For the haters and the jealous, keep your trash out of here; especially Joey Fontone who told us we were idiots for being short and in cash.  Joey said he was long the market, no Joey is swimming under water.  Don’t be Joey.

MS

No matter what, though, I will be locking in gains in a lot of stocks that initially have made big moves but have given so much back in a few short days that we must protect some gains just in case they become losses. So there will be a lot of selling tonight but if I am long a stock and it is still in an uptrend above the 50 day moving average there is no way I am going to sell it all.

Is this action disappointing? You better believe it is. Am I surprised? No. I have been telling you that there are no more perfect charts, have warned you about all the perfect charts turning into mediocre charts, and have been complaining about the low volume rally.

My only fault is having hope that a low volume rally could turn into a higher volume rally. I hope this is only a blip but, dang it, since the blip is happening right here after we started to get some nice gains it makes it pretty disappointing. I know I am bumming over today’s action. A lot of gains have slipped away and discipline that has allowed met to hold stocks for HUGE GAINS, unlike ANYONE I have ever read on the internet or have met, is also hurting me now as those gains are proving to be short lived.

Right now, things look depressing, but after going over my charts I will return with another in-depth market commentary. For now, I am bumming knowing that the short rally could be over. However, this could turn around tomorrow and we might be back up 1% on the Nassy, 2% on the IBD100, and 3% on the SOX. That is why you MUST remain neutral with your market opinions right now. Take each stock on a case by case level. That is what I will do tonight.

on that note, today’s selling sure did bring out a lot of people that are worried about further selling. To that, all I have to say is if you have some profits and do feel afraid you will lose some. Why don’t you sell 20%, lock in some gains, sit back and relax, and then let the stock TELL YOU what to do next. For now, I don’t see a reason for all the worrying that I saw today. How I judge how bad selling is is to see what it does to my current holdings and to see what the short scans bring up.

When it comes to the 70 plus stocks I am long (14 are of good size the rest are nothing that will change the fate of my world) there were ABSOLUTELY ZERO that gave me a FULL sell signal. Everything that pulled back did so either on low volume, barely pulled back on higher volume and had a bullish reversal before the close, and/or if it did pullback heavy it did not close below either significant support or the 50 DMA. Now I hate to be a party pooper for the HUGE short interest that is out there but facts remain that when a market is ready to top I will not only have a few partial sells I WILL HAVE A FEW FULL SELLS. Tonight, I had NO full sells.

On top of that, when I go over my short scans, another thing became clear. There is nothing I want to short and there is nothing that I can short (in size) that is either a safe short or a smart short. The truth of the matter is that this market may not be the healthiest market AT ALL but it is still alive and the uptrends that are within the current market are still alive.

If we would have sold off today on heavier volume and volume was heavier than the 50 day volume average, then obviously I would be a little more concerned. Another area of concern would have come if I had a handful of full sells which is very much possible when you have a real top. The final straw that broke the bearish camel’s back was finding NOTHING in my scans that could even be considered a safe short. Well, I guess there was one stock, that did show negative divergence but the lack of red BOP or HUGE distribution pulled me away from that one.

For now, the market still is just going nowhere on low volume. I am kind of shocked by how many “bulls” and how many “bears” I see out there. There should not be so many polarized opinions on the market out there, when the market is in the middle of a bunch of trends. The primary is down, the intermediate is up, the short is sideways. This is not a market to be a hardcore bull or bear. Especially when we don’t have any shorts working and we continue to wait for more than one “hot and perfect” chart to setup in a good stock. We have had a couple start but they have all stopped. There is nothing out there right now that is flooring me except one stock that starts with the letter X. That is the ONLY one. There are many other really really really nice ones but I am still waiting for my perfect charts. Until I see these, being a hardcore bullish is just wrong.

What else is wrong is being a bull when the NYSE has had 43 straight days below average volume. How anyone can be a raging-bull here with volume as pathetic as it has been is just silly to me. Also silly is being a bear when shorts are clearly not working here and stocks like MXC and PDO are up 1,000% and 600% the past quarter. I don’t know about you but being short stocks when you have a chance to take part in a 1,000% and 600% gain tells me that odds and reward/risk analysis is not your “forte.”

The bottom line is that some people are simply too focused on a market that intelligent and experienced traders are not “completely” focused on. That is why you don’t see any volume. THE SMART MONEY is NOT investing right now. If they are, they are doing it very slowly and are ONLY accumulating the Nasdaq stocks as the Nassy is the only index that has traded with volume above average. The good news about that is that the days when volume moves up the index moves up or has a bullish intraday reversal. if this pattern keeps up the low volume rally will continue.

