At the closing bell, the SP 600 rose .7%, the SP 500 rallied .6%, the Nasdaq gained .3%, and the DJIA closed higher by .25%.

Volume was lower on both the NYSE and the Nasdaq, as traders, like always, were in no mood to place large bets ahead of the FOMC decision.

Breadth was positive on the NYSE by a 12-to-5 margin and was positive on the Nasdaq by a 3-to-2 margin.

It was really a day of random, wild price action that really had no meaning. Taking too much from a day like today is only a mistake. There is really nothing to conclude about today except that the traders that had to trade traded and the big money stayed on the sideline as they awaited the decision from the Fed.

Today’s biggest winners were obviously stocks related to oil. That 5.5% jump was just stunning and unexpected. That allowed a lot of the thrashed oil stocks to rally today. However, the majority of these charts clearly show stocks that have topped and are rolling over. I can not predict the future but the chances that oil comes back here seems low to me but what do I know. These commodity bull cycles can last a long time. I just wouldn’t start buying oil stocks, based on this move. Especially with all the oil groups being in the bottom 20% of all 197 industry groups. One thing is for sure, these stocks are not leaders. There are better charts out there, despite the recent gains in oil.

The good economic news of the day was without a doubt the Conference Board consumer confidence index rising to 110.3. That was the indexes highest level since May 2002. That should be taken as great news right? Wrong. Not according to the biased as HELL liberal media. I am looking at the NYTimes and USA Today headline on it. Here is what both say: “A rise in consumer confidence MAY NOT LAST.” “Consumer confidence edges up in January, BUT FUTURE IS CLOUDY.” What the F***??? How come everything is spun so damn negatively. It is finally starting to really bother me the constant BS that comes out of the woodwork at these WORTHLESS news mediums. HORRIBLE. Just HORRIBLE!

There is one more day of the Fed meeting before they decide the future of interest rates. The decision will come down at the same time it always does and nothing is expected to change. The wording will be what everyone will be paying attention to, to see how the most recent round of data was interpreted by the Fed.

However, we really don’t need to give a crap about this meeting as we have stocks breaking out and following through with significant price gains. As long as that keeps happening and this market keeps trending up, I doubt the Fed is going to do anything in the short-term to impact that. Maybe if something drastic and unexpected happens tomorrow, the market could get a bit crazy. But somehow I think the trend will just remain. As long as stocks keep moving up, there is no reason to predict there demise. Follow the trend as the trend is your friend.

All day long, today, I saw the put/call ratio at .9 or higher. That sure seems to me that there are a lot of players still looking to call a top. The difference with the put/call and sentiment indicators is that the put/call is the actual decision the traders make. Sentiment is sentiment. The put/call ratio is where traders are placing there bets. And they are still bearish. And as history shows with this indicator. The crowd is always wrong. So it doesn’t seem smart to be playing the puts and shorts, with all of these beautiful stocks making these beautiful gains. I post the big winners on my free blog (mauitrader.blogspot) if you want to see the actual gains in stocks up 45% or more.

We shall see what fireworks are let off by the Fed, after the meeting. Aloha and I will see you in the Chat Room.

At the close, the SP 600 led with a .75% gain, the Nasdaq followed with a strong .7% gain, the SP 500 gained .5%, and the DJIA finished up .3%. The IBD 100 came in with a .3% gain, unfortunately for leading stocks. However, for the week the IBD outpaced the market with a 3.4% gain.

Volume was lower on both the NYSE and the Nasdaq. But volume was above average on the Nasdaq and about even with the 50 day volume average on the NYSE, signalling that there was still plenty of appetite for stocks up here. The lower volume is also to be expected ahead of a three-day weekend.

Breadth was positive on both the NYSE and the Nasdaq. Advancers beat decliners by a 2-to-1 margin on the NYSE and by a 3-to-2 margin on the Nasdaq.

It was an extremely impressive week for the market and one of the best weeks for the Nasdaq in four months. For the week, the Nasdaq 100 led the way as it rallied 3.3%, the Nasdaq Composite rallied 2.8%, the SP 500 gained 1.5%, and the DJIA put in a respectable 1.3% gain. The IBD 100 outperformed all of the indexes, for the week, as was already mentioned, with a 3.4% showing. However, the top index that I see of interest on my screens is the IBD Big Cap 20 index. That index managed a 5.3% gain for the week. Once again, it was a very impressive week. There is NO REASON to be bearish AT ALL.

The other important piece of market moving news this week was falling oil. The 13% fall in oil since the beginning of 2007 had to have some impact on why the market has seen such a severe shift in leadership from oil and commodity related issues to transportation, technology, biotech, and finance related securities. Oil now sits around $53, well off its $75 highs last year.

Some say that this is bad that it is a sign of a slowing economy. I think the actual stock market disagrees with that assesment.

Earnings announcements start next week and that has market pundits talking about a possible sell the earnings scenario. I am not disagreeing in saying that that will not happen. But I disagree with the fortune telling of some market players. We simply don’t know that eanrings will be sold into and with the stock market indexes hitting all-time and six-year highs it seems foolish to me to try to play that guessing game.

When I have this many stocks making these kind of rapid gains, plus this many new longs showing up (even if they are speculative), and very few stocks that must be sold due to proper cutting losses and taking gains procedures, it tells me that this market is not to be shorted.

Very few stocks that have been in long and sustained uptrends are showing me climax sell signals. PTT flashed one and ICE and CCOI flashed mini-short-term topping signals making large price advances on strong volume after a sustained uptrend. PTT is a perfect example of what a climax signal looks like. So with only a few stocks out of almost 300 flashing climax profit taking signals I can only assume there are more price gains to come.

If more stocks would have broken down besides the P.O.S. stocks that I had to selloff before 2007′s rally got underway, more stocks were flashing climax top signals, and I was finding very few new longs, I would say this rally is a fakeout breakout. However, everything says that this rally is the real deal.

Are there problems with this rally? You bet. New highs are much much lower than what they were at the November highs and breadth was slowly been deteriorating the past three months as we move higher. This is a concern but remember I was around in 1999. The whole time from October 1998 to March 2000, breadth lagged, trended down, and even was negative on up days by the time the great bull came to an end.

The point: the market can rally for months and months with poor breadth and less new highs. Why? Because the big caps are carrying the bulk of the gains. Look at the IBD Big Cap 20 gaining 5.3% this week and you will see big caps are leading this rally. Just like they did at the end of 1999. These big caps are creating more of the point gains in the indexes with the smaller stocks selling off but causing less damage.

Until the market actually breaksdown, these are all just concerns. Nothing more and nothing less. The worst thing to do right here is to try to predict or find the non-existant top that could be months from playing out.

As long as we have this many stocks making these gains in this bullish environment, you should know there is only one play to be making. That is to go long the best stocks in the best industries with the best fundamental growth. In one word: Featured.

Enjoy your long weekend and I will see you in the chatroom–where I will be all weekend. Aloha and have a great long weekend.