Same Ole Story

The markets are singing the same ole story. New highs are still out pacing new lows for the second straight week. Small caps move ahead will the large caps stumbled. I believe we are nearing the end of this fabulous rally, I just can’t ignore market action. Like I have said before you can’t WILL your view on the market. Wait until it gives you the ok to change your tone. Patience is a virtue in the market, especially now. Small Caps are continuing to outperform and haven’t given a reason to move away from them. Once market leadership shifts to the Large caps we are in the 9th inning.

For my stock picks two were added, LPSN and JSDA. Both were bought 6.35/7.98 respectively. IKAN and RUSHA all hit sell points, taking the 8% loss. However, NCTY is up 37.7%, HANS up 26%, RACK up 35%, FTO up 19%, CYBS up 26.8%. Overall, the buy list is up 10.75% since 3.6.06.

My goal by June is to actually run this like I run my account…basically, I just need to take the time to put this together.

Take the time to run through your portfolio and start freeing up some cash. Laggards need not to be held at this point. Watch out for exhaustion gaps, get out! With your new cash, start to focus on stocks with sound fundamentals and sound chart patterns, especially stocks breaking out from tight bases…newbies beware of stocks breaking out from choppy bases. One more thing, do not chase stocks at this point. We are too far into this bull market to chase stocks.

Good luck, good trading!