Now, while that is not really good for a lot of stocks as few stocks are making big gains, there is one group that does have stocks making very big gains. That group, of course, is the oil&gas stocks. This group is simply incredible and is about the only group that anyone should be focusing on, besides the few select technology stocks that are starting to come alive. However, the few that are setting up are starting to show sings of slowing down. So it is best to continue to focus on the ONLY group (besides the metals) that is moving in exponential ways.

8 of the top 20 industry groups based on six-month price performance are in the oil&gas/energy sectors. Today 8 of the top 10 groups that had stocks hitting new 52-weeks highs today were in the oil&gas groups. Canadien Int, US Expl Pro, Int Int, Drilling, US Royalty, Canadien Expl Prod, Int Expl Prod, and Field Services all had 14% to 67% of the stocks in their groups hit new highs. That is amazingly impressive.

The final mind-boggling stat of the night comes with the new highs and new lows. That is where the dominance of the oil&gas/energy stocks become extremely apparent. Out of 153 new highs (which beat new lows today 153-107–this is bullish divergence), 87 were from the energy sector. That means that 60% of the new highs are coming from just one group and this is the last but most firm confirmation that we have one group leading and one group only. As long as we have leadership, the market should hold up.

Another bullish divergence came with leading stocks, as the IBD 85-85 was up .7% and the IBD 100 was up 1.1%. This shows that leading stocks, via the oil&gas/energy arena, are still leading this market, even when we pullback. I don’t know about you, but all of this bullish action UNDERNEATH today’s losses, combined with the NYSE short-interest hitting another all-time high at 13.68 and the put/call jumping from .82 to .96, makes me want to remain “A LITTLE” bullish on the market right now. And that means I will continue to hold my longs that rally until they are no longer rallying. When they show weakness, I will take profits as low volume shows no conviction in the rally. If this was a heavy volume rally, I would not look to sell 10% or 20% on a 25-50% gain. Normally, I would hold for even bigger gains. But this market is too unpredictable.

I want to thank Regulation FD, Sarbanes Oxley, all those lazy ETF’s (that take in SO MUCH money that could have been invested in real stocks), a low VIX, and a psychotically biased extreme-left leaning liberal media for making this a very difficult period since the April 2006 top. I have been able to still beat the market but the more I see these perfect charts just turn into mush, like a great pumping swell being destroyed by wind, the more I get disappointed with this market. Sometimes, I just wish it would break wide open by 50% and then reset all the bases to give us a brand new fresh start with solid steady accumulators of stocks. Then maybe I could get another DGLY to setup. DGLY today is not the same DGLY it was just two days ago. What a difference max green BOP can make in some of my longs.

The fundamentals will always drive 80% of all my buys. But the chart is always where the FINAL decision is made. I WOULD NEVER go long a stock without knowing what the stock was doing on a daily, weekly, and possibly longer time frame. Along with that I always want to know if the market is moving up or down. I am sorry, those who do not go with the trend are forever to have mediocre results compared to my methodology.

I hope everyone had a decent Tuesday and hopefully Wednesday will be a better day for everyone. PWRD and GA sure did stink but did you see the action today? By not cutting our losses and admitting we were wrong we might have suffered an extra 5.6% and 6.4% loss. I am sure those losses will expand. One lesson to take away from this, those who loaded up on either of these (I had a large position in PWRD but my winners have cleared, by a wide margin, the 11% loss taken overall) is to make sure a stock is under heavy accumulation before you go long.

PWRD showed mutual fund ownership falling 26 to 17 to 16 the past three quarters, despite some VERY impressive growth in the EPS and sales. That is your first red flag! Why is this stock’s fundamentals so strong yet mutual funds do not want this stock? This is very odd. When you see big EPS and sales growth, yet fund ownership falls AND THE STOCK HAS EARNINGS THE NEXT DAY, you might NOT want to get long. The same thing was up with GA. Not only did it have earnings the next day but mutual fund ownership fell from 14 funds to 10 funds the past two quarters. So two great stocks with huge growth but funds were fleeing. Instead of going long, based on the extremely solid and beautiful chart and the strong fundamentals, next time make sure EVERY SINGLE acronym of the CANSLIM system is followed. Not just the ones you like. By doing this you increase your chance of success by 100%.

