Market Discussion

[setravis]

Showing just how sensitive stock prices are to any unexpected news, yesterday the market indices oriented their shaking in one direction: up. The near-term rally, which had been trying to happen for two weeks, finally got underway. The DJIA broke through 13,000 and 13,200. Today it will try to stay above 13,200 and thus show the near-term rally has legs.

Virtually every indicator measured supports the premise that the near-term rally base was formed around 13,000 and the DJIA's next ceiling to penetrate will be around 13,600. Getting there, though is still likely to be choppy. The intermediate-term trend indicators rose also, but not enough to signal and confirm an intermediate term uptrend.

Nevertheless, the uptrends to downtrends enjoyed the first solid positive day this month.

A new intermediate-term uptrend will be confirmed when these indicators rise above their oversold zones, and the DJIA rises above 13,250 and stays there.
In the meantime, the intermediate-term trend is having little or no impact on the near-term rally. All four near-term indicators now have moved firmly above their oversold zone lines and appear on course to continue driving the market indices upward.
The confirmation of the near-term uptrend's finally gaining momentum yesterday was made when the market indices crossed up above the index ceilings established over the last week

Thanks to a hint that interest rates might again be cut by the central bank, the ignition of near-term rally, although characterized here previously as overdue, was spectacular and visible in all directions worldwide. The trade-term trends reacted with unrestrained enthusiasm. From an economics point of view, the message was the Fed would fill the credit crunch hole, still of undisclosed depth, by cutting all interest rates to compensate for the mortgage losses, which still loom large. But that fear was forgotten for the moment as euphoria took over and stock prices soared. In the process the market indices became overbought intraday and will need to correct somewhat this morning, probably mainly sideways to slightly down since the near-term rally is in full bloom.


Ultimately, the only story that counts is your own. Whether you buy the story of a soaring or a souring stock, your own research is more important than collective opinions. But these collective opinions make an individual's due diligence much easier.   

[Rmagos]

Hi everybody
The text I`ll post down is just a "food for tought" and the scientific explanation why David has "strong hands" ... he has an exceptional prefrontal dominant cortex (I don´t know him, but I do bet on that) where between the pros and cons the buying/selling decisions are made... it is also my humble piece of contribution to make this community the best investors place in the net
Have a good weekend

Why Logic Often Takes A Backseat
The study of neuroeconomics may topple the notion of rational decision-making

The National Hockey League and its players wrangle over a salary cap. The impasse causes the season to be canceled. Everybody loses. What went wrong?

According to the new science of neuroeconomics, the explanation might lie inside the brains of the negotiators. Not in the prefrontal cortex, where people rationally weigh pros and cons, but deep inside, where powerful emotions arise. Brain scans show that when people feel they're being treated unfairly, a small area called the anterior insula lights up, engendering the same disgust that people get from, say, smelling a skunk. That overwhelms the deliberations of the prefrontal cortex. With primitive brain functions so powerful, it's no wonder that economic transactions often go awry. "In some ways, modern economic life for humans is like a monkey driving a car," says Colin F. Camerer, an economist at California Institute of Technology.

Until recently, economists contented themselves with observing people from the outside. Now, Camerer and others, teaming up with psychologists and neuroscientists, are using a technique called functional magnetic resonance imaging to look inside the skull. It's like watching Congress debate instead of inferring what's going on by reading the laws that get passed.

Neuroeconomics, while still regarded skeptically by mainstream economists, could be the next big thing in the field. It promises to put economics on a firmer footing by describing people as they really are, not as some oversimplified mathematical model would have them be. Eventually it could help economists design incentives that gently guide people toward making decisions that are in their long-term best interests in everything from labor negotiations to diets to 401(k) plans. Says Harvard University economist David I. Laibson, another leading researcher: "To understand the real foundations of our behavior and our choices, we need to get inside the black box."

A GRAB BAG OF ANOMALIES?
Neuroeconomics could also give economics an alternative theoretical framework. Since the early 1900s, economists have mainly assumed that people have a stable and consistent set of preferences that they try to satisfy. When faced with an apparently illogical outcome -- such as the cancellation of the hockey season -- they try to explain it as the result of a reasoned decision process. Such top economists as Gary S. Becker, Milton Friedman, and Robert E. Lucas Jr., all Nobel prize winners, have argued that discrimination, unemployment, and stock market gyrations can have rational origins.

