is simple for you, but it is a very simple disciplined strategy for me. I do this everyday, ad naseum. This is the same method I have been using for at least six years. There is always an upgrade or slight downgrade. But I don't think I will deviate from this method for the rest of my trading life. It took about five years to get to this point and for the past six years I have not changed it.

I hope this makes sense. I am not going to proofread this. I am just posting it.

The waves were HUGE HUGE HUGE for a south swell on Friday and Saturday. This is why this post is so late. It is very rare I get huge waves in my backyard. The past two days I had them and I had the time of my life.

LUCKY TO LIVE HAWAII

God bless and Aloha!

See you on Monday

Stocks Bounce On Mixed Volume; What Will The Bears Scare Us With This Weekend?

Markets rallied across the board, as today's reason according to the media was the jobs report. Wonderful. The SP 600 rose 1.2%, the Dow Jones rose .9%, SP 400 rose .7%, the SP 500 rose .7%, and the Nasdaq was up .5%.

Volume was mixed, with the NYSE volume higher than yesterday and the Nasdaq lower than yesterday. The mixed volume is disappointing as you would like to see both indexes rally on HUGE trade, after this selling. That would confirm that maybe the downtrend is coming to an end. But for some reason I doubt this bounce will hold.

The mixed volume on this bounce along with the weak action in leading stocks is concerning. The IBD 100 fell 3.8%. The IBD 100 leads bull and bear markets. And with it leading the indexes to the downside that might portend to lower prices the next week.

The weak action in leading stocks and the indexes should caution new investors to keep buys small. Buying stocks in a weak or sideways markets automatically puts you at a disadvantage, as 3 out of 4 stocks follow the trend of the market.

If I am advising new traders not to purchase new stocks, why am I buying 12 stocks the past two days? The reason is because I have more experience and know that these small and speculative stocks make BIG runs at the beginning and end of market runs. This is the end, not the beginning. The beginning was October 2002. These kind of longs are more volatile and have a higher failure rate than the high quality IBD stocks. Those high quality stocks started breaking out in October. Once again, we are late in the rally and most have cracked. Therefore, my thesis being near the end and not the beginning.

However, there is already a TON of negativity out there and the technical picture has already deteriorated that most of the selling might have been done. This is confirmed by looking at how far down the bulls have come and how far up the bears have gone in the AAII and II surveys. A the same time, I still have tons of current holdings that are holding up fine. But that can change in one day.

It wasn't a good weak overall, probably, for most traders. I did not have a good week but it was not something I need to kill myself over. Giving back some gains after having such a HUGE run from October is only to be expected. Markets can't go up all the time every year in and out. It just isn't healthy. Pullbacks are healthy and set us up for the new leaders.

I can't wait to hear all the scary and disgusting stories the media will come up with this weekend on why the market is ready to crash into Hades. Doom and gloom, baby. Doom and gloom.

Thank God, I live this life and don't have the meaningless existance that these reporters on CNN have. Breaking news, my butt. How many of you guys seen those Saddam Hussein tapes? Anyone? Anyone?

How I use IBD and TCNet coming soon. Before, Sunday, at least.

New Swing Longs: NNI RNT GEMS CVN IIP ICU--To read about these longs go to Investors Paradise and scroll down to Josh Hayes, click on Longs, and go to last page.

Rebuying What I Just Sold: SYKE (original buy 5/10/05)

Adding To Long: STXS

New Swing Shorts: NONE

Longs Outperforming Market: VIMC-42% PAY-37% GRS-94% RATE-112% BBD-131% CIB-35% COGO MEK-61% UHAL-99% RSTI-28% ORA-66% SLW-92% WIRE-138% BEAV-37% ARS-42% ASF-188% KNXA-47% CRDN-57% PETS-149% ATHR-99% MSCC-54% CBG-90% MTU SAY-26% BEAS RUSHA TNOX-31% LSI TWTC-112% MDCC-36% BOOM-346% MORN NNDS BGC-49% CYBS SIRF-122% IHS CHE SURG STMP-33% ICTG-71% PKE CTXS KDN BAM DECK LTM KEX NTAP FFIV SNPS HEIA-31% ALTU PEC RUTH FWLT-56% DMX-40% NDAQ-310% CCUR KNOL-29% EAGL-44% MSPD CDE EVST-40% DB NVAX-26% HOM UBS ADLR-74% IDEV LCC-62% SMSI STEL LIOX BGO-26% STXS PPCO BEL TISA SIM UIC-29% APAC-39% EMKR-98%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: ITRI EVVV HTI VNT OYOG FRD

Sad Ending To A New Long: PANL--leaving with a 4.5% loss.