That is all I can think of that I need to go over with you. Remember, stay agnostic when it comes to this market. Don’t be a bull. Don’t be a bear. Be a trend follower. That trend is mixed which means it is a stock pickers market and there is only one group leading. This makes this easy. Now the hard part is having a great setup with a perfect buy point to go long. That will not be easy with so many of these leading stocks trying to go into a parabolic exponential rocket ship mode.

Aloha and I will see you in the chat room where everyday we live green because our portfolios always are chock-full of winning stocks.

Also, don’t forget the NYSE short-interest has hit ANOTHER all-time high at 13.66 meaning that it would take 14 days to cover all the shorts on the NYSE right now, on average volume. Even without volume, the market has an upward bias and I do not want to short a low-volume market especially when the short-interest are at astronomical levels in so many stocks. That is how you end up with MXC and PDO.

At the same end that I don’t want to be short or not long this strong market, I suggest that those that CONTINUE to buy stocks the day before earnings STOP. I always take my signals on my charts, almost NO MATTER WHAT. This takes all emotions out. But when I saw that PWRD had earnings my total buy that I had planned for Monday morning was chopped by 90%. Those that were in the chat room KNEW I did this. However, those here couldn’t have but I made it clear that this stock was not safe to go long for newbies. Thankfully, I did not see any horror stories about PWRD. But I am still disappointed as I thought I had myself a possible monster stock. But since it has failed, the last thing you will see me do is justify a WRONG position and hold on to it “hoping” that it comes back. Nope, that stock, along with GA, must be taken out. BOTH of those stocks show why buying a move the day of the earnings is a bad idea. Both charts setup up a buy signal the day before earnings and had I FOLLOWED MY OWN RULES I would have a little bit more money in my pockets.

The good news is, every other large holding, besides PWRD, acted fine by pulling back on lower volume or if it had lower volume on the pullback found solid intraday support. Even with a lot of stocks looking great, I still decided that I wanted to take some profits in some stocks that have made big moves in a short period of time. The last and only perfect chart had an event happen to its setup that no longer makes it perfect. Oh well. That is a low volume, low VIX, and ETF filled market for you (sigh).

Oh well, like I said this weekend, I am prepared for anything. No matter what happens, I am ready. That means either I continue to buy great setups and ride my winners higher or I start cutting losses, taking profits, running to the sidelines and looking to get short. When you are prepared for any outcome, nothing can surprise you.

Despite the reversal, stocks are still in an uptrend but like I said some cracks are starting to appear. Did you see DRYS, DSX, and EXM today? That is not bullish. That should NOT be happening as they go to retest their old highs. If they don’t fix that and get back to rising on strong accumulation with green BOP, then I will not be interested in going long these leading stocks. Great fundamentals or not. No matter how great the fundies are, if the chart is not there, I will not be there.

Please, if you did not read my three weekend post, please read them carefully. That should put you on top of this market and when you are on top it sure feels nice. Although, it sure becomes real hard to stay up there. But that is what makes it so fun. Never give up the fight to become the best. To be the best you will always have to stay vigilant to stay on top.

By the way, if you did not know, I had my first Seeking Alpha article posted on Monday. It was also posted at iStockAnalyst.com which is publishing me too. Though they are both the same columns, soon Seeking Alpha might be FA only and iStockAnalyst would be FA with TA. We will see. I am going to start slowly. But the goal is to get 3 up a week in SA and 3 up a week in iStockAnalyst and StraightStocks. At least I now have a place to submit columns. However, I am not sure SeekingAlpha will continue to let me use the charts. Check out the column and feel free to rate it. At one point yesterday it was the fourth most popular column and being a new guy I would assume that is pretty good. I hope SA hears you all and gives you what you want. If they don’t we still have the other two.

Aloha and I will see you in the Chat Room where EVERY day is a bull market!

However, today I learned the horrible ignorance of some offers. Luckily, this one is the only one like this, but my 2.99% special offer and regular 9.99% rate, due to the mail NEVER SHOWING UP IN MY MAILBOX, has been JACKED UP TO 29.99%!!! I have been a customer since 1999 and this is Bank Of Amerca’s way of saying thank you for NEVER having a late payment. It seems even if it is the mail carriers fault, if you miss a payment, your rates on EVERYTHING goes to the highest possible and it take six-months to reverse. So now instead of a nice steady payoff, I have to take the full amount out of my stock accounts and pay the whole damn balance off as I refuse to pay 30% interest rate!! This completely ruined my day only because I get great margin rates AND NOW is the time you want to be putting that money to work. So today has gone completely wrong and therefore I am going to bullet point my talking points as I have no interest in writing a full commentary tonight. I wrote too much in the longs analysis anyways. Paying subscribers can get there fill there.

