Stocks did it again, making it three days of gains in a row. After a slow start to the day, stocks drifted, until positive comments from the St. Louis Fed head Poole sent stocks higher for the rest of the session. Overall, it can only be called a bullish session, as the DJIA hit all-time highs, the SP 500 hit six year highs, and the Nasdaq hit five year highs.
At the close, the SP 600 led the way with a 1.5% gain, the Nasdaq rallied 1%, the DJIA gained .7%, and the SP 500 managed a .6% gain. The big winners were Semiconductor and leading stocks. The Philly SOX index scored a 2.8% gain and the IBD 100 rallied 1.7%, leading the overall market.
Volume was much higher on both exchanges, after the previous two days of lower trade. Breadth was also positive on both exchanges by over a 2-to-1 margin.
There were tons of economic data today. You have already seen all the numbers, so I will spare you the bore of repeating it. Besides, to be honest, the numbers don't mean shit to the market, anyways.
That news is already priced in. How many times do I have to say NEWS COMES AFTER PRICE. Unless it is earnings--thanks Reg FD--the news is already known by the big boys. They have already traded off the information before you ever see or hear it. Get over yourself and stop thinking you have inside info. Once you get over that, you will be one huge step ahead of all the other amateur "wannabe" speculators.
The SP 600 is 1% away from all-time highs and my account is under 3% away from all-time highs. I might be lagging the SP since the rally started in July but over the past three years and the past month I have outperformed the market to quite a large amount. This should be obvious to anyone who has consistently read this blog.
Why is any of this important? Because it is apparent that growth/momentum stocks are back in flavor, for the time being. If it keeps up like this I will soon be well ahead of the market as I am positioned in TONS of great looking stocks that have great chart patterns.
If you have not been involved in the gains of this market, do not worry. Do not chase stocks just because you missed the move. Make sure stocks are breaking out of sound bases on strong volume. If you can not find any of these stocks, you need to refine your scans. If you still think it is too late and you are mad at yourself for missing this move. Don't blame anyone but yourself. Learn from your mistakes and the next time this scenario happens you will not miss it.
If you, instead, decide to listen to all the talking idiots who report and do not trade for a living, you will soon be joining the rest of the 98% of traders who do not make it.
I would love to see a consolidation or a pullback here as I get slightly nervous about markets that never pullback for more than a couple of percentage points. These kind of markets have a history of ending quite volatile and suddenly. I prefer a nice steady uptrend that goes in a stairstep fashion. Those markets tend to end a bit more rational and give plenty of clues before the breakdown.
However, a market that keeps on rising with me fully long is nothing to be upset with either. In fact, it is a confirmation of all the bullish charts I kept getting the whole uptrend from July where people were telling me it was going to rollover left and right. How are you bears doing now?
We will see what the FOMC minutes bring us tomorrow. I will see you at Investors Paradise. Stay positive and aloha!
New Swing Longs: UCTT COH BEZ BOT VCLK GSIC CNST BDG--A RMKR EHTH
New Swing Shorts: NONE
Longs Up On The Day (low vol non-IBD excluded): AKAM-212 CVO-132 DKS-28 ICE-25 IHS-84 INWK-32 SVNT-59 CPA-33 PSPT-33 DIVX-32 TYL-47 PRFT-26 AOB-48 XING-25 HRZ-66 ALTH-62 CCOI-42 IDEV-33 MEH-29 AUXL-56 BRLC-68 KHDH-37 ININ FFH SMSC IAAC ISE HRT LRCX BEBE IMKTA ROG DECK BONT MVSN QDEL TCHC PCCC CELG RJET LMT BMC LNET SEIC MSTR LTM LWAY RBN NSTC BLUD HMSY CNH ULTI EVR TRBN EVEP CBF ULTR SAI IONA ANAD HURN ALSK WEL OPSW CKSW INAP IFOX AMAG AOI RSTI MOS SFL UAHC SCI HNZ TSG VOCS CMCSA NEWP DJO CCO MALL ACP RIV PSMT MAIL
Stocks On Watchlist: FFIV JCG VLCM GMKT SORL RCRC ACTU BBEP XIDE NUVO VIGN RCRC KO INMD DBLE
Cut All Your Losses: 0
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