"The market will never rally again"

UPDATE: All time high volume in QQQQ and SPY signals end of market correction


Yesterday I got an email from one of the readers in response to yesterdays post.

"The market is not going to rally again. You are an idiot. You don't understand markets and keep looking for bounce. Learn short selling........"

It goes on and on about how we are doomed and how Bush has ruined the country and so on. I love it when the bears come out like this in full force.

The market action yesterday was disappointing. The market gapped up overnight but fizzled in last hour. There are several theories being talked about why it happened. The bird flue in Indonesia being the most talked about. You can never correlate news like that to markets action. Bad news in weak market is bad but the same bad news in strong market is shrugged off. Very bad news and series of bad news are also most common at extreme weakness level.

Some sectors attracted buying. This was mostly concentrated in the metals and energy sector. The ethanol stocks again seems to be in favor.

Market like this are good time to catch up with some readings and spend time on R&D. I have been catching up with lot of reading and will write about some good recent books I read. I have also been experimenting with new strategies using Trade-ideas and have found some good trading systems to add to my existing strategies.

Above all one needs to maintain sanity during such times. High velocity can play havoc with your emotions. You need perspective. You need confidence and conviction in your methodology. Backtesting can help. Market experience and knowledge of market history can also help .

Stocks up 50% or more in a month
All three plays in this list are related to strong earnings. HSR, Hi-Shear Technology Corp had a earning acceleration in recent quarter and is worth keeping an eye on.
HSR,Hi-Shear Technology Corp
IFO,Infosonics
MED,Medifast Inc

Stocks down 50% or more in a month
BCGI,Boston Communications Gr
DOVP,Dov Pharmaceutical Inc
DSCO,Discovery Labs Inc
EDAP,Edap Tms Sa Adr
ERS,Empire Resources
ESCL,Escala Group Inc
FLYIQ,FLYI Inc
FORD,Forward Industries Inc
NBIX,Neurocrine Biosciences
NMHC,National Med Hlth Card
NTMD,Nitromed Inc
THLD,Threshold Pharmaceuticals

Stocks with all time high volume
PEIX,Pacific Ethanol Inc is the ethanol play. It also is experiencing significant sales acceleration.
AZK,Aurizon Mines Ltd
IWO,iShares Russell 2000 Growth Index Fund ETF
PEIX,Pacific Ethanol Inc


Stocks on my watchlist
The list continues to shrink. Those still on the list might be next to break down or in early stage of breakdown. Some are hanging on to their recent high and experiencing little volume. Those are the ones to watch for.

