Market Reverses But Holds Above Yesterday's Low

The market definitely did not act the way I figured it would after yesterdays reversal. This is either a great way to wash out bears and bulls, or the market is one confused son-0f-a-gun. However we are still holding on above the lows of yesterday. So we have not killed this rally attempt yet.

The two failed bounces at support has held up and that is what is needed to create a decent bottom, if we are in fact building one. The one thing, for sure, is that this creates a higher level of bearishness with the wild volatility. This allows the weak holders to sell into the smart money hands and sets a stage for a possible rally.

But with all this possible bottom talk, we have to remember, that the averages are still trading below their key 50 and 200 day moving averages. Along with that, the trend of the 50 dma is down. This adds more pressure to the resistance, as time goes by and price declines. I can not believe I did not mention yesterday that the markets may not rally because of the fact the 50 dma is trending down and the indexes are all trading below this key average.

So it is up in the air. Up or down. I dont know but up is my guess with the reversal we had yesterday. I am not finding a lot of new longs but I think this is because their is an obvious sector rotation happening out there. The top 40 industries in IBD Industry Groups that have moved up the most the past 3 months is a great place to look for the next leading industry.

I left a ton of money on the table today, by covering my shorts in the morning. I could kill myself because as you saw today oil stocks fell quite nicely. I had enough oil shorts along with other shorts that fell over 5% today to make the month quite a nice month. Instead I might end the month with a loss.

Oh well that is trading. I have to keep to my style, because you never know when the market will take off. If I take the week off, I might miss on the "great longs" that come up on my scans. I might miss the next TASR(2003) or LMLP(1999) on the long side. Or miss the next ENGA (2000) or any Airlines (2002) on the short side. That is the kind of money that can make being a trader very rewarding.

Good luck out there!!! We need all the luck we can get.

New Swing Longs: PAYX VDSI ISIL HAR UB

Longs Outperforming Market: NUHC LDSH KNOT BRLC AAPL SUPX THRX

New Swing Shorts: PLCM TLM ECA EPEX BGG PVX BAK USTR RESP SID KCS BTU STLD XRX UTEK NUE CAL

Shorts Outperforming Market: Sadly - None. I covered my new shorts too early and missed out on a LOT of gains. Did you see oil stocks today??

Stock Indexes Give A Follow-Through Day On Huge Volume; Cover ALL Shorts

The very emotional and weak open with at one point 3 to 1 negative breadth gradually improved to give us a very volatile day that ended up being a "key reversal" day. The markets ended up 1.3% to 2% today on volume that was 25% higher than the day before. Adding to that, all indexes closed at their HOD (high of day). This follow-through comes on the 5th day of the most recent rally attempt started Oct. 13th. Also, remember, the count of distribution days have been reset with this follow-through. So all those distribution days the past two months are now erased and we are back to zero distribution days.

The talk of the dead-cat bounce being dead after yesterday's distribution day and the new lows in the morning opened up the flood doors of crash callers and blatent panic selling by bulls that thought the "bounce" was officially killed. This in turn caught the short sellers extending themselves too far and caught bulls selling their stock they just bought two days ago. By cleaning out the weak bulls and creating too much confidence in the bears this morning we were able to put in a bottom.

After the small yet none-the-less distribution day of yesterday it appeared the market was going to rollover and make new lows. But just like during the April/May bottom, a minor distribution day was needed to bring out excess pessimism that led to a nice rally. I am not sure how much rally we are going to have but the tepid selling of yesterday being met with the huge rush of big buyers today leads me to believe that we should be able to get some good gains from this.

This follow-through does not guarantee that more gains are for sure to come but no rally has ever started without one. This lifelong poker player will take those "bull" odds anyday of the week.

I covered every single one of my shorts today, taking losses on the most recent small buys and taking long-term gains in all homebuilders and any other stock showing long-term gains.

New Swing Longs: JCOM RLI FCN IMN WES BRLI EFII NUHC

Longs Outperforming Market: BRLC SMTS PPDI ADST LWSN TEVA PRLS OXGN CAMP FLO TAYC FAST PBCT

New Swing Shorts: NONE

Shorts Outperforming Market: There was one outperforming-ZMH. But do you know how many I recently took that I had to cover for a loss? Way more than you would want to know.

