TradeWinds for Friday February 8th

The market gave us what we needed to salvage our budding upward momentum. We held the bottom on the QQQQ and the 50% retrace on the SPY and DIA. In looking at our charts, our slow and fast momentum indicators slowed their decline significantly. Our moderate indicator continued its sharp downward path. IF the market continues to rally I expect all indicators to turn upward as we head into the weekend. The market will tells us what it wants to do, of course.

We do want to note that CSCO, which was the big negative news in the morning, actually posted a nice gain for the day and nearly made our top 25 longs list.

Tradewinds for Tuesday January 29th

Monday's market gave us the nice follow through to the upside days of last week to begin to solidify a new short term uptrend. Now before we too excited about that, lets remember that we still have hurricane force winds blowing in our face, but they are diminishing and more areas around the edges of the storm are starting to see some sunshine. To be real, of the 80 stocks and ETFs that I follow, 63 are in mild to severe long term downtrends. So caution is still the keyword. The short term bias is up, but don't get greedy out there.

Here are the ETFs and stocks that are sailing in calmer waters, and would be nice place to do some fishing: XHB, IYR, GLD, SLV, GDX, FXE, CSX, HERO, MOS, SLW, TRA, POT, CF.

Here are the ETFs and stocks that still have a ways to go, but can see some calm weather on the horizon: IYT, XLF, XLY, IJR, IWM, XLI, DIA, SMH, MDY, AKS, PCLN, GT, ACAS, BOOM, APH, C, DRYS, INTC, GLW.

I have down trend indicators for only three securities - Bonds, IEF where I have taken a short position, retail, RTH, which triggered a short term downtrend, but is still sailing out of the storm nicely, and CCC, a small cap stock.

Happy Sailing, and remember, Don't Ask Why.