WE FINALLY GET SOME VOLUME TO THE UPSIDE, IF THIS CONTINUES THERE WILL BE A LOT OF NICE SETUPS

June 2, 2008

This rally has not been impressive by any stretch. Since the March lows the indexes have been going up on low volume and there have been no signs that this rally has any strength behind it until now. On friday we got volume above the 50 dva as the indexes closed higher. We are not out of the woods yet, but this is the first hint in a long time that clearly says we are starting to be bullish. If this rally continues to occur and we start seeing some more upside volume with price increases in the indexes, we are going to have some great opportunities to make some money here. There is rotation occurring into some technology stocks and there are a lot of semiconductor stocks beginning to show up on my screens. I think oil prices will continue to drop at least in the near term and this will give some more strength to the market.

I just bought some AXYS. The stock is bouncing nicely off the 50 dma on good volume. RSI is hitting a new high as the stock is breaking out to a new high. The stock has been under some heavy accumulation and the breakout offers a perfect time to buy.