Late Day Pause Stops Most Indexes From Making It Three Days In A Row Of Gains.

After two days of nice gains stocks finally ended it with a last hour selloff to finish the indexes in the red. Earnings were the blame of the day for the media.

The SP 600 led to the downside with a .56% loss, followed by the Nasdaq's .17% loss, the SP 500 lost .04%, and the Dow Jones Industrial Average lost .01%.

Volume rose across the board and breadth was positive on both the NYSE and the Nassdaq by a 8.5-to-7 margin.

The stock market and stocks overall are still kind of crazy in this earnings environment. If you are a new investor I hope you are still in cash as this is not the kind of market environment to be trading in. I am not sure why I am even doing it. Probably just to satisfy my gambling addiction. I know it will pay off. It always has before. But staying in cash for new traders is better than driving yourself crazy trying to make money in a market like this. It is better to just wait for an uptrend to be firmly established and for great stocks to breakout from sound bases.

Reading some good books or reviewing your past trades that have not worked out is probably the best advice I can give traders right now. There are some wall-street classics out there that are MUST reads. And if you have not read them yet this is the kind of market that you want to absorb as much info as you can. That way you will be ready for the next uptrend. And during that uptrend you can focus on making a ton of money instead of trying to learn how to make some money.

The market is still oversold on all the oscillators. This suggest that the recent rally has not run its course yet and that there is still more time for the market to make some gains. This market is acting better on this bounce this time around but I still wouldn't trust this rally to turn into "the rally." We are still in an intermediate downtrend on all the averages. It doesn't pay to fight the trend.

Don't commit hardcore one way or the other, right now. Some longs are acting well, some shorts are acting well, and some longs and shorts are not acting well. Blah.

If we get a pullback and hold the recent lows and start to rally again we may see some nice gains in some pretty charts that I am long. I just wouldn't bet the farm on it.

Stay positive and know this too shall pass. It has been a rough three days on multiple fronts and I am still fighting. Fight with me. It is the best defense against this ugly market. I would never sell me short! Are you the kind of trader that is basing right now and are ready to explod to the upside in a bull market; or are you just taking a rest before the final breakdown? Readers of this blog and followers of the CANSLIM system never give up. Don't you either!

New Swing Longs: WNR JLL ILC SMTX

New Swing Shorts: AGP RJF MAR BFAM LDSH STNR KEX NCI EXBD DDE

**For charts and more information on longs and shorts, go to Investors Paradise.

Longs Outperforming: OMNI-186 TWTC-129 KNOL-152 HMSY SEIC VLG-30 BWP JTX ALTH IDEV EYE AMV

Shorts Outperforming: GYI JOYG WSM MEOH APOL TXRH NAFC SUPX CSX BPFH USG ELY AMAT RES MAFB FRZ CTCO XNPT MAS PII CXG RCNI POOL PWC OPTN IYT TM NTE GE WFSL HTLD BLK HCBK WERN VB RS CAT WTFC CNI DSL CATY AF GVA IFX FLR CPF XPRSA

Stocks On Radar Screen: BER DXPE AXE NSSC TCK PETD RA FRX HEI DIGE ALY BRR IDTI CHINA DIL CONR STEC TPX SWIR TDS PR CSL ATRM HEIA

Covering Shorts: IKN ULTI MWIV OIH