Another Obvious Day Of Distribution For The Indexes

Another ugly distribution day hit all the major market indexes. This reversal with such negative breadth does not suggest the recent lows of the recent rally will hold.

More and more charts are breaking down, and now the oils are joining the retail, REIT, real estate, and tech stocks going lower. I am sure a sector rotation will seem obvious soon enough. I do see a lot of nice action in certain medical stocks. I am not sure how bullish that is. My guess is not very.

I dont like the way this market looks and until there is downright capitulation -- put/call ratio 1.2, bullish/bearish newsletter # cross, and a high VIX -- I will bide my time with tiny buys and tiny shorts and keep my cash nice and cozy for better oportunities to ride the wave up.

Good luck out there.

New Swing Longs: BBBB PPDI STJ PBCT

Longs Outperforming Market: LDSH CRED HOM ADST

New Swing Shorts (choose wisely): TRW LSS OMM OXY THO XOM ICUI SLB HYDL APC PPP DSL TRZ DRH

Shorts Outperforming Market: PQE NVR WLS PHM LEN IPCR NAV NJR ALB VCG MAS DUK CNSL

Markets Close Near HOD; However, Volume Was Much Lower

A nice last hour of the day made for a nice close near the highs of the day for all the major market indexes. Volume was lower, sadly, indicating a lack of institutional investors willing to put money to work. I am sure earnings season has something to do with this.

The very short term trend has turned up but besides that there is not much else bullish about the overall market. Even with bearishness creapin higher, volume is lacking on the upside and breadth is still very poor. With that calling for a bottom here seems way too premature.

Down days on higher volume followed by rallies on low volume is not what you like to see if you are bullish and looking for a meaningfull bottom. Normally the last leg lower will have lower volume and the subsequent up days will have very noticable increase in volume (think March 2003 bottom). Until I see that it makes it hard for me to think any solid bottoming is actually happening currently in the market. We still need more bears in the market, however we are down quite a bit and a relief rally is deserved.

Since it is day four into the most recent rally attempt, we have to now look for a 1.5% move to the upside on an increase in volume. If that happens it will be safe to start looking for great stocks breaking out of great bases. Until that happens, keep cash heavy incase we reverse to new lows.

The markets can follow through out of nowhere. You never know what it will do tomorrow, so stay on top of leading stocks in leading sectors and take your cue from them.

Have a great Tuesday. Goodnight.

New Swing Longs: HOM ALO OXM AH WBMD FWLT NT CAMP

Longs Outperforming Market: KNOT PRLS LWSN BRLC AKAM GES BCRX TSAI THRX

New Swing Shorts: OMI

Shorts Outperforming Market: GPRO QGEN IPCR

Small Stocks On Radar Screen: AKN KNAP

A Lot Of Negative Energy Remains In The Air. Is It Really That Bad Out There?

New Swing Longs: ORCC MACR AZN THRX SLW

Longs Outperforming Market: MGN BCRX CHIC SYS MESA TSAI PGR ASGN

New Swing Shorts: POOL

Shorts Outperforming Market: QGEN PII SONC

Markets Mixed On Low Volume; No Power To Bounce

I covered a lot of my shorts today that did not work the past two days and continue to hold the shorts that are working. Any short that has not shown me a gain has automatically been completely sold. The ones that have shown a profit from day one will be held for further downside possibility.

The market is due for a bounce but since the volume is light and there is not a lot of charts to pick from I can not see how this could last that long. However, I could be completely wrong. It wouldnt be the first time.

We will see what comes from this lazy bounce by the Nasdaq in the next couple of days. Until then continue to keep cash high and have very tight cut losses on the positions you do take.


