Indexes End In The Red With A Push Off The Lows While Volume Eases Across the Board

From the onset the picture looked bleak for stocks as selling appeared to be slightly higher on the NASDAQ but lower on the NYSE. Selling pressure picked up just after 10am EST as the hot money was moving out of stocks. Interestingly enough money was pouring out of treasuries along with stocks suggesting traders weren't chasing after treasuries. Money was certainly moving into gold and gold related stocks. During the final our of trading we did find support off the lows showing signs the market still has some life left in it. Given the action earlier in the trading session the push off the lows simply confirmed my neutrality on this market.

Gold, Treasuries, and the Dollar are all troubling signs. With Gold moving above 950, Treasurie Yields racing higher and the dollar moving lower is spelling trouble. All 3 items are related and are quite troublesome to watch. The higher the yields on treasury bonds the more costly ALL Government programs become. Utlimately, this burden lies on the US Taxpayer who is already feeling the pinch from the current economic climate. The safe haven is gold and silver as these metals are seen to have intrinsic value. The move in gold will continue as the United States and other Global Central Banks print more fiat currency. Rather than let the market course correct itself we are delaying the natural process a free market provides.

An encouraging sign from the market was the IBD indexes didn't sell off on higher trade and outperformed the major indexes showing signs of strength. Not all is great, the IBD indexes did fall more than 1% and steep price declines are never welcomed. However, like the major indexes the IBD indexes found support intraday and finished well off the lows. A positive development for the market.

At the moment we appear to be in limbo. The AAII investor sentiment survey showed bears up to 45% while bulls slipped to 33%. This suggests that the crowd swung hard to the bears side in a matter of a week. I may remind everyone the AAII Investors Sentiment survey tends to be volatile in nature. It should only be used as a secondary indicator and should have investment decisions directly derived from this data. Nonetheless, with fear growing and the indexes failing to follow through to the downside there may be light at the end of this tunnel.

Other positive note for the market was that New Highs outpaced New Lows by a margin of 4 to 1. Have we got the leadership to take us forward is the biggest question that has not been answered. We are quite long in the tooth from the follow-through day and we are experiencing a stall. It is up to leading stocks to carry us forward and we are in need of them.

Keep your eye on the ball!

FREE YouTube video to help you make money in the stock market (I can't believe I have to explain that to people):

Ending in Mixed Fashion Stocks Fail to Close Out With Gains Seen Earlier in the Session; IBD Indexes Take the Lead

Following through on yesterday's gains stocks took the lead and moved higher as volume tracked higher. A very bullish sign to see stocks moving higher with higher volume especially right after a day where prices advanced on lower trade. All was well and good with stocks until the final hour of trading where we began to see selling pressure. The selling pressure was enough to send the S&P 500 and Dow Jones Industrial Average into negative territory but the NASDAQ was able to slip in a small gain. Preliminary volume indicates NASDAQ saw higher trade while the NYSE declined avoiding a distribution day. A positive sign is we saw IBD indexes lead the market and we'll await to see if volume on the IBD indexes came in higher. In summary, not a terrible day following yesterday's move, but signs of bullishness are appearing in the leaders.

We've been waiting to see if the IBD indexes would begin to show some light. Yesterday, the IBD 100 was able to see gains on higher volume while other exchanges saw lighter trade. Although it lagged, the volume compenent was important to see. It meant that leading stocks were being accumulated rather than see shorts simply covering. The probability of stock gains improve dramatically when we begin to see growth stocks lead the way. IBD is on the forefront of these stocks and a proven method to capturing these leaders. BigWave Trading is certainly on top of these and ready to pounce given the opportunity to get long leaders.

An interetsing note is seeing the put/call ratio rise today given the stock gains. Although the S&P500 and Dow Jones finished negative they were showing gains earlier in the day. While these indexes were green the intraday put/call ratio (overall) was sitting above .80 4% higher than the previous day. It shows that the move today was not being bought into by option players. The higher put/call ratio suggests the move is showing option traders not terribly confident in the move.

A favorite secondary indicator is the number of stocks making a new high versus making a new low. John Boik pointed out in his book "MONSTER STOCKS" the need to for this ratio to be positive for the market to show Monster Stocks. Today, the market saw (preliminary) 95 New Highs versus 15 New Lows. Again, this NH vs. NL ratio has been positive for quite some time showing us that there is strength to this market. Having a positive NH vs. NL ratio is certainly a welcoming sign that we may begin to see more MONSTER STOCKS on the way.

top longs/(shorts) w/ total returns since purchase making money today: KONG 42% ASCA 34% ISTA 29% (CYT 57% CHTT 17%)

FREE YouTube Video:



FULL SIZE VERSION PART ONE, TWO AND THREE AVAILABLE IN THE GOLD FORUMS

Shorts Ran For Cover as Stocks Run Higher on Lower Volume; Some Leaders Show Support With Volume

Lacking any economic catalysts to begin the week stocks started the day off gapping higher. Volume tracked lower for much of the day indicating institutional players were sitting on the sidelines staying away from the action. It appeared the action was driven by short-sellers covering their positions. It was certainly disappointing to see volume come in lower on such a large percentage move on the indexes. At this point, a day with gains is nice but at some point we need accumulation to support this uptrend.

Price and volume action is the most, the most important action to consider on the exchanges. The next is seeing how leaders are acting. Leaders are found in the IBD 100 and IBD 85-85. Normally, leaders emerge rather quickly from market corrections. However, this correction was quite severe and from past severe market corrections leadership may take months to form. It should come to no surprise that this market is lacking IBD leadership. At some point, for this uptrend to continue the IBD 100 and IBD 85/85 indexes must be leading this market.

There were some positives today as we did see leaders have an excellent day. A few of them found support with volume. A clue that there is institutional support for these leaders. We are on top of them here at Big Wave Trading and are ready to take advantage of these leaders if they begin to breakout. These leaders will run and show is Monster Stock gains. Not only will they be Monster Stocks but they will be the tell when the market begins to stall out. Junk-off-the-bottom have led this market up to this point but for this uptrend to continue any further we'll need to see the IBD indexes lead.

top longs/(shorts) w/ TOTAL returns since purchase making me money TODAY: AVNR 48% INOD 41% ASCA 33% FIRE 28% PALM 28% ISTA 20% (CHTT 16% DV 15%)

FREE YouTube video:

After All That Bottom Fishing The Past Two Months It Looks Like CANSLIM Stocks Are Ready To Lead Next; Stock Indexes Pullback On The Week On Lower Vol

Stocks pulled back this week and those that read this commentary daily know that we were expecting a pullback and we are getting it. If you remember I wanted the pullback to come on lower volume and that is exactly what we are getting on the IBD indexes, the Nasdaq, NYSE, and SP 500. If stocks continue to pullback this week, I will be more than OK with it as I think stocks are starting to look really good out there in the charting landscape. If this continues I am sure that we will be moving from trading everything breaking out in uptrends and downtrends and will be able to move on to going long the historical patterns that come about right before stocks go on major advances.

If you are not familiar with these chart patterns, you can find them on the 'past big winners' area at my .com site or you can visit the IBD Investors Education site and go over the historical chart patterns that lead to big gains there. If you are a subscriber you can also go all throughout the 'General Market' post to find a ton of beautiful chart examples of other past winners that I was not part of but have studied. The bottom line is that if you are a subscriber, you have no excuse to not know a chart pattern. We have example after winning example on the site and IBD's past studies to look at to know what we need to see before we go heavily long.

The good news is that thanks to the Nasdaq losing RS to the SP500 about two weeks ago and that turning into a pullback it has allowed charts to build better basing patterns. As the rally was moving along I was getting confused as to why the IBD indexes continued to lag while stocks coming off the lows were doing so well. I believe that the market was beaten down unlike anything ever seen and besides an initial oversold burst of breakout momentum most stocks simply can not sustain big uptrends with the weight of past resistance ahead.

The 200 day moving average has proven to be very tough for the indexes to break through. However, the more the indexes test the line the higher the chances are that we will break to the upside. The charts that I see in my scans are hinting that we will be able to make some good money on the long side very soon. While it is VERY NICE to get a 200% to 300% pop from beaten down stocks, the plain truth is that the best, longest, safest, and biggest gains come AFTER a stock has setup over the 50 DMA with the 50 DMA over the 200 DMA. The most important part of all of this is to have a market in an uptrend on strong volume. We are getting that but until the past week we were not getting any pullbacks. So it is nice to see pullbacks as you need these to help launch sustainable long term rallies.

Indexes can not just keep rallying without pulling back and be healthy. When that happens you get 2008. From 2003-2007 the DJIA didn't even pullback 10% ONCE! As you can see 2008 proved that "that" wasn't healthy at all. The gains were great but those that are clueless to cutting their losses or in their ability to spot a top lost a lot of money. Thankfully those of us at BWT went short in November and pretty much stayed cash/short until March. By April we had some longs but it was apparant the stocks off the lows with the "hot" chart patterns were working better than history's past big winners. However, this was because of the depth of the 2008 destruction.

If this rally continues to pullback on lower volume, can hold the March lows, and then make higher highs, I think we are going to see a LOT of CANSLIM quality longs and beautiful max-green BOP filled speculative stocks setup and breakout and work. If this rally rolls over I am ready to go short the new leaders and get short the past leaders that are still LOVED like AAPL and RIMM. The fact these are so loved prove to me that I want to continue to look to short these stocks. However, setups like the new short we have for Monday is the main bandit I will be looking for.

Still focusing on the short side should not be in the interest of momentum traders right now. If the volume would have been higher the past week than the previous few weeks with the 3% to 5% losses on the indexes it would have been very bearish and I am sure we would have more active short scans. As it is, even on a down 1% day there weren't even 10 shorts in each of my scans. Heck there was barely 10 stocks COMBINED in my scans. Still there was a new short but for it to be a short now, for me, it has to show negative divergences in its chart. Obviously this one does.

