Tuesday, November 21, 2006

Markets Are Still In The Giving Mood, Ahead Of Thanksgiving.

A very narrow intraday session closed with stocks barely changed. There was no news to move this market that appears to have already started the Thanksgiving holiday.

At the close, the DJIA added .04%. the Nasdaq gained .09%, the SP 500 gained .16%, and the SP 600 rallied .37%. The obvious great news came from leading stocks; the IBD 85-85 Index rallied 1.1% and the IBD 100 rallied .7%. This shows that leading stocks continue to outperform, even in a dull tape.

Volume was basically flat with yesterday's totals. Volume was 1% higher on the NYSE and 1% lower on the Nasdaq. Breadth was very strong for a slightly positive day for the SP 500 with advancers beating decliners on the NYSE by a 10-to-7 margin. Breadth was flat on the Nasdaq.

Precious metals were the big winners of the session. The Philadelphia Gold and Silver Index ended the session 3.6% higher. Chip stocks were among the hardest hit, with the Philadelphia Semiconductor Sector Index losing 1.1%.

Leading stocks also showed how strong this rally is by continuing to outperform the market even when the market takes a slight breather. By breather, I mean, the indexes don't go up a lot everyday on big volume. It seems like it is very hard to keep this market down. I think it is something like 91 days out of 92 without us being down more than 1%. That is pretty darn strong.

The way my current holdings are acting by constantly stair-stepping up and very few stocks offering me outright BAIL BAIL signals, it is obvious this market still has the potential for more gains.

The stocks I have been selling are stocks that are making gains with abnormal price action, climax price action, or just plain old responsible profit taking when stocks run too far too fast. The new buys keep going up or barely pullback after taking new positions so I still don't have any reason to see why I should be worried about taking too many new positions. If everything I buy is moving up, then obviously the market is telling me my operations are correct. It is until I start getting more misses than hits that I will start to throw up caution flags.

Also my current holdings will be giving me more sell signals. Not by climatic price runs but by giving off nasty sell signals that show that the big boys are distributing. When that happens, then I will take the right action. Until then, the market is still right. If you follow the trend, you can NEVER be wrong. Only your opinion will be.

I love the action in DELL, afterhours. You know what they always say. Don't short a dull tape, don't short the market before/during a holiday, and don't short a market in an uptrend. We will see how they treat the gap up. Will they sell into it? Will they buy it? Who gives a crap? Let the talking idiots on CNBC play this game. Your job is to make money. The only way to do that is to buy the right stocks at the right time and learn when to sell those stocks at the right time. Only a proven set of rules and proper money management can make you a great investor. CNBC NEVER will.

I am so very tired. Aloha and I will see you at Investors Paradise.
New Swing Longs: SQM CMT GLDN CTDC TSEM

Adding To Current Holdings: CNH GSL

**NUMBER IS % GAIN SINCE POSITION OPENED--ONLY STOCKS UP 25% HAVE #**

Longs Up On The Day (low vol non-IBD excluded): CVO-134 MA-103 MWRK-49 CHINA-69 JST-61 ICE-33 INWK-58 IGLD-31 AOB-78 IMKTA-25 TYL-54 DA-50 BAM-53 PSPT-34 IHS-88 CTCM-30 ALTH-93 SOFO-80 AMAG-44 PTT-28 FMCN FFH ISE IAAC UAUA CNH INAP RJET HRT BONT LWAY BOT SKX ROG MSTR BEZ CELG AZK VDSI COH DECK VCLK AHS PCCC ULTR EROC BMA EXLS NEXC MCDT ADBE MNG QD VCP ETE SFL ASML SCI CCO OMCL NU AW CCBL GSL IONA BUF TNH AFT MALL GVP RENT ACP

Stocks On Watchlist: NYX ATNI JWN RTSX RKT BRR GRRF ZZ WTSLA NVEC GCO CBI NDAQ ORBK ERIE

Cut All Losses: EHTH

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