ACLI,American Commercial Lines Inc
ADLR,Adolor Corporation
AEM,Agnico-Eagle Mines Ltd
AMLN,Amylin Pharmaceuticals
ANAD,Anadigics Inc
ANDE,Andersons Inc (The)
AP,Ampco-Pittsburgh Corp
APAC,Apac Customer Services
APN,Applica Inc
ARD,Arena Resources Inc
ARS,Aleris International Inc
ASPV,Aspreva Pharmaceuticals
ATLS,Atlas America Inc
AXTI,Axt Inc
AZK,Aurizon Mines Ltd
BGC,General Cable Corp
BGO,Bema Gold Corp
BMD,Birch Mountain Resources Ltd
BUCY,Bucyrus International Inc
CAMT,Camtek Ltd
CBG,Cb Richard Ellis Svcs
CCJ,Cameco Corp
CELG,Celgene Corp
CELL,Brightpoint Inc
CFK,Ce Franklin Ltd
CHAP,Chaparral Steel Company
CLG,Cumberland Resources Ltd
CMCO,Columbus Mckinnon Cp(Ny)
COGO,Comtech Group Inc
CTRN,Citi Trends Inc
CUP,Peru Copper Inc
DAKT,Daktronics Inc
DBRN,Dress Barn Inc
DCEL,Dobson Communications A
DMX,I-trax Inc
DNR,Denbury Resources Ltd
DRQ,Dril-Quip Inc
DTLK,Datalink Corporation
DXPE,Dxp Enterprises Inc
ECOL,American Ecology Corp
EMIS,Emisphere Technologies
EUROD,EuroTrust A/S ADR
FAL,Falconbridge Ltd
FJC,Fedders Corp
FMCN,Focus Media Holding Ltd ADR
FNSR,Finisar Corporation
FRNS,First Avenue Networks Inc
FTI,Fmc Technologies
FTO,Frontier Oil Corp
FWLT,Foster Wheeler Ltd
GAIA,Gaiam Incorporated Cl A
GDI,Gardner Denver Inc
GEX,Globix Corp
GFX,Media Sciences Intl Inc
GI,Giant Industries Inc
GIGM,Gigamedia Limited
GLBL,Global Industries Ltd
GLG,Glamis Gold Ltd
GMTC,Gametech Internat Inc
GORX,Geopharma Inc
GROW,U.S. Global Invest Inc A
GVP,Gse Systems Inc
GYMB,Gymboree Corp
HANS,Hansen Natural Corp
HOC,Holly Corp
HOM,Home Solutions Of America
HSR,Hi-Shear Technology Corp
ICCA,Internet Commerce Cl A
ICON,Iconix Brand Group
ICTG,Ict Group Inc
IFO,Infosonics
IIG,Imergent Inc
IIP,Internap Network Svcs Cp
ILMN,Illumina Inc
IMCO,Impco Technologies Inc
INB,Integrated BioPharma Inc
ISIG,Insignia Systems Inc
ISRG,Intuitive Surgical Inc
ISV,Insite Vision Inc
JLL,Jones Lang Lasalle Inc
JOYG,Joy Global Inc
KFRC,Kforce.Com Inc
KNDL,Kendle Internat Inc
KNOL,Knology Inc
KNOT,The Knot Inc
KNXA,Kenexa Corp
KRSL,Kreisler Manufacturing
LANV,Lanvision Systems Inc
LCC,US Airways Group Inc
LCRD,Lasercard Corporation
LDSH,Ladish Co Inc
LMIA,Lmi Aerospace Inc
LNUX,Va Software Corp
LTXX,Ltx Corp
LUFK,Lufkin Industries Inc
LVLT,Level 3 Communications
LVS,Las Vegas Sands
MBRX,Metabasis Therapeutics Inc
MDR,Mcdermott Internat Inc
MED,Medifast Inc
MGPI,Mgp Ingredients Inc
MORN,Morningstar Inc
MOVE,HomeStore Inc
MOVI,Movie Gallery Inc
MTRX,Matrix Service Co
MTW,Manitowoc Co Inc
MWRK,Mothers Work Inc
NAVI,Navisite Incorporated
NEU,Newmarket Corp
NITE,Knight Capital Group Inc Cl A
NTG,Natco Group Incorporated
NTRI,NutriSystem Inc
NXXI,Nutrition 21 Inc
NXY,Nexen Inc
OII,Oceaneering Internat
OMNI,Omni Energy Services Cp
OS,Oregon Steel Mills Inc
OYOG,Oyo Geospace Corp
PAE,Peace Arch Entmt Grp Inc
PGS,Petroleum Geo-services Asa
PGWC,Pegasus Wireless Corp (NV)
PJC,Piper Jaffray Companies
PLLL,Parallel Petroleum Corp
PLXS,Plexus Corp
PMTR,Pemstar Inc
PSTA,Monterey Gourmet Foods Inc
PWEI,Pw Eagle Inc
RAIL,FreightCar America Inc
RATE,Bankrate Inc
RBAK,Redback Networks Inc
RCCC,Rural Cellular Corp
RHAT,Red Hat Inc
RICK,Rick's Caberet Intl
RMIX,U.S. Concrete Inc
RNOW,Rightnow Technologies Inc
RPRX,Repros Therapeutics Inc
RTI,Rti Internat Metal Inc
RTK,Rentech Inc
SA,Seabridge Gold Inc
SHOO,Steven Madden Ltd
SMDI,Sirenza Microdevices
SMSI,Smith Micro Software Inc
SNTO,Sento Corporation
SPN,Superior Energy Svcs Inc
STIZ,Scientific Technologies
STRL,Sterling Construction Comp Inc
SU,Suncor Energy
SUPX,Supertex Inc
SVL,Silverleaf Resorts Inc
SVVS,SAVVIS Inc
SWIR,Sierra Wireless Inc
TACT,Transact Technologies
TESOF,Tesco Corp
TFSM,24/7 Real Media Inc
TIE,Titanium Metals Corp New
TMY,Transmeridian Exploration Inc
TRE,Tanzanian Royalty Exploration Corp
TRN,Trinity Industries Inc
TSCM,Thestreet.Com
TTES,T-3 Energy Services Inc
TTI,Tetra Technologies Inc
TWGP,Tower Grp Inc
TWIN,Twin Disc Inc
TWTC,Time Warner Telecom Inc
TWTR,Tweeter Home Entertainmt
UPL,Ultra Petroleum Corp
USEY,U.S. Energy Systems Inc
USG,Usg Corp
WCC,Wesco International Inc
WHQ,W-h Energy Services Inc
WIRE,Encore Wire Corp
WWWW,Web.Com Inc
XTXI,Crosstex Energy
ZOLT,Zoltek Companies Inc
ZRAN,Zoran Corp
ZUMZ,Zumiez Inc
ZVXI,Zevex Internat Inc


NOTE: To understand these list and philosophy behind them read following posts
The logic behind monitoring all time high volume
Why study stocks making 50% or a move in a month everyday
How I use the stock with extreme volume signal
How I trade momentum stocks
Tops or bottoms- it's a stock pickers market
How to find good stocks

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