Stocks Reverse To Close Near Their LOD; Volume Was Lower Than Day Before

The early rally the markets had going on for it at the start of the day flattened out and major stock indexes closed near their LODs. The Nasdaq fell .8%, 600 fell .4%, 400 fell .5%, 500 fell .5%, DJ-30 fell .3%. The worst indexes were tech related, with the Nasdaq 100 falling .9% and the SOX falling 1.4%. The blame of the day for this selloff was the Dubai Port deal. LOL. If it isn't one thing it is another. Ridiculous.

The good news from this selloff is that volume came in lower across the board. However, with the breadth continuing to stink up the joint that doesn't give much comfort. But not having today be a distribution day is a positive and a negative. We could be going through a slow drip down. This just frustrates market players unlike any crash could.

Defensive stocks rose again while the indexes came down. It is not a great sign for the market when stocks in the Meat Products, Cleaning Products, and Farm Products lead on up and down days like they have been past two days. This along with the constant cracking of leaders should be a cause for concern. If I was a newbie trader or advised new traders, I would recommend NO new long positions be taken at this point. Too many leaders are acting funny, some are breaking down, and few good charts with quality leadership traits are showing up.

Another negative is the negative divergences in indicators that are showing up in my index charts. TSV, moneystream, and other volume indicators are showing negative divergences. This is not bullish.

It is not like stocks are getting killed but the tone is so negative that finally the weight of the bears is leaving its obvious marks on stocks and the indexes. It looks more like the bulls are willing to sell upticks instead of buy downticks. Like I said that slow drip approach is harder to deal with and act on than a quick crash. It is just harder to predict a bounce when markets are acting like this.

After all the churning in the indexes this year (just look at a daily chart), the indexes are finally starting to get some momentum to the downside. However, despite all that churning and weak recent price action, it is hard to say the market has further to go to the downside.

The put/call ratio is climbing getting near that magical 1.0 closing mark. That along with the higher number of bears and lower number of bulls in both the AAII survey and the II survey says that most traders have gotten bearish already. If that is the case you would think their selling has already been done. If it hasn't then obviously the bull/bear line can cross. The last time it did that was in March 2003 which was the launch for the current rally we have had and may be coming near the end of.

The SP 500, Dow, and Nasdaq are now in short term and sub-intermediate term downtrends.

Keep a smile on your face and stay positive. Bad markets are a necessity for better markets in the future. Good luck out there. We need it.

New Swing Longs: SCVL ECOL IMMR TISA BEL--To learn more about these go to InvestorsParadise and scroll down to the Professional link to Josh Hayes.

Adding To Long/Repurchasing: LIOX

New Swing Shorts: NONE

Longs Outperforming Market: RATE-103% ERS-144% ORA-61% VTS COGO SURG VIMC BLD-40% TMI CRDN-53% BEAS KEYS-44% ICTG-70% SCHK-25% NGPS WIRE-131% BEAV-33% LCRD-88% DECK XRTX KDN BOOM-341% RAIL-59% PETS-144% TWTC-109% LTM WDHD SAY NVDA-61% IHS RSTI SLAB SLW-86% CHE ALTU PEC SSW SMDI-67% LIOX HOM GBN-26% STXN-53% IMOS NENG NDAQ-271% ROK KNOL IT JDSU-58% BGO-26% STEL RUSHA NTO-26% MTU TFR-53% APAC

Shorts Outperforming Market: NONE

Stocks On Radar Screen: NONE

Disappointing Endings: BNT DIET. Still leaving both with gains but oh how the old gains went away in DIET. Truely a sad ending. Oh well. Time to move on.

