Stocks defied negative news from North Korea as the rogue country tested its nuclear and missle strike capabilities. Consumer confidence jumped big fueling institutional buying pushing stocks even higher and the buying continued right up into the close. Volume was up across the board compared to Friday’s trade, but it was below the 50dma. Not a terrible sign, but its more showing institutions are still being a bit shy. Rapping up the day, seeing the indexes close out near the highs on volume was a positive step in the right direction.

Finally, we see the IBD indexes leading this market. The trend will need to continue, but today was a step in the right direction. It is nice to see quality growth stocks lead for once and not the junk off the bottom. Remember, in past uptrends which followed severe bear markets …

Following through on yesterday’s gains stocks took the lead and moved higher as volume tracked higher. A very bullish sign to see stocks moving higher with higher volume especially right after a day where prices advanced on lower trade. All was well and good with stocks until the final hour of trading where we began to see selling pressure. The selling pressure was enough to send the S&P 500 and Dow Jones Industrial Average into negative territory but the NASDAQ was able to slip in a small gain. Preliminary volume indicates NASDAQ saw higher trade while the NYSE declined avoiding a distribution day. A positive sign is we saw IBD indexes lead the market and we’ll await to see if volume on the IBD indexes came in higher. In summary, not a terrible day following yesterday’s move, but signs of …

I have to admit that I saw this failure coming a MILE AWAY and have been fully prepared for it and all of my platinum members can verify this as I have been saying repeatedly that this rally was going to fail. Yet I still had NEWBIE subscribers trying to buy breakouts left and right.

Part of the problem is that I will mess around with a few hundred dollars in a stock out of a very large cash amount. Most of you can not dink around like me and must wait for a perfect setup (like XSI was close enough to) before you make your move. I will go out and buy stocks like GXDX. But that in no way, in this market, that is going nowhere, is any kind of signal for you to buy stocks.

I don’t know why some of you don’t get it but it always