Well, I don’t know about you but I told my whole chat room today that this market has officially given me its “you better not go long, unless it is oil or metals” signal today when it took AEHR and threw it for that nasty reversal. Take that with the speculative STSI which had a “near-perfect” speculative chart and all the other high quality longs like CYBS SOL and VISN that have been treated like crap right after creating nice chart patterns and you have a market that clearly is not going to rally.

I know! It does suck. But the great news is that at least we recognize it. Instead of going long ABK or LEH in March thinking we got the lows we stuck with the leaders, we made some money, and now sadly we are being told “this is all you will get.” I have had a 35% gain YTD turn into a 5% gain in 10 days. How do you think I feel? Surprisingly, you would be surprised that I don’t feel as disappointed as sad that this is now what the market does to my nice charts. But this is a clear vote of confidence for CANSLIM. If I had stuck to buying only the best of the leading groups (QTWW, ICO, XCO, NCOC, PDO, and GEOI) which have made me good money then I would be sitting pretty. Instead the market decided to fake ALL GROWTH investors out by setting up some stocks for possible huge runs.

There is nothing I can say about this market that has not been said. What is at least a little bit more reassuring is that IBD has changed its outlook today to “market in correction.” Not only that but it is clear RevShark has gone completely bearish which is, of course, always good to be on the same side as him. Though the gains are not as massive as they used to be. But heck who is killing the market anymore? Only those long oil stocks, metal stocks, crude oil, or corn. Corn is like the Celtics. Non-stop gains. Even when it is down by a lot if comes back.

If you think that I am an idiot for losing money in this market remember my loss in AEHR will not be over 5% and that I still have a 35% gain in DGLY. So the winners still take care of the losers. The very sad part is that there are a lot more losers than winners. If this was 1999 or 2003 (or even 1991–I was not trading then but the Nassy rallied 70% that year) stocks like GFA, BRKR, BKE, STSI, ACM, DGLY, SOL, VISN, AEHR, and leading stocks like CYBS and TITN would not be having the HORRIBLE go of it like they are having. Now, while it is true that NONE of the stocks mentioned actually built a “perfect” chart like AFSI or HRZ (odd but a “perfect” chart includes some recent HUGE earnings/sales growth–but as a CANSLIM investor that should be a given) in a long time. The near-perfect charts will ALWAYS be prone to failure. But if all of these stocks had max green BOP for three months in a row, had absolutely no distribution and had accumulation like ACM currently does, and the price and volume pattern were extremely tight near the 50 DMA, then the chart would be perfect.