Tuesday, April 18, 2006

HUGE Rally On HUGE Volume; The Bears Are Turned Into Fools, Once Again.

Stocks screamed higher today, showing the bears how foolish it is to try to "talk" down the market. Until the market is actually selling off, being bearish is just as stupid as can be. This shows why you only get bearish AFTER the market clearly is in distribution mode.

The markets rose today as investors received headlines throughout the day that the Fed is nearing the end. The SP 600 rose 2.5%, the Nasdaq rose 1.9%, SP 500 was up 1.7%, and the Dow Jones was up 1.8%. It doesn't get much stronger and broader than that!

Volume was the strongest in three weeks for the NYSE and Nasdaq. The HUGE increase in volume clearly shows that "real" buyers were purchasing stocks. These kind of moves on this kind of volume is not the work of us small traders. These were big giant elephants grabbing shares.

The SP 600 hitting all-time highs again now gives it a 122% gain since 2003 bottom. How many positive headlines have you seen about the economy on your biased TV news programs the past three years? That is what I thought. Funny how the mentally incompetent news anchors and producers can lie to you straight to your face and yet people will still believe them. Meanwhile, believers of the truth make money hand over fist. That in turn, will then have all the negative socialist complaining about the higher oil prices and cost of living. Too bad if they wouldn't have listened to their TV and instead did a little hard work (does anyone my age 25-30 know what that is anymore?) they could have made a ton of money in what was a so-called "terrible" Presidency. That, then, would have given them plenty of money to buy the expensive gas.

I still heard plenty of bearishness in the chat rooms that I monitor. It was hilarious going over them, afterhours. The negativity is still thick. Tons of people know that they are right and that the market is wrong. I see this game from the same players all the time. Well, they are not the same players. They are the same terrible traders that come and go. Different people, same mistakes.

I would like to see the market sell off the next couple of days. That would definitely prove to the bears that this was not real and only "ANOTHER" fakeout. How many of those have we had past three years? 17, I believe. 0-17. One day they will get it right. But today isn't that day.

Great luck out there bulls! Bears get ready to go broke!

Read my post yesterday to see what needs to happen to get me bearish.

New Swing Longs: BAS NCTY AEY FNSR CW -- For more info on longs go to Investors Paradise and scroll down and click on Professional Investor--Joshua Hayes and click on 'longs.'

New Swing Shorts: NONE

Longs Outperforming Market(number is % gain since long, only stocks w/ 25% plus gains shows number): TGB-131 ASPV IVAC-35 PNRG-72 JOBS RAIL-70 ATHR-133 XRTX-60 ERS-356 ASF-230 UIC-63 SNDK VIMC-111 KNXA-73 COGO-43 AKAM-104 HEIA-43 NMR-43 CBG-127 HOM-40 ARS-58 CLZR-65 MNST-50 BTUI-160 MTU NNDS-38 RMBS-39 CVO-89 EAGL-71 WIRE-163 CYBS STRL-45 SLAB LRCX-38 DECK RATE-157 SCVL PETS-126 MDCC-46 RUSHA ZEUS-74 TRAD-51 NTAP KDN-25 BEAV-49 STX-30 MFLX-211 BBD-119 BOOM-457 LTM IHS-36 SLW-145 TMI BGC-64 ROK-27 CHE RNWK LPSN WF EFII SCHK-43 SBAC-41 VPRT ASVI SEAB BAM-31 PAY-53 ICTG-72 CTXS-46 FRGB VTS-27 FFIV OMNI-49 CIB-43 NTES RSTI-37 BWLD PKE BEAS-28 TTES NGPS MERX-44 TOMO-35 WNR SPWR-40 RUTH SSW GCA MXWL AMKR-30 CNXT-63 JDSU-52 CAMP IED-97 MEL MU MRB-95 PWR MT GMT CPST-27 GIGM-143 STTS CRUS THQI FDRY-33 HOMS-36 A VGZ-97 RBAK-221 CYMI RADN-33 CDE-46 STKL SMF-29 BGO-54 CCUR UBS-28 SYKE IONA ING ILA NTO-67 BDK ANO LCC-80 MNG-181 SA CHRK SIM-34 FC-27 SF CTZN

Shorts Outperforming Market: NONE

Stocks On Radar Screen: SVL STP INVX HEC IDMI

Locking In Some Profits(example for newbies that don't know when to): SILC-70% PEIX-71%


Anonymous said...