In recent years, the assumption of rationality has taken some hard shots as economists have shown that people often lack self-control, are shortsighted, and overreact to the fear of losses. But to date, these attacks on rationality -- under the broad heading of "behavioral economics" -- have seemed more like a grab bag of anomalies than a consistent alternative theory. So the assumption of rationality survives.

By linking economic behavior to brain activity, however, neuroeconomics may finally supply the model that knocks mainstream economics off its throne. The new theory should fit better with reality, but it won't be as mathematically clean -- because the brain is a confusing place, with different parts handling different jobs. Says Camerer: "You are forced to think about a brain which has many somewhat modular circuits."

One of the most fruitful avenues of neuro research is "time inconsistency." When people decide about the distant future, they're roughly as rational as economic textbooks assume. But when faced with a choice of whether to consume something now or delay gratification, they can be as impulsive as chimps. Harvard's Laibson coined "quasi-hyperbolic discounting" to describe the behavior, but that was just a label, not an explanation.

So Laibson and others scanned people inside MRI machines and discovered two parts of the brain operating in radically different ways. For decisions about the far-off future, the prefrontal cortex takes a long-term perspective. But for decisions such as whether to buy another chocolate bar right now, the limbic system takes over and demands immediate gratification. Last year the journal Science published the research by Laibson, Princeton University neuroscientists Samuel M. McClure and Jonathan D. Cohen, and Carnegie-Mellon University economist George Loewenstein.

How does it help to know that you're literally "of two minds"? You could arrange your affairs to make sure that your rational brain stays in control -- for example, by committing now to saving a certain percentage of your paycheck each month in the future. Many people already do that. Trouble is, long-term commitments can be too rigid if circumstances change. Ideally, you'd like to wait to commit to a savings plan until you see whether you can afford it -- but not wait so long that your animal brain takes over and you lose the will to save. The new research could help get that balance right.

A key tenet of standard economics is that making people happy is a simple matter of giving them more of what they like. But neuroscience shows that's not true. The brain's striatum quickly gets used to new stimuli and expects them to continue. People are on a treadmill in which only unexpected pleasures can make them happier. That explains why happiness of people in rich countries hasn't increased despite higher living standards.

Neuroeconomics also challenges the notion that emotions can only corrupt economic decision-making. Indeed, emotions grab people's attention and motivate them to focus their rational brains on the issue at hand, says Antonio R. Damasio, a University of Iowa College of Medicine neurologist who studies brain-damaged patients. In his writings, he says that people who feel no emotions are bad at making decisions.

The most controversial aspect of neuroeconomics is what to do with its findings. Cornell University economist Robert H. Frank favors taxation of conspicuous consumption, arguing that flashy spending simply raises expectations, making the rich no happier and squeezing the middle class. Laibson, in contrast, isn't willing to go much further than using neuroeconomics to, say, improve the default choices in 401(k)s.

Neuroeconomics has its skeptics. Richard Thaler of the University of Chicago, a leading behavioral economist, argues that it has yet to produce a major, surprising finding. He says he prefers to leave brain research to the neuroscientists. But he adds: "I am a big believer in letting all flowers bloom."

Even believers in neuroeconomics aren't sure just how far to take it. Should economic policy satisfy the farsighted prefrontal cortex? Or should it sometimes indulge the impulsive limbic system? By peering into the brain, economists are making discoveries that will keep them arguing for years to come.

Excerpt from an article posted in "Business Week" in March28 2005
Author (Unknown???)

[setravis]

The DJIA held above 13,200 Friday, confirming the near-term rally has momentum and is expected to keep on rolling. The market indices had a sideways move Thursday to correct the acute overbought market state on Wednesday, but the pause did not represent weakness in the near-term uptrend, and is expected to encounter minimal resistance until the DJIA gets to 13,600.
Virtually every measure supports the notion that the near-term uptrend is progressing and will continue to do so for the next week. adds up to a reasonable expectation for relatively clear sailing by the DJIA to the 13,600 level over the next week.