-the NYSE short interest ratio has hit another all-time high of 13.63. It now almost takes 14 days to cover all the shorts. WOW!

-Stock indexes closed at the HOD across the board which is very bullish especially after yesterday’s weak close.

-NYSE and Nasdaq reclaimed their 200 day moving averages. This was the first time for Nassy and second time this year for NYSE.

-volume was higher on Nasdaq, with the 1.5% gain, giving it another day of accumulation and another day of an above average volume rally.

-for the 39th straight day NYSE volume was below average and was lower than yesterday according to IBD and slightly higher according to TCNet. when it is like that it is hard to load up on 200% to 400% margin knowing that the big boys are not bidding up the major market indexes. Only select stocks making it a stock picker’s market. Thank GOD that is what I do for a living.

-The Philly SOX index led the way with a 2.05% gain thanks to a 5% move in INTC after a LEH analyst raised his price target.

-have you noticed that a lot of people (including myself) are all looking for the market to make a short-term top. we are starting to call it overbought, thus becoming nothing more than “top callers.” that might be the ”wall of worry” this market needs to climb higher with that 13.63 short interest ration on the NYSE.

-a distribution is being removed from the Nasdaq after today’s powerful gains have sent it over 5% above the 4/20 distro day. that along with it now being above the 200 day moving average makes that day irrelevant as we are well beyond those levels of selling. occasional distribution days are ALWAYS normal during uptrends. it is the amount and how quickly the next one follows, if it follows.

-CNET up 45% after CBS buy. This is VERY bullish for stocks–that kind of reaction.

-175 of the 197 industry groups in IBD were higher with many groups having leading stocks make strong gains on strong volume. this is just more bullish numbers.

-a few impressive stocks I am not long that I am watching to get long on this impressive day are WGOV, SINA, SOHU, DR, RIG, CYBS, FLIR, and about 100 other. You don’t have this many nice charts in a bear market. But…where are all my DGLY charts?????

-where is the heavy volume accumulation in the indexes. volume is finally coming in consistently above average on the Nasdaq which is VERY GOOD. but without a few huge accumulation days I do not have faith this can last for much longer without eventually getting hit with a solid round of distro. if volume does come in I would be a LOT more bullish on the overall market and not just a few select sectors I see rotation in.

-newbies must not chase stocks that are extended–MVL SINA PDO and many others–in this market as the low volume will offer many whipsaws I am sure in the not too distant future that will really hurt the bottom line of those chasing stocks 5-10% past proper pivot points or the 50 DMA.

-the only two complacent indexes that tell me on the short term we have gotten too bullish is the put/call at. the number finally fell below .65 to .64 which is the lowest since January right before a nasty selloff. So the crowd is definitely getting complacent on the rally and I am sure it will not be too much longer till the market reacts accordingly.

-the VIX is at 16.30 and is definitely showing a reading of a crowd that has come to embrace this market. This is the first time the VIX has been down here since 10/11 and it clearly shows that the crowd has gotten used to the rally, for now.

Hopefully, it will take only a little bit of selling to get that VIX flying and the put/call back to the 1.00 level. For now, the crowd is starting to really embrace this rally and I personally can not find a lot of bears even though it is obvious via the NYSE short interest ratio they are out there. A pullback might be enough to scare us higher.

The charts look really good and there are a TON of stocks that are not only building round bases and breaking out to all-time highs. But there are also a TON of stocks building nice round bases near their 52-week lows which means that the stocks that were falling are no longer hitting new lows but building a very nice round base with strong accumulation. Stocks looking like they have bottomed include PHM ATI CAVM CVLT PWER BYI ODP NTWK OSTK CMCSA. As you can clearly see, they are everywhere in all industry groups. Take that with stocks like HUSA FSIN SOL CSIQ DGLY and you clearly have a market that is under a real rotation process away from commodity winners (see the drop in DE and FEED past couple of days?)

At this point in the commentary, I am, once again (remember I have Multiple Schlerosis and one of the MAJOR problems is fatigue–I used to never be tired like I am now), to tired to continue on. If you go back and read the last 3 to 4 entries I am sure you will COMPLETELY understand where we are at in the stock market and how I feel about our longs.

