Thursday, September 28, 2006

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

21 comments:

Anonymous said...

Is it just me or can anyone else not get into IP?

Thanks

Joshua "MauiTrader" Hayes said...

Come on man, everything was going well for so long it was bound to happen.

They gave us a heads up didnt they? Oh! ROFLMAO.

I bet everything is errased again.

Email Seth and Justin. That is all you can do.

Anonymous said...

I am thinking this is the site cutover...I was hoping it wasn't anything other than the cutover...

Joshua "MauiTrader" Hayes said...

I thought that already happened?

Either way I love how up-to-date we are kept.

bigwavetrading.com looks better everytime this happens. :)

Anonymous said...

LOL - it does...but not sure the root cause, let's see what they say.

Anonymous said...

Ordinary Joe's Inflation Expectations

Joshua "MauiTrader" Hayes said...

I just disagreed with Rev. He just posted an article on how there are no longs. I told him he basically was wrong on his comment post. Not directly to him. But I have TON of pretty charts and watching them all go up makes me wonder why he passed on them. But they are out there. I posted it in his comments section on realmoney. Not sure why he can not find any of these. They are clear as day for me.

Joshua "MauiTrader" Hayes said...

Bro, this better be the server switch because this is a bad day to go down.

A lot of work wasted.

Anyways, I am off. Aloha!

Anonymous said...

Has he responded to you yet?

RMTR is nice.

and the others...

Anonymous said...

Me too brodha.

enjoy, aloha

Anonymous said...

I can't get in either, so I'll post here. I was wondering if anyone has any experience with different chart patterns popping up at different points in a market cycle? I remember IBD said that double bottoms tend to pop up when there is very choppy action in a market. I think I heard somewhere that cup and handles tend to pop up near the beginning of a move. The reason I ask is because I am still seeing a ton of the cups or cups w/ handles. ANAD, ASFI, EVVV, LVLT(forming), SEAC, TIVO, ICE, SHLD, BITS(too late now), and even RIMM before today. Just curious if this means anything for the future. Thanks.

Anonymous said...

Also, thoughts on NGA after today?

Anonymous said...

Ugly distribution day today.

Anonymous said...

October lows, here we come?

Anonymous said...

Guys try this address:

http://www.investorsparadise.com/~ipar6xx/forum/b-JoshuaControl/

I was able to get in with this, or you can go to http://www.investorsparadise.com/forum

Market, IBD says volume on Naz was 1% higher and 1% lower on the NYSE. Possible distribution day on Naz.

Anonymous said...

mac - this was a distribution day on the Nasdaq

Joshua "MauiTrader" Hayes said...

No it wasnt a distribution day.

Look at your tcnet and IBD charts.

No distribution.s

Joshua "MauiTrader" Hayes said...

How can it be an ugly distro?

There are tons of charts popping up, none are breaking down, indexes only fell .5%, and the volume barely ticked higher (and only if you include after hours trades). During market hours volume fell on both the NYSE and the Nasdaq.

Joshua "MauiTrader" Hayes said...

mac all those bases only mean one thing the market is going to breakout or they are going to fail and turn this into a nasty bear.

Don't count on the bear. I am long 166 stocks now. If the market was that bad I wouldn't be long that many stocks.

This isn't a growth rally folks.

This is a value and speculative rally!!!!!!!!!!!!!!!!!!!!

The charts are there you just have to take the blinders of the bears off.

We make money off of facts not opinions. At least that is how I make my living.

After reading Rev today, it makes me wonder who is really being honest with themselves about what is going on CURRENTLY and what they want to believe. What they believe may turn out to be true...but wouldn't it suck if stocks ran 100-300% before the market rolled over.

It happened in 1999-2000 and most recently it happened in October of 2005. Doesn't anyone remember how we were going to crash then???????????? I had a HUGE fund manager that wanted to hire me sell all of his stocks because he was certain the real bear was here.

OOPS!!! Opinions don't mean SHIT!

Anonymous said...

Bloomy had this as a distribution day bro...

Anonymous said...

But again...volume stats always differ. I have IBD print in hand. I was at work when I posted and I had been watching the market teator then just fall. But, I was relying on Bloomberg data. I should know better.

Nice day here in the Northeast!