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
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