Don't get me wrong just because I am going short doesn't mean I am focusing on them. No; with the volume coming in lower on the indexes and the charts in my long scans expanding on a down day with more-and-more stocks ending up on my 'possible future longs' list, it would be a crime for this market to fail right now. Especially with so many green BOP filled charts that have very strong price and volume action. It has been a VERY LONG time since i have seen SO MANY green to max-green BOP filled charts. The best news is that these bases aren't the 5th stage or 6th stage bases you would find in 2007 and early 2008 before it all broke loose. No, these bases, our the fresh bases that come in the start of new bulls from downtrends.

I am not certain that this is a bottom at all. In fact, I still lean on the side of it being a bear market rally that will eventually lead to a wonderful shorting opportunity for me. The best thing about the CANSLIM methodology, however, is that my opinion doesn't mean crap. For all I know, we could have "the bottom" and we are about to see a lot of stocks setup in the max-green BOP, huge accumulation filled, and tight price pattern charts that we saw in 1999 and 2003. Every regular bull market looks like 2003 so that should give a lot of you comfort in knowing that if we are only weeks to months away from a real bull market we are going to be making a lot of money in leading stocks soon.

If, however, the economy is as bad as it looks and that the extremely foolish socialist policies of this incompetent administartion is going to continue, I can't see why stocks would rise for the long term. Still if stocks setup in base-on-base, double bottom, cup, cup w/ handle, ascending base, or high-tight-flag patterns with max green BOP and huge accumulation with "fresh" breakouts you better believe I will be putting my opinions on the backburner and will be having a grand ole typing profiting from another wonderful bull market. The charts look a lot better, this pullback has been very constructive, and now the next step is for breakouts and bounces off key support/averages to start happening rapidly everywhere. If charts continue to look the way they do I will soon be spending 3-4 hours scanning stocks. That is a good thing!

Overall, the market still could go any which way it wants. The bull is not strong enough to give me confidence higher prices are in the bag. Better charts, which are starting to try to show, would improve that outlook. However, the way the longs are holding up and still moving higher, with the lack of new shorts showing up or working when they do offer short positions, is a reason to lean to the long side. My mind might say no, but the charts are saying yes.

The current longs I have are weakening but the purchases I am making off the lows for trades still look good. When the proper breakouts start acting like FITB and HBAN did from the lows with their beautiful green BOP/volume filled charts, I will be giving you the clear sign that I am fully invested and holding on for the big gains. For now I say when you get some big gains make sure you take them in. If you go long (or short) and you do not see gains immediately, while we have a bit of a mixed market, make sure you take some to half to even all off. The only exception to hold on to a stock when it does not show you a gain immediately is when you get a very bullish intraday tail with it on volume.

As long as my charts look good, I feel good. My only beef is that the IBD indexes are lagging. I am not used to seeing these indexes lag and I am not used to being 1 1/2+ months deep into a rally and STILL not have ONE stock up 50%, after a breakout over the 50/200 DMA. The weakness is confirmed in the RS line and after reviewing all the big winners it is clear they are 99% from 52-week lows.

I am still going to focus on trading the bottoming stocks and I have two new longs we must watch for swing/day trading positions. I also have a list of longs for Platinum members, not listed to other areas, of stocks with very pretty charts I want everyone to watch off the bottom. One was up 8% immediately and while it isn't a RAD or CAR it has the start to be one. As long as these trading stocks want to rally from very oversold conditions I will continue to trade them in a bullish tape. When the CANSLIM and my 'Past Big Winner' max-green BOP stocks setup, then you can move your focus off the stocks from the bottom, because the only stocks that can produce 2,000% and 3,000% moves without whipping the hell out of you come after a base pattern is built and completed from a previous uptrend with the price above the 50 and 200 DMA. Another very important key to huge gains is huge EPS/sales growth. My best and greenest/prettiest longs in 2003-2007 almost all had very strong fundamentals either as a new company or a turnaround.

Great luck out there everyone. Subscribers you have four videos with over one hour of important stock market information in there and the longs and shorts analysis needs to be read before the start of the week. Great luck everyone, God bless, and ALOOOOOOHA from Maui where volcanic ash sure does make the daylight sky look very surreal. It also makes for killer sunsets!

top longs/(shorts) w/ TOTAL returns making me money TODAY: INOD 36% ASCA 24% FIRE 21% PALM 20% (CYT 59% OKE 39% PG 20% CHTT 15%)

FREE YouTube Video (part 2-4 in full size will be up SUN AM for subscribers):

Volume Slides as Stocks Move Higher After Suffering from Wednesday's Price Decline

The market was able to avoid further price deteriotion with a low volume move higher. Volume on the NYSE fell nearly 15% while the NASDAQ volume fell 8%. Although the rebound lacked volume it was nice to see the market not follow through to the downside. Ideally, today we would have seen institutions step up and support this market. Instead, it appears for the moment they simply stood aside while stocks moved higher. All in all not an excellent day, we just need more work if this uptrend is going to last.

The NASDAQ led the market in gains finishing up 1.5% while the IBD 100 index was right behind it. A glimmer of hope as we will need the IBD indexes take over as the leaders of this market. It will have to come relatively soon as we do have quite a bit of distribution days we are dealing with on the indexes. The Dow Jones has 5 distribution days while the NASDAQ and S&P500 have 4. When we see a major index hit 5 or 6 distribution days it ends the confirmed uptrend. It is vital we starting see the market do the following: show accumulation and all pullbacks in lighter volume with nominal price declines. The market will show us the clues it is up to us to take them and act appropriately.

The good news is we are still seeing New Highs beat New Lows but the number of New Highs slowed up today on the rebound. Again, there was underlying weakness to the move today as we are not seeing BULLISH signals. New Highs vs. New Lows is not the end all be all, but it is somewhat telling the type of market we are in. I would love to see NH vs NL stay above 1.0 even with a pullback on lighter volume to signal that there is strength within this market.

What we need now is the market to start showing accumulation with IBD stocks leading the way. In order for this market to continue to march higher we'll need CANSLIM stocks leading the way otherwise this uptrend will certainly fizzle into oblivion. We do have stocks that could be potential big winners but this market will need to cooperate in order for these potential big winners come to life.

FREE YouTube Video:

Volume slides Across the Board as Small Cap Stocks Lead the Market Lower with the S&P500 Not Far Behind

Opening the week stocks end lower on lighter trade as Big Cap Techonology stocks aid the NASDAQ finishing well off the days low. The S&P500 was unable to sustain any buying as the index closed near its low-of-the day. A day of consolidation is welcomed, but having a large percentage drop is a bit concerning. Let's not overshadow the NASDAQ's resilency here even though volume finished the day lower. Today, in of itself wasn't a bad day but will need to be taken into context over the next few trading sessions.

A positive note would be to see the Small Caps lead the market tomorrow in higher trade signaling the market is being accumulated. It'll be important that we do not sell off any further on volume as this would highlight there is more weakness to come. Remember, we have come a long way off the lows and have yet to see the market consolidate it's move. Ideally, we'll remain quiet in the indexes over the next week or two while we have the IBD Indexes taking charge. IBD indexes are a signal of strength and will alert us whether or not the current rally has the juice to continue the uptrend. Leading stocks in leading industries are our key to this the uptrend and we are in need of their leadership.

The issue for the indivdual trader is whether or not you have been caught up in the intraday noise. It is the market's job to wear out its participants and if you do not have a sound game plan you are going to be warn out along with your capital. If you are following the number one rules, cutting losses short you are most definitely on the path of destorying your capital. Cutting losses will save your portfolio and will keep you in the game for when CANSLIM stocks begin to start flying.

For now, we'll need the IBD indexes to sure up while the rest of the market pulls back. This will clue us into if we are going to see another leg up with this rally. As always, we'll be on top of the action and will react accordingly.

FREE YouTube Video:

Big Cap Technology Holds Back the Nasdaq as Small Caps Lead the Market Higher on Lower Volume Across the Board

By Market Speculator

It was all about the April Employment figures released by the Government this morning which showed the economy lost 539,000 jobs during the month of April. March job losses were revised down to 699,000 lost. The unemployment rate, reported by the government was 8.9%. Futures reacted positively to the news and helped stocks gap higher at the open. However, big cap technology weighed heavily on stocks yanking the Nasdaq into negative territory. Volume was running hot during the morning hours and as stocks began to see support volumed tailed off into the end of the day. The positive on the day was that stocks did not accelerate to the downside, but lacked the volume and conviction to overcome Thursday's session.

Leading stocks were left behind has Super Regional banks led the market higher. Since the 3/12/2009 follow-through day on the S&P500 we have yet to see any of the IBD indexes lead this market. For a more sustainable move we'll need to see the Relative Strength lines of these indexes to begin to tick higher. Today, once again the IBD indexes lagged highlighting the weakness which is leading this market.

At some point this market will need to take a significant breather. Up to this point we have yet to see this be fullfilled, but we've seen signs that we could be on the verge of a pull back. Thursday we witness the market finally succumb to the selling pressure and end in a nasty day of distribution. Friday the market had the chance to re-establish itself and it failed to do so. This failure could be significant if we begin to roll over this coming week on higher volume. Ideally, the market simply rests here for a few weeks while volume remains tame allowing CANSLIM stocks setup in longer bases.

Up to this point, as to be expected we've seen very sloppy chart patterns where stocks are moving out of. Unfortunately, these tend to fail and do signal the market is headed for another turn. There are a few stocks that have made nice runs from the March bottom, but it is time to see these stocks setup in clean bases. Breakouts have a better probability of success when it is from a sound base rather than a sloppy base.

