A Good Day for ChartSmarts Subscribers!
Last time, we said that the mixed market was the stuff of major moves because it heartens the Bears right when they should be covering up and going long. We also noted that the Semi's would likely be the driving force behind further rally in the Nasdaq. We were about as right as we could hope, and we were well rewarded for it.
DOW: The Dow looks to me to be the next index to play catch-up. Look at the DIAmonds, if you want low-risk market exposure.
S&P500: The S&P looks higher. I've been calling for 1165 for some time now.
NDX: The Nasdaq is finally making some new friends.
QQQ: I've been advising longs in the Q's to subscribers to the Guardian Checklist and the ISA Navigator. They look higher.
HUI: The Golds are strong and they look like they've just completed an a-b-c correction.
GSS: We just missed Gold Star. We own this in managed accounts.
HL: We also missed Hecla.
SWH: I'm only sorry that we didn't buy some of these holders.
SOXX: The Semi's are strong, just like we said that they'd be. I'm not sure how far this one runs before we pull back, but if we do it Monday, it's a buy, I think.
TTH: The Telecoms are doing OK for us.
NWX: The Networkers look like they might be a great longer term holding.
BDH: If the networkers go, the Broadband holders ought to play nicely too.
EMC: You knew what was likely in the EMC because we said it several times last week.
JDSU: I told you that the JDSU can really run!
SEBL: Siebel Systems, after we worked it all week, decided to run without us.
CSCO: I wish we'd had a nice low risk entry point on the Cisco. Doug did call it, though.
WMB: Our Williams is doing well. Cross your fingers.
NXG: This Northgate is a bit volatile, but it looks good.
PFE: Funny how they bailed out of the Pfizer. I think that this is rotation, but I'm keeping an eye on this one.
AXTI: AXTI is one that Doug's been watching for a while now. Be careful here. It could be hard to get in or out at reasonable prices. Dont ever over-do it in these thin stocks. It's possible that CS users can move them in certain circumstances.
DSS: This Quantum DSS looks explosive here.
Summary:
A pullback is possible, but we've also got a good chance at one of those crazy short-squeezes. There's plenty of potential above and I'm seeing plenty of folks stepping out in front of this market and picking a top. That's normally not the stuff that tops are made of.
Stay the course. The market is in an up-trend. Use stops, but don't let them shake you out too easily. We may have weeks more of this rally.
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:
SEBL: Limit order at 7.82, stop at 7.35
NXG: Buy on a print of 1.76, stop at 1.59
DSS: Buy above 2.45, stop at 2.31
