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Market Recap & Trading Plan: Another Strong Day..If you're in the right sectors.

|Includes: AMFW, BAC, BTU, BUCY, CAT, CLF, CREE, CSIQ, CY, FITB, HIG, MA, MOS, PCP, RVBD, STEC, Inc. (STEC), STX, WDC
Market Recap & Trading Plan: Another Strong Day..If you're in the right sectors.
 
Notable intraday reversal much like Monday but in opposite direction. Tuesday was simply a continuation of Monday's reversal.  We now have a firmer defined support for SPX and NDX and can loosen stops, play looser defense and trade accordingly. The uptrend continues and it will be earnings and reaction to them that will dictate how hard we move. I expect INTC and JPM to do well and the market to move up. SPX has 1200 in its headlights.

Tech especially was hot today. Our picks : STEC, STX, SNDK, RVBD, CREE, CY killed it. We added CY early on the dip and restarted STEC early. Both were up from our buy points over 5% on the day. Took guts, but that's why we watch the charts and stalk. It werks. WE added to each of the others early. Don't need more than 6 tech stocks.

Our plan, ride the bulls. Sell the rips, buy the dips. Sounds trite? Nope, we always take profits on way up so we have dinero to buy with. That is trading from strength. And that way, we sell when prices are up and we Don't Take Losses.

Did we take some losses (of profits) late Monday and Tuesday, Yep...the price of admission.  We took stops and raised  82% cash, rebought with 2/3 of that @ close Tuesday when we saw the buyers come in. We added the rest during this am dip and it was off to the races. Now we look to take profits, like we did in STEC up 8% from our entry on the day. Took back 1/4 position on STEC @ close down 3% from the high...will look to buy the dip.

Metals, industrials: CAT, CSIQ, BUCY, CLF, TIE rebounded nicely. We closed ANR..needs rest. If it pops, we missed it but we've got plenty of coal and mining. We added BTU for ANR. It popped.

We kept half of MOS, added to FWLT.

Financials ripped: We jumped back into FITB, HIG, BAC and nibbled on MA.

We even bought some F back on buying interest near close.

We started NBR, CVX and added to NE. All @ support, all 1/3 positions. Got a feeling energy will make a move...want some on the sheets.

Not looking to buy anything now, except to add on dips, sell pops and trim stocks that are resting or laggards. Ruthless in an up market...trim losers, add to winners on dips. That is how we trade. Trading around the core positions.

Want to get back to 20% cash by late Thursday or Frday am, depending. Now @ 8%.


Disclosure: Long all mentioned