As The Dow Hits All Time Highs, The Bears Get Louder And Louder.

A HUGE 3.9% drop in oil to 58.68 and the Dow Jones Industrial Average hitting an all-time high after 6 1/2 yrs from making it the last time were the stories of the day. The positive developments helped stocks snap a two session losing streak. With all the good news over the Dow, however, one must remember the Nasdaq is still 55% off of the old highs.

At the close the Dow Jones Industrial Average rose .5%, the Nasdaq rose .3%, the SP 500 rose .2%, and the SP 600 fell .1%. The IBD 100 lagged the market, AGAIN, with a .3% decline. Small caps and leading stocks continue to underperform the big caps in this rally.

Volume was higher on the Nasdaq and much higher on the NYSE, with breadth pretty much even across the board.

Oil & Gas stocks took the brunt of the punishment today, while Financial, Retail, and Airlines outperformed. Have you guys seen MER, GS, MS, LEH, BAC, etc...? I am not sure but that looks bullish to me at least for the now. I am not sure how hitting new highs can be bearish. I don't think the shorts in those stocks agree that the market is bearish in those stocks.

All of the bearish arguments are great. I agree with them ALL! However, the current market for the past month has been in total disagreement and a lot of select individual stocks do not agree with the bearish argument either. They seem to be either moving slowly higher or still setting up in bullish patterns. Until they fail, the stocks still make good longs.

Some of those bear arguments of lower volume during the rally, poor breadth, and negative divergences underneath the market make great reasons to not trust this rally. The fact that there are not a TON of beautiful charts is enough too. But there still are some very good charts out there still to take. Not taking them is a mistake as when the real rally starts you will probably convince yourself then (if it isn't now) that the last rally didn't work why should this one? Not taking all setups in good stocks will eventually come back to hurt you when all the "talking points" do NOT come true.

If the market fails, trust me, like always, I will react, take my profits, cut my losses, and start shorting. Until then, once again, it is stupid to fight the market. There is simply no reason to fight the trend. No matter how weak it seems underneath, momentum can last a lot longer than you think it can.

This rally might be near the end of its advance. If that is the case, I will be cutting tons of stocks and taking many small losses. But until they give me a reason to sell, I am not selling for emotional reasons. Being emotional will get you killed in the stock market. Much more than taking small losses will.

I am worn out!!!!! Have a great day and I will see you at Investors Paradise.



New Swing Longs: BONT SPG DIVX ALXA

Adding To Positions: DIOD VSNT

New Swing Shorts: NONE

Longs Outperforming (low vol non-IBD excluded): AKAM-220 CVO-113 MWRK-30 STEC-36 TYL-34 HIS-63 INPH-43 CXW-29 ZONS-43 CLEC-31 HSR HMSY ABCB CAB AVCA ICE IMKTA CPA SYX PRFT ORB ACGL HRZ PSPT SXCI ISE DIOD DKS LINTA SIMG ROG CGX BEAS NITE RICK BEBE DECK TDY BMC CPAK BMR TWGP IMA SEIC DUCK HCSG IIVI HOTJ VSNT PCTI ALTH CMCSA TTEC HURN ETR NHP PNW MYE ASML WSH SUAI SMP

Shorts Outperforming: SWC-44 DDE-25 HYDL-22 CPE-23 ZRAN-34 WTI USU KMP IXC ARLP ASA SM IPS TTI MDG ATPG SPWR TDW

Stocks On Radar Screen: AH AXR CROX BRT ACE LEH CVGR LTM BARE IRS ALK JRT COL GLDN HRSH DECC