New Swing Longs: SMSC FAST LRCX FELE

Longs Outperforming Market: SYS PGR IVIL

New Swing Shorts: QGEN

Shorts Outperforming Market: JRCC CNTF DXCM MT BOL ALDN BUCY DUK VOLVY CNSL

Markets Suffer Another Distribution Day; Getting Ugly Out There

I am not sure what tomorrow will bring but I can say one thing: This market is ugly. Unfortunately, it is not ugly enough to have a long-term meaningful bottom. As each day goes by the charts in my scans get uglier and uglier. I have very few nice charts and the ones I do have are not that nice. The shorts on the other hand have been working really well. That combined with all the fresh charts breaking down tells me that there is more downside to come in the short term.

A bounce should be expected though, since the market can not go straight down. And if it does go straight down, I think we could have an October crash. But I really doubt that is going to happen and see any rally just leading to more selling later on.

How to know when the downtrend is done? Wait for the stock market major indexes to close up, then watch for a follow-through accumulation day in the next four to seven sessions. A follow through day normally consist of the markets closing up 1.5% or more on volume much heavier than day before and the volume also being above the 50 day volume average. If you get that along with a lot of beautiful breakouts on well formed stock charts you will know it is safe for the time being to go long again.

Beautiful green charts is something that is not out there right now and it is going to take some time for those pretty charts to show up again. While that time passes, keep cash high and keep paying attention to the market. That way you will be ready when the market is ready to go into a bullish uptrend.

New Swing Longs: PGR XTXI SSY

Longs Outperforming Market: ADST-78%, TGC-102%, SYS IED ESLR BRLC

New Swing Shorts: DXCM RGLD SINA ALB CRI PQE BHS CNSL

Shorts Outperforming Market: LZB-20%, CNTF-49%, EVVV-25%, LEND-21%, THLD-16%, NAV-15%, RUTX NVR NDE CORS PGL CBL NJR LEE TRID LTM BUCY CMLS BRKL ALDN KERX WLS LEN RAS

New Short-Term Lows For The Indexes

I don't know about you but the market keeps getting uglier and uglier. The good news about that simple observation is it gets us closer to a low.

Unfortunately, I don't see that happening any time soon. I see a fresh new batch of shorts tonight on my scans and know some of these will reap good gains with their TERRIBLE patterns. You don't see charts like this in a bullish market. The trends are down and there is not much us to say besides that.

The bullish/bearish newsletters, put/call ratio, and VIX will give us a clue when the bottom might come and they are telling us there needs to be much more downside before any extreme is put in.

With all the ugly charts, longs I have been selling and trimming, and lack of new buys showing up I think it is safe to say any rally that happens anyway will only be sold.

The damage is all around and it will take time to recreate nice beautiful bases for a successful run to new highs. Until then, relax and keep cash high (unless you are a master short seller).

The market will stop falling one day and launch a great bull again, just like in March 2003. The earnings are too good and the market is not that expensive on a trailing, current, and forward looking P/E base. And like I said before, unless earnings crash-which they are not-the uptrend that will come about from this downtrend (bear) period should produce wonderful gains.

Until then, the market sucks for longs and continues to treat the bears with the spoils of the bulls. But don't take this to mean it is just time to short anything and everything. You have to be selective and be prepared for a big oversold relief bounce at anytime.

Prepare for every situation you can foresee coming and nothing will catch you off-guard.

New Swing Longs: TSAI CHH TESOF

Longs Outperforming Market: NDAQ-185%, TGC-95%, BCRX-88%, ADST-60%, AOB-22%, SYS MESA BRLC VICL MTN

New Swing Shorts: TRID GNSS LTM BUCY CLS CMLS DBRN BCR LEE WFSL NVR BRKL VOLVY ALDN KERX DHI MWIV ISE

Shorts Outperforming Market: TNH-28%, WCI-19%, EVVV-16%, LZB-13%, VCG BOL NAV

Small Stocks On Radar Screen: VLGEA TRT TOD LRP PZA GROW DASTY

Sellers Start Taking Control After One Day Bounce

After moving higher early in the day, the markets reversed to finish near all of their LODs (low of day). Volume was lower on the Nasdaq offering some comfort to overextended bulls but volume increased on the NYSE giving yet another distribution day to an index that has been under attack by them for three weeks now. Now is definitely not the time to be overextended on the long side with so much clear distribution in the market.

