Enjoy The Ride

Consolidation...yeah right. Pullback...schmullback. VIX...SHMIX. Overbought...overschmought. It's not whether the major indices have been strong since the late-September bottom. It's not about whether they are still way below their highs. It's all about the breakouts. I was always taught and continue to teach that the most important characteristic of a strong market is plenty of quality names breaking out of bases on heavy volume. There has been a decent amount lately but also a share of failures. Well, at approximately 2:30 p.m. on Tuesday, the playing field changed...and in a hurry.

Bottom line is that at least 150 new names popped out of the last day and a half. Volume has been very strong and do I dare say the word "momentum"? Yes, momentum is back. Don't try to explain all this away. The bears are still bearish talking about the lack of corporate earnings and terrorism. Like the bulls who stayed bullish all the way down, the bears will stay bearish all the way up. Me? I don't try to express those opinions. I am just a reader of the market...and I am reading.

I have no expectations of how far it can go or how long the rally lasts. I just know when I see a ton of names come up their right side and a bunch of names break out...it is Miller time. Unfortunately, I don't drink.

Instead of showing you names, I urge you to partake in an exercise that I do every night...going through the NEW HIGH LIST for new names and looking at the highest volume movers. Doing this every night gives you a great feel for the market. Do you remember my report of a bunch of Restaurants looking to break out? Well, they all did yesterday. Where do you think the ideas came from? My nightly work is much more important than my daily work. I can concentrate better with the markets closed and with less distractions...unless Monday night wrestling is on.

Wednesday's action showed strength in any number of sectors. They include Truckers, Restaurants, Semis, Retail and Homebuilders. I like when it gets broad based. Enjoy the ride -- however long it lasts, if and as long as it suits you. It's about time.