Keep your eye on the ball.

top longs/(shorts) w/ TOTAL returns since PURCHASE making me money TODAY: SIGA 21% THM 20% FIRE 32% SOLR 36% ASCA 42% ARST 20% (MOS 47% CHTT 15%)

FREE YouTubeVideo:

A Very Nasty Reversal Hits Stocks With Volume Higher Across The Board; Today Was The First Time Both Indexes Fell Hard On Volume Since The March Rally

I have not done commentary for a while because things were pretty steady there for us since the March lows. Basically all that we have had to do was just manage our longs and our profits as those longs gave them to us. However, what happened on Thursday was a little different than what we have seen before on previous selloffs.

On previous selloffs that we have had, we have either had one or the other index selloff on heavy volume or when the indexes sold off it was on pretty light volume. Thursday, however, came on heavy volume for both indexes. Not only that but stocks like TSYS, SWHC, and NFLX are just some of the examples of how leading stocks were treated on Thursday.

Now, do not get me wrong, we still have a lot of solid charts out there that tell us to stay pat and not get too spooked on this one selloff. However, at the same time, I must say that I have not seen a pullback during this previous uptrend that has given us as much reason for concern as this one has. Just the fact that leading stocks and my best looking stocks had such a poor day tells me that today was just not a weak day for lagging stocks. It was a weak day for all stocks.

The biggest problem in this rally, for me personally, has been the lack of max-green BOP filled charts with wonderful price/volume action. With that, at the same time, leading stock have lagged the ENTIRE rally. If you go back to November, when some indexes bottomed, you can see that the IBD 100 and IBD 8585 continued to selloff into the March lows.

When we finally hit the March lows and the Nasdaq and SP 600 hit recent lows and ran hard (up around 45% for both indexes) the IBD 100 and IBD 8585 did not lead at all. Sure, there might have been a day or two but a day or two does not a rally make. If this rally was for real, you would be able to take one look at the IBD 100 and IBD 8585 and go "yep, those indexes sure are stronger than the overall market." This would appear with a RS line that was in an uptrend off the lows (not a downtrend like this is) and an IBD100 and IBD8585 index in a steeper uptrend. Instead these indexes uptrend has been very much sideways.

Now with today's selloff added to the recent stall the past couple of days on these indexes and NOW it appears that the indexes are rolling over. If that is the case, I still have 20 shorts and am ready to add to those gains and pick up more shorts while getting rid of my longs. But I have to admit it would be nice to keep my 25 longs and get rid of the remaining shorts. Either way, it doesn't really matter because these positions still make up a very short amount of my portfolio.

Well, if I don't have a lot of longs and I don't have a lot of shorts, what do I have a lot of? That's easy at these levels: cash! Cash is still the asset I hold the most of because all during the rally I waited and waited and waited and waited for my max green BOP charts to build with TIGHT bases. At the same time, I waited for high quality CANSLIM longs to setup and breakout of proper basing patterns that were high quality. We did run into some of those and more worked than did not. However, the few that worked did not put in a ton of "impressive" gains. Instead small gains and maybe a 20% here and there and we call ourselves lucky. That sure is a LOT less than we used to get in previous uptrends.

Maybe we got too many bulls too quickly. Last week, in the middle of the rally, we were comforted by knowing that bulls beat bears on the AAII poll and on the Investors Intelligence poll (36% bulls to 37.2% bears). However, this week, the Investors Intelligence poll shows 40% bulls and 35% bears which shows that some are starting to embrace this bounce. Not only is this embrace not wise by some but it is dangerous. Some are getting long without any resolve to where they are going to cut their lost. The good news about BigWave investing is that if you have a gain you let it ride...unless it took too long to get the 20% gain at first...and if you have a loss you get wrong of it quickly.

Stay patient, stay flexible with a bias to both longs and shorts but mainly to cash, and remember this too shall pass and we will have a market that rewards patient and smart investors. Remember, Jesse Livermore clearly stated that the big money was made only ONE WAY for him: in his sitting. It was never his trading that made him the BIG money he said. It was ALWAYS his sitting. Sitting during a big uptrend (like TASR in 03 or LMLP in 99) on the long side, sitting in a big downtrend (like CETV and CEDC 2008) on the short side, and sitting on cash when the market was in no trend whatsoever other than a painful chop for those forced to be long or shorts. Aloha and GREAT LUCK!! :)

--Joshua Hayes, CEO BigWaveTrading Capital Management

FREE (FULL SIZE VERSION FOR SUBSCRIBERS ONLY IN THE GOLD FORUMS ALONG WITH EXTRA VIDEOS) YOUTUBE VIDEO:

IBD Indexes Lag, Along With The Nasdaq, As The Market Starts To Feel Toppy On The Short Term; Individual Stock Charts Look Great And A Low Volume Pull

By Market Speculator

Today was owned by the banking sector as the "Bank Stress Tests" were released today. By in large this stress was viewed vastly different from all sides of the aisle. Regardless of anyone's opinion, the market's opinion was positive as banks roared higher pushing the NYSE composite Index and S&P500 higher. Lagging behind was the NASDAQ composite index and the IBD indexes. It shouldn't be a major surprise seeing the banks leading for one day as the stress tests showed most banks can withstand further downside, but we'll need to see leadership from the IBD indexes. Once again, we did see major support for the NASDAQ and other indexes showing there is a bullish tint to this market.

It would be fabulous if we could simply settle and consolidate at these current levels. This market has made a long run from its lows and its time we head sideways for a week or two. However, this Friday we'll see the latest employment figures from the government and it is sure to set the market in one direction or another. At this point, if we could simply get quiet action with the NASDAQ holding its 200dma it would be quite constructive. It would allow the IBD 100 and IBD 85/85 indexes to retake the lead in this market.

The fever over the banks is quite a picture to look at. Taken into context the ENTIRE FINANCIAL sector was essentially blown up since November of 2007. They have been due for a rebound from the constant downtrend. At this rate, we'll see bank stocks running towards their 200dma.

What is has been largely overshadowed by the banking sector are the Chinese related stocks. We are seeing some very nice action coming from stocks who are in China. Remember, China had VAST RESERVES (aka Savings) to prop up there economy. Savings is what drives innovation and production not DEBT. Therefore, the action we are seeing from China is driven by a sound economic position. This surge we are seeing from their investment from savings is sustainable unlike the United States which is using DEBT to spur investment. Unfortunately for Americans, we'll fall further behind the Chinese as they benefit from their savings.

The market will be looking towards Friday Employment figures and should provide us with a little breathier tomorrow. However, anything is possible and we are ready for anything to happen.

FREE YouTube video:

Stocks Find Support off Lows; NASDAQ Holds Its 200 Day Moving Average

by Market Speculator

Stocks were hit hard from the onset, even leaders found themselves being sold. Ben Bernanke was testifying on the hill while traders were dumping stocks. Selling accelerated as the day wore on but were able to find footing prior to lunch time. Stocks then were hit hard after 2pm hitting new lows but support was able to come in. Stocks once again were able to avoid a nasty distribution day if the NASDAQ had gone out on its lows. This market is once again proving there is an underlying bid to the market.

Two key levels were held today and an important moving average. The NASDAQ was able to hold 1750 which happens to be its 200 day moving average while the S&P500 was able to hold a psychological level of 900. Holding the 200dma is very important level for the NASDAQ as it appears we might be able to produce consolidation above this moving average. It would be a very bullish sign for the NASDAQ to consolidate at this level. Same is to be said about the S&P500 and the 900 level as consolidation above 900 would label it a support level. It is a wait and see game but so far we are seeing bullish action.

Some leading stocks were hit hard in the morning hours, but patience was rewarded as many found support. Leading stocks will always get support in a relatively strong uptrend. Remember, we are coming off lows that were well over 50% of the highs. That kind of damage will ruin many stocks. Another bullish sign is our leading stocks finding support.

One ratio to highlight here is the number of new highs 71 that were hit today while only 12 new lows were observed. New highs are continuing its winning streak by dominating new lows. This ratio must be taken into consideration, remember we have rebounded from an incredible downturn and the expectation to see a massive amount of new highs is unrealistic. Pay attention to the actual ratio and it is showing a bullish tint to this market.

top longs/(shorts) w/ TOTAL return since my FIRST purchase making money TODAY: ANCI 83% ASCA 46% INOD 38% LFT 35% SIGA 27% ARST 22% PALM 22% RGR 25% AIPC 26% (CYT 55% TITN 48% OKE 37% POT 40% MANT 32% PG 21%)

FREE YouTube Video:

Stocks Soar on Higher Volume Led by NYSE Composite and Mid-Cap Stocks

By Market Speculator

From the open bell to the close stocks were being accumulated. Institutional players stepped up to the plate with cash from the sidelines. Leading the way was the NYSE Composite index up 4.16% followed by the S&P 400 (Mid-Cap) up 4.15%. Small caps weren't far behind. Volume was up double digits (percentage terms) acorss the board marking a heavy accumulation day.

While Small and Mid-Cap stocks were the highlight of the day it is important to note the NASDAQ composite index was able to retake its 200dma on higher volume. A very important and highly positive move for the index. Although the NASDAQ has been the leading index it lagged today as other indexes are now playing catch up. Since the follow-through day the NASDAQ has been the index who has seen the accumulation. It will be important for the NASDAQ continue its lead.

Leading stocks are continuing to shine through, but the majority of that light is coming from China. China has been leading the world's stock markets higher and have been under a tremendous amount of accumulation. We are certainly seeing this translate into the Chinese ADRs who are traded on our markets. These stocks are, if not already must own stocks by mutual funds. China is the only country in the world with MASSIVE reserves and they have the ability to take those savings and pump them back into their economy. Unlike the United States that has to borrow, China will simply use its savings and drive new investment. Continue to pay attention to these leaders as they will help push this market higher.

