|
The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)
1.
Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.
2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.
3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.
SEE OUR TOP PICKS FOR 2006...
|
|
Sunday, January 29, 2006
Market Recap
A powerful follow through rally on Friday bolstered the already nice gains on Thursday and rocketed the Dow up another 97 points, the Nasdaq up 21 points, the S&P up 9 points, and the RUT to another all time high. We had been anticipating a market rally in our commentaries and pre-market alerts last week. On Tuesday night we reported that “underneath the surface, the market internals are very strong” and because of this we were expecting a nice pop in the market. On Wednesday we started buying stocks and re-positioning our portfolio after locking in profits before the big 200 point slide in the Dow a week ago Friday. We were on the sidelines before any damage could be done to our portfolio and felt that it was time to go long again ahead of an anticipated rally. On Thursday rally came and continued on Friday; a big two day rally that regained all of the markets losses from the January 20th selloff. I must say, we nailed this one; we could not have played it better!
It Has Been a Great Year
Our Bulletin stocks are on fire, and our portfolio is up 16.5% in the first 4 weeks of the year. Some market participants will not even gain 16% this whole year, and we have done it in the first month. We have probably traded a little too much, but it is okay to trade this much when you are having success. You could call it over trading if we were just spinning our wheels and were trading flat, but we like to lock in profits when we get them. So far, it has paid off huge. If we were in a raging bull market, we would hold positions longer and do less trading, but with all the economic news, geopolitical events, higher oil prices, the Fed still raising interest rates, and the charts of the indices just coming out of bear flags, we are hesitant to call this rally a major bull market run.
Still, even with all the above mentioned events hovering over the markets head, we still believe being long this market will make you more money than being short and trying to pick a top.
For example:
- the RUT is at record highs,
- the NYA (NYSE composite) is also at all time highs,
- the SOX (Semiconductor index) is at 3 year highs and this is the leading index on the Nasdaq.
We cannot short the market with all these indexes breaking out into new highs and many strong stocks also breaking out. Plus, the market internals like the Advance/Decline line are very bullish.
Long and Strong
“The trend is your friend” so why would we want to try and pick a top to short now? That just does not make much sense in our book. Yes, there are selective weak stocks that can be shorted, but we can not waste time trying to find a needle in a haystack when there are so many stocks moving higher along with the major indexes. Despite all the factors we mentioned above, stocks are still rising, and as long as they are going up, we will not fight the trend. Should stocks be going up with all the markets have to digest? Probably not, but they are, so we cannot just sit back and not participate just because we fear there could be a selloff. That is what stop loss orders are in place for.
One final point - the economic news we read and hear about is data from the past. The market works on future data and moves ahead of that data. The current news may not be that great, but the market does not care about the past, it trades on the future. With last week's rally and many stocks and sectors moving higher, the market is telling us that market-friendly news must be on the way.
Today's Bonus Chart: ATI
Click the following link to view today's bonus chart in the Public Chart lists:
http://stockcharts.com/def/servlet/Favorites.CServ... (first chart)
|
|
|
|
|
|
|
