 After Market Close February 20, 2008 | | What a Ride! The action yesterday brought with it very visceral emotions. I was fully prepared for some selling yesterday, but the early decline STILL felt demoralizing. You could see it in the sentiment online too. Then the rally, which was quite impressive was met with apathy or worse skepticism. That's what Bulls want to see. Things are turning. | | DJIA: The Dow put in a good day and a gap up this morning, if it holds, will be pretty powerful. |  | | SPX: The S&P is up about 8 at this writing. If it holds through the close, it too will be pretty Bullish. |  | | NDX: The Nasdaq looks much better, though it really needs to show some broad strength. |  | | RUT: I think that the Russell is about to roar. The corrective rally does not look complete and if it isn't then we might see 745 pretty fast. |  | | HUI: I was wrong on the miners, though they can be tricky. To my eye, however, there's still possibly another leg down. |  | | ORH: Odyssey Re looked ugly, but bounced smartly where it should. |  | | LGF: Lions Gate managed a nice come back too. |  | | ODP: Office Depot opened at support and never looked back. |  | | RPM: RPM pulled back into the gap. |  | | DV: DeVry showed more life than I like in a short. Snug the stop down a bit. |  | | ACW: Accuride took off and I'll take it. |  | | BCSI: Blue Coat is up and trading wildly this morning on good earnings. Take the profit if we trade up 10% on the day. |  | | GME: Gamestop got hit pretty hard on a decent day. Them'z the shorts I likez. |  | | AVCT: Avocent held well. It's out of the wedge so we just have to let money management do its thing. |  | | HPT: Hospitality Properties was up with the market. This one looks better than a short should. If you want to clean house here it'd not be unreasonable. |  | | AMGN: Amgen was up and looks good to me. |  | | HST: HST looks bullish if only on the head fake, but it showed poor relative strength. Watch it for a day. |  | | COV: Covidien is out of room. Time to go! |  | | FFIV: FS Networks broke up. If it extends, we'll give it a shot. |  | | CBE: Cooper Industries was up and looks Bullish. |  | | BKE: The Buckle looks Bullish. |  | | Summary: The market should hold strength today. If it does, it confirms an uptrend of intermediate importance. Sentiment would allow for a resumption of the Bull market, though let's not put that cart in front of the horse as there's a lot of work to do before we can safely claim a new Bull. Be Well, and Trade Smarter Than the Average Bear! -The ChartSmarts Team Current Positions: Long 50% ORH at 37.67, stop at 36.67 Long 25% LGF at 9.46, stop at 9.12 Long 25% ODP at 14.62, stop at 13.04 Long 25% RPM at 21.74, stop at 21.21 Short 25% DV at 48.47, stop at 50.77 Long 25% ACW at 6.78, stop at 6.34 Long 25% BCSI at 26.57, stop at 26.57 Short 25% GME at 48.03, stop at 49.61. Target 43.03 Long 25% AVCT at 17.21, stop at 15.83 Short 25% HPT at 33.46, stop at 35.46 Watch List: AMGN: Buy 25% on a print of 48.43, stop at 45.31 COV: Buy 50% on a print of 44.32, stop at 42.54 FFIV: Buy 25% on a print of 23.78, stop at 21.83 CBE: Buy 25% on a print of 45.91, stop at 42.47 BKE: Buy 25% on a print of 41.89, stop at 38.54 Changes in Current Positions: Move the stop up on RPM to 21.21 Move the stop down on DV to 50.77 Move the stop up on ACW to 6.34 Move the stop down on GME to 49.61 | |    *30 Minute Trading Rule: In order to prevent whipsaws, we use a 30 minute trading rule. This means that, as a general rule, we are going to "sit on our hands" during the first 30 minutes of trading, this includes the lifting of stops during this 30 minute period as well. Additionally, if after the first 30 minutes of trading the range of the stock pick is within the stop and buy/short boundaries presented, the trade recommendation is valid. If the stock's range is outside of the buy/short and stop boundary, the trade recommendation is VOID. E.g. if the recommendation is "Buy a print of 10.25, with a stop of 9.95," and the stop trades up to 10.50 during the first 30 minutes, we would pass on the trade. Similarly, if that stock were to trade down to 9.90 before 10:00, the trade would also be void. There is no 30mn rule on limit orders, but if price gaps out of the buy/stop range the trade is void. Rule on stops: As a general rule for the model portfolio, we will lift all stops on existing positions for the first 30 minutes of trading. As a practical matter, subscribers may wish to leave their stops in place if they expect to be incommunicado or unavailable during that time to monitor positions. | Past Performance is not a guarantee of future returns.  Trading is risky. Trading entails unique risks, so get with your broker and do your homework before you take any trades based upon this or any model, newsletter, or trading service. Never trade with money that is necessary to your near- or long-term financial well-being. None of the ChartSmarts™ Newsletters should be construed as a solicitation to buy or sell any security or commodity. We aren't your advisor and we aren't your broker. Any decisions you make are yours alone. Though we do keep a hypothetical valued account track record, none of the performance referred to should be construed to be that of an actual account. Performance is not based upon back testing, and it does not represent an actual trading account unless explicitly stated. 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