The important note here is to pay attention to leading stocks and how they are responding to the market. At the moment, they are leading and building bases. It will be important to continue and watch their action and take advantage of the situation. This market is acting awfully bullish, keep your eye on the ball and keep losses small.

top longs/(shorts) w/ TOTAL returns since 1ST purchase making me money TODAY: ASCA 37% KONG 30% SOLR 41% FIRE 26% RGR 21% INOD 29% (MANT 32% DV 25%)

YouTube FREE video:

The Nasdaq And SP-600 Make It Eight In-A-Row With Weekly Gains As More And More CANSLIM Quality Longs Begin Setting Up In Proper Bases; The Crowd Sure

So the Nasdaq snagged that eighth-straight week of gains after all. A flurry of buying at the end of the session saved the day. That the IBD 100 led the way with a 2.8% gain for the week is what impresses me though. According to my records, there were 62 winners to 38 losers. GMCR, of course, went on the warpath to the tune of a 35% plus gain, leaving in its wake the carcass of many an unwise short-seller. Even before blowing away earnings, GMCR had printed a new all-time high and formed a very bullish three-weeks tight pattern. I remember quite clearly Bill O’Neil being asked at a workshop last December what most caught his attention when he looked at a stock’s chart: “Tight closes,” he said. “When you see tight price action you’re seeing institutions at work.” Guess those GMCR short-sellers didn’t make it to that workshop. Maybe next time.

Something else that impressed me was that the American Association of Individual Investors (AAII) reported their members had only 41% of their portfolios in stocks. Apparently, this is the lowest amount devoted to equities in AAII history. 40-50% sell-offs have a way of doing that. While equity allocation was at its all-time low, cash levels were at an all-time high: 45%. This has never happened before. It all makes sense if you recall that just a few days before the Follow-Through Day the AAII came out with a report showing 70% of respondents expected the market to continue to tank. This was the highest level of bearishness the AAII had ever seen.

This continued agnosticism, however, is intriguing. Looking at the monthly charts of, say, TNDM, LFT and ARST, I can’t help but wonder what they are waiting for.

As I write this, the Asian markets have jumped quite a bit. We shall see if this carries over to our markets. If so, we might be chalking up week number nine in a row for the Nasdaq when it’s all said and done.

--John "Author Ego" Ward, BWT analyst

FREE YouTube Video:



top longs/(shorts) w/ TOTAL returns since FIRST purchase making me money TODAY: FIRE 25% KONG 20% SOLR 28% LFT 25% INOD 22% ANCI 86% (CYT 62% MANT 30% DV 22% CHTT 17% MCY 17%)

A Weak Day For The Market Indexes Has A Silver Lining As Leading Indexes Outperformed The Market With The IBD 85-85 Closing Up 1.5%+ And The IBD 100 F

Commentary by John Ward

Well, Investor’s Business Daily published an interesting fact in the “Big Picture” column tonight:

“In the past 22 years, the Nasdaq has made eight-week win streaks only six times. Only three of those times did the streak extend past the eighth week.” So if the Nassy can eke out a gain today, my friends, that will make it eight straight weeks of gains. From there it’s 50-50. It could go either way.

Still, if you think that today marks the end of the rally just because the Nasdaq got rejected at the 200 day moving average, I would like to call your attention to the Shanghai Composite, to my mind the world’s leading index. Back on February 17 it too was rejected at the 200 day. It fell back to its 50 (roughly a 10% pull back), only to find support. Look at the chart today. It has since broken above the 200 day and run up about 20%.

Now, given that the Nasdaq’s 50 day has turned higher over the past month (just as the Shanghai’s had in February) it is not unreasonable to think that should the Nasdaq correct it will most likely be about a 10% pullback. Whether it would be supported at the 50 day remains to be seen. Yet it could very well be that we’re just a few of months behind the Shanghai Index. Frankly, I would love to see us pullback to the 50 day. That wouldn’t be bearish. Far from it. I’ll explain why:

In the April 16 Market Commentary, I pointed out that I was watching CANSLIM-quality stocks such as VNUS, VPRT, RMG CYBS, LL, BKE, POWL to see how the market treated these kinds of equities, as it would go a long way in determining the health of the overall market. Well, I don’t know if you’ve taken a look at these stocks lately, but they’ve more than held in there. Couple this with the likes of TNDM, GMCR, NTES, STAR, etc., and I just can’t see being afraid of a pullback here. It would actually be very healthy.

Think about it: if the market pulls back and these sorts of stocks can form handles or three week tight patterns or flat bases, this will cause RS Lines to hit new highs well ahead of price. Then if the market indeed follows the lead of the Shanghai Composite and rallies again, you will get some absolutely beautiful-looking breakouts. Tell me how bullish would that be? More than that, I have no doubt that a 10% pullback would turn many traders bearish, cause the VIX to spike and the Put-Call to rise. Nothing would make me happier.

Could it all fall apart, though? Could these CANSLIM-type stocks all get blown out of the water? Well, yes, but is that what your charts are telling you? So whether you want to call this a “bear market rally’ or just a rally, there is just no denying that it has been nothing if not strong. The rest is just semantics. Jesse Livermore eschewed the terms “bull” and “bear” because they foist upon one a bias that causes the mind to be less flexible. That’s why he used the term “line of least resistance” instead. I’m guessing a lot of people are dismissing this rally simply because they’ve missed it. Missing and then dismissing the gains is what they do best. You’d think it was beneath them to go long a “bear market rally.”

All I know is that my account doesn’t know or care to know the difference.

STOCK MARKET WRAP VIDEO FOR FRIDAY:

Score It Six Weeks In-A-Row For Stock Indexes But I Still Want To Know When Leaders (IBD 100/IBD 85-85 Stocks) Are Going To Lead Us Higher

While I LOVE seeing the SP600, Philly SOX, MID400, Nasdaq, and especially the Shanghai SE Composite lead the way higher, there are two key leading indexes that have missed out, so far, but yet still might, on the rally. That is the IBD100 and IBD85-85 indexes.

These are indexes that are composed of stocks with the best ratings for key fundamentals and technicals. If you look at the rally from late 2002-early March 2003 they didn't do great at first but were still doing better than they are now and that is a concern. However from March 2003-early 2007 the beautiful green/max-green BOP filled stocks, with some being CANSLIM, and the CANSLIM only stocks ROCKED the market producing gains that were well beyond the returns of the overall market and the "regular" favorites of those that do not know how to find NEW EXCITING stocks (you know the MSFT, DELL, CSCO, INTC holders).

So as you can see, if this rally is going to be real, we are going to pullback, hold the lows of March, and then take off higher. If/when that happens, almost every single CANSLIM quality stock that I am watching to get long will then have their 50 day moving averages over the 200 day moving averages. This now sets them up in positions to make a lot of money once they breakout or bounce off a key support. Why? The 50 over the 200 signals that the worst is over and that now you have a stock trending higher without the weight of either itself or the market to bring it down.

Now, I want you to remember, this only qualifies for CANSLIM stocks, when it comes to speculative stocks, I am not looking to go heavily long ANY unless they are LOADED TO THE NINE with max-green BOP, huge accumulation, and great price action (something similar to THLD before Friday's selloff). When these charts show up and breakout, with CANSLIM stocks moving higher, then you know it is safe to go heavy into the speculative names. But until more CANSLIM stocks are like NFLX it might be a while before we can expect to have something like MAMA (now CNIC) move up 230% in 10 days.

By the way, MAMA's 230% gain was only FOUR YEARS AFTER THE MARKET BOTTOM, ONCE AGAIN PROVING THAT YOU NEVER NEED TO NAIL THE BOTTOM FOR BIG RESULTS. EGHT up 300% in one month came a FULL YEAR AFTER the 2002 bottom. IST came ALMOST TWO YEARS after the bottom (350% move). ERS and GIGM with their 550% and 250% gains came in 2005 only three years AFTER the bottom. So get this "I missed the rally BULL SH*T" out of your head!!!!! I have heard it from some and I guess they are BRAND NEW to the market or else 97, 98, 99, 03 would have all proven that you don't need to buy THE bottom to KILL it in the market.

If you have to ask me how do I feel about this market right now, I have to honestly say, OF COURSE, that ANYTHING could happen. However, the chart patterns are setting up like the market wants to conintue to rally. At the same time, I see stocks that looked like they were ready DIE. The good news is that NONE of these stocks are CANSLIM stocks but seeing HOT HOT HOT chart patterns start up in CKSW, MIPS, INFI, and some others only to see them lose the "near-perfection" of their charts is always a bummer.

However, focusing on these cheap stocks like PALM gets you in a lot of trouble. The smarter play is to stick with high quality longs that are of some type of CANSLIM worthy. When I look at the EPS and sales growth in actually quite a few of these CANSLIM stocks I am sort of surprised to see continuous growth in EPS and sales, despite the recession we are in. The sad news is that a lot of the top top top best-of-the-best charts are all in China. None of them are at buy points and buying giving out the list of Chinese stocks I am watching, current subscribers can feel safe in knowing that those reading this will have no clue when we go long a HOT Chinese stock that does what it is supposed to do. Chinese stocks like SINA and SOHU are not what we are watching. Instead I would like everyone to know that I am not fully biased to Chinese stocks. They still have to have the chart, fundies, and market to go with it.

The way the SSEC-X (Shanghai Se Composite) has moved off its lows in November and March it is quite apparant that those indexes are outperforming our top index during that time which was the Nasdaq. From November to now, the Nasdaq has moved 27% while the Shanghai Se has moved an outstanding 47%.

