Wait for the Trend to Confirm Your Call

For me to get bullish, within the next 10 days, I am going to need to see a day where all of the major market indices gain 2% or more on volume that is not only above average, but much higher than the day before. Once I get this, I then must see more charts that look like Bruker Corp. (BRKR - commentary - Cramer's Take) and Buckle Corp. (BKE - commentary - Cramer's Take)

Bruker Corp.

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Source: TeleChart Gold

Bruker is breaking out of a cup-with-high-handle pattern on strong volume. Cut your loss with a close below the red support line. The circles are areas of heavy accumulation.

Buckle Corp.

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Source: TeleChart Gold

BKE is breaking out of a three-week tight base on very strong volume. Cut your loss with a close below the recent support. The circles show areas of heavy accumulation.

If more stocks can show up looking like this and I can get my follow-through day, I will be more than happy to join the perma-bulls in their camp of bottom fishing.

Until that follow-through day comes, just like the last six times they have called the bottom and been wrong, the bottom-callers are still just taking wild guesses, no matter how smart they try to sound.

If they are buying the bottom and still buying the wrong stocks, it will not matter if we are a few months late. While they continue to focus on that laggard, there will be many stocks that look like BRKR and BKE that will perform, just like Taser (TASR - commentary - Cramer's Take) and TravelZoo (TZOO - commentary - Cramer's Take) did in 2003 and 2004.

Do you think the people that only went long TZOO in 2004 were upset that they missed the bottom tick over a year earlier? Of course not! More money is lost trying to catch that bottom tick than will ever be made by the one moment you get it right. While some out there play this losing game, I will wait for my proof of a bottom via a follow-through day by the stock market indices.

Aloha from Ka'anapali beach where the whales are waving goodbye as they head north back to Alaska. When and where will our bullish whales return to wall-street? We'll take a look at where they might be heading by looking at another recent leading industry group on Friday.

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At time of publication, Hayes was long Bruker Corp. and Buckle Corp., although positions can change at any time.

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.