There are still zero positive signs on the horizon, with the ugly technical picture of the indexes along with all the broken charts. That along with the lack of emotional selling could paint for a long slow decline. But we will cross that bridge when we get there.

In the meantime, strength continues to get sold quickly and sellers continue to press it to the downside. That is bearish for the market. Until that pattern changes it is safe to stay defensive and wait for the trend to once again become your friend.

Until then, all news is bad news.

New Swing Longs: MSM NMTI FII VICL GCOM

Longs Outperforming Market: NDAQ-173%, SYKE-64%, BCRX-62%, NFLX-62%, RCCC-60%, APT-59%, CRXL-27%, FDG MGN BRLC

New Swing Shorts: THLD DFG BOL BWA NETL

Shorts Outperforming Market: TOL-20%, PHM-17%, WLS TEN LEN MGA RAS RYL CTX EVVV RUTX

Stocks with percentage after them represents the total profits on original position. The stocks without percentages are either new longs/shorts or have not gone up 25% yet or (for shorts) have not gone down 15%.

Dead Cat Bounce On Low Volume

The market stopped the downtrend with its oversold bounce on Friday. Dont get too excited this should just be a small pause before the downtrend continues.

New Swing Longs: CRED PNRG GES IED MTN EE DEZ AU TLWT RL CEF

Longs Outperforming Market: BCRX NDAQ CRXL ADST TVIA NFLX MGN SYS BRLC

New Swing Shorts: JAH ENCY

Shorts Outperforming Market: CHKP JILL

Market Continues To Weaken; EOD Short Term Oversold Bounce

The major indexes all finished down, again, today. Breath was very poor and volume rose heavily across the board, giving the markets yet another distribution day.

The good news behind this was the oversold bounce we got with about one hour left in the day. This oversold bounce helped relieve the downtrend of aggressive selling pressure, which gives comfort that the bulls can bounce this for a day or two.

But besides that little ray of light, there is nothing else shining out there. Inflation and the Fed going strongly after it and the asset bubble in the housing market is not a good recipe for stocks. So once again keep raising cash and dont be aggressive with any long side trades until the market has given a clear signal the downtrend is over. And just by looking at all the charts out there that have been taken out the past week and the few strong charts that are in decent sectors, I come to the conclusion that a bottom is nowhere near at these levels.

At the same time I am hearing people talk of a "crash" coming. Nope. Sorry. It is not going to happen.

There is too much program trading happening in the stock market to allow that sort of thing to happen. Besides that is the simple fact that stocks are still basically cheap. Unless P/E ratio's start to contract--P/E of SP500 is 18--there is no way a crash is going to happen with stocks this cheap. I believe back in 1987 the SP P/E ratio was around 28 or so. That kind of froth mixed with the current technical situation of then indexes could lead to a crash. But at these levels, I TRUELY DOUBT IT. Also is the fact everyone is talking about a crash. Crashes happen when no one is ready for it. So "Black Monday" probably is not going to happen. LOL.

New Swing Longs: FDG BAB NEM LWSN SYS

Longs Outperforming Market: IRIS AAI SYKE PEP

New Swing Shorts: CHKP CIB GPRO SJT VCP WLS LUFK PETM ADI BJ

Shorts Outperforming the Market: AMHC MTH VLCCF KNXA JRCC EVVV TOL WCG

Small Stocks On Radar Screen: SA

All Stock Market Indexes Are In Downtrends; Raise Cash

I have been too busy with persoanl issues to post. But just know the market is very weak and all the indexes have rolled over into downtrends. The downtrends are on a short, sub-int, and now intermediate time frame.

Raise cash and if you know how to short-fire away. I sold down a lot of stock today and will sell some more tomorrow. With that I have also increased my short positions.

Great luck and if you have been reading this blog the past two days should not have come as a surprise.