This continues the trend of Chinese stocks being more powerful than US stocks. From 1995-2000 (five years) the Nasdaq was able to rally a very impressive 538%. This length of time and the uptrend allowed breakout/momentum players to constantly move from one stock that was making a climax top to another stock just breaking out. You could then repeat this for the five years and at the end you were extremely wealthy with people like Dan Zanger turning thousands into multi-millions. Sadly, for me, I did not "get it" fully (I started April 1996) until late 1998. Now that blessed me in that I got the 1999 madness. However, as the story of IOM, AMER, and all those semiconductor/internet/software stocks goes down in history, I sadly was not part of most of it. I only got 1999. So the 538% move was impressive but I only got in on the end as I was too young to care about stocks in 1994 (13/14 yrs. old).

Now let's compare the 5 year 538% move to China's best move of 483%. As you can see the USA did 50% better than China during its biggest uptrend (95-00) versus China's biggest uptrend. But how long did it take China to make that 483% gain? Uh...ONLY TWO YEARS AND TWO MONTHS from 2005-2007. So if China would have kept moving up at the same rate it was and lasted as long as the US rally China would have had a gain of 966%. So the USA's five year move of 538% would have been matched during the same length of time by China's 966% move. So you tell me which country is more free and is has the better possibility of growth. I think it is clear China is where it is at and as long as it continues to be where it is at, i will be very happy for a potential further rally.

The most important indexes for me, my entire life have been the Nasdaq, SP600, and SP400. I have always made sure they were leading or moving higher ahead of the market to be bullish. But starting in 2001 the IBD 85-85 index was introduced to follow those stocks in IBD with the market. This is now (along with the IBD 100 introduced in 2003) the most important index to follow. Why? Because the stocks that go on to make the biggest price gains are normally leaders. So now we have an index to strictly track the stocks that historically have well outpaced the market.

These indexes is what made me 100% confident in the 2002 lows and ESPEICALLY the March 2003 Follow-through Day, that things were going to be great. Just like now, back then, more and more charts started to show up with pretty patterns of heavy accumulation and green BOP all over them. The only difference mainly is that back then a LOT more max green BOP charts were existing and basing out in perfect round to flat bases. This time the bases are not only shorter but the max green BOP filled charts aren't out there. It is mainly just green BOP filled charts in the speculative stocks. And as I have said OVER-AND-OVER speculative gems should have both quiet bases and heavy volume rallies with max green BOP the whole way. Study all my past big winners from 2003, IST from 2004, GIGM in 2005, HRZ 2006, and AFSI 2007. Now AFSI, HRZ, and IST were not speculative but the perfection in the charts is what I want you to memorize for a speculative stock.

Right now, we have a lot of nice green BOP and some max-green BOP filled spec. stocks. But until more CANSLIM stocks breakout of ANY kind of postive-yellow, green, or max-green BOP pattern with a tight base on low volume and a breakout on heavy volume, I would avoid going long speculative gems in large amounts.

When BIDU, JRJC, CYOU, CSKI, NTES, SNDA, CMED, LFT, MR, CEO, HRBN, CTRP, YZC, CHL, ASIA, JST, STP, SPIL, COGO, HMIN, CTEL, PWRD, SOHU, WBMD, and SINA finish setting up the bases that they are ALL attempting to build (CTEL is the prettiest BUT THE CHEAPEST), I am sure this market will take off and reap us some great rewards. Chinese CANSLIM quality stocks along with some of America's finest like NFLX, CYBS, BKE, NVEC, SYNA, TNDM, INT, JCOM, and GMCR moving higher will then provide the support and juice we need to take the gains from these great stocks and stick them into stocks like MAMA in 2006 that move up 230% in 10 days or BFUN in 2005 that moved up 300% in 10 day. Speculative stocks will work but ONLY AFTER/WHEN the CANSLIM quality longs are working.

So for now, keep your eye on the LEADING Nasdaq, SP600, SP400 indexes for that moment when the IBD 100 and 1BD 85-85 index start moving ahead of them thus opening up our moment to CRUSH the returns being made by anyone else I know out there BESIDES THOSE THAT HAVE BEEN VERY LUCKY OR THOSE THAT ARE ACTUALLY DARN GOOD AT DAYTRADING. And for those of you daytrading penny stocks to the wonderland, great of you! To each their own and I can only hope that your penny daytrading will give you a 2,300% return in nine months, one day, like buying TASR did for us. You had to work your BUTT OFF but we just went into a coma in nine months and woke up and made our sell.

Right now, things are setting up beautifully but those being rewarded are still those that have basically had their ARSES HANDED TO THEM in 2008. If you are up 10%+ this year, congratulations! Too bad you were down 45% last year on top of your 10% gain this year for a net return of -35%. Good job guys (rolling eyes).

top longs/(shorts) w/ total returns making money today: AIPC 27% ANCI 63% KONG 20% (MCY 18% GGB 53% POT 46% MOS 50% K 19% GTIV 40% CYT 70%)

VIDEO ONE: GENERAL MARKET (10:00), VIDEO TWO: LONGS/SHORTS/SELLS/COVERS (15:00), VIDEO THREE: POTENTIAL FUTURE CANSLIM LONGS AND BEAUTIFUL SPECULATIVE STOCK SETUPS (15:00), AND VIDEO FOUR: CONTINUATION FROM VIDEO THREE (25:00) ARE AVIALABLE FOR VIEWING BY GOLD AND PLATINUM SUBSCRIBERS. LEARN, EARN, AND HAVE A GREAT TIME THIS WEEKEND! ALOHA!

FREE YOUTUBE VIDEO:

The S&P600, Russell 2000, And S&P400 Produce Very Strong Gains On Higher Volume Above The 50 Day Volume Average; Leading Indexes Continue To Lag Badly

Stocks ended the holiday-short week on a very positive note but by now everyone knows this. If you guys do not have a real-time stock market intraday tracker for the general market, I really recommend that you use a delayed candlestick version like the one on finviz. These intraday candlestick charts are the highest quality I believe on the web. Now, obviously, if you have any kind of real-time platform you have access to nice intraday charts but for those out there using a delayed broker that do not like the charts they provide or for those just learning about the stock market, these intraday charts of the DJIA, SP 500, and Nasdaq are a must to get to know.

Why? Well a lot of individuals do not realize that how an index trades intraday is actually and extremely valuable way of knowing what the pros are doing. We already know if we have a day where the indexes close higher on higher volume that that is good while when we have an index close at the LOD with volume higher that is bad. However, this EOD analysis while very important and a must for me to make a smart decision about the trend of the market is in fact only a start sometimes. Other times, it is open and shut like the market opens, barely rallies, starts to selloff, and closes flat to slightly higher or lower. No big deal.

However, other times, like on March 25th for the Nasdaq the intraday action can tell me a lot more than it can most. During that day (I do not have the data in front of me) the market was rallying but lagging stocks like banks, real estate, and other clear beaten up weaklings were making the way higher. But before the session could end stocks took a dump lower and appeared that they would close at the LOD. However during the last hour and especially I believe the last 5 to 10 minutes stocks took off with not only all stocks gaining but leading stocks taking the reigns for the first clear time of the rally attempt. This showed up as an amazing intraday move.

Since then, Nasdaq only, we have seen some great tight session with strong closings that I believe all inexperienced and experienced should get used to spotting if we are going to have an uptrend work. Now some of these indexes do not have volume data on some providers so I have to go look at Telechart's SP 400 and SP 600 to determine the rally. At the same time I need to use Daily Graphs to get a gauge on the IBD leading indexes. The bottom line from all of this is that it is very important to know when the market is moving up with volume during uptrends.

Like I was saying, some examples from the Nasdaq include 3/10, 3/12, 3/17, 3/18, 3/23, definitely 3/25, 3/26, 4/1, 4/2, and now 4/7. These closings and intraday reversals have helped put the Nasdaq on top as far as top markets are concerned.

Other indexes have had nice sessions on the daily and weekly patterns the past five weeks but by far the Nasdaq has taken over. The nicest indexes on Friday that I have been waiting since the rally started to see them get going are the SP 400 and SP 600. It has been a long time since I have seen these indexes put in those kind of moves.

Sadly the indexes that continue to lag are the IBD 100 and IBD 85-85. The really sad part is that this deep into the rally, by now, these leading indexes should be leading the market higher.

I will be going over more of how to read charts for subtle clues on if the market is going higher and of going lower.......

FREE YOUTUBE VIDEO (PAID SUBSCRIBERS HAVE 4 VIDEOS 20 MINS EACH IN THE GOLD FORUMS):

PART ONE (10:30):



PART TWO (8:00):

Stock Market Indexes Put In Another Very Bullish Session On Much Higher Volume But Leaders Continue To Lag BADLY

It was another great day for the stock market which took off on the back of an excellent session in both Asia and Europe. The best part of the rally is that volume was, once again, very large on the rally. This means that the March pattern of higher volume on the rallies and lower volume on the pullbacks. This is the exact kind of pattern is what you want in a market that you are going long in.

Despite all the fireworks in the stock market, I still have one major issue that I just can't ignore. That is leading stocks. I am very happy and excited watching the Nasdaq rally in an exciting manner of higher volume on the rallies and lower volume on the pullbacks. Along with this action a lot of charts are starting to setup in nice patterns. But that is the problem in and of itself; the patterns are just nice.

There simply is not enough "near-perfect" to "perfect" setups (study my 'past big winners' to review what one would look like) to get me excited. Especially when you combine that with the leading stocks lagging the entire uptrend. The Nasdaq composite is up 26% this month off the lows, even outperforming the WORLD LEADING Shanghai Composite in China which is up 17% in March from its lows. Since the Oct/Nov lows it is the leading index but the Nasdaq has been right behind it, in world markets.