Stocks Rally, Intraday, On Heavier Volume To Close Pretty Much Unchanged

Stocks spent the morning selling off, before a noon reversal that helped the indexes close in the upper portion of their daily range. The SP 600 finished up .09%, SP 400 up .07%, the Dow and SP 500 up .2%, and the Nasdaq was down .04%.

Volume was higher on all the indexes. The higher volume is a good thing to see as the markets test their 50 dma. Bouncing here on good volume is a positive for bulls. The higher volume, today, came after the market started to rally. That shows that institutions stepped in to buy stocks after not selling or supporting them in the early hours today.

However, the stocks that they decided to buy are not the stocks you would expect them to buy if the markets were really bullish. Tobacco, Hospitals, Drug Delivery, Drug Stores, and Personal Products are not the most "innovating" groups. Biotechnology is the only one "hot" group that got any respect in the midday reversal.

I don't know if that is bad, good, or just nothing to care about. What I do know is I still have plenty of stocks pulling back on very light volume that still are holding very well. At the same time I have had to sell some stocks that have pulled back too much but yet have not given an outright SELL SELL SELL signal. So I don't call this market good or bad while we chop. It just is what it is.

With that I still recommend reading my last 10 or so post to know where we are at. Tomorrow will probably be a repeat of the same blame of the day story. Bond market, bond market, bond market. I can't wait till we find something else to blame.

The people at CNBC should run this story tomorrow if the markets go up: "Stocks close up as Mr. Hayes watches his roomba robot vacuum the carpet. The robot brought a smile to the face of Mr. Hayes because he actually talked to it. The happiness spilled over to the Nasdaq and the NYSE as stocks rose across the board."

In all seriousness, the "reason" they tell you why the markets rose or fell has or had nothing to do with the real reason stocks rose or fell. Only a major natural disaster or a tragic unexpected terrorist attack by nut jobs can effect stocks.

The truth is the traders have known about this yield curve and have had the same economic data to look at the past three weeks. Not a whole lot has changed, except the media tells us that the inverted yield curve is now bad or good or bad?! I would be so confused if I was a newbie in this market environment and did not have the proper tools like IBD and TC2005.

Great luck tomorrow. I don't know what is going to happen. However, I don't need to know.

I was just in my chatroom and was telling a good friend of mine how I see weakness. Here is what was said:

SF: yes
SF: this feels and looks odd
SF: my positions getting weak
SF: around 1/2 are at very key points technically
SF: the problem is so many charts still look good or ok
SF: it is the long term winners that are getting hit
SF: and some of the *** fundamentals stocks
SF: also not good
SF: the semi action has sputtered out
SF: The hot money and speculative money is leaving
V: yep
V: ive made some cuts
SF: me to
SF: I am basically neutral on this market right now
SF: but there appears to be a real reason to be concerned
SF: but maybe the support holds
SF: and stocks rally one more time
SF: but look at MRVL and DIOD
SF: two leaders in a hot sector
SF: AAPL and NWRE
SF: two more hot leaders in another tech sector
SF: look at gold leaders ERS KGC NEM
SF: look at long term winners
SF: GMXR and RES
V: yea
V: and I am seeing more breakdowns




New Swing Longs: NHWK VLTR

New Swing Shorts: NONE

Longs Outperforming Market: SURG MEK-58% CIB-34% CLZR-29% BNT-35% ICTG-66% KNXA-44% EFII LCRD-85% PNRG-39% LTM CTEC WDHD ARS-40% ATHR-98% VTS SLAB CHE KDN HSKA-28% BGC-50% BEAS ASVI VIMC PETS-141% BAM VLG NTAP NNDS NGPS TWTC-107% MMK-31% FWLT-59% WBMD RUTH NYX-30% ELN-44% NENG JDSU-56% STEL GNBT-44% FLML BWNG-95% MNG-119% BKHM-58% VRTX-202% RBAK-152% Q-40% CCI-70% CVO-74% TXI SPSX UHAL-95% TFR-44% DSGX-41%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: WEBX NOK

disappointing Ending To A Great Long: DESC. Sold final amount with 79% gain.

