Boy oh boy was there a lot going on today. First off the markets gapped down hard at the open due to China raising its interest rates. That hike scared investors who thought that this was the beginning of China trying to slow down its growth. Then Bernanke began talking to Congress, giving his testimony and telling them that the Fed may decide to take no action in one or two meetings. This gave stocks some cushion and stocks rallied the rest of the day into the final hour where they stalled a bit.
The Nasdaq gained .5%, the SP 500 gained .3%, and the Dow rose .25%. The only index in the red was the SP 600 with a .6% loss. However, the intraday support was very nice and the index finished well off of its lows.
Volume was much higher across the board, indicating that institutions stepped up and bought stocks off the lows today. The big daily candlestick chart tails helps make this more clear to the visual active investor. Breadth was about even on all boards with advancers beating decliners on an 8 to 7 ratio.
In saying all of this, there was some negative action today in leading, momentum, and metal stocks. The IBD 100 fell 1.1%, finishing down for the fourth day in a row. Obviously, it is not positive action to see the leading stocks lagging the market. That along with momentum stocks and metal stocks (old leaders) faulting either signals a rotation into better stocks or a correction trying to start.
I am definitely not in the correction camp. Did anyone see the most recent AAII bullish/bearish newsletter writer survey? Bulls fell again; this time down from 52% to 45%. Did anyone see the Wall Street Journal poll on how Americans think about the economy? 77% are nervous about the current economy!!
HELLO!!!!!!!!!!!! This is the strongest economy EVER in the history of the USA. Markets are hitting all time highs and people are nervous about the economy? More people own homes on a % of population than anytime in history and people are nervous? We have more net worth today than at any other time in the history of the USA and people are nervous?
You know what it is? I see greedy home owners that make there money buying and selling houses that they never live in on Maui. These are the people that are answering these polling questions. These people just flip houses. It, seriously, does not take a genius to do that. These people sip wine, watch soap operas, read the Hollyweird magazines, and talk about anything materialistic and meaningless. Besides that, you have the crowd that watches Sportscenter and party all night long. The only news these fools my age get is what the biased CNN tells them. They don't do their own research, they don't read books, they don't dig for facts, they just bitch about everything the TV tells them to bitch about.
It gets old. Thank God for these people. They pay for my lifestyle on Maui. So do me a favor. Watch CNN and read the Hollyweird magazines for me and then complain about high gas prices and how GWB is sending us into the depths of Hell.
I will sit back and ride the easy profit train all the way to my bank. Instead of complaining and throwing personal pitty parties, you should try investing in the greatest economy in the greatest nation on God's green earth.
New Swing Longs: WEBM STNR ABI TMG -- For more info on longs go to Investors Paradise.
New Swing Shorts: NONE
Longs Outperforming Market(number is % gain since initial purchase): CBG-133 SIRF-119 ASF-229 BTUI-139 ASGN-106 GIGM-176 LCC-116 AKAM-114 JOBS HOM-58 ASPV TTES-29 STX CORS CIB-46 LRCX-44 CLZR-70 VPRT RSAS AAPL RMBS NVDA-94 SNDK FRGB CAMP VLG HEIA-35 NMR-43 TMI-26 CYMI NTAP MTU STRL-48 TGE-37 BWP POR QCC RUTH AMKR-62 CRUS NEWP QUICK STTS WST SFE CCUR-27 MU-31 CNXT-73 SPNC-87 NANX DRH MNST-67 ECOL-39 GMT SYKE MEL HCSG OMCL DB-27 STD UBS-28 BDK HNZ EVST-55 UVN A SPSX-33 LONG
Shorts Outperforming Market: NONE
Stocks On Radar Screen: SNWL REFR FRNS TDSC
Taking Some More Or All Profits: NXG RAIL GNA ILSE ZEUS ICTG
Cut Loss Disasters!!: IKNX -15%, CTLM -24%
10 comments:
Thanks for the early post! Taking it easy tonight? Its funny sometimes I cant sleep and i find myself constantly checking your blog to do my own research on your new longs.
I have been really busy all week, mich 8.
I have decided to run a marathon this year and do a triathalon next year. So my whole days are spent doing other stuff now instead of staying on the computer all day.
So with that here are some answers to all the questions I received the past week without being able to answer them.
Kelly: I am still holding BDCO. I only started a starter position in it. I am waiting for a better entry.
Kelly: CFA license will help you get a job. I recommend doing it.
Kelly: DSCO! Why? Disgusting. You will be lucky if it doesn't gap down another 25%. Never ever buy a stock below its 50 dma!!!! Never!!!!!!!!!!!!!!!!!!!!!!!!!!
Rcutsinger: You are very welcome. Thank you for your extremely nice words.
Anonymous: NTES is not as pretty as NCTY. I would cut some NTES here after today.
Anonymous: IFO's cut loss is a close below $10.90
Anonymous: LIFC will probably go higher, do to its good fundamentals. But this chart is nasty and choppy and full of big red days! Nasty!
Anonymous: Barry Ritholtz is indeed a HUGE knob job. I have no respect for this idiot at realmoney.com. Email the editor and tell them they should hire me! I would make their readers 4x the amount of money he could.
mac: BDCO is a nibble after it shows some strength again. I would wait.
mac: CYMI is a current holding and a buy only with a touch of the 50 dma.
mac: CPST is a current holding and if it breaks out again it would be another good buy. Pivot is 4.50. 4.60 would be the buy. But if you are already long it would be silly to add to this stock. Is it an IBD stock???? There is your answer on if you should go long.
Thank you for reading everyone.
I recommend sending the editors of realmoney.com my site and let them know about me. I wouldn't mind taking some of the jobs of some terrible chartist they have.
The only three worth reading are Cody Willard, James DePorre, and Helene Meisler.
Keep up the great work everyone. I am starting to get some real quality questions on my blog and at Investors Paradise. I can tell people are learning. Great job! Keep it up!
I actually love your rants! Todays one especially.
Cheers,
active reader of blog.
your blog is great, thanks for you comments(i am always trying to improve my chart reading so you new long analysis is very helpful)...i noticed MFLX is looking sick now failing to close back above the 50dma and breaking its trend. what do you think. its tempting to look for shorts but too risky with this whipsaw market.
your rants are funny. i also live in an area with a high population of NY Times liberals(oops i meant "readers") who complain about the country and compare Bush to hitler. i love how everyone's solution is to tax the rich more.(fact:Top 50% pay 96.54% of All Income Tax,top 1% pay more than 34%of all income taxes) whatever, move to Canada or send them to an island like Hawaii :). later, OR-Kiter
bullish babe .com's guaranteed money making tip on cbrl tender turned out bad
this shows there is no guaranteed money on wall street
she posted on this blog on monday i think
josh, u seem a bit full of yourself in the last column where u answer everyones questions at the bottom.
Thank you everyone for the great comments. Especially the guy saying I am full of myself. A typical liberal response to facts. I was just stating facts. I know how much liberals hate that.
Aloha from Maui where these people surround me! They just hate facts. But most don't even know there own talking head Howard Dean.
You want another fact: You will never find a conservative that is ignorant of the facts, when you live in a liberal dominated area. At the same time, the majority of those liberals, that live in that same area, are so caught up in their own self secular world that they are completely ignorant of the facts. I bet you like to blame the oil companies too.
Aloha from the land of sun and fun!
correction: most don't even know who their own talking head is; Howard Dean.
I asked two last night. One was my friends mom the other was a friend of my friends mom.
Both HUGE libs. BOth completely ignorant of facts.
Must be a nice life!
Post a Comment