Finally..a Continuation in the ‘Inconceivable’ Rally

I have avoided talking stocks for a while because there has not been much to talk about.  Things can change fast and it feels like they have.

It is hard to be bearish when freaking Qwest Communications is getting a takeover bid.

I have been adding to my longs the last week as my few trend holds have broken out to the upside.  $SWKS $MELI $RVBD and $INTU are leaders that the last correction could not stop.  They are now at very long-term or all-time highs.

iRobot $IRBT looks poised and though Netflix and Coinstar $CSTR  have been punished of late, they are still long-term trend leaders.  They have had huge years in a crappy tape (long all three).

There is NO good news accounted for in the tape.

On the bad news front…The US is broke, Obama is a goner, North Korea is going Nuclear, the European stress tests were a sham, the consumer and housing are dead, the machines are running the stock market and Goldman Sachs is the  devil.  Oh wait, $BP destroyed the Gulf coast too.

The bad news will always get the headlines, but headlines don’t make you money.  You get better as an investor when you listen to the tape and follow the strength.  The headlines will get bullish after huge gains are made.

As I tweeted this weekend, I am in better shape than European banks, but I can’t pass a stress test.   Big woop.  No one cares at the moment.  Our country and household balance sheet nightmare will matter again, maybe tomorrow, but the tape is saying not right now.

I have taken a few weeks off from shooting live shows on Stocktwits, but if I had taped a ‘Momentum Monday’ last night I would have pointed to the wide strength.

On the weekends IBD 100, the top 20 had a very wide list of industries represented:

Search in China

Online Marketplace in Latin America

Mobile Processors

Mobile Apps

Shoes

High End US Retail

Chinese Hotels

Fast Food

Chemicals

Exploration

Beauty Salons and of course Dietary Products

I am optimistic to say the least, but not with huge conviction or a percentage allocation to stocks for the moment.  Easing in is what I am doing and thinking even more leaders will emerge.

What say YOU?

9 comments

  5. Washingtonian says:

    If Online marketplace in Latin America is looking good then their banks should be golden as well… have you seen the fees merchants charge over there? Plus fees upon fees… their banks are very well protected and good to keep growing with governments help.

  7. Spooky says:

    Im bullish and am taking potshots at what looks like a crazy premium for risk aversion via long-TBT and long USDJPY.

    I'd add NAS-storage to that list of whats hot – NTAP,ISLN.

    I'm not sure “cloud” is really an investable theme, but Infiniband is a technology of increasing importance in all clusters – but the best pureplay Infiniband plays I know of {QLGC and MLNX} are getting taken to the cleaners.

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