Stocks Sell Off Again, As Volume Decreases From Yesterdays Levels; Top Stocks Take Some Big Hits

Major markets fell (except the Dow) as the bond market was, again, the blame of the day. The Nasdaq fell .8%, SP 500 fell .2%, SP 400 fell 1.2%, SP 600 fell 1.2%, Nasdaq 100 fell .5%, and the Dow gained .2% on Tuesday's trading session.

Volume was lower on the Nasdaq and about unchanged on the NYSE. The lower volume, however, gives no comfort to the Adv/Dec line as the ratio of down stocks to up stocks was 3 to 1. A very negative reading for the indexes being down so little.

The big hit was to the leaders. The IBD 100 took a 2.3% hit and the Semiconductor Index took a bigger 2.9% rocking. The SOX also broke down through its 50 dma. This isn't the healthiest action, since the leaders from October have been the chips.

To go along with the stocks in the Semi group, every other leader it seemed got hit today in all of my IBD stock list. If you have IBD or have anything that can look at top stocks with fundamentals and technicals you can see they performed very poorly today. This might be a red flag for further weakness as leading stocks lead both bull markets and bear markets in their respective direction.

But all of this is just just-in-case stuff. We have to be prepared for further weakness if it shows up. But I don't think there would be too much further to go if we do start selling off. The fact that the bears have been rising and the bulls decreasing in surveys for the past seven weeks should offer some comfort to the bulls. However, no one says that the number of newsletter writers bearish can get higher than the number that are bullish. If the indexes drop 10% from these levels you can be sure the numbers bullish and bearish will criss cross.

How are my stocks doing? Fine. There were some vicious pullbacks in some stocks but I have been lucky and selling into extreme strength on most of my long term winners and stocks that shot up huge in a short amount of time (RBAK VRTX MEK) that the selling I did was pretty normal today. I have raised some cash from these sells and will raise more tomorrow on stocks that don't pass the 50 dma test, as there are not a lot of good new stocks showing up on my scans.

I am long a lot of stocks right now that are at the moment of truth at support or their 50 dmas. The next few days will be pretty important for these. If they bounce, the rally is good. If they crack, then we may have a problem.

All short term trends are now down on all indexes. The indexes are still in long term and intermediate term uptrends. And the sub-intermediate trends are up to sideways on all indexes.

Stay positive and don't let the bears get to you. You will live a longer, happier, and healthier life if you stay positive during this rough patch. Trust me; do you know any really HAPPY bears? Honestly, do you?

New Swing Longs: CTEC

New Swing Shorts: NONE

Longs Outperforming Market: LSI ATHR-95% VIMC KEYS-42% LTM HEIA-33% KNXA-41% SCHK PKE MFLX-199% RUTH SWW CVO-74% CONR LCRD-82% STEL AKN TWTC-107% RCNI RDCM-51% HSKA-28%

Shorts Outperforming Market: NONE

Stocks On Radar Screen: NHWK PENN EONC NXXI

Disasters Of The Day: LIFC--one day reversal for a 7% loss, ugly base. ZVXI--50dma breach, 17% loss, ZVXI had a 200% profit potential measured move so I gave myself a 20% cut loss on it. So to me the only real disaster was LIFC.

Major Indexes End Red As Stocks Reversed In The Afternoon; Volume Was Mixed

Stocks closed lower today as this time the yield curve going flat instead of inverted scared traders. LOL. If it isn't one thing it is another. I thought three weeks ago a inverted yield curve was a bad thing and today the media says it reversing and going flat is now bad. Whatever. LOL.

The SP 600 fell 1.1%, SP 400 1%, SP 500 .7%, and the Nasdaq .7%. The selling was higher on the NYSE giving it its second distribution day in a week. The volume on the Nasdaq came in lower as decliners beat advancers 5 to 4. The increase in trading on the NYSE might have been skewed by the ATT and SBC deal. Whatever the reason or cause, it was still higher and is still a distribution day.