Thursday's sideways move by the trade-term trends, enabling the DJIA to confirm the rally by hovering above the 13,200 level, was consistent with a market correcting an intraday overbought state and with a market where the participants are ever-sensitive to impacting economic news and thus were waiting for word from on high.
It came, when the Fed Chairman Bernanke hinted another rate cut might be forthcoming.
That should be enough to cause the market indices to climb up further, because the next best thing to assuaging fear by quantifying the scope and expected terminus of the fear-producing stimulus is to have the perceived problem salved with a broad-based treatment.
It all comes down to how much do stock values have to absorb of the huge mortgage loan losses. Any interest rate cut will provide a much broader base over which to spread the grief, and thus down-valuing in the stock market segment of the economy can cease and allow the buyers to dominate trading.
Thus the pessimism that caused the 10% correction downward by the indices over the past month is now giving way to optimism that somebody other than stocks will bear a disproportionate share of the drag from bad loans.


Ultimately, the only story that counts is your own. Whether you buy the story of a soaring or a souring stock, your own research is more important than collective opinions. But these collective opinions make an individual's due diligence much easier.     

[la-onda]

fyi:
http://www.shadowtrader.net/videos/sunday120207st.html
very interesting, as always

[tokyopua]

fyi:
http://www.shadowtrader.net/videos/sunday120207st.html
very interesting, as always

Cool videos, are those always free to view, or is it trial subscription, etc.?

[la-onda]

you have to subscribe via Mail (it´s free)

[Garoh]

you have to subscribe via Mail (it´s free)

Very nice post La Onda

The market is in a good shape and will see new highs .

[pinoleropuro]

I do appreciate you posting them too, Laonda. they are very informative.
Thanks. applaud!

[setravis]

There is a DJIA floor at 13,200 and a ceiling at 13,600 within which range the DJIA is expected to move for the rest of this week. Yesterday brought a mini-uptrend pause, which is likely to extend into this morning. The near-term uptrend is then anticipated to start up again, and the DJIA is going to make its first attempt at penetrating its 13,600 ceiling later this week, before stalling out again.

Any subsequent uptrend pause should not be of great moment because the intermediate-term uptrend was reconfirmed yesterday.

The Trend Ratio moved up a notch to 34 and the gap between intermediate-term stock uptrend lengths to downtrend ones shifted to the favor of the uptrend ones for the first time in six weeks. All of these movements add up to an intermediate-term trend gathering upward momentum, which will buoy the shorter term market trends rotating more quickly but with less force.

Currently the near-term uptrend is in a mini-pause.
Overall, this near-term uptrend pause should provide long buyers with opportunities to participate handsomely in the next leg up by the market indices.

Lurking in the background, of course, is the continuing anxiety over how deep the credit crunch hole really may be. Such fears crop up every day or two and of late frequently stimulate a trade-term downtrend cycle. That anxiety is present this morning and it would not take much to fan a downtrend fire, but the trade-term indicators are already close to being oversold and it appears that after a few trading hours of sliding down not lower than the DJIA floor, the index should begin its climb toward 13,600. The news later this week regarding a Federal plan to save defaulting home borrowers from foreclosures may be the spark that is needed to turn fear to indifference to enthusiastic buying.

Ultimately, the only story that counts is your own. Whether you buy the story of a soaring or a souring stock, your own research is more important than collective opinions. But these collective opinions make an individual's due diligence much easier.   

[setravis]

The mini-uptrend pause by the market indices, expected to end yesterday, appears to have done so. The DJIA retreated close to its 13,200 floor of support, and is expected to begin a climb this morning, headed for its ceiling of resistance at 13,600.

The intermediate-term trend indicators continued to confirm this uptrend has commenced.

Thus, the DJIA sits just above its intermediate-term trend support level, which is enjoying a shallow up slope and is expected to provide a base from which the leg up by the market indices can launch.

The main driving force at the moment is the near-term trend, which is also uptrending and which also is the principal reason behind the mini-uptrend pause by the market indices in the last two days.
The near-term trend indicators are all positioned to move up.

Whether the DJIA can reach 13,600 in the next few days, in part, hinges on the robustness of the rebound up expected today. The trade-term trend indicators are near oversold levels, and thus are positioned for a rally. Last week the trade-term trends were the main cause of substantial swings in the market indices both intra- and inter- day; this week has not brought similar volatility. The announcement that a bailout plan is shortly to be announced for homeowners with impending mortgage defaults and foreclosures, seemingly has allayed some of the anxiety that the credit crunch could cause a recession. But the concern remains and any negative unexpected news could trigger a change in trade-term trend direction. It appears more likely that the sentiment will remain in a continuing state of uncertainty, leaving the market indices to drift along in a shallow uptrend. Perhaps today or tomorrow some conviction to that uptrend will be forthcoming.


