Befriend the Trend!

Good morning traders! My goodness, what a market! Yeah, I know, it is not yet what we saw in the late-90's...but it sure is a lot easier to trade than that heady mess! And yes, I know we are overbought and starting to correct...but still, wow! Trading our hedge fund yesterday: had the highest 1 day gain ever (on a $$ basis) on a down market day!! This market is just too easy to read right now...it's kind of scary!

I've given a long look at all my watch lists this morning and see nothing, NOTHING, but buy signals. Recent choppy action in the indices (at least the S&P) has created a huge number of bullish uptrend consolidation patterns that are just itching to breakout. Volume analysis, usually a leading and confirming indicator, says nothing, NOTHING, bearish here. Yes, we are entering into (and are in) a period of seasonal weakness...but I believe with so much focus on an expected pullback, chances are we may just not get one at all. I do expect some choppiness and a down day or two here and there over the next 2 weeks; but in short we will continue to remain on the LONG side of this market and let our stops take us out. Once we start to see signifcant stoppage, then we can begin to think about a trend reversal. But until the, enjoy the ride!

CCOI: there was 1 lot traded at our entry price after the open which means that some of you on stop-market entries would have been filled. I missed it myself (DOGGONE IT!) but will mark the trade for those subscribers who are long the stock. Off to a great start there on possible buyout rumors (funny how T.A. often portends news events...)

CIEN: analyst day yesterday was so HOT HOT HOT that our shares got taken out at our modest target price. We should have been more bold.

CROX: coiling up at new ATH's here and should bring our shares much higher in the next up leg.

Other stocks to consider: (longs): SOHU, FTK, GERN, VCLK, CRZ, BTU, DECK (shorts): ARE YOU KIDDING ME???