The markets continue to look like they are either churning or basing on heavy volume. Whatever it is doing it is best to just be patient and wait for the indexes to make a move instead of trying to predict where it will go. Either way, the back and forth action has the feel that the market doesn't want to go anywhere any time soon.

In saying that, however, the SP500, Nasdaq, SP 400, SP 600, and the Dow Jones are just 1-2% off of their highs. With all this bearish news for the markets to deal with, only being down 1-2% is incredible. To go along with only being down that little, the II survey of bull/bear newsletters has been going in the right direction for seven straight weeks.

My stocks continue to pullback normally and I only did some minor selling on positions that have been big winners (RBAK-200%) or non-performers (DMC-50 dma failure, 6% loss).

So today has not really changed much with the overall market situation. The indexes are still in uptrends or sideways patterns and the selling today did not do much damage that. Therefore, to get a more solid feel for the market I would read the past week or two of my market commentary to get a more solid feel for where this market has been and where it could be headed.

Great luck this week. It should be choppy!


New Swing Longs: LIFC NANX IONA

New Swing Shorts: NONE

Longs Outperforming Market: PNRG-40% BLD-40% MFLX-199% TRAD-69% COGO ERS-145% WIRE-139% VIMC NEWP KEYS-40% KNXA-40% MEK-65% KDN MORN STMP-35% ICTG-65% PETS-151% BOOM-366% RVSN-33% RAIL-72% MDCC-40% OXPS-84% SNPS NNDS-25% MMK-39% QCC ALTU RUTH SSW BWNG-103% NVAX-27% BKHM-59% DIET-53% REGN-60% AGT ZL-35% ESLR-138% NENG TWTC-105% Q-50% CCUR BFT CYBS RDCM-50% TNOX-30% MTZ EFJI OPLK CUP RUSHA EDS SIM CAMT MDM-28% WDHD

Shorts Outperforming Market: NONE

Stocks On Radar Screen: MEND IVAN PT BWEB

Market Ends Week With A Last Hour Reversal; A Good Week, Overall

With Intel being the blame of the day, stocks reversed in the last hour leaving all the major indexes in the red. The Nasdaq was down .4%, the Semiconductor Index 1.6%, SP 500 .1%, SP 600 .3%, SP 400 .3%, Nasdaq 100 .5%, and the Dow Jones closed down .04%

Volume picked up on the Nasdaq, giving the index its second distribution day in the week. The volume on the NYSE was lower, relieving some pressure from the late day selling on the Nasdaq. Decliners beat advancers by a 9 to 7 ratio. But overall most stocks that declined did so quite orderly.

There was plenty of mixed feelings this week among buyers and sellers causing the markets direction to be quite confusing for the majority of traders. Though the markets may seem confusing there is still no broad based selling to worry about yet. As long as the market can shake this recent small selling off and keep rallying all will be fine. However, if we see some more distribution days step up I am afraid we will be in for more sideways action. I would think selling would bring out sideways action instead of a drop, due to the bearishness increasing and the bullishness decreasing for the past seven weeks.

So while there were tons of negatives, the market didn't crack. That can only be taken as bullish for stocks. Speaking of stocks--almost all of my longs had normal pullbacks on Friday and continue to act healthy (except for NOVL!)

Stay motivated, disciplined, and alert in this kind of market environment. It can be draining, confusing, and frustrating at times but the only way to plow through is by doing the former so to cope with the latter.

See you on Monday!