Ultimately, the only story that counts is your own. Whether you buy the story of a soaring or a souring stock, your own research is more important than collective opinions. But these collective opinions make an individual's due diligence much easier.     

[setravis]

The market indices took off from their support bases and headed north yesterday, with a sharp move upward . The DJIA took off from its support at 13,200, moved up about 200 points, and should continue moving up, probably at a slower pace, over the next two days until it touches its 13,600 ceiling and stalls out.

Uptrends to downtends ended their one day flirtation with a negative bias, and became very positive again.
This polarization to the positive is indicative of momentum gathering for this uptrend rally and it caused the intermediate-term trend indicators to become more positive.
All this adds up to an intermediate-term uptrend, which is gaining strength, and soon is expected to be a major contributor to an upward trek by the market indices.

At the moment, the near-term uptrend is not doing too bad a job in the contributory department. In fact, it was the main driving force of yesterday's move by the market indices. All  near-term trend indicators moved in a positive direction. It is likely that these indicators will top out when the DJIA reaches the 13,600 ceiling. Thus they will be expected to retreat as the DJIA attempts, and falls back, maybe more than once, to penetrate its ceiling of resistance. The DJIA retreat when it does come, however, is not expected to be severe, as by that time the intermediate-term uptrend should have evolved to the point of being a strong buoying upward force for the market indices.

The foregoing paints a rosy outlook for the bulls and such is warranted by the movement of the indicators, but it does not mean the trade-term trends can be ignored. Investors do so at their own peril because the minute one takes his/her eye off the potential for unexpected news, the more likely it seems some surprise will ignite a quick reaction by the market indices. Consensus expectation remains focused on the potential for a recession being brought on by the still-undefined, black hole credit crisis, but the announcement today is expected to ameliorate these concerns to some degree, as it will portend relief for approximately 750,000 out of the two million troubled subprime home mortgages facing default/foreclosure. The trade-term trends became somewhat overbought by the end of trading yesterday and that is not sustainable all today without some correcting. It is likely that such correcting will be mainly a sideways intraday move by the market indices as the rally started yesterday continues this morning but tails off somewhat later in the day.


Markets rallied smartly yesterday on economic data suggesting a recession might be avoided in the US, bringing back such terms as "soft landing" to pundits' texts. Furthermore, markets cheered a mortgage aid plan reportedly in the works, as well as retail sales numbers that might top expectations. Data on inflationary pressures were positive, with third quarter nonfarm productivity up at a 6.3% annual rate, the strongest in four years, and unit labor costs down 2%. Expectations are for the rise in productivity and slowing in wage growth to ease the risk of inflation, thereby permitting the Fed to lower its perceived risk to inflation and adopt a more dovish stance favoring concern for growth. The ADP numbers, however, indicated greater strength in the economy than expected, also raising the odds of a nonfarm payrolls report surprise on Friday, as it printed 189K November hiring additions, compared to expectations of 70K adds. Analysts were skeptical of the numbers, however, due to contradicting evidence of job losses in manufacturing and construction arenas. This morning's weekly jobless claims printed in line with estimates, dropping15K to 338K, with the four-week average up 4,750 to 340,250. The Organization of Economic Cooperation and Development opined the US likely to avoid a recession next year, although growth will slow. This morning's retail numbers showed Wal-Mart November same-store-sales grew 1.9%, with company projections of 1-3% for December. Costco topped expectations with sales up 9% compared to estimates of 6.6%, and Nordstrom's sales jumped 8.7% compared to estimates of 3.7% same-store-sales growth. What may weigh most heavily on next week's Fed decision may be the internal dynamics of the banking industry, in which the 3-month LIBOR rate, up 19 consecutive days to 5.15% Tuesday from 4.88% one month ago, is now 65 bp higher than the Fed funds rate. Liquidity issues then may tip Bernanke's hand in favor of a more accommodative stance than might be suggested by recent economic data. The Bank of England dropped its key rate this morning 1/4 point to 5.5%, its first hike since August 2005, with European central bankers The SIV "superfund" reportedly may reach only half the $100 billion size. OPEC's decision to hold production levels steady generated an uptick in oil companies shares, such as Chevron up 2.5% and Exxon Mobil, up 2%, although oil prices actually edged 65 cents lower to $86.84 on inventory levels reported yesterday of a domestic fuel supply increase. Among share prices gaining Wednesday, big-cap technology shares rebounded with Microsoft up 4.2%, Oracle 5.9%, Google 2.1%, Apple 3.2% and International Business Machines 1.4% as investors bought into areas believed immune to writedowns from mortgage-related exposure, and also those with significant global earnings potential.   