While that is definitely exciting about the Nasdaq some great detailed research shows a little disturbing pattern developing. It is clear to me that despite the vast amount of nice charts that I have been showing subscribers in my videos and post in the 'new longs' section, that these stocks are not leading the Nasdaq higher. So even with the Nasdaq having new highs dominating new lows, there is not too many stocks making 100% to 200% moves in a month or so (that isn't $10 or less). To find out where the move is coming from you don't need to look any further than six stocks. GOOG, MSFT, CSCO, AAPL, ORCL, and INTC all make up nearly 25% (23.8%) of the entire Nasdaq. These stocks are up 24%, 26%, 33%, 35%, 35%, and 27% respectively. Only GOOG has not kept up with the Nasdaq and it was only off by 2%. The rest of the big fat heavy giants (btw, how high can I jump? Not very high. So would you hire me to play Center on your basketball team?) outpaced the index and tells me that they have been completely leading this market higher.

This is disappointing for individuals like me that can read the market very well (reading it well doesn't mean you will make a fortune ALL the time-remember that) because we know that this means that the rally is in the hands of six stocks and if one has a real bad day the market will have a bad day. This would NOT be bad IF we had those "near-perfect to perfect" chart setups in more than one stock at a time. If I had "hot" stocks setting up, breaking out, and showing me 20% gains IMMEDIATELY (like ALWAYS HAPPENS TO ME in bull markets) I would be ecstatic about this rally. But the opposite is happening.

As this rally goes on, more and more of my "nice" charts are becoming "mediocre." This happens in either one of three ways. Usually when I go long a stock it is setting up in a chart pattern that has historically led to large gains. When this pattern comes with a LOT of green to max-green BOP, a RS line hitting a new high, and a moneystream line hitting a new high, I know that I have a VERY HIGH reward/risk situation. In 1999 and 2003, when the rally started, proving that it had lasting power, "near-perfect to perfect" charts were setting up and breaking out everywhere. This allowed my accounts to grow exponentially in a short amount of time. Those two years make up for over 70% of my gains. How? Because I knew we had "the moment" both years and went fully long on as much margin as I could get my hands on. If you have reviewed my 'past big winners' you know how large the gains were and what you could have made with margin. Obviously, these patterns work, when they show up!

This rally, as it goes along, kept on producing more-and-more great looking charts with sound fundamentals or beautiful charts (not perfect) that had poor fundamentals. This started to get me very excited. Then I started to get more bullish as my longs went from just a handful to 20. But the last two days, with the strength the market has exhibited with the strong volume, has led to the opposite of what should be happening.

Instead, the stocks that I go long going from green to max green BOP (if not already there) are not making it all the way to the max 100 area. Instead they are getting near the max level and then slowly moving lower. During this time price holds and volume pulls back on low volume thus making the once nice setup now just mediocre. Also the recent longs I have taken breaking out to new highs or bouncing off key support on huge volume that do have max green BOP have also shown the similar pattern of staying max green for one or two days and then declining.

One particular long was looking "near-perfect" when I went long. Here we are about a week into the holding and the max green BOP is gone already. Now the max-green BOP could be back tomorrow as it was up over 9% in the after-hours market, according to someone I know. But if it is not max green, it is just going to be a long in my portfolio moving higher that I will need to treat like a CANSLIM long position as it does qualify as a CANSLIM long. Hopefully, though, tomorrow it will be max green again and I can squash my worry.

But besides my longs not moving up 20% in the first two weeks and 100% in the first three months, like they should and always have done in strong uptrends, another problem is with the longs setting up. There are so many on my watchlist right now that I WOULD LOVE to go long if they keep the green/max-green level of BOP, huge accumulation, and tight price action. However, recently, I have noticed some stocks losing their beauty. NAV is just one example I can think of today. There are many more.

We could focus on that negativity but I feel better "hoping" that the market will continue to rally on stronger volume and pullback on lower volume. While that happens I "hope" that more-and-more of the longs that I am watching that are starting to lose a little of their luster can kick-turn it right back around. That would be great and have me feeling much better that the rally can continue for the intermediate term. Stocks like CSTR, PEGA, ANV, and a personal favorite of mine that I am watching and praying can setup and breakout from a long enough base because the price, volume, and BOP action is just too good to be right. This stock begins with the letter C and subscribers in my chat room or even astute readers of my forums know what stock I am talking about. If these four stock can base, breakout with huge volume and max green BOP, and run higher around 20% in a couple of weeks I will then be FOR SURE that we are in a "legitimate" bull market. However, if that doesn't happen, I am preparing myself to get short again.

I currently have 20 longs and 28 shorts. All it will take to cover the shorts is for another rally on very large volume with BOP going green. If that happens, I will be taking my profits. However, all that has to happen for me to cut my losses in my longs is for the market to have a nasty selloff on higher volume with all my green and max-green stocks turning into yellow and red filled charts.

I am ready for this market to do anything and I am positioned in the strongest stocks for a new bull market and have my shorts that are not only rallying but will outpace the market to the downside if we fail the rally. This is the ONLY way to approach the market as the market doesn't care about your opinion and especially doesn't care about mine.

Great luck out there and ALOHA!

FREE YOUTUBE VIDEO:

IS FINISHED AND IS BEING PUT ON THE SERVER

Twitter: Joshua_Hayes

Facebook: BigWaveTrading.com group, Joshua Hayes county: Maui

MySpace: JoshuaNcontrol

LinkedIn: Joshua Hayes county: Maui

Stocks Put In Another Bullish Session With The Nasdaq Having Higher Volume; Leading Stocks Are Still Lagging But Some Stocks Are Looking Real Bullish

Let me first start off by saying that the session in Asia was just amazing with the Nikkei up 4.4% and the Hang Seng index up 7% last night. To go along with that, futures are just popping right now as we go into the morning's opening bell. This is excellent action right now, I have to say.

But what makes this action more exciting to me is that for the first time in a full year (last time was 2001) we have more than just a handful of nice charts out there. To go along with that many of these nice charts are either in leading industry groups or are the leader in their respective group in terms of either price performance or both price performance and fundamentals. The fact that so many charts have green and max green BOP, with the market in an uptrend and China leading, is the most bullish setup we have seen since August 2007 when the Nasdaq made its last run into the October 31st high.

Since then it has been far and wide in looking for winning stocks on the long side. In 2008 we had ONLY PDO and DGLY early on. Then we got XSI (which is now ANCI) and got a quick near 100% gain in a few months with it also setting up in a near-perfect setup in the middle of August giving us a quick 50% gain. That second buy was real nice but even I could not load up due to the fact that so many stocks were acting so poorly. I was too scared and still had the thoughts of the FALC and INXI charts that failed in 2007. So obviously I couldn't load up, even with the near-perfect setup, simply because there was no other leadership to support much less any other stocks with green BOP, strong accumulation, and tight price action.

The best setup, however, came from a stock we are long now for a 40% gain. That stock is AIPC and didn't give just one near-perfect signal but TWO near-perfect signals (6/18/08 8/7/08) that gained buyers a 220% gain and a 185% gain. Just one problem for us at BigWaveTrading; Telechart does not have OTCBB stocks (even if they have great fundamentals and are about to list like AIPC), pink sheets, Canadian, or Chinese stocks. The problem with this is that my price, volume, and BOP that I have used to make a living in the market since 1996 work best on small and mid cap companies. Obviously, that is all that exist in OTCBB markets. So I am sure RIGHT NOW there are a lot of heavily accumulated, max green BOP filled stocks with nice tight price patterns breaking out to new highs just mocking us as we miss them.

Thankfully, AIPC did give another less-than-near-perfect setup/breakout that we were able to take advantage of and now has us a 40% gain. The other thing we can be thankful for is that right now there are a lot of stocks that are trying to setup in mid-summer 2008 patterns like AIPC and XSI (ANCI). If you study my 1999, 2003, and 2004-2007 (heck even 01, 02, and 08 can help) past big winners, you will see that a lot of stocks are beginning to setup in patterns that we have seen before. Nothing EVER changes on wall street. Well one thing does. The players. Besides that, human emotion never changes.

Speaking of human emotions, the Investors Intelligence survey came out and found bulls rose a little to 31% and the bears dropped a little to 38%. The current trend isn't anything to be happy about but the fact that EVEN AFTER this 22% off the March lows newsletter writers are still very bearish as they know "this market is going to top soon." They may be right but if they are wrong there is going to be lot of missed opportunities on their end. Even if they are right, we operate so well that we will be able to take our profits, cut our losses, and get short the proper setups that come along. So we don't have anything to worry about.

But worry is just what the put/call players are doing even after today's rise in the stock market. This is good news because there has been a recent pattern of markets rallying and yet the put/call rises. Normally, options traders get more and more bullish as indexes rally. So when you see divergence, like we saw in 2008, you know it is worthy to pay attention to. Today the put/call rose from .76 to .86. That's great as that says as the market rallies people "just know it is going to fail." Since our longs are growing this is very great news. Also another important number is the AAII bull/bear survey. Despite everyone seeing the rally and the breakouts, people are still hesitant. As we know the AAII number is the "very dumb money" so it pays to watch how they think. How are they thinking? They are mixed. But the good news for those that keep watching their amount of long position in their portfolio rise the public is only bullish by 43% to bearish of 37%. To go along with that 20% don't know what the heck is going on as they are undecided.

So we have the charts starting to show up in multiple industries (only missing the max green BOP charts that last for 50 or more :)), we have sentiment working correctly for us, option players keep getting bearish as the market rises, and we have a lot of people out of the market meaning that the best serious players are left. Fewer of the "REALLY dumb money" players exist after the 50%+ losses a lot of newcomers took and that means a more orderly market. There is really only one thing missing (well two if you are asking for that stocks be perfect with huge accumulation, max green BOP, and a flat base breakout lasting five weeks). Where are the IPOs?

