A Grand Day For ChartSmarts
Lots of our stocks broke up for us. I had said that we were due a rally in the Semi's and if we were to get it, it would help the market. It is, but I suspect that it can help much more. I'll discuss this more below.
Today was generally good for the market, though some sectors were a bit lame. The fact that the Russell was solidly higher and the Nasdaq was playing catch-up suggests that good things lay instore for the market.
DOW: The sloppy day on the Dow doesn't bother me much. Breadth was good.
S&P500: The S&P was a bit sloppy, but it was outperforming the Nasdaq yesterday. This is a sign or nervous buying, which is bullish.
NDX: The Nasdaq took off for us and is looking pretty good. A bit of consolidation, perhaps with a similar pause in the Semi's would be really powerful.
QQQ: I didn't get my Q's again today.
HUI: Well, lookee-lookee! The Gold miners woke up!
GSS: Yeah, I'm with Doug. I'm kicking myself for not buying more Gold Star yesterday.
HL: Hecla is another sound play in the Golds.
SWH: The Software Holders had a good day and looks to be breaking out in after hours trading.
SOXX: The Semi's really came on today, as I suspected that they would. The psychology of the players in this index is a possible key to further rally in the Nasdaq. This index has been a Bears dream since January. Bears have been trained to hold onto their shorts longer than they should because those who did over the past 9 months have been well rewarded. If we continue higher, there will be a barrage of short-covering, and then a round of top-picking that will breed the next round of short-covering. A consolidation tomorrow should be bought. I'm going out on a limb and saying that we will probably exceed 435 over the next 3-4 months.
SMH: The Semis broke up on HUGE volume. Pay attention here. A longer-term position here isn't a bad idea.
TTH: The Telecoms are doing OK for us, so far.
NWX: Whoo-hoo! Nice break out.
XCI: The Computers can take off, but like Doug, I'd love to see them pause just a bit to build energy.
EMC: EMC is moving. Cross your fingers.
JDSU: Look at that JDSU go! I warned you!
HPQ: Sometimes I get lucky, buying early. We hold HPQ in family and client accounts.
LU: We also hold Lucent in family accounts as a longer-term holding.
SEBL: We still like Siebel on strength.
CSCO: Boy, I wish we had put the Cisco in the model portfolio.
WMB: Looks like Holly's special cheer, in combination with Doug shaking his pom-poms worked on the Williams! Good job Guys!
NXG: Northgate is volatile, but it looks like it can play on a break out.
Summary:
We're well positioned for more rally. A pause would be nice, if it doesn't get ugly. On the other hand, a number of these look like they can just run. We've got room to go. The mixed market is the stuff of major moves...it heartens the Bears right when they should be covering up and going long. Let's see if it plays out for us.
Be Well, and Trade Smarter Than the Average Bear!
Mark, Doug, and Holly
-The ChartSmarts Team
Current Positions:
Long TTH at 28.41, stop at 28.41
EMC: Long at 10.95, stop at 10.41
Long JDSU at 3.12, stop at 2.98
Long WMB at 11.92, stop at 11.49
Watch List:
GSS: Buy on a print of 4.44, stop at 3.98
HL: Buy on a print of 6.1, stop at 5.59
SEBL: Buy above 7.78, stop at 7.35
NXG: Buy on a print of 1.76, stop at 1.59