Hi mate, just letting you know I've been reading along and these markets appear hot to trot. I've been looking over metals and while they seem pretty toasty there are no divergances typically associated with tops. There is a lot of talk that this is unsustainable and the commodities "bubble" is coming to an end ala-tech but I just can't see it. What do you see in these charts besides a rally that is nearing parabolic extremes?

Stay well, speak to you soon!

- WC

Anonymous said...

Hi there, my name is Kelly and I just moved to Canada after living in Thialand for 15 years..After being a professional golf manager and hotel manager I want to change profession. Having a degree in Finance, I love working in the stock market...

Your record, appears better than almost all blogs I have researched.

I am interested in finding a MENTOR or work in a HEDGE FUND for a year or two. Would you consider assisting me and directing me in the right direction...

I would be happy to send you any information that would assist..


Kelly Cherkowski

PS any assistance you offer would be highly appreciated

Joshua_NControl said...

Hey, mate! I hope you are enjoying your trip.

This is not a commodities bubble. There isn't enough of the stuff to go around to be a bubble.

Look at all my gold stocks. Just type in a symbol in my search. You will see every single stock I picked up is showing a 50% plus gain almost. The majority gave 100% plus moves. Then look at an arithmetic chart of stuff like ERS and TGB it is clear that this move can not be sustained.

Remember what I said about GNT? I was right then too. You can't go up everyday like that. That is called a parabolic move. It doesn't mean that this is the end. But it does mean the an end to the current run is here.

Take care bro. I hope to see you soon.


First off Kelly...I am shocked that you moved from Thailand to Canada. What an extreme change!

Second: I guarantee I have a better record than any other stock trader out there besides James DePorre of sharkinvesting.com and in 10 yrs. I am sure I AM the next James DePorre. I am still very young. So thank you.

My best advice to find a mentor is to do what you are currently doing. Keep asking individuals for opportunities to work or do what I suggest most people do. Look up every single Financial service you can find in your area and go to them and get a face to face interview.

I sadly can not help you because I have chosen a life of comfort over stress. Living on Maui, there is about 10 people that understand what the stock market is. This is not an island of very intelligent people. It is an island full of rich kids and wealthy real estate speculators. It doesn't take a genius to make money in real estate. Sadly, that is what every douche bag does out here.

I would also consider moving to Chicago or NYC. I am getting job offers all the time, still. I turn them all down. So I am sure if you present yourself online and send a resume to every financial service you can find, you will find work.

Great luck. Sorry I can't help you personally but I am only 27 and still not ready to get serious. Life is too short.


Anonymous said...

Is CPST worth a look at all here?
Not the greatest fundies but interesting chart.

Thanks Josh. Tremendous blog.

Joshua_NControl said...

search CPST on my blog. I am already long CPST. You have spotted it too late for a safe buy.

Joshua_NControl said...

WC -- more parabolic charts are GOLD, NXG, WTZ, CBJ, AEM, KRY, GRZ, and TGB. But I just scanned the gold sector and see tons of charts just freshly breaking out and/or setting up in nice bases.

So as I said before. The gold sector needs to rest as the leaders are extended. However, the laggards look good and if they catch fire and the leaders can get a rest then breakout again, things will be just fine.


I wanted to say thanks to everyone who has been calling this blog one of the best out there. I am flattered yet humble enough to know that isn't true.

Thank you.