Once again, it was another great day as one of my top 15 BIGGEST holdings that make up 85% of my account, was up today in a big way giving it a 52% gain in one month (VISN) and if you take that with my other 50% winner in one month (DGLY) you can guarantee that I am having a KILLER month that has made up for the extremely rough January, February, and March period. April came in with a baby roar and so far it has morphed into a full blown tiger growling and roaring as it moves doing whatever it please.

Aloha everyone, I wish a great Aloha Friday and I will see you in the chat room anywhere from 630am to 7am HST. ALOOOOHA!

P.S.–Pray for surf this weekend as I need to get wet. It has been over 7 days and watching the Finals from Teahupoo of Bruno Santos (Brasil) vs. Manoa Drollet (his home break and backyard; Tahiti), after watching a great semi-finals where C.J. Hobgood just couldn’t get it going and I think 26!!! heats yesterday, has me wanting to get out there. Neither could Slater who won the first two events earlier this year but fell short in Billabong Pro Tahiti Teahupoo

One more time, ALOOOOHA!!

Thankfully, even though volume ticked slightly higher on the Nasdaq, the NYSE had volume come in 1% lower on the reversal. To go along with that the volume was below average on the NYSE for the 38th straight session, volume was barely above the 50 DMA on the Nasdaq. With the volume being higher and prices being higher that would still be bullish despite the reversal. The volume simply was not full of conviction in the form of huge clear distribution. I guess you could count 4/1 as average daily volume on the NYSE, by the way, but still it wasn’t above average so I guess the point still stands.

Overall, the market is in the same situation as it was last week. We are rallying on lower volume with this clearly being a stock picker’s market. The good news, for me is that is what I specialize at.

However, since there is not much changing in the market and I have talked about all the different scenarios ad naseum in my chat room, I am getting straight to the data points.

The investors intelligence survey has the bulls at 46% while bears are at 29.9% which shows a decent shift amongst newsletter writers but still nowhere near extremely bullish (which would be bearish) levels of 55% bull and 20% bear. There is still room to run in this thirdary indicator. The most interesting of all stats I follow is the NYSE short interest which is yet hitting ANOTHER all-time high of 13.38 which means it now takes almost 13 1/2 days to cover all the shorts out on the NYSE. I am not sure what % of the NYSE is short but it has to be near 5% and I don’t care if no volume ever enters the market, that numbers is simply too high and a clear indication to me I need to focus on the bull side and keep an eye out for leading stocks EVEN DURING THE UPCOMING PULLBACKS. The crowd may say they are bullish but heck they sure are betting like they are not.

The only place it has changed is the put/call ratio which is still at .69 today which is the second day in a row below .7 which has been a tough line to crack for a long time. This also indicates that the crowd is getting a bit bullish on the current uptrend. However, with all the bases being built, new breakouts, and stocks building bottoms they have plenty of reasons to want to be bullish. I am not sure how many are as good at TA as me but if they can see what I see I find it hard that they could be too bearish. I mean when I say there are a lot of round bases, bottoms, and strong stocks, I mean it. The odd part about all of this underlying strength is that there still remains ONLY ONE perfect stock chart. Hopefully, if this rally continues many more will show up which could happen if volume shows up to the bull side eventually. It has been 38 days. Eventually the NYSE will have the average so low an above average day will have to occur. The Nasdaq is starting to see a lot of days of above average volume gains. The only problem is that none are EXTREMELY convincing. They are all good but not great.

Another hint of rotation was clearly on display today as 7 of the top 20 industry groups based on six-month price performance in IBD were part of the top 10 worst performing sectors today. On top of that, on the other end, 5 of the top 10 stocks today were in the bottom 20 industry groups. When you take that along with all the retial, tech, internet, and telecom stocks that have moved from the 100-197 area to the 20-50 area, you can CLEARLY see something is going on underneath this market while the public is distracted with commodities and inflation speak.

