Another new high for the Q's that makes 7

Okay this is starting to feel like a trend. Hopefully you have all been able to ignore the bears and stay focused on the long side. This is a classic example of wanting what the market wants not what the talking heads want you to believe. No one can denie the continuous bad news, layoffs, bad earnings and continued banking scares. However the market is rising and that is all that counts.

With 7 up weeks in a row however the odds sure are leaning towards some profit taking here soon. Some are feeling that the party is almost over and the bears are about to return. Be careful out there.

In the meantime the gold play last week is working out. The double bottom held and we had a nice rally for the week.

I still have not given up on oil yet. The last month has been boring but I still think the bottom is in here and will continue to add after this 4th wave correction.

6 Weeks it is

And so it goes for another week. The talk around the water coolers are now about missing the boat. The type of thing you would expect at the end of the first wave up. After some profit taking the miss the boaters will be only to anxious to jump on board. This is what 3rd waves are made of. In the meantime, the buy on the dippers have had a great run here and as long as your stops remain tight the ride continues.Of course with all the favourable earnings and positive news the safe haven investments in gold and silver had the wind knocked out of their sails. The double bottom in gold may just be tieing in nicely with a market top???

Make that 5

That puts the Nasdaq up 31% from its March 9 low. Everyone is complaining about losing 55% over the last year and a half and here we are up 31% in just over a month.

Don't let the bears, and there are a lot of us out there, convince you to end this ride before its time is up. The market wants to go up and up it is going.

Like RIMM last week Well Fargo had the earning this week and helped fuel the bank stocks and indices to new highs.

Make that 4

That makes 4 weeks in a row now with stocks advancing once again. Even with more negative news like jobless rate at 8.5% buying still continues. Short coverings and early to the party traders have now taken the Q's above the previous resistance point.

It helped having RIMM in the picture!!

Its easy to think that this rally needs to end soon and try and pick a top, but you have got to stay with this as long as it continues. Riding this bear market down has been great but the % moves from the bottom here are amazing and not to be missed.

3 Weeks in a Row

Although we ended the week with disappointing economic data and losses accross the board we still continued with a 3rd week in a row of market gains. This is great for us traders to see some trends here. The Q's have now rallied up to the top of the previous resistance area we dealt with for the last few months. Personally I took advantage of the rally by playing, believe it or not, GM. Although I know I should be avoiding this dog I can still remember Chrysler when it was near bankrupcy and the gains that were made back then for those with faith in a bailout. On a hourly basis we are now seeing multiple MACD divergences and tight stops below Fridays lows if you are still long. Might even consider a stop and reverse here for the inevitable sell off that will come soon.

OIL trade was boring last week and I decided to get out. I will be monitoring this to re enter. Another option is to hold a longer term position and trade around it on a short term basis.

March Break Madness

It was a quiet week for me with a March break holiday. I maintained some shorts from the week before that are working out after Friday's witching saw the indices fall on heavy volume. HMSY is one that is finally breaking down after multiple MACD divergences. Although the markets were off Friday I am not going to ignore the rally the last 2 weeks and will be prepared to jump back on the long side if the rally resumes after some profit taking here.

The markets were weak led by financials after the craziness on Capital Hill. AIG was off 50% in 2 days. Although I have been expecting stories of waste and misuse of government aid, I never would have expected retroactive revisions to laws. What a cluster....

Gold and silver saw a KRD on Wednesday and buys for Thursday morning. OIL continues its rise from the ashes.

Want what the maket wants

And what the market wanted last week was a nice little rally. Although still bearish last weekend by Monday mid- day you couldn't help but feel the mood shift. Tuesday saw a break in the trendline from the last month's drop and it just kept going for the week.

I have been taught that you must not trade your belief's but be willing to hold the dog by the tail and let him guide your trades. Last week I had to put my bearish beliefs aside and run with the bulls. It was a great feeling to see the tide shift and make some money on the long side. (I did close out my longs Friday afternoon however and put on a few shorts for Monday.)

As far as the OIL trade, on Monday we did see a breakout, but it fizzled on Tuesday so I closed out the trade. We are now considering OIL and GSG on the short side again.

Coming into next week it will be interesting to see what this rally has in store. My belief is that it we will se some profit taking. (but I will be ready to trade whichever way it goes)