Nasdaq And IBD 100 Finish Higher But Big Board Indexes Finish Lower As Traders Take A Mini-Vacation On Columbus Day

October 9, 2007

Stocks didn’t do much today as it was a Fed and banking holiday for Columbus Day. But for what did happen today it was bullish action overall as a market that was down across the board saw some lift near the end helping the Nassy close in the green and helping send the NYSE, SP 500, and DJIA off the lows. The lower volume was perfect as today was sort of a consolidation day with the big board indexes pulling back.

The action in individual stocks was very positive as there were no nasty surprises on this slow day in any of my personal holdings and many stocks are in the middle of forming some very tight bases due to the rather calm action we have had on the days where the market is not taking off.

The beauty in today’s pullback for the heavily invested bulls is that the put/call has jumped again to the .89 area and the NYSE short interest ratio hit another all-time high of 8.85. The bears simply can’t stop shorting a rising market. Which just completely confounds me how we have proof of what the greatest traders have done to make millions yet people will still try to bet against the trend ignoring over 120 years of price and volume history. Pathetic yet wonderful all at the same time as this assures me of a life-long income from investing in the stock market. The crowd is always wrong. When you are a kid it is cool to be in with the “in crowd.” When you are an adult, it pay to think the opposite of the mass public that blindly believes anything they hear and read on CNN or the NY Times.

I am very long and do not have room to load up on anything new in my portfolio. There was a stock I mentioned yesterday that I liked a lot called EXAS. That did very well today. And as long as I keep finding stocks willing to act like this there is no way I am going to place any significant bet on the bear side. For those that have been shorting GRMN three days ago on the break of the 50 day moving average are feeling the pain of not learning how to short correctly. GRMN is going to continue to feed pain to the fools that do not follow the trend.

This is a great market and I have to admit it has been a very profitable and lovely time. YES!!! One day this will end. But until every single leading stock like AAPL GOOG BIDU RIMM and AMZN go into a run like JRJC, there is no way I am leaving the bull side.

Aloha and I will see you in the chat room. Make sure you read the longs analysis tonight. There are two CANSLIM longs that are in very great risk/reward position that should be considered as longs.

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