New Swing Longs: NEWP SSW NERX SIM

New Swing Shorts: NONE

Longs Outperforming Market: PAY-40% CRDN-77% BLD-34% TMI-26% PNRG-28% HEIA-34% GRS-116% TRCI CBG-97% OXPS-83% NGPS WIRE-134% EFII STX-33% IHS-28% RSTI-33% NNDS-25% ORA-69% FFIV KEX ADBE ICTG-64% TRAD-63% GOL-66% NVDA-64% MSCC-72% CKCM BEAS VLG SLW-102% SCHK-25% SLAB COGO ECLP IKAN-37% DRH MMK-25% FWLT-68% ALTU SEED PEC AKS BWNG-78% RNAI-51% HOMS-36% NENG SILC-132% MNG-133% JDSU-54% TSCM-69% RBAK-210% GNBT-96% TGE NTO-36% ACTG-30% TWTC-97% EFJI GNA CNXT-50% RADS CONR VTSS IED-81% SMSI AMKR-27% AKN TRO BGO-42% AUY-102% STTS STAA ENMC AX CVO-71% UBS NVAX CHRD PANL HSKA-25% BVX SWW

Shorts Outperforming Market: NONE

Stocks On Radar Screen: MLP FNET HEB LVLT ACUS LNUX ALA PT GSOL

Disaster Of The Day: NOVL--This sucked. This chart was so so so pretty. This really is disappointing. Selling remaining 80% stake at a 7% gain. The 7% gain was a 29% gain the day before.

Markets Find Support and Consolidate Yesterday's Gains

The major stock market indexes held their gains on Thursday, staging a nice intraday reversal across the board. Bouncing off their intraday lows, the Nasdaq finished down .15%, SP 500 .15%, Nasdaq 100 .05%, SP 400 .36%, and the Semiconductor index bucked the trend closing up .08%.

Volume was lower on the Nasdaq, showing that the index was consolidating gains on quiet volume. However, NYSE trade rose. The rise in volume should not be of concerned as the SP 500 staged the biggest intraday reversal to barely close down .2%. With that kind of daily candlestick pattern, there is no way to call this a distribution day, even with the poor breadth.

Semiconductor, Technology, Internet stocks showed some strength today, while retailers disappointed Wall Street. The real winners today were again Oil and Gold. What is new there?

It would be nice for the markets to consolidate for a while right here. A week or two of sideways action would be a welcome sign to see. That would set up some sweet bases or launching pads for some of these tech stocks. It could also set up a failed breakout.

But with so many things to worry about--interest rates, yield curve, geopolitics, nuclear weapons, oil, natural disasters, hunting accidents, port deals, poor retail sales, and jobless claim numbers--I am sure the markets will find a way to climb that wall of worry.

The only thing I am worried about is if Sansei's is going to have enough Panko Crusted Ahi for me to eat tonight. Last time I went they ran out! Do you know how delicious this dish is???? It is the best!!!!

New Swing Longs: STNR AKN NENG BVX. For reasons behind the longs go to Investors Paradise.

New Swing Shorts: NONE

Longs Outperforming Market: MEK-82% SLW-102% TMI GRS-112% BEAS WIRE-130% CIB-44% ASTE HEIA-30% ORA-68% SNPS KNXA-40% ASF-193% XRTX-35% STX-31% OXPS-80% MORN PNRG-25% BGC-56% ARS-43% FFIV NGPS STMP-37% BOOM-363% CLZR-40% TRAD-62% CBG-94% KEYS-42% RSTI-31% KLIC-34% SAY-35% PKE VIMC PETS-152% NVDA-63% NTAP ATHR-91% MMK ALTU FWLT-64% IKAN-32% DRH AAU PEC MONE MRB-96% JDSU-45% BGO-40% KGC-34% NTO-31% CDE NXG-69% RBAK-193% FDRY TWTC-90% LJPC STKL NRPH-105% MTZ GSL Q-43% CVO-71% TNOX-29% AX ARXX CONR AUY-99% SBAC-39% EDS VTSS MNTA GNA RNAI-32% UBS MNST-45% ZEUS-33% PANL RCNI TBH MDM-26% ATRM SWW

Shorts Outperforming Market: NONE

Stocks On Radar Screen: RSAS CETV DXCM GEMS

Blowup Of The Day: NSTK--No big deal. Look at January 20th. Do you see how it closes below the 50 dma and below the close of the day I took it? If you did then you know I did not have a lot of this stock. I have sold the rest with another 7% loss. No big deal. Did you see MEK SLW MMK today? All is good, baby!