New Swing Longs: BEAV OXGN PEP MTIX

Longs Outperforming Market: TGC NDAQ SYKE CRDN ANAD CGPI

New Swing Shorts: MGA HBHC NSS TEN MT RDK MON NJR NDE BMY HC TNP KDN DUK CLI CBT JILL NTLI BMO AEE

Shorts Outperforming Market: WMGI LZB PII HDI MTH LEA PHM VLCCF ACAT PGL WNC RMK TMA UTR CBL FO ACS RAS NHP RHD

Small Stocks On Radar Screen: SAVB TRT MGP TOD

Distribution Day For The Stock Markets Major Indexes

Stock Indexes fell across the board on heavier volume than the previous two days during the EOQ markup. What made the selloff worse is how it started. The markets steadily were marching up till the middle of the day when all of a sudden the selling started, picked up, and never stopped till the close. That gave the feeling of clear institutional selling.

The Nasdaq failed to breakout above its 50 dma which is not very positive, considering how the market is acting recently. With it now failing at this average again, we can assume path of least resistance is definitely down not up for the Nasdaq. As for the other indexes it is still hard to come to a conclusion on them for now, except to say the look very weak.

Raising cash and protecting profits is very important at this juncture right now. Selling longs at first sign of weakness is necessary to preserve cash for better times.

REITS and Homebuilders look like they are ready to rollover AGAIN to the downside. A lot came up on the short scan again today breaking below key support. Since these were the market leaders past three years I dont see how this could be a good thing.


New Swing Longs: IRIS BRL DVA CHIC SWW NT CAMP TEVA ENTG

Longs Outperforming Market: TGC BMD BTUI APT RBA CMED BTJ ASF MESA RCCC BCRX REGN AAI LCC

New Swing Shorts: UTR NHP MAC RAS RMK ANGO CBL

Shorts Outperforming Market: VLCCF RYL TMA RHD NCTY

A Day Without A Conclusion

Stock indexes opened near their highs for the day, then in very choppy trade moved lower to eventually close near their lows of the day. Neither the bulls nor bears really took control as the indexes ended mixed inbetween .2% points up and down.

The market action was very boring, as far as the indexes are concerned. It appears, for now, that is what we have more of in the future, since both sides have a weak argument. The bulls and bears argument are both boring and getting quite old. Hearing the same arguments day after day gets REAL OLD and helps NO ONE.

On the other hand, the action in individual stocks paints a different picture. As you can see below there is plenty of action in individual stocks. Unless you have HUGE 300 to 1 kind of daytrading leverage on the indexes, stocks is the only place to make BIG money right now (not including smart option trading, of course).

The caveat: They just can not be any stock. You want stocks trading above the 50 and 200 dma, have huge volume surge coming out of a good base, are in a strong sector--top 20% of 3 or 6 month price performance, and PREFERABLY has great fundamentals or a nice turnaround in fundamentals. Of course, there is more, but if you always look at the stocks I take everyday, you will soon be able to see the patterns in them. If you dont know how to find them, remember I wrote a Worden Submission in early June. I am SirAloha.

New Swing Longs: CTHR HDB CMED ABAX PDLI KEM SKIL BRLI JDO RDY ALFA CDMS

Longs Outperforming Market: SMTS MCF(50%) ARD(80%) TGC VRTX(55%) SSFT GMXR(90%) AKAM HOKU MNG FIX ACPW ZIGO DCEL(225%) RG(45%) ANAD DESC(135%) PRLS(135%) MXWL FLSH BMD(130%) SYKE(40%) BVF KNDL(125%) TMWD AAI LCC NRPH(50%) ALSC CGPI BTJ---------A lot of the same names you see everday (stocks up over 40% since original purchase)

New Swing Shorts: RHD DLX ACS

Shorts Outperforming Market: NCTY WCG VLCCF WMAR

Market Still Cofused But Nasdaq Follows-Through

This "title" line comment is refering to the last two days, since I did not comment on Thursday's market action.

The markets were up .01 to .5% today, with volume lower than yesterday. So there is not much to disect in today's market action. Yesterday, however, was a very good day for the Nasdaq as the index followed-through from a 5% decline. Not quite the decline you like to see before a start to meaningful rally but with the markets strength and all the good stocks I have I can not argue with the trend.

