We got a much needed day of consolidation as stocks digested the most recent gains. With the NASDAQ running more than 100 points recently it was time for the index to take a breathier. Volume ran 13% lower on the NYSE while NASDAQ volume ran slightly higher at .39%, but with minimal price declines we avoided what could have been trouble for the market. In the end, we saw what we needed from the market and that was consolidation of its most recent gains off the lows.
This uptrend is not really out of the woods just yet. Any distribution within the first few days after a follow-through day has a very HIGH failure rate. With many stocks showing very little accumulation it may be we do see this uptrend fail. However, we aren’t in the business of predicting what will happen in the future we only play the best odds that have been presented to us.
What we did see today was big stock leadership breaking into new high ground. Normally, we want to see fresh innovative companies with explosive fundamental growth emerging as leadership. We simply aren’t in an economic environment where this is possible and we are seeing larger companies who have been able to innovate enough to exceed the market’s expectations. It might be some time before we get those companies who show the traits of prior big winners. Until then, we will continue to be on top of today’s market leadership.
I am still looking for that second follow-through day to really show if this new uptrend has any POWER. It would also provide me with the conviction to get bigger in positions. Right now there are enough question marks to keep the chips I hold next to me rather in the market. It is important to know when to deploy your resources when you have the odds in your favor. In the stock market, if you gamble when odds are not in your favor it is a recipe for disaster.
Do not over complicate your trading as you will simply run yourself into the ground. Like Joe Montana in superbowls (0 INTs in 4 superbowl appearances, oh and 4 superbowl wins) stay calm and collected in the pocket.
Hey Coach…
Your knowledge and insight is inspiring this red shirt freshman.
Red shirt freshmen! Like it, no a problem.
“it is what it is” We just need to find a way to deal with it. The action today should solidify not using all your chips in this game just yet. Best to play a great defense and take some chances on offense.
Where’s the other dude? I hope he’s okay.
Other dude is quite alright!
My life went through a MAJOR turning point about 3 months ago and I realized I have been living a lie the past 6 years in my personal life. I have gone back to my old self but with that I needed and still need (SOME) time to get to the root of my problem. Most of you do NOT have the background and the problems I have had to go through. My body bears the scars and I have to stick a needle in my body every day that proves this. Along with being a mental defective that can never sit still things can get hairy. However, during this entire time I HAVE BEEN MAKING MONEY IN THE STOCK MARKET. So I understand that while things are not going great they are still going. I will be able to post more (and I dont know why my video technician has been lagging on the videos to youtube) but I needed to really examine my life. Congratulations to all of you normies that have a great life. Bravo. Guess what, everyone tells me how I should live my life and I started to believe it. I wasn’t myself. I am now finally learning who myself is and with this process I had to take some time off. I am going to LA to see my mom and sister for the first time in 12 years. If you think that is normal, I am sorry it is not.
This is the kind of person I had become and having two females really try to change me to fit “their” mode really screwed me up. I just needed some time. I am back to fully updating the site all the time now so I apoligize for not being perfect. I have lost some subscribers but obviously they don’t give a shit about me and that is fair. To have this site continue and to have us continue to make money I HAD to fix myself. This is a process. I am freaking 30 years old. I WILL BE DOING THIS WHEN I AM 70 YEARS OLD!!! I don’t know why people wig out after just two months (not you Ian 
). But some are. Well saving my life is/was more important. I am back to normal I just don’t have as much time as I used to which means I have to manage it better. I am doing very OKAY and I am better than I have been in YEARSSSSS. Thank you Ian and I will be posting a lot more to commentary and when my video technician starts to upload videos again…then we will be made whole. I have already gone back to full updates on the forums/longs/shorts. Aloha everyone and thank you (for those of you who really care; others who have to be entertained 24/7 can kiss my ass) for being there when I couldn’t even be there for me. And for those of you unsubscribing because I just had my life flip completely upside down…I hope you NEVER have to go through what I just did and GREAT LUCK making money out there with the nutjobs on TV you so dearly trust. I think after 14 years of NONSTOP work in this area (the market) in my life I know BS when I hear/see it. And a lot of you are buying it. Not good. The truth comes hard and a lot of people don’t like hearing it. I am here at 30 and you will see me here at 70. I am not going anywhere. Sorry I can’t be a robot everyone. Who would have thought I was a human being???