There were SO MANY donkeys from weakmoney.com that were bottom guessers and FA-only morons that sent me emails telling me how stupid I was for not buying the same 30 stocks we have heard the past 10 years in January as the market was bottoming. Those idiots are now stuck holding crap going nowhere to up 3%, while we have stocks like GEOI, VISN, CSIQ, SOL, and DGLY in our coffers. So much for having to buy the exact bottom. These idiots will never learn and I hope they have learned their lesson to keep their retarded mouth’s shut. I have proven for the twelfth year in a row that buying stocks hitting new highs blasting out of extremely green and perfect chart patterns can equal huge profits if you learn how to hold a stock for the big gains. These people think landing a 25% gain in six months with a 2% dividend is a huge win. I am disappointed with our best stock being up 49% in a little under a month. I was expecting at least 75% by now. And if the VIX would have been at 40 instead of 17, I am sure DGLY would have been up 100% in under a month. Please go back and study all my BIG WINNERS from 1999 and 2003 to see how POWERFUL my methodology is and then take a look at the rest of the years and enjoy the BIG GAINS that still came from pretty dull markets to bear markets.

Some of you value guys might not like looking at the new 52-week highs and instead love to look at the 52-week low list for buy candidates (I saw NYC desk zombies do this all day–scanning the new lows for big buys). You are never going to find the gems in that list like you will the new highs. IBD research has proven the first time a stock makes a new high it goes on much higher and to greater gains than stocks making fresh new lows. The performance is NOT EVEN CLOSE. It is a wide margin of victory for new highs. So why you would want to focus on stocks near lows is a freaking stunner to me.

Let’s look at today’s stats where there were 218 new 52-week highs to only 87 new 52-week lows. Those who religiously follow this indicator know that clearly the past month this ratio of new highs to new lows has completely turned around with down days now seeing an equal amount of both to sometimes the new highs winning and up days now having these stocks trump.

So what are these leaders? The same leaders since 2003 almost!!! Energy had 74 new highs in its group today so obviously you need to be long some of these-SOL, PDO, GU, SM , XEC, CVX, NE, TTES, BTE, OXY, NBL, SFY, WFT, NL, BRY, DNR, PDE, ARD, STR, E, or WES. If NONE of these stocks are in any of your portfolios, all I have to ask you is why???? I only listed two stocks that I own in this group but I still have plenty of energy in my port. Why? Because they are flying! The point is to make a lot of money and that is what they are doing.

Other industries include Metals/Steel, Machinery, Transportation, Medical, Retail, Utilities, Mining, Chemical, and Business Services stocks. Leaders in these groups include GTI, SCHN, VMI, GHM, ABB, SNHY, FLS, PH , JST, GDI, ENS, AME, RBN, EGN, SBS, NFG, LL, ARO, COST, RTP, LIFC, MLNM, KSU, CSX, BNI, IBM, NCIT, DGLY, VISN, CE, ARG, and FMC. I swear to God if you can not find a way to make money in any of these (TRY BUYING A HEAVY VOLUME BOUNCE OFF THE 50 DMA IF THE STOCK PULLED BACK TO THAT LINE ON LOW VOLUME–THAT IS ALWAYS!! THE LEAST RISKIEST LONG AS THE 50 DMA IS THE CUT LOSS AREA), you have a long way to go son.

OK, I am tired, I waited way too long to get this done, but heck, like always, I got it knocked out, even when I am too tired to do it. I work my ass off for you guys. If I was doing it my way, I would scan my charts for 2 hours, do order entry for an hour, and go over my portfolio for an hour. What is that? 4 hours of work. Do that at 3pm to 7pm at night and have the whole day and night off. Sounds good to me. But how does that fulfill my life? It doesn’t helping people VOLUNTARILY is the way to go. But to get my picks, you got to be crazy if you think a guy that can pull 500% winners and 2,000% winners in raging bull markets is going to give that away for free. I might be kind hearted person trying to do the Christian thing as a VERY WICKED disgusting human being but I am not stupid. I know that my win ratio, the % gains, and the ability to possibly hold long enough for long-term capital gains taxes is something NOBODY else offers on the internet. I am STILL trying to find anyone that can find stocks like me, every time, all the time, no matter what the market is like.

It may take years sometimes to get a perfect, easy-to-make a TON of money long setup but there is always something running exponentially waiting for me to come along and snatch it just as it breaks out on very strong volume. Heck, there were two new candidates tonight and a CANSLIM gem I am adding back to a large position. There is always something to make us money out there. Every day, something sets up and moves. Maybe 10 days out of the year I will not be able to find a great setup on the long or short side. But every other day, we will have a chance to make a LOT of money together.

