Thursday, October 26, 2006

The Nasdaq Leads A Strong Rally, On Heavier Trade; Breakout, Breakouts, And More Breakouts.

After an early morning dip, stocks fully recovered to close near the session's highs. A bunch of home sales figures were released on the day but they had no effect in stopping the DJIA from hitting another all-time high, the SP 500 another six year high, and the Nasdaq to five and a half year highs. How is this bearish, bears?

At the close the Nasdaq rallied .96%, the SP 600 rose .85%, the SP 500 gained .5%, and the DJIA rallied .24%. Leading stocks lagged the Small caps and techs, gaining .6%. The other leading stock index the IBD 85-85 rose 1.3%. It has more stocks and can catch more winners going up than the IBD 100 can. I consider this confirming the bullish moves in the index. Overall, not a bad day at all.

Volume was higher on the Nasdaq and lower on the NYSE and breadth was positive on both indexes by a 2-to-1 margin. The higher volume on the Nasdaq gives the index yet another clear accumulation day which helps alleviate from the mind the very weak distribution days the indexes had.

Today was a very great day for the indexes even know the results don't show it. Many many stocks are now creating very nice bases and I have tons of stocks now moving higher that I am long and am finding many new longs and soon to be new long (yes, I know I used the "and" instead of a comma). This is all very bullish and I have to listen to my charts as they say "we are going higher."

I have been very lucky to be away from the talking heads of the market the past two days. I forgot how important and wonderful it is to not get caught up in all the BULLSHIT intraday action that happens. The big money is not made intraday. I hate to break it to you "market watchers."

I was really impressed by the durable good orders as they rose 7.8%. That was the best in six years! Did you see those transport orders? They jumped 27.6%. Normally I don't give a flying leap of a bridge about these numbers but this number is very impressive.

But according to ABC CNN CBS NBC the economy sucks. Somebody forgot to tell the stock market and the economy that it sucks. Thank God we have borderline retarded journalist on these networks to tell us that gas prices are falling because Republicans are using it to gain votes. My question is why not keep it low the whole term? Most journalist are simply morons. Don't listen to them. Gather the facts on your own and then make a decision on your own.

If you are making decisions on your own and not listening to the idiots on TV then you are making money in this market, you are long stocks, you are not shorting every uptick, and trying to call the next top.

I am amazed I had time to even post this. These are the thoughts of this madman on this current rally. I keep saying over and over: "Once momentum starts, it is hard to stop." When the market is ready to move, it moves; it doesn't stop. While you wait for a pullback to feel safe to buy stocks, the markets keep going higher and higher. Maybe the market has topped. But I don't have this many breakouts in quality names at market tops.

It looks like the "I hate everything that GWB does" crowd is helping lie to the public. That is the perfect "wall of worry" for the market to climb. The constant bad news on Iraq and the bashing of one of the strongest economies ever only helps ensure that we will continue to move higher.

When the journalist are this brainfucked and brainwashed, this is what you get. BULLISH MARKETS! Your biased media is throwing everything at this economy and yet the markets keep hitting new highs. Can you really respect their biased reporting?

In 2001, Rothman and Amy Black updated the "Media Elite" survey of national journalists and established that 76% voted for Michael Dukakis in 1988 and 91% for Bill Clinton in 1992. A Freedom Forum Poll reinforced the "Media Elite" survey when it documented that 89% - nine out of 10 - Washington reporters and bureau chiefs voted for Clinton in 1992 and 7% voted for George Bush.

Ding, ding, ding! I will see you at Investors Paradise. Aloha from Maui where the "Mardi Gras of the Pacific" is about ready to start.


New Swing Longs: CELG LNET BLUD WSTG MSTR FFH IGLD SAI MAIL PCCC DSCM QDEL CCBL GSL TNH

Adding To Holdings: BMA SUAI

New Swing Shorts: NONE

Longs Outperforming: TTEC-32 KBAY-36 EVR-26 TYL-52 CTCM-47 SVNT-25 AKAM-212 IHS-77 XING-36 CXW-37 DA-43 HRZ-36 MA-44 SYKE-46 BRLC-33 CCOI-29 IDEV-29 TCHC LTM SMSC SIMG INAP PSPT WEBX CMCSA ORB LWAY ICE FTEK PRFT DIVX JST DIOD NSTC DKS ROG QSII IDXX MCRS TIBX BEAS VARI HCSG NITE MVSN FORR FSH IMKTA IIVI LINTA AHS FBNW HEI BITS TWGP RSTI HMSY TDY OMTR CVLT BMA CBF AWH NEWP TRT PHRM NAPS AETH PERY HGSI MDRX CVA MEH SMP ALTH TSRA ACGL VVI SCI ITC HURN BDX APLX SZE DCAI SUAI

Shorts Outperforming: HYDL-19

Stocks On Radar: OATS CROX ZOLL AIT USM ROP MIKR UARM GCOM RCRC THI APKT KSW LTS IKN LYTS TEO SYNA RMKR IOSP ZNH SCO

Take All Profits/Cut All Losses: KBAY BARI HB SIMO GISX INPH LMNX

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