The market was dealt two blows with one coming in the morning and early afternoon.  The first was when pending home sales figures were released at 10am showing a significant drop of 16%.  Economists were expecting a nominal drop of 2%, naturally traders sold the news.  Not too mention factor orders rose more than expected, but were ignored.  Then in the early afternoon Meredith Whitney downgraded her earning estimates for Goldman Sachs causing a bit of a panic.  Stocks sold off into their lows after Whitney’s earnings estimate release.  However, support rushed in pushing stocks higher by the close of the day.  Once again, this market shows its true colors with tremendous support.

It wasn’t a surprise to see volume creep back into the market today.  Volume support goes a long way for support in the current uptrend.  Many are looking for a follow-through type day here to get long, but they are missing the stocks.  You need to see the forest for the trees.  The market is very important, do not misunderstand.  We need the market to be in an uptrend, but we have had one for a while now.  There are too many stocks forming bases and setting up to ignore them.  Waiting for a follow-through type day might handicap your portfolio by missing out on gains now.

Leading stocks once again have taken center stage the past few days and it is important they remain leading.  The more stocks who are breaking out of sound patterns and with a strong fundamental story is a recipe for monster stock gains.  We continue to find more stocks in our scans and find our accounts continue to grow quicker than the market.

In today’s chatroom we had a lively discussion regarding a few stock market pundits on SeekingAlpha .  Many of these pundits are simply novices who appear not to have studied stock market history and what makes stocks move higher.  It is amazing the amount of noise spewing from SeekingAlpha.  No wonder why novices have a hard time becoming successful in the stock market.  Most amazing of all is you do not need to be a Ph.D student to be successful in the market.  Often times, being “smart” will only make it more difficult to beat the market itself.  Studying the greatest winners of all time and applying the signals these stocks gave before their runs to current stocks increases your odds of success.  The bottom line is to ignore all the noise.

We’ll continue ride the winners in this uptrend and cut our losses while leaving the opinion making fools off in their own little corner.

“Those who have knowledge do not predict and those without knowledge predict.”