Thursday, February 12, 2009

A Bearish And Slow Day Turns Into A Very Bullish Close On Higher Volume For All The Major Market Indexes

Today was basically a day of slow steady selling until the final hour hit. That is when a major rally pushed the indexes higher to close near the HOD with volume higher than the session before. It was quite obvious the Nasdaq led with the volume compared to the NYSE. However, sadly, leading stocks did not participate like you would like to see as the IBD 85-85 finished off 2%.

As a natural bull by heart and forced bear due to the ugly market action, I still must admit it has been nice to see the market stabilize the last two days instead of crack wide open like it acted like it was going to do. It seemed like this market was ready to break wide open as less and less stocks looked good. The good news comes via the past two days as some stocks avoided the major selloff three days ago and still have decent charts. I have posted these in the new longs area. Let's hope soon we can go long some of these charts off of nice chart patterns.

However, if they don't setup and instead the market breaks down, I am sure that Gold and Silver stocks and the commodities will continue to do well. We are already long one nice gold stock and have many other on our watchlist but that can only be gained by going on the Silver or Gold areas.

If the market does rally and the volume continues to come below average of the last 50 days I would be more inclined to look to short the rally than get long. If the rally comes with volume and max green BOP charts and CANSLIM quality stocks setup then BOOM we go long. However, if these charts and stocks do not show up and instead low volume rallies throw stocks right to their key resistance levels I will have no problem going short.

Today was very bullish but volume was not huge enough and leading stocks did not participate. So really it wasn't as wonderful as it seemed. Still it is nice to see the market acting well here. But the fact I have 39 shorts and only 10 longs does not give me confidence a new bull market is around the corner. Either way those shorts have made us a lot of money already and I would have no problem getting rid of them, turning around, and getting more long. At the same time I have no problem going more short, if the market turns down. And what if the market continues to go sideways? Well, I am a very patient man and that is why I did NOT miss 2003 while SO MANY walked away from 2000-2002.

Leaders are made during hard times; not good. Aloha everyone and I will see you in our busier and busier chat room. Aloha!! Make sure you watch the video below to know everything you need to know about the market. My commentaries are going to be shorter because my subscribers believe I give out too much for free. I am going to respect their wishes. You still have enough information here to safely navigate the market to safe profits. Remember, cash is STILL KING with gold being the queen. Aloha!


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