Techs Help Nasdaq Rally Big On Heavier Volume; Stocks Rise Across The Board

Stocks rallied across the board today, with the Semiconductor and Technology stocks leading. The Semi Index closed up 4.3%, Nasdaq 100 was up 1.4%, Nasdaq up 1.5%, SP 400 up 1.5%, the SP 600 up 1.4%, SP 500 up .8%, and the Dow up .5%.

Volume came in higher on the Nasdaq, while it was below yesterday's level on the NYSE. The higher volume on the Nasdaq along with the price gains helped erase the down session yesterday from the minds of the technology bulls. The price gains on higher volume came with strong breadth, with advancers beating decliners by 2 to 1 margin.

A distribution day here and there on the indexes as they rally are normal. It is how they react afterwards that count. With the Nasdaq and NYSE bouncing on good breadth that brings good news to the bulls who are hoping for higher prices. If we get more in the coming days then we can worry. But for now today was very bullish on the short term.

Telecoms, Foreign Banks, Bio, Tech, Chips, and Retail are helping lead this rally higher as a rotation appears to be underway into technology stocks. Besides, did you see CSCO today? If that isn't proof we are having a tech rally, I dont know what else is.

Another postive for this rally is that the II survery of bullish/bearish newsletter writers came out today with bulls dropping and bears rising for the seventh week in a row. This is very bullish as the market is rising while bears are increasing. Eventually, they will have to cover and that will help create more momentum to the upside. Markets like to climb that wall of worry the bears create. And right now they are whipping up a thick bearish wall.

I am staying long while all of these good charts continue to act well and keep offering me new longs to buy. The bears did not even really hurt my charts last night so it is obvious the weakness that is in the market is not very broad. After today's rally most stocks I own are even or higher than they were before the opening yesterday.

The markets have that back and forth feel with upside momentum behind it. Yet if we want I can find some bearish arguments that are legitimate. The Dow and SP are still both in a short term and sub intermediate term downtrend, The Nasdaq is still not a new highs, and the markets are overbought short term. But if that is the "facts" side of the bears argument, they will have to do better than that.

Great luck tomorrow. Go get em!

New Swing Longs: OVTI CAMT ISV STTS CYBS WDHD APTI. For more on these longs and previous longs please go to Investors Paradise.

New Swing Shorts: NONE

Longs Outperforming Market: ATHR-91% SIRF-158% GRS-103% ANAD-113% WIRE-123% ASF-187% CBG-92% KLIC-33% PAY-32% BBD-161% SAY-35% VIMC NVDA-63% BGC-54% ERS-151% SURG NTAP PNRG XRTX-33% KEYS-41% SLW-80% STX-29% MSCC-73% TRAD-61% PETS-151% SCHK-28% MDCC-41% UEPS MFLX-189% BAM RVSN-34% LSI KEX RATE-110% CIB-40% PKE IHS-29% LTM GOL-76% ORA-63% BNT-41% ECLP ARS-41% STMP-35% HEIA-27% BEAV-37% CRDN-74% ASVI-26% TMI NNDS-25% SNPS CHE NGPS COGO MEK-31% MTU FFIV ALTU MMK DRH SPWR-59% SXC KNXA-37% MNG-123% CNXT-51% NSTK-49% AMKR-26% DECK PANL BKHM-33% CCUR BTUI-93% SLAB GNA GNBT-63% BWNG-47% FDRY JDSU-32% ALKS-34% EFII LRCX-32% AX DMX-35% CVO-67% TBH BGO-30% MU ESLR-127% MT TNOX-26% EMAG ZEUS-32% VRTX-231% SPSX-30% MNST-45% TWTC-82% EVST-39% CTXS-25% UBS LWSN STXN-57% TGE CHRD TFSM STXS RNAI-31% SBAC-37% RDCM-51% SPNC-71% RUSHA KDN ATRM DSGX-46% SWW MDM BLD-32% SMF

Shorts Outperforming Market: NONE

Stocks On Radar Screen: MRVC GEMS COSI ZL DXCM LUB MNKD CSH GNTA LBIX AKN