Stocks Rally On Mixed Volume; SOX Index Hits 52-Week Highs

June 22, 2007

It was, once again, another day of stocks rolling over the perma-top callers as a noon rally helped stocks rally till the close where the indexes end near their HOD. Thanks to the Philadelphia Fed Reserves manufacturing activity in the mid-Atlantic region climbing the highest since April 2005, stocks managed to produce strong gains. The Nasdaq led the way with a .7% gain, the NYSE and SP 500 rose .6%, the DJIA gained .4%, and the SP 600 rallied .3%.

The most obvious bright spot, today, came from leading stocks and technology stocks. The IBD 100 outperformed the broad market, once again, with a 1.3% gain. The Philadelphia Semiconductor index gained 3%, hitting a brand new 52-week high. Not to be forgotten, the Nasdaq 100 put in a strong showing, thanks to some strong computer related stocks, with a 1% gain.

Volume was a bit higher on the Nasdaq but a bit lower on the NYSE. However, with positive breadth and new highs over new lows by 209 to 154 it was clear that the bias was to the upside even underneath in the internals.

The good news that is going to be hard for the bears to describe comes from the Semiconductor stocks. The SOX hitting new 52-week highs, with the ETF’s PSI IGW and XSD confirming the move with beautiful green BOP filled charts, is simply a bullish development in a market filled with top callers.

You always here how for any market to be a “good bull market” you need the semiconductors to be moving. Well, after looking at NVDA SMTC SPIL and many other semiconductor stocks, along with the SOX hitting new 52-week highs, it is going to be hard for them to try to explain this away. I am sure the bears will come up with some excuse, but the facts are facts. This index sneaking up on everybody, hitting a new high, is a pure bullish development. The thing that traders always ask for, for a bull market to have the real momentum, is for semiconductor stocks to be rising. Well, here we are. What say you now bears?

When you have a market with leading stocks leading (GOOG, RIMM, AAPL, CROX), semiconductor stocks breaking out to new highs (SOX, NVDA) and showing momentum, and the top sector’s (chemicals-fertilizers) top stocks (TNH CF) continuing to be the top sector month after month, you have a very bullish market. So how can this be the top? How can we be topping right here, when we have so many stocks showing these clearly bullish patterns?

Ever since March 2003, there has been nothing but this crap coming from the bears. Does anybody remember this gem from TraderTim in July of 2006?: “I am shorting everything I can. Buying puts on everything I can. Owning nothing. My belief is the market is heading for a sustained, profound fall and my intent is to profit handsomely from its demise. There are certain sectors that seem especially juicy for a fall. Oil services. Gold and Silver. And, to keep it simple, just the good olâ€™ S&P 500.”

This is the kind of crap that has been coming from them since March 2003. Instead of just following the trend of the market and going with the trend of stocks, buying the proper breakouts, and cutting losses if those buys did not work, they keep trying to interject their sad personal lives onto this market. What is even worse, some of this is coming from just a straight up hate of this economy simply because a Republican is in charge of this fantastic economy. So they believe the 9-to-1 liberal contributing journalist that tell them this economy is evil, thanks to the evil President. Then these idiots believe that and then try to “talk” the market to their beliefs. Fools. How has that been working since 2003? How did some of these market bloggers EVER succeed in the market?????????

I guess we could get worried that the investors intelligence survey only has 18% of respondents bearish. But the bullish reading came down to 53%, indicating more newsletter writers moved to the sidelines than anything else. The AAII has 43% bulls and 33% bears, giving a clear sign that the battle of sides is waging on.

The bears continue to have evidence and evidence shoved in their fact that they are wrong, but the hapless ego-driven ignorance of the bears simply causes them to ignore the facts. Ignoring facts and believing in propaganda: ah, feels like I am living on Maui, in NYC, and LA all at the same time, simply by trading this market and reading the crap I have to read everyday from upset traders that have missed a great rally. I sure am glad I am not them. How pathetic. As you can see, the uber-pessimism and straight up lies by the biased liberal media is taking its toll on my ability to be friendly to the disease-filled bears. My brain simply can’t take anymore.

Luckily, my pocket book can. So with this fantastic wall-of-worry out there for stocks to climb, nothing would surprise me right now. A 20% rally, a 30% rally, or even a 50% rally could very well happen. There are enough shorts out there to cause a significant squeeze that the most ambitious targets can be speculated upon. As long as they keep shorting these new highs, you better believe we are NEVER going to see a real pullback. IT JUST ISN’T GOING TO HAPPEN. So stop looking for it and just wait for it to happen when it happens. Until then, enjoy your rising stocks and try to stay away from those overnight disasters like MTRX–LOL, I know, there is nothing we can do about that.

Aloha and I will see you in the chat room. Where, thank God, we don’t have any “geniuses” trying to predict tops. We only have smart, dedicated, disciplined investors that know that the trend is their friend. It always has been and it always will be. Aloha!

Stocks Rally On Mixed Volume; SOX Index Hits 52-Week Highs

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