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There sure are a lot of hard-core opinions out there about the stock market among both bulls and bears. These emotions are of no interest to me, and I want to reiterate once again that I prefer to go with the trend at all times. With that said, let's get to some bullish and bearish charts
My friends, that is the truest form of pathetic investing ever. Anyone who invests like that, trying to catch the exact top and bottom, will never have any part of the greatest monster stocks of all time. Those who held Cisco (CSCO - commentary - Cramer's Take) for the bulk of the 80,000% gain were not interested in picking tops or bottoms. Since showing the charts of Buckle (BKE - commentary - Cramer's Take) and Bruker (BRKR - commentary - Cramer's Take) on March 19, I have written six columns that have profiled many leading stocks. A lot of those have performed very well or are building a better base for their chance to become leading stocks in this rally. Here are a few more non-biased charts that could also make me a lot of money. Longs:
Shorts:
If MMR can pull back to the 50-day moving average on low volume and bounce off the average on strong volume, I would love to get long this oil and gas exploration and production stock.
If GU can move sideways or drift lower on light volume for about two to five weeks and then make a heavier volume move, I would love to get long this energy stock.
If TECUA can pullback to the 50 DMA on low volume and then bounce off the average on heavy volume, I would love to get long this leading air-conditioning and heating products stock.
When I make "bottom calls," I prefer to know that something has bottomed. This stock appears to have bottomed, and if it can get up near the October 2007 highs and then create a lower-volume base lasting at least a few weeks, I would like to get long this REIT.
If IIVI can pull back on lower volume to the 50 DMA and then bounce off the average on higher volume, I would love to get long this leading electronics-component/connector stock.
If FDG can pullback on lower volume to the 50 DMA and bounce off of it on higher volume, I would like to get long this speculative coal stock.
If PMFG can either move sideways and base out for five weeks, or if it can pullback to the 50 DMA on low volume, I would love to get long this exciting pollution-control-equipment stock. EPS grew over 600% the past two quarters, while sales grew over 100% each quarter. This is the kind of growth I love to see in my stocks. Remember, if these plays do not work out immediately, I will cut my loss with a close below the 50 DMA. Now, looking for some possible short exposure, in case the rally does run into resistance and begins selling off on heavier volume, there are two recent leaders that now show the same classic topping symptoms that stocks since 1880 have shown.
CEG is failing right at the "death crossing," 50 and 200 DMA, on strong volume. This appears to be a long-term head-and-shoulders forming and if CEG can rally to the 50 DMA on low volume and then fail on even heavier volume, I would like to get short this past big winner.
CHTT has broken down on very heavy distribution through the 50 and 200 DMA, rolling over from a recent all-time high. If CHTT can rally on low volume to the 200 DMA and then break down on heavy volume, I would like to get short this head-and-shoulders topping stock. Remember, if this is a bottom, you have plenty of time to get long the "monster stocks" of our next bull market, as the best stocks continue to break out up to 13 weeks after a true follow-through day. What we saw on Tuesday had absolutely no institutional buying, as volume was below the 50-day volume average on both exchanges. Until proven otherwise, this is still a bear market rally where profits should be taken a bit more quickly than if this were a powerful rally with a lot of volume behind it. Until the institutional buying returns, I am going to continue to hold at least 50% cash. Time is on my side. Aloha from Maui!
At time of publication, Hayes had no positions in any of the stocks mentioned in this column.Joshua "MauiTrader" Hayes is CEO, president and founder of Big Wave Trading LLC, a Maui, Hawaii-based stock market advisory service. Hayes also runs BigWaveTrading.com, an online stock market commentary and stock selection service for short- and intermediate-term investment strategies using CANSLIM and other strategies. Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. Hayes appreciates your feedback; click here to send him an email.  Brokerage Partners
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