Wednesday, April 19, 2006

Stocks Continue To Climb Wall Of Worry; Higher Oil Prices No Match For Such A Bullish Market.

Stocks continue to rally, despite the negative news of oil and the CPI. This goes to show that once the momentum train is free it is very hard to stop. Markets basically flopped and chopped all day today until the final hour when the Nasdaq rallied to finish the day with .6% gain. The SP 500 and DJIA was up .1% on the day and the SP 600 led the way with a 1% gain. So basically we had a nice positive continuation from yesterday's breakout move mixed with some consolidation in the big cap indexes.

Volume was lower across the board but I don't know what else you would have expected after such an explosive day yesterday. The fact that we held those gains and added to them on the smaller cap and tech indexes is very bullish. Breadth came in higher on the NYSE by a 10-7 margin and higher on the Nasdaq by 3-2. All good in the volume and breadth department.

I am not sure where we are at exactly in terms of this rally. However, something to remember is, that in 1995 when rates were hiked for a year long and came to an end stocks exploded. If that is the case and if history repeats itself this could be a very great year for stocks.

This sure would blow a hole in the Barry Ritholtz Armeggadon argument. That guy is the biggest douche bag I have seen since Bill Fleckenstein. I am calling him out because he is one of the perma bears who tries to scare his readers and "enlighten" them by overloading them on negative articles full of the most pessimistic scenarios most people could imagine. He will be right one day. Too bad when that day comes over 100 different stocks will have made 100% plus gains during the time he was crying about anything negative he could find.

Little old idiots like me do this for free and get paid nothing to do it. While fools like him and Fleckenstein get rich by scaring people and feeding what they want to read. What a joke. At least when I go to sleep I know I have done everything possible to make my readers the most money while minimzing their mistakes. They have to wake up every morning and see the IBD 100 up 20% this year, BOOM up 450%, ERS up 350%, and 100 other stocks up 100% or more since the start of 2006. Nice job perma-bears!

Earnings have been great so far and I don't think that is changing anytime soon. Stock charts look good and I don't see that changing anytime soon.

Great luck out there!!


New Swing Longs: LII CORS ASML -- For more info on longs go to Investors Paradise and scroll down to Josh Hayes and click on longs.

New Swing Shorts: NONE

Longs Outperforming Market(number is % gain since purchase): WIRE-183 RATE-169 BBD-127 NXG-149 AKAM-109 BTUI-166 SLW-150 BOOM-464 CBG-129 ESLR-126 EMKR-168 VRTX-196 IED-108 NRPH-117 VGZ-103 AUY-145 GIGM-146 RUSHA ICTG-84 FWLT-64 IHS-42 STMP-59 OMNI-56 TRAD-58 BGC-71 CYBS TOMO-44 KEX-39 BWLD BAS RSTI-41 TTES BEAV-54 VTS-30 WF CLZR-70 STRL-49 XRTX-64 CVO-93 MNST-54 SLAB SBAC-44 DECK BEAS-29 RAIL-73 ROK-29 CHE SCVL ARS-60 IVAC-37 GEMS-35 CTXS-48 MDCC-48 NGPS EFII FRGB HOM-41 FFIV ZEUS-76 ASVI MERX-45 NVDA-94 FTK SEAB KDN-26 WNR RNWK NNDS-38 NTAP SPWR-52 MMK-50 MEK-48 GCA RUTH QCC ECOL CYMI ASGN-98 RBY-35 STKL-29 TFSM-66 TXCO-70 AMKR-40 STXN-90 ENER-29 BGO-61 CPST-32 AEY BFT SATC-39 SWW LCC-87 HOMS-41 KGC-55 CDE-50 MU FNSR KNOL-77 AXE-31 ANO ILA EVST-51 CAMP DRH A CW GMT SYKE SFE DB NTO-69 UBS-29 CRUS STD LTRX-43 SF SIM-37 FC-29

Shorts Outperforming Market: NONE

Stocks On Radar Screen: STP HNZ ATRO

Blowups: VTSS -- only had 1/2 of position left after 4/10 sell. Selling the rest with a 22% hit. Big freaking deal. At least I show the one a day I get wrong out of 230 plus.

3 comments:

Anonymous said...

CMCO? Does it look OK? Volume here seems low for a strong breakout? Thanks.

Anonymous said...

Canadian Kelly here,,,I left Thailand so that my 2 kids would be closer to relatives (grandma and grandpa) but I am considering MEXICO or even HAWII..which are much closer to Canada.

Tracking your last 18 long trades. all are up.. cumulative gain 4% give or take your entry...this is only in a few days...very very fantastic

Are you looking into hot sectors and selecting stocks from there..how do you begin your search?

Also, typically, how large of a gain do you start taking profits? Do you sell off a couple of time letting the profits run?

Realize alot of questions, but I am trying to set a system based on a successful trader...

Appreciate your assistance


Kelly Cherkowski

Joshua_NControl said...

Sorry for the late response but I have been doing a lot of activities the past three days. Friends are in town and they have me going everywhere.

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CMCO: You have my blessing to buy it on any pullback. I don't like the chart a TON but it is still a good chart. But you asked me if it looks OK. To that, I say yes.

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Hi, Kelly. Very important thing you did for the kids. I respect that a lot!

If you like paying Mercedes prices for everything, Hawaii is a great place to live. However, if I was smarter I would have picked Mexico! Much cheaper, still has surf, and it is warm.

Do a search on my blog for "how i trade stocks" and "how i use IBD." This will answer that question right there.

Profits are taken on IBD stocks usually when there are classic sell signals. I don't get paid to teach ppl how to take profits or sell. That is something I MUST be paid for.

I would go to Investors.com and go to the learning section on selling. This will help you a lot.

Keep up the great work, Kelly.