The stock market acted well today and more bullish than I expected. Many of the stocks we discussed this last week or so had higher highs off the bottom, especially in the energy sector. Although the Dow Jones 30, S&P-500 and the NASDAQ Composite did not have a higher highs than last Tuesday morning many of the energy stocks exceeded those price levels. This is an important technical sign that we need to see to go higher before any correction occurs.

As I said yesterday, stocks could start moving up sharply during the day and today this was in full force. Assuming we don't have another bombshell news event (which we seem to be used to).

The strongest sector has been the oil and gas stocks the last few days and today was a follow through in this sector-NBL, APA, EOG, COG, XTO, GDP, GMXR, APC, CRK, DVN and many other energy stocks (like OXY, APC).

The tech stocks that I have been following, AAPL, IBM, RIMM, GOOG, and BIDU acted weaker than other sectors because of the RIMM downgrade. AAPL seemed to be held down by that analyst downgrade of RIMM.

The ag-chemical stocks (MON, MOS, AGU, POT) moved up nicely today and although they aren't as strong as the energy stocks, I'm looking for this group to eventually move higher than last Tuesday's high.

PEP, Pepsi-Cola acted really nice today and is set to move over $60 within the next few weeks.

The stock charts are starting to act much better and our goal is to monitor them to see if they move higher than last week's high as we saw today in NBL, Noble Energy and CRK, Comstock Resources. No doubt we will have some selling for a day and a half as we move higher this week but it won't necessarily time to sell just because you see a little selling. As long as the charts confirm we should still be in them on an intermediate term basis, these stocks can move much higher over the coming months. If you are using intraday charts and not holding stock positions over night, then you can take advantage of the selling on intraday short positions.

But it is much easier, practical, higher profit and lower cost for most people to be in intermediate term stock positions for weeks as opposed to hours. Don't get me wrong, intraday trading has been very profitable these past few weeks but that volatility will decrease, as we saw today, and intraday trading won't be quite as easy to make large profits as swing trades for days or intermediate trades for weeks or months will be.

As I have explained repeatedly this past 7-10 days is that the bottom in stock markets occur when it is the hardest to handle emotionally. You don't listen to your emotions in deciding what is the right thing to do with your portfolio, whether stocks are really dropping hard like we saw this last 2 weeks or were at all time highs in March of 2000. Human nature is so predictable in that people want to do what is the worst thing for them to do at the worst time.

I saw Warren Buffet make a statement last week that goes something like "be fearful when people are greedy and be greedy when people are fearful." Let me ask you this, how are you going to get those low prices of last week? You are probably not and probably never for many of these stocks.

Have a great day and I'll talk to you tomorrow.

Mitch King

www.TradeStocksAmerica.com

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