Well the pipeline isn't anything to get excited about but we do have a new IPO pricing today I do believe. CYOU is scheduled to price at the opening range of the $14-$16 area. The best news about this IPO is it is a spinoff from Sohu.com which helped earn me a 2,000% gain from my first small purchase and a 798% return on the MUCH bigger second buy from a MUCH better chart setup. From the first and second purchase to the top of this stock, the ride was only nine months and eight months long respectively. Hopefully, if we are REAL LUCKY (don't count on it) CYOU can setup and breakout and be the next SOHU of 2002-2003.

Right now, it is all about Gold and Silver as 7 of my 20 longs are Gold related. It has been the #1 industry for 6 straight months in Investors Business Daily. What is more amazing that 7 months ago it was DEAD LAST at #197. And the stocks are JUST NOW breaking out. That is pretty rare to see stocks not run for six months yet have their sector lead the whole way. Now those leaders are breaking out and if history and the stock market (which is THE MOST IMPORTANT "if") repeats itself some of those 7 longs should be making us a lot of money in a short time frame.

Don't forget, besides the positions I am long, I also encourage anyone 50 or younger to please go out and to start slowly accumulating Gold or Silver bullion. Just a little bit can go a LONG WAY if something horrible ever would happen, God forbid. Great luck, hopefully our markets can repeat Asia ON HIGHER VOLUME, and I will see you in the Chat Room or Forums. ALOHA!

FREE YOUTUBE VIDEO:

Will Stocks Keep Rallying Next Week? We Don't Need To Know As The Charts Will Continue To Tell Us What To Do As It Happens; What Matters The Most Is T

I spent a lot of time this weekend (looked at over 6,000 charts in a little under an hour--53 minutes) scanning charts and have to say I see more "green" charts than I have since the March 2008 to June 2008 bear market rally. There appears to be MUCH BETTER looking stock patterns now than there was then, also. Back in March 2008, a lot of stocks were clearly topping and only making short-term bear market low-volume rallies back to resistance. There were very few winners then and very few "nice to hot" charts. DGLY and PDO were the only two that set up and did not fail. The key tell the market was over, to me, was when ACM setup in that beautiful pattern and started a very heavy volume move in June which end very quickly when in five days the stock closed below the key averages and the low of the purchase date. That was clearly a very negative situation to see occur for that stock. When stocks setup in strong bases like that, especially when they are new issues, and then fail, you know things are not going to go well. This rally has a lot of stocks with stocks making nice bases full of strong BOP and volume action. These stocks are showing up AFTER the market put in a huge decline, thus increasing our odds that if a successful setup resolves its way higher if and when they breakout from those patterns. Once again, I am going to keep it short as I have already given subscribers a TON OF INFORMATION this weekend with five videos for them to watch since Friday. Subscribers you are completely up-to-date and ready to battle this war for your capital. Great luck everyone! Aloha!

Free YouTube Video:

Stocks End The Week On Another Weak Note, Despite A Last Hour Surge Into The Close; Shorts Are Making A LOT Of Money In This Market--It Feels Good But

Market Speculator is going to do the commentary this weekend since he was closer to the market than I was this week. I will however add some important stock market "notes" below. These notes are important key points that I want everyone to think about while we "search (yeah right!) for a bottom."

When Josh asked me to write a few comments about the market I didn't realize he'd sum up ALL THE FACTS below in his notes below! Throughout much of the week the action was dominated by the actions of short-sellers covering and re-shorting. It appeared as if all the large institutional players were simply selling into any strength we saw all week long. The market needs institutional support to move higher, but we simply are seeing these institutional players as net sellers rather than net buyers of this market.

There is absolutely no need for us to be trying to pick a bottom here. Our charts will lead us to the stocks that will lead this market out from a bottom. Unfortunately, we have really do not have ANY stocks at this point that provide this market with the type of leadership to move us higher. We will find these stocks when we do finally reach a short-term or even "the" bottom. Until then, we simply wait and take our opportunities on the short side.

The number one concern we must be aware of is the EXPLOSION in the monetary base of the United States!



(THE FULL CHART DOES NOT SHOW ON BLOGGER. IF YOU GO TO BIGWAVETRADING.NET YOU CAN SEE THE FULL CHART)

If this does not scare you, what will scare you is that never before in Human history has any Government EVER has increased its money supply like the Federal Reserve and US Treasury. One piece of the inflation equation is the supply of money. The more money you have floating in the system the more expensive goods and services become. Unfortunately, in the near future we may begin to feel the consequences of our Federal Reserve, Congress, President, and Treasury's actions.

We'll continue to stay on top of this market and extract profits from this terrible market and cut our losses when it is prudent to do so. Capital preservation is the #1 game at the moment. We will get a new bull market at some point and we'll be ready to take advantage!

Market Speculator

Notes from Joshua Hayes:

--There were only 2 stocks making new 52-week highs (one was too thin to think of...what was the other one? RGR (Sturm Ruger). Why do you think that company is hitting a new high? BTW, while only 2 stocks made a new high, there were 1,199 stocks making a new low. This is not bullish and is ONLY bearish.

--A little good news is that the Nasdaq is developing some great RS to the SP-500 since the November lows and while the NYSE fell 7% this week the IBD 100 only fell 4.8%. This makes it possible for a possible over-sold bounce in the future. However, I would wait for a series of higher highs and higher lows before trying to play this market on the long side.

--IPOs in the past year make up 1.1% of the total stocks available on the NYSE. This is, by FAR, an all-time low. When the stock market is in an uptrend it is common to see anywhere between 4% to 7% of all issues being IPOs. The recent high happened on March 16, 2005 when 9.3% of all stocks on the NYSE were new issues in the past year. Pretty impressive! In 1999, I can honestly say it must have been around 15-20% of all stocks on the Nasdaq. So clearly we are in depressing waters since new issues are the lifeblood of growth in the stock market. The fewer IPOs the lower the gains the market will produce. 1.1% is a horrible number and if it gets below 1% it will be very upsetting.

--If this is a capitulation bottom, where is all the volume? Where is the HUGE intraday reversal? No, my friends, Friday was not a capitulation bottom.

--Right now the AAII is showing the most bears its survey has ever shown with average investors coming in at 18% bullish and 70% bearish. Bearishness is very thick, in the public arena. As for the investment newsletter writers, the same thing can be said. Bulls come in at 29.7% while bearish newsletter writers are 44% bearish. With the crowd so bearish, it must be showing up in the volatility gauges that we use, ALONG WITH PRICE AND VOLUME ACTION IN THE INDEXES, right? Wrong!

--Back on March 17, 2008 friendly (ROFLMBO) people like Sandy Wright, my accountant, and Jim Cramer were telling me to buy LEH, BSC, GS, WFC, C, BAC, and other "cheap" stocks that I was "too stupid to realize they were bargains." Since none of these people could read a chart to save their lives, I tried to figure out why they would want to go long here when, to me, CLEARLY, the market was possibly beginning to really top out and start a potential nasty bear market. It became obvious to me it was simply greed and the fact that the market was very fearful and they were all trying to be cute and catch a big move. It failed. The put/call on that date was a whopping 1.41! When the November lows came for the market in late 2008, it didn't look right, even though the VIX hit 90! Why? The put/call was still no where near 1.41. I believe it hit about 1.2 and that was it. Right now, the put/call is .93. Does this .93 put/call show the same amount of fear as the 1.41 day? Not even close. So how can this be a bottom? Let's look at the VIX first, before we answer that.

--The VIX today is a high 49 very close to the magical 50-60 range that used to indicate a bottom. That was until those November lows. In November, the VIX hit 89.53, intraday, which was the highest intraday reading since the 1987 crash. With the VIX hitting new highs it hasn't seen in over 20 years the market must be indicating enough fear in the trading to be at a low right? Not so fast. Remember, the put/call was only 1.25 at its highest and that was not higher than the 1.41 in March. Therefore, the VIX and put/call did not confirm a bottom in November just like it didn't confirm one in March.

--The NYSE, the SP 600, the SP 500, the Russell 2000, the IBD 100, the DJIA, and the IBD 85-85 all have the worst accumulation/distribution you can have with E. The only index without an E is the Nasdaq.

--The NYSE short-interest ratio is at 8.69 which is much healthier than the 17.99 it displayed right before the swoon from October to November. This is a bright spot, along with the healthy level of bearishness with the overall public, for a possible bottom. However, before you go out trying to call a bottom with anything I have listed today in my "notes," don't forget the most important ingredient in this market dish is price and volume of leading stocks and the market.

--How many beautiful max green BOP filled, heavy accumulation with low distribution filled, nice and tight green charts are there out there right now? I have the scans that find them. I can tell you. About two to three. Two to three! That's it! I should have at least two hands full of "hot" stocks starting to setup or near completing a setup, before I actually get confident in calling a bottom.

--Not only will a handful or two of "hot" stocks be required, but we MUST see leading (CANSLIM quality) stocks in leading industries setting up and breaking out or at least leading the market higher, before I ever rely on any of the indicators I spoke of above before going heavily long the market.

--The most important thing to look for a bottom, however, is the simple price and volume of the general market. When the market starts selling off on BELOW average volume (the past week EVERY DOWN DAY WAS EITHER A NASTY SELL OFF OR A DISTRIBUTION DAY) and then hits the lows and reverses on strong volume, which is then followed by another up day and then within the next 3-10 days have a very high volume accumulation day (volume needs to be higher than the day before), then and only then can we look for a bottom. If you have those three up-sessions (PLEASE, study the 2003 FTD I believe on March 17, 2003) within 4 to 11 sessions, have "hot and beautiful" green chart patterns setting up in proper chart patterns, have CANSLIM stocks moving higher or setting up in proper bases ready to breakout, have a put/call near 1.41, have a VIX near 90, and there are more bears than bulls in the two key surveys then you know we have a bottom...or at least have the potential for a real bottom. Any "potential bottom" anyone calls out there on CNBC or in the WSJ is just noise, unless everything lines up. Just remember, the most important part is the actual index and the price and volume action of that index. The put/call, the VIX, the surveys, the opinions, and anything else technicians/contrarians use to try to ID bottoms are useless, UNLESS THE PRICE AND VOLUME ACTION IN THE INDEXES AND LEADING STOCKS ARE MOVING HIGHER.