Aloha from a very Vog-filled Maui where the sun is being blocked by a thick blanket of volcanic ash coming from the Big Island. Hopefully, the sun will come out and the swell that is supposed to hit tomorrow actually wraps to the upper west side. I think it has been over 7 days now since the last time I surfed and I am starting to get antsy. If no surf, at least we have the beautiful waves of the Billabong Pro for me to watch. Watching that is 10000x more exciting than watching this market intraday. You daytraders keep doing that, I will be watching surfing, basketball, hockey, and baseball (thank you God for MLB.tv)!!!! ALOOOOHA!!!

I do not like seeing the IBD 100 lag the Nassy on a day of such strong gains. The other thing I do not like seeing is the impressive gains on much lower volume with the NYSE having its lowest day of volume this year. This is a clear sign the big boys have no interest in buying this market. However, as you can tell via my recent longs, there are a few stocks they are still interested in buying. That is why this is still a stock pickers market and thank GOD I can pick them!

Until volume returns to this market, there is no way I am going to let go of 25-33% of my cash. I am going to continue to keep that on the sidelines while I wait for another perfect long setup like the stock that had a good day today. If another chart can show up like that, I would be more than happy to drop that cash position. But still with the low volume, it is hard to get 400% invested on margin.

I suggest to continue to buy the best CANSLIM quality longs with the best chart setups. We have not been without them, thank goodness, as about 70 stocks are moving steadily higher racking up some nice gains including a stock that I will be almost fully selling tonight. GEOI is now up 122% in under three months and in this market that is a HOME RUN. Now, if only the 10 longs I am loaded up on can act just like that, this year will be a great year. But I am not sure if that is possible with the market continuing to move up the way it is on no volume.

I am starting to lose my bullish luster because I see the put/call falling to .77 today which is matching the lows of 2008. I am sure another big up day will throw this number under .77 making traders the least bearish they have been in 2008. Confirming that is the VIX which hit a new 2008 low of 17.79 while hitting 16.92 intraday. If that is not complacency on this rally, I do not know what is. That VIX and put/call is going to have to rise a lot while the market barely pulls back for me to fall in love with stocks like I almost did a couple of weeks ago when some fine-fine-fine charts were STARTING to show up. Since then they have ALL faded, but ONE.

So with that we are back to the usual waiting for volume to return. As subscribers know already, I am battling a MASSIVE and PAINFUL headache tonight due possibly to dehydration. I have still managed to update the shorts and longs analysis by about a 90% completion level as I am only able to go IN-DEPTH on the reason of buying if I am not busy. So basically, I got everything done. There might not be any new ‘Past Big Winners’ the next couple of days as I attempt to catch up on everything I will fall behind on tonight in the forums and tomorrow overall as I go have an endoscopy procedure at 1pm HST. So we will see how drugged up I am after that.

Aloha for Monday and I will see you all in the chat room at 630am HST (1230pm EST)!!!!

Also another lesson of NEVER chasing is today in GENC. I have been taking profits on the way up and if you have been following all my sells in the forums you will see that I was already out of 40% of it before today’s decline. Even after the swoon today, we still have a gain in it. Also, do not sell it intraday. The chances are much higher with it being down this much that it will have a strong rally before the EOD. Even if it doesn’t, it doesn’t matter, the stock is a full sell and we still walk away with a profit on the full 100% with me already being out of nearly-half when the stock was between a30% and 60% gain.

Our leaders are doing well and remember if you own a stock up 20% or more in less than two weeks (which we have had a few quick monsters), you need to hold them at LEAST eight weeks.

This market is setting up for a big upside run.  We do not want to be cutting the stocks that are making moves and rotating into laggards.  Stick with your winners!

Market Speculator

I asked O’Neil which he would pick: a perfect chart in a stock with 70 EPS and 95 RS or a well-formed chat that is a bit wild, has some distribution, and other flaws but had a 99 EPS and 80 RS. His response was that you go with the stock with extremely strong fundamentals yet flawed chart. That is why TITN was a large buy yet has nothing but red BOP for the month of April.

Market commentary will be up before Sunday. Pray that I can get one more day of AMAZING surf. Yesterday was really fun and the biggest I have seen Breakwall in the eight years I have been here. It was incredible. I surfed guardrails got some good waves but they were less consistent so decided to go to Breakwall where I believe the waves were not only the strongest I have seen but the biggest I have seen on our south/lower west shores. I have been out on big waves up north but not in my backyard. They were so big I actually got hurt (which is the best as you know you pushed you li!!! I skegged my quad three days ago and somehow getting out from Breakwall today I hit a big coral reef and put a gash in my heel.