REMINDER: The above paragraph refers to the very short term trend.

The end of the quarter mark-up by mutual funds might have influenced the volume figures on Thursday, but since we dont know we have to go by the facts we have and those facts say the short-term trend has turned up (again).

I am neither bullish or bearish at this point, but I definitely can see how we can go higher with all the negative chatter. But it is starting to feel like that is all the chatter people like to hear. Well not me. And that is why the past two years while market has flatlined I have doubled my portfolio.

Instead of focusing on the negative all the time, you should try to take advantage of the negative situation and find a way to profit from it.

For now, we continue to wait, till an obvious intermediate trend becomes clear. Until then the long side still is providing much better oportunity to make money than the short side. That confirms that this market is still not ready to puke yet. But when it does, I wont hesitate to raise cash and start taking more shots at the short side.

Have a great weekend!

New Swing Longs: CHNL KG CLB GV GGR AKAM LCC CHKP SSTI WPI IT ALSC

Longs Outperforming Market: BMD(100% club) PRLS(100% club) ADSK EMKR VRTX TFSM NFLX SIRF ESLR AAI TMWD MXWL IVIL ENER DESC TRMS HOKU

New Swing Shorts: WAL FRZ PORK VLCM RACK MWIV KNXA RDEN ZNT

Shorts Outperforming Market: RUTX LHCG

Small Stocks On Radar Screen: ARCAF PMBC CTIB STFC BKRS BDMS SDAY IVIS EFJI TIWI SVA ISRL HWK

A Very Very Good Day, Overall

NO COMMENTARY TODAY

New Swing Longs: AOB NX LKQX NOVL HOKU ALY TRAD ECLP LWSN MXWL BRLC

Longs Outperforming Market: TGC CNVR ABP TDW INFA ESV PDE THE ARD CKH OXPS BMD DEPO ENER PFWD VRTX PMU ICGE CHB ESLR HAWK MCF WVCM

New Swing Shorts: WCG TZIX

Shorts Outperforming Market: LHCG

A Day Much Weaker Than It Looked

The markets mixed their closes for the day, with the markets up .1% to down .3%. Volume also rose across the board, indicating churning and indecisivness on investors part.

The SP600 had its 5th distribution day since the ugly rally started on 9/6. This is nothing like the action I saw after the April/May bottom when virtually zero distribution days popped up after it started its move. The market then continued to go higher and higher, pulling back on low volume.

With Oil/Energy and Gold sectors outperforming and some Food stocks getting involved, it is starting to look like the market is ready to give up the rally. Add to that the continuing weakening thesis of the "tech rally" and you come to a conclusion market doesnt feel so good.

But right now, we just dont know, because the market is flat-lining. Some could call this base building but a lot of stocks are really extended and building late stage bases for this to be a base building stage leading to new highs.

Bottom Line: The market doesnt look or feel good right now. I guess we continue to wait and see what will happen, since we are getting no help from the indexes. But remember all the "poker tells" indicate a weak market about to get weaker.


I wish you all GREAT luck.


New Swing Longs: WITS TGC SONS ROYL QVDX FTEK PKE EWST

Longs Outperforming Market: OMNI ABP GMXR ARD KNDL ASF THE ENY PFWD HEC PMU MUSE NSC SPNC SNG ZIGO JCDA

New Swing Shorts: AMHC VCG SVR LHCG

Shorts Outperforming Market: JVA CNTF CWTR

Flat Day With Mixed Volume

Stock market indexes basically did very little today. They dipped down then rallied to new highs but then closed mixed in weak last hour trading. With the mixed volume and unchanged session on the indexes, it is close to impossible to read anything into this day.

I have to say I was very impressed with Alan Greenspan's speech today on CNBC. I thought he made his point very clear of showing his continuing enthusiasm for the free market system. Though I may think he is overdoing it now and overdid it then in 2000--with the rate hikes--I still am very happy overall of the good job he and Paul Volcker did while they were Fed chairman.