[la-onda]

ShadowTraderPro Focus Report for December 7, 2007 (free trial ending today)

The Big Picture
Good morning, Traders. The bulls took control early and never let go, as broad market indices trended higher all session and closed at the highs of the day. Unlike Wednesday where the bulls wavered after lunch, there was a strong appetite for stocks all day long. Markets pulled back mildly while President Bush revealed a new plan to assist homeowners with the sub-prime crunch. The markets responded positively to the news, as stocks picked up momentum in the final 90 minutes of trading. Small cap stocks significantly outperformed the broad market with the Russell 2000 gaining 2.8%. Market internals were convincingly bullish on both exchanges. The advance/decline lines and breath readings climbed higher in step with the price action.

Half the core sector list closed with strong gains of more than 2%. The Broker/Dealer Index rallied 3.7% and looks poised to make a run at the 50ma. As we mentioned earlier this week, the Oil Service Sector ($OSX) finally broke the daily downtrend line and closed above the 50ma on powerful price action (RIG shot up 5% on massive volume after pulling back to the 20ma). Oil stocks in general did very well and we should see more than a few long setups develop over the next few weeks. Leading stocks finally followed through on bullish setups, logging strong gains. Some of the days bigger moves were from ISRG, CMG, LIFC, DO, FLS, RIG, JEC, and HES. We still see some solid long setups out there such as BIDU, ATW, and MICC, which are forming a bull flags.

The S&P 500 has staged an impressive rally off the lows with four sessions of at least 1.5% gains. Looking at the daily chart of the S&P 500 above we see that the index in just two sessions reclaimed the 200ma and the 50ma! Clearly traders do not want to be short ahead of the December 11 Fed meeting. We want to stress to our loyal and kind readers that although you see three short calls down there in the bulls and bears section we are not bearish. These stocks are listed because they are showing extreme relative weakness. Think of these shorts as potential NICE's. Today the Nasdaq rallied 1.6% while NICE cracked 4.8% to a new 52-week closing low!

Under The Hood
When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

Dow Jones Industrial Average    13,619.89    +174.93    +1.30%
S&P 500    1,507.34    +22.34    +1.50%
Nasdaq Composite    2,709.03    +42.67    +1.60%
Nasdaq 100    2,127.65    +28.34    +1.35%
Russell 2000    786.95    +21.32    2.78%
Spot Gold    $807.1/oz.    +3.40    +0.42%
Crude Oil    $90.23/bbl.    +2.74    +3.13%
NYSE Overall Volume    1,290,340K    n/a    -10%
Nasdaq Overall Volume    2,272,640K    n/a    -16%
NYSE Breadth    5.5 : 1    positive    
Nasdaq Breadth    4.1 : 1    positive    
NYSE Breadth Ratio    85.15       
Nasdaq Breadth Ratio    80.43       
NYSE Advancers/Decliners    +1,858       
Nasdaq Advancers/Decliners    +1,333       
NYSE Trin    .66       
NASDAQ Trin    .63       
$VIX    20.96    -1.57    
Strongest Groups: Homebuilders, Broker/Dealer & Steel
Weakest Groups: Utilities, Retail & Drugs

Heads Up
Up and coming economic and corporate data that may move markets this week:

Today
    08:30am EST - Nonfarm Payrolls
    08:30am EST - Unemployment Rate
    08:30am EST - Hourly Earnings
    08:30am EST - Average Workweek
    10:00am EST - Consumer Sentiment
    Bulls and Bears

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via e-mail alert.

Long Ideas
    Symbol    Trigger Price    Stop Price    Notes
    BIDU    401.00       bull flag breakout, stop beneath low of breakout bar
    CLB    122.51    116.19    break of daily downtrend line from tight ranged hourly chart
    ONXX    56.51    53.39    breakout from tight ranged consolidation
    STP    77.51    73.29    break of hourly downtrend line on tight pullback at the highs.

