What to Make of it

Those watching IBD know they changed their tune today. And I was saying that would be the time to get the stops out. Let your profits run but what happens - the run up turns into a bubble, it gathers momentum, climaxes and then stocks reverse. The day that happens, you don't feel like selling the next day because stocks usually start the next day down. So, my new rule is to protect profit rather than capital. This makes sure you get out while you're ahead. Protecting capital makes sure you don't suffer a loss. That's not good enough for us.

So, get ready to move off the sidelines, but be ready to sell when the tide turns as it inevitably will.

When to Sell

or put in stop loss orders. How about when IBD changes its tune to "Mkt in Confirmed Rally"? That would make sense to me.

Double or Nothing

Saw how Wachovia went from about 9 to 18 in about a week? You could never get that with a healthy company with solid results growth - just not possible. The lesson - for the well-trained and disciplined trader, there are super profits available for the taking.

Those Who Cannot Remember History

What's going on in the market right now has been seen countless times before. What gets to me is Yahoo's collusion is screwing the little people - stacking up all the negative news and then, once the sense the rally, filling their page with feel-good stories.