I LOVE SURFING!!!!! It is 10x more fun than doing this!!!! I have chosen this lifestyle instead of being a NYC or Chicago hedge-fund manager. Remember that everyone. I am doing this to help you all. To save you from the LIES of wall street so that I may guide you to Investors Business Daily. Once you learn how to use the CANSLIM system you will FOREVER be free from the lies, opinions, and HATE that comes out of wall street.

I don’t know about you, but I would rather only spend 2-3 hours a day doing this so that I can be around my wife, kids, and other family members. Those that like looking at a stupid computer screen all day, well, I don’t know what to tell you other than enjoy that lifestyle. I will be getting tubed and spit out the end of a Shark Pit barrel which is 100x more fun than ANYTHING I EVER did in NYC. Life is good.

Commentary before Sunday morning.

PS: Al-Quaida don’t surf and neither does fat Sandy Wright WHO IS STILL SENDING ME EMAILS. Isn’t this harassment? Thank God I don’t live in NYC, I would have a NUT BAG STALKER. What a dangerous women. I would classify one other reader as dangerous but at least he is NICE!! Sandy is just EVIL with her bitterness and anger. Her emails are really sick and I am sorry for bringing this up everyone but if you ever wonder why I get upset it is probably because one of two things happened. 1. The people at thestreet.com just told me that they will not fix an error THEY COMMITTED on my column (yet, of course, when I make a mistake they JUMP ALL OVER ME!). If you notice the IBD100 chart has the top on the thumbnail version. No big deal. But I asked for this to get fixed. He said they are too busy to fix it. Sad and disappointing and yet another reason I left NYC.

Sometimes I forget why I left then something like this happens and it reminds me why I am on the warm, sunny, breezy, and beautiful island of Maui.

The #2 reason would be someone like Sandy Wright sends me an email. There was no reason to send an email and start saying HATEFUL things like she did because she HATES Israel. Sad and pathetic. Seriously, this woman is a major buzz kill and whenever I see that NASTY womens emails in my inbox I get upset. So if TSCM and the UGLY FAT mean women would stop being such buzz-kills LIFE WOULD BE PERFECT.

I have NEVER had such a stupid human like Sandy Wright come across my path. I have NEVER had someone see all my 300%, 500%, 1000%, and 2500% winners and still said “he is going to lose you money.” How? How am I going to lose ANYONE money when I hit so many winning/monster stocks in bull markets, advocate cash in bear markets, and tell them not to go long stocks in a downtrend or short stocks until you make money on longs? This is why it is upsetting. I am not used to this and eventually HUMAN GARBAGE like DUSTY WRONG (Sandy Wright) can just be completely ignored. But for now, I think ALL OF YOU deserve to know why I get so upset sometimes. I am truly trying to do my best to change your lives for the better so your children and their children will never have to worry about losing their life to terrorism. When you have money you can go anywhere in the world. You can do anything when you make a lot money. I love charts!!! I love the stock market!!! The byproduct of that is that I make a lot f money. And I don’t like keeping it. Giving it away is something I love to do.

So when people like Sandy CONTINUOUSLY send me nasty emails I really lose my cool. one day I will treat like I treated the drunks at the poker table. Ignored them and waited till they left the game. I have a feeling NASTY SANDY will be the same way. How can you be so EVIL when ALL I want to do is do EXACTLY what James DePorre is doing: SAVE YOU FROM THE LIARS ON WALL AND BROAD. NYC is full of lies and deception. This is where Sandy Wrong resides. She is the reason comments are disabled. NO OTHER REASON. She is the ONLY NUTJOB that blast me with emails when I don’t ask for them. Sandy, I am going to ask you one more time, LEAVE ME ALONE, STOP SENDING EMAILS, and STOP READING MY BLOG.

I love life, you HATE life as you said in your email about the Jewish people. Your comments were DISGUSTING and I have no time for them. I might not be perfect but I went from NOT believing in God to a Believer. Let me be that way and DO NOT send me ANY MORE NASTY EMAILS YOU WICKED/EVIL/TWISTED woman!!! Let me grow in my faith without YOUR hate! This will be the LAST time I talk about this HORRIBLE woman. She really ruined my Friday as her emails were LOADED with hate. I only want love in my life. I have no time for you Sandy. Leave me alone.

If I have helped you and you have found me helpful please help me get it through sandy_wright67@yahoo.com THICK SKULL that she needs to stop sending me emails and harassing me immediately!