Short Ideas
    Symbol    Trigger Price    Stop Price    Notes
    CRDN    47.24    48.33    double inverted hammers in strong market
    MEG    21.66    22.86    ugly weakness in face of strong market
    EEP    50.99    51.76    inverted hammer in strong market

[tokyopua]

Actually I think today could be the rally confirmation day already in the IBD definition, no need to worry about tomorrow. 

I wrote below that the follow through day was supposed to be after 4 days, but the more I think about it that doesnt make sense, its probably WITHIN 4 days.  I will post whatever IBD has to say in their Big Picture article later today, but this looks really good for the market (well, except there are some gaps up today that might get filled, but still good).  I bet that IBD will say tonight that we are in a confirmed rally.

Well, my optimism was a bit premature, IBD still considers this a correction, though it did call it Day 2 of a rally attempt.  Of course, in the same vein, they didnt call it a correction till we were already something like 6% off the highs so they try to be pretty sure before they call a spade a spade it seems. 

Some interesting points in the article.

-------------------------
THE
BIG PICTURE        Stocks Rally, Stage Rare Up Day In Higher Volume

More Credit Woes Send Major Indexes To New Lows

Retailers, Banks Lead Black Friday-Shortened Gains

Stocks Tumble Again Ahead Of Holiday


Stocks Surge Again On Top Fed Official's Comments
BY JONAH KERI

INVESTOR'S BUSINESS DAILY

Posted 11/28/2007

Stocks surged in higher volume Wednesday, rallying for the second straight session.

Fed comments hinting of more interest-rate cuts sparked the market, which got an added lift from another tumble in oil prices and a rally by financials.

The Nasdaq jumped 3.2%, doubling the size of Tuesday's advance. The Dow industrials bounced 2.6%, the NYSE composite 2.8%. The S&P vaulted 2.9%.


Volume perked up across the board.

Wednesday offered several encouraging signs for investors. But each one must be taken with a grain of salt, given the lessons taught to us by market history.

The Federal Reserve's No. 2 official, Donald Kohn, issued comments that hinted at a rate cut at the Fed's Dec. 11 meeting. The key fed funds rate currently stands at 4.5%, after rate cuts in September and October.

The last two times the Fed cut rates, the stock market cheered. The Nasdaq jumped 2.7% on Sept. 18 and 1.5% on Oct. 31. But the market couldn't sustain its gains after the second cut, as Oct. 31 proved to be the day the Nasdaq peaked.

Investors also reacted to a second consecutive big drop in oil prices on Wednesday. A smaller-than-expected drop in crude oil and distillate supplies helped shove January crude down $3.80 to $90.62 a barrel.

But oil prices' direction doesn't always provide a reliable indicator of the market's trend either. Stocks rallied for much of the year amid a steady uptick in oil prices.

Wednesday's price gain was one of the biggest of the year for the Nasdaq, an encouraging sign. But one big day doesn't mean much in the grander scheme. The Nasdaq's nine biggest up days of all time all occurred during the bear market of 2000 to 2003.

More recently, the Nasdaq's biggest up day of this year came on Nov. 13 — right before the market started a new leg down.

For now, consider Wednesday to be Day 2 of a rally attempt by the major indexes. We'll need to see more signs of strength among both the broad indexes and leading stocks before the market can take on a more bullish hue.

Top-rated stocks offered some encouragement. The IBD 100 soared 4.5%, marking one of its biggest up days of 2007.

The list of highly rated stocks gaining ground in brisk volume included big-cap leaders such as Amazon.com, (AMZN) Google, (GOOG) MasterCard (MA) and BlackRock, (BLK) as well as a bevy of mid-cap winners.

Elsewhere, Wells Fargo (WFC) said late Tuesday it would take a $1.4 billion write-down in Q4 for defaults. That was seen as a sign that subprime damage may be easing.

The Fed's beige book was gloomy but the market has seen positive signs elsewhere. For example, U.S. commanders are seeing significant progress in Iraq.

OK, so yesterday, 8 calendar days later they finally called it a confirmed rally.  Like I was saying, I think they are a few days late to the game, but want to be sure.  All I know is it is always reassuring to me when IBD says we are in a confirmed rally.

WHHEWWWW!!

And congrats to David for having the conviction and big cojones to hang on through this one and still learn some new lessons along the way. 

[la-onda]

 

[la-onda]

nice:
http://www.shadowtrader.net/videos/sunday120907st.html