Well, today, it looks to be officially dead. There were a few stocks I have been watching recently that have held up will during the pullbacks so far. Now, they look like they are ready to give it up. This rally attempt has not failed yet but the way some of my stocks look it appears that they are on their last legs if they are to succeed. Another tell, is that in a lot of stocks I had some big gains, and almost ALL of those gains have been wiped out without the market having an extremely horrible session.

The way these gains are disappering without any warnings or announcements are very disturbing and an indication to me that it is time to stop hunting for stocks to buy. Unless they show up and scream “buy me you fool, I am no longer going to press it to the long side.”

There were about 4-5 longs that recently setup and broke out that should have produced some remarkable gains. Instead, now, they have all turned tail on lower volume (if it was higher volume, it would be at least a warning).

Sadly, I have to be completely honest, my 35% gain the past three months has been turned into an 8-10% gain (haven’t checked and there was absolutely no warning that these stocks were going to give it up so fast. That is my tell that this market is not the kind of market I want to be in.

Last 5 posts by Joshua Hayes

• Following Through on Friday's Gains Stocks Stage Another Rally on Strong Volume - June 2nd, 2009
• Small Cap and IBD Indexes Lag the Major Indexes with Volume Higher Across the Board - May 29th, 2009
• Are Items That Fill Up Your House too Expensive? Then Rent Them at Aarons Inc. - May 27th, 2009
• Finally We Have The IBD Indexes Leading The Way As Stocks Rally On Heavier Trade - May 27th, 2009
• Ending in Mixed Fashion Stocks Fail to Close Out With Gains Seen Earlier in the Session; IBD Indexes Take the Lead - May 20th, 2009