No New Long Positions And One Stock I Am Adding To My Existing Speculative Featured Long Position For Wednesday’s Stock Market Session

Today’s stock market session was officially the slowest session for longs in my scan within an overall “upward trending” day as there was only one new potential long candidate at the closing bell (I DO NOT WATCH INTRADAY QUOTES; instead I scan my charts on telechart with 20 minute delayed data). Well at the EOD I though OTEX would be a new long as BOP, volume, and price were all moving higher today. That and GNET were the only two but still that seemed like a good amount on a slow day. However, the final 10 minutes were not kind to OTEX and BOP even moved lower at the close. That weak close eliminated OTEX as a long. But GNET’s weak close does not as its BOP remained max green, volume was MUCH higher than normal after an extremely quiet base, and price still closed at a new all-time high. Too bad GNET is not more liquid and is not a higher priced stock. Also to be a perfect stock, it would have to have broken out of a base at least five weeks long. Three is too little. Therefore, I can not say to treat this one like a Monster Stock as it is not full Monster Stock quality. Be careful out there, remember to hold at least 25% to 40% cash since the market is moving on low volume. Obviously, moving higher is the way the market wants to go and being long is what we want to be. But I still can not say to be fully invested here as I should have more perfect!! charts and a LOT MORE VOLUME in the indexes as they make strong gains and bullish reversals. The trend is higher and being long is the right play but getting fully long is something I can not tell newbies to be as the market is possible of doing anything. The first sign of HUGE ACCUMULATION in the indexes, if the trend remains up, will probably unleash at least 10 new breakouts and THEN I CAN tell you to get fully long. Until that day happens, I still must say 25% to 40% cash i necessary. Just in case we give it all up and then some. Surf is HUGE in my backyard as the south shore is at heights not seen in a VERY LONG TIME and therefore if analysis is short tomorrow I want to apologize but hopefully you will not mind. Anyways, those of you who really know me know that I end up doing ALL of the analysis anyways. So the chances of me not writing is very small but it is still there if the waves are perfect! If they are a mess, hopefully we will get a lot more GNET-type charts in much higher quality stocks. ALOHA!

new long positions: none

none

adding to existing speculative Featured long position: GNET

GNET is breaking out of a three-week tight base on long base pattern, on very strong volume. This chart has been wonderful since March 2007 when it took off on huge accumulation, low volume pullbacks, max green BOP, while it rode the 50 DMA higher. That then led to a VERY LONG flat to cup shaped base that lasted from May 2007 to March 2008. In March 2008 GNET took off on very strong volume and green BOP that turned into max green BOP in April. That is when it finished off this flat shaped base in April with max green BOP and low volume. Today it has blasted off on very strong volume with max green BOP staying max green. Most of you know that this is a very bullish development as most stocks have been losing their max green BOP on their moves (AEHR is the most recent one I saw in my charts for today). But GNET did not and the RS and moneystream lines are also hitting new all-time highs making this a very nice low-priced stock. Still since it is low priced, does have low average daily volume, has small overall revenue, and is a risky stock, newbies and professionals alike must make this a limit order only. 9.40 to 9.90. I don’t care where you put it but I will putting mine anywhere in there. I am not going to tell you exactly as it doesn’t matter anyways. GNET’s EPS and sales are really starting to grow but mutual fund ownership is actually falling so this stock does not pass my fundamentally safety test. Cut your final loss with a close below the 9.06 level, if the stock does not move higher immediately.