Bad News Keeps Coming...Stocks Keep Climbing; Four Days Of Gains.

A poor opening turned into another rally, despite a poor 2Q GDP report that came in below expectations of economist and the fact that the Dow Jones Industrial Average could not close in all time high grounds. This was another day of poor economic news that saw the market rally anyway. That makes this four in a row.

At the close the Dow Jones Industrial Average and the Nasdaq led to the upside with .3% gains, the SP 500 rallied .2%, and the SP 600 lagged with a .2% loss. Good news was that the SOX index led the market with a 1% gain. The bad news is the IBD 100 continued its trend of lagging with a .2% loss.

Volume was lower on the NYSE and the Nasdaq, as traders are probably exhausting themselves to the upside. Well, maybe not, after tonight’s RIMM report. Breadth was positive on the NYSE by a 9-to-7 margin and positive on the Nasdaq by a 8-to-7 margin.

After seeing today’s action spending the beginning of the day in negative territory it was really bullish to see the bidders, once again, take the market off the lows into positive territory.

There does appear to be a rotation happening out of the old leaders into some technology names. I am starting to see A LOT more charts showing up on my scans that are setting up in nice bases. That along with all the technology longs I have now indicate a rally is shaping up. The fact that the IPO market is showing the most recent issues doing well too is another tell that the market is healthier than all the bears “think.”

Leading growth stocks are still lagging the value names. This should be reversed. Maybe another basing period for the indexes will get these stocks to catch up and participate. Even if they don’t there is plenty of great stock charts out there in speculative issues and then there are plenty of slow moving Utility and other big cap stocks that are offering breakouts. They are not the best but they are breakouts from good patterns none-the-less. Hopefully, the gains will continue. If they don’t that is why you have cut loss plans. Without them you are trading blind.

Please read my weekend post to see what I do NOT like about this market. However, no matter what an indicator or 10 are saying, it doesn’t matter as long as the indexes are hitting new highs. The facts are the facts. Your opinions and soothsaying don’t mean crap to your portfolio or the market. Only the profit and loss matters. The future is never as important as the current time and the past. If you learn from the past, the future will never be a problem.

Great luck out there on Friday. I will see you at Investors Paradise.

New Swing Longs: PYX NFLD LWAY TIBX APLX CVLT LBIX CYBS OSIP ELOY

Adding To Existing Positions: LMNX RMTR

New Swing Shorts: NONE

Longs Outperforming (low vol non-IBD excluded): STEC-35 ZONS-28 OMRI-32 INPH-37 AKAM-213 IHS-63 SYKE-42 DA-36 CXW-26 MA-37 BAM-42 AVNC-81 SYX CAB PRFT SXCI BEBE INWK BEAS IMA GROW HMSY IMKTA BMC TWGP ICE DIOD LMT NGPS WEBX ACGL ROG AHS BWP LINTA EMS WSH HRZ DJO WEN LMNX STZ DDS MFA ALSK HAUP XNR MRTR SUMT PRCP

Shorts Outperforming: SWC-43 HYDL-15 NTE-43 CPE-17 USU GSF TDW ASA MDG ATPG

Completely Cover Short: EXBD

Stocks On Radar Screen: PMD AH MOT COGO MVSN LTM RTEC