Besides the speech there was two negative news items today. The consumer confidence numbers and home numbers showed the weakness that plagues the consumer right now. My only problem is with the bad consumer confidence. If Katrina, oil, the war, and jobs was "so" bad right now, why are the indexes basically flat for the past two years? To that question the answer is the relentless negative news that is put on us every day by the media. Nothing great is every highlighted, though many stocks continue to provide fantastic gains.

Do you want to know what those great stocks are that are producing huge gains all the time? Just read my blog. I give them everyday. While people cry about high oil and all the "bad times" they are having, I am going to work, putting in the extra hours, and making the sacrifices neccessary to make a great living. You can blame your situation all you want, but there is a free market system out there for you to take advantage of and better your current situation NO MATTER WHO YOU ARE.

So remember while people cry about how poor things are going, you can be investing in the stocks that could make you rich, with me. I do not hype. I simply state the facts. I have made money in good times and bad times and people keep telling me this is a bad time. IT ISNT AND IF IT IS GET OVER IT AND PROFIT FROM IT TO MAKE IT GOOD TIMES FOR YOU.

Go over all my "longs outperforming market" and tell me if stocks suck!!!!!

New Swing Longs: UFCS LRW CASY PDE STXN REGN CHRD COSI DANKY BVF

Longs Outperforming Market: ENY CNR GMXR ABP THE ARD TFR WC MII DESC DEPO TFSM PMU ESLR UQM MUSE IVIL CRXL APT NWRE CRDN ESV ASF NSR FSTC CVO ASGN

New Swing Shorts: MICC JBL RSAS CWTR GEHL KEA

Shorts Outperforming Market: CNTF

Short-Term Trend Up But Weakness Still Lingers

The major stock market indexes finished higher across the board--None of them over 1%. The leader in the group was the SP600. The volume came in lower across the board, indicating this short-term uptrend is possibly just an oversold relief rally. The sub-inter trend is down and came on higher volume than this little bounce. So dont get to confident that this could produce anything spectacular.

Oil and Metal sectors are the bright spot during the past month. And, with the media having to focus on the new "fear"--now that Rita has past--inflation is probably going to be the new lead story. What to do? Well if you want to take advantage of the upcoming inflation, buy some good stocks in those sectors breaking out of fresh bases or bouncing off a key moving average. As long as you dont average down, you will be fine. Or if you want to just complain how much prices are rising and how expensive gas is, you are more than welcome. I will just have to profit, without you, so I can afford the gas and continue to live comfortably.

Stay positive and remember you can either complain about inflation or take action and profit from it. That is what successful people do. And I know anybody reading this has to be a little successful or aspires to be.


New Swing Longs: CRDN CKH ACPW TFSM AAI OPTN ICGE AWA GCOM MGN

Longs Outperforming Market: OMNI ENY NTES TFR MNG KNOT VIVO FSTC NSR BLDR RCCC MNTA ZIGO UQM ASGN BNN ECTX

New Swing Shorts: NAT

Shorts Outperforming Market: CYPB RCNI PGL

Not Much To The Bounce; Waiting To See Damage From Rita

Volume was lower across the board as the market indexes continued their bounce today. Ummmm......Besides that there really isnt much else I can add that I have not already said the past two or three days.

I find it hard to comment on any market action today, considering as I write this Rita's eye should be near landfall on the TX/LA border. We will need to see how the market reacts to the weekend news, on Monday. I have a feeling this market is much weaker than most people take it for. I have given my thoughts on why the market is weak for the past three days and continue to feel the same way after watching the market action today.

Say a prayer for those affected by the dual onslaught of hurricanes.

I have a lot of personal issues to deal with this weekend so that will be my reason for not having much else to say before Monday. If I change my mind, you will see it here.

Aloha from Mauifornia

New Swing Longs: NSR IDIX RRI FIX ANEN

Longs Outperforming Market: GEPT BCRX VIVO ADST CVO RIO TRMS

New Swing Shorts: GGXY RTEC NCI CYPB

Shorts Outperforming Market: IPCR LEND NEW