Aloha and I will be back to the "normal" routine on Monday when our Platinum subscriber Todd goes home. As subscribers know I still came in the chat room, updated the forums fully, and updated the longs and shorts pages every day, while basically on a vacation. There aren't many people that will work harder FOR YOU than me. I love you all (minus that jerk I just kicked out of my website) and hope you continue to make us much money as I am in this horrible economic environment. I HATE SOCIALISM and pray for the day when the stock market can return to normal.

top longs/(shorts) with TOTAL returns making me money TODAY: ANCI 55% (BOH 36% LLL 39% AMX 55% THG 18% CEO 38% RDK 38% GGB 68% PLCE 26% OKE 56% CFR 19% CBU 25% MOS 54% AAPL 47% WABC 15% CYT 79% GTIV 47% POT 58% RIMM 63% FSYS 44% SPG 68%)

FREE YOUTUBE VIDEO:

Another Nasty Session On Above Average Volume Rocks Stock Indexes For Sizeable Losses; Socialism = DEATH OF AMERICA! LET FREE MARKETS BE FREE!!

I believe John Ward will be posting today's pre-market commentary. Aloha!

Well, so much for that rally attempt. It was a loss of 4% or more for all the indexes. Small caps got hit especially hard. Volume ran hotter across board, too, except for the Nasdaq and Nasdaq 100 (though volume was still above average). Both the S&P 500 and DJIA hit new bear market lows. All in all, it was a nasty day.

Whether it’s GM’s auditors being concerned that Chapter 7 bankruptcy could be inevitable, or doubts about the viability of the banks, or doubts about the FDIC having the funds to guarantee the banks’ deposits, the news has been nothing short of dismal. After all, what happens when the fund that protects our deposits against bank insolvency is itself insolvent? Sheila Bair assured us not all that long ago that the taxpayer won't have to bail out the FDIC. Hmm, where have we heard that one before? She said banks, not the taxpayer, will pay to fund the FDIC. Yet, as I thought to myself at the time, how will that work if those banks are themselves insolvent! So, yes, it’s official: we are all trapped in a bad Kafka novel. Now, according to the Wall Street Journal, the esteemed senator from the great state of Connecticut, Christopher Dodd, is moving to allow the FDIC to “temporarily borrow as much as $500 billion from the Treasury Department.” You have to love that adverb: “temporarily.” Fire up those printing presses, boys!

Couple all this with what is going on with some of the public pension funds that are out there, which by law the states must guarantee, and you have the makings of a very hairy situation for the dollar indeed. This might explain gold’s perfect bounce off the 50dma today.

Meanwhile, the Obama administration is tackling threats head on; for example, Mad Money’s Jim Cramer. White House Press Secretary Robert Gibbs answered a question regarding comments Cramer made on the Today Show by, in essence, insulting him. But, in response to Gibbs saying that “the president has to look out for the broader economy and the broader population," Cramer, who I can’t believe I’m quoting, wrote quite correctly: “Only the people who have lifetime tenure, insured solid pensions and rent homes but own no stocks personally are unaffected. Sure that's a lot of people, but believe me, they aspire to have homes and portfolios. If we only want to help those who have no wealth to destroy, we are not helping the majority of Americans; we are not helping the broader population.”

So, given all that is going on, is it any great surprise that the American Association of Individual Investors comes out with a study that shows over 70% of its members are bearish, the highest reading since the index’s creation in 1987? They tell me these sorts of reports are good contrarian indicators, that extreme bearishness is actually bullish. If that is true, then why, even after a day like today, is the Put/Call ratio still under 1.00, according to Investor’s Business Daily? So don’t confuse bearishness for fear. Fear is what makes a bottom, not bearishness.

As we have repeated here at BigWaveTrading ad nauseam: Cash Is King! If you followed this advice, pat yourself on the back and thank your lucky stars. Take a gander at the returns of the top mutual funds, you’ll see what I mean. Think of it this way: a 0% return this past year puts you in the top echelon! And they say investing is hard….

John Ward (Author_Ego - chat room handle)

top shorts w/ TOTAL returns since purchase making me money TODAY: CETV 94% CEDC 88% IPHS 64% TITN 62% GTIV 45% CYT 78% CBU 24% MCY 42% GGB 67% BOH 36% CINF 22% POT 56% SDA 81% MANT 15% FSYS 17% AAPL 44% ARB 73% AMX 55% PG 28% MOS 53% OKE 56% LLL 38% CFR 18% RIMM 61% THG 17% CEO 37% SPG 66% RDK 38% CB 15% DV 16% WRB 22% K 26% PRGO 35% APD 51% CASY 34% AMSG 44%

Nasty Selloff, On Friday, On Huge Volume, Sends Indexes Into 1997 Levels; I Feel A Nasty Selloff Coming. Hope I Am Wrong!

It was an ugly end to an ugly week and this was good news to us at BigWaveTrading.com because are long-term shorts are really starting to pay off. This can be seen by just looking below at our top short returns. As you can imagine, with our Gold longs, it was a very good week.

I think it is best for everyone to just stop listening to the media and start paying attention to your charts only. It has become very clear by looking at the "best" pundits returns for 2008 that they are the least trustworthy bunch of stock advisers that there can be. Heck even my accountant who runs a ton of stock trading accounts admitted that I had the best returns last year. So it has become very clear to me that most are doing horrible.

Not surprisingly the active investors that did the worst were daytraders. I am not shocked by that as much as the "trading advice" he was attempting to give me. Why was this shocking? Because he just admitted that he was one of "those" that lost a lot of money in 2008, yet there he is telling me, once again, how I should probably invest.

It was crazy to think that someone that lost so much buying bank stocks all year long and who just saw my GAINS FOR 2008 is telling me "the right way to trade." I asked him why he believed his way was better than mine even with the huge difference in returns. His response was, "that is what I learned in college and from reading Warren Buffett." Instead of cracking up and peeing in my pants I decided, instead, to ask him how much he has paid in "market tuition" in becoming an investor. He told me he has bought five books by Warren Buffett and "just knows to buy financials cheap." Where did he learn that? Nowhere. He created this rule in his head. If he bought bank stocks "cheap" all year in 2008, how do you think he did?...exactly. What is the point of all of this?

It's simple! Clearly he spent too much money going to college and learning how to become an accountant he said and thus would not pay for financial advice. I said, "sir, that is why you are down over 50% this year and have ruined 20 years of gains in one year." The outcome of this mess...he has to move off of Maui and I now will have a new accountant.

Folks, the honest to God truth is that if you are reading this, are not a subscriber, and our losing money currently in the market you need to go take a long look in the mirror and ask yourself if you COULD handle a 20 year bear market with losses most years. The funny thing about the members of BWT is that a LOT of subscribers did better than me last year because their long and short decisions were better timed and they went heavy in the right shorts and the few longs we had. The one thing they all had in common? NONE! of my subscribers are even 1/2 way to being down 55% like the NYSE is. NONe! And this year has even been better so far in that both our shorts are KILLING it and so are our Gold longs. Being long Gold and short the market has been a blessing for the BWT crew so far this year and I am sure by the end of the year the intelligent o'hana (family) of BigWaveTrading will be outperforming the majority of stock websites out there.

Everyone must invest in themselves. Why in the world do 95% of the American population pay more for cable bills every year over investment publications? Why do over 95% take more time thinking about the outfit they are going to wear instead of their next investment decision in the markets. NOBODY needs other people to invest their money for them unless they have less than 30 minutes a day for 5 days a week. If you have at least 30 minutes a day for five days during a seven day stretch, there is NO EXCUSE to not be running your own money. However, if you don't have that amount of time then SURE give your money to Ken Heebner.

If you have the time you have no excuse. By using that time clock I just gave you, knowing that it WILL take at least two-to-three years to do it CORRECTLY, CONSISTENTLY, AND PROFITABLY, and then at the end of this tuition period you will be able to scan, research the few that show up at night, and then enter your orders in about 1 hour to 3 hours depending on how many show up in the scans nightly is the best job in the world. Why? You have the other 21 to 22 hours of the day to do whatever you want. Even if that is daytrading, so-be-it!

I want to apologize to everyone in case there are any mistakes in this tonight. On Sunday morning I woke up to a severe! MS attack that has rendered my left hand numb completely and useless. So I did all of this with one hand and it took very long. However, everyone needs to understand that YOU WILL NOT EVER!!! make money without spending money on market advice.

When I started, by the age of 17 I was paying $200 EVERY month for access with an elite group of traders. NOT only that but at 16 I (not mommy or daddy) was paying for IBD and by 17 you could throw Telechart data into the equation. The bottom line: the more money you spend on GREAT TOOLS like Daily Graphs, Worden charts, and low cost commission houses like Interactive Brrokers, the more money that you spend to learn from the best, the better you will be. My subscribers know this and I am telling you I have NEVER seen such a correlation in portfolio performance from those that get free advice from the market and those that pay for GREAT advice. Those that pay definitely get to play and stay. Those that don't, the market and YOU know you are a joke. Very few are cut out for this but if you are going to commit to a big wave you could find no better spot.

Once again, I apologize for my Multiple Sclerosis attack. These normally take a month to pass but pray that it last just a few days. No matter what...I'll be in the chat room!

top shorts with their TOTAL returns since I went short that are making me money TODAY: CEDC 87% SDA 80% CYT 70% GGB 66% TITN 57% SPG 59% IPHS 51% APD 50% OKE 49% GTIV 35% PRGO 32% CEO 32% MCY 33% BOH 22% WRB 16% PG 24% LLL 28%