Follow Through Day

IBD has labeled Tuesday, July 29 as a follow through day. Every bull market in recent history started off with a follow through day. However, there have been follow through days that didn't lead to a bull market. Just be careful. IBD advocates using a strategy as such:

1. Look for stocks in sound bases or breaking out of sound bases
2. Put half your capital to work. Ex: if you plan to buy $20,000 worth of stock, start the initial
position with $10,000 then add to it.

Hot Sectors:

1. Railroads
2. Trucking
3. Major Drugs
4. Bio-Technology

Day One of Attempted Rally

S&P 500

Dow

Nasdaq

Tuesday, July 8 marks day one of this attempted rally. Still waiting for confirmation. If we see a follow through (indice rises on higher volume than yesterday's total) 4 days from now or later then this will act as confirmation. This follow through can occur in any one of the major indices.

I'm holding Visa (V) for the long-haul. The stock went up on pretty good volume today. I'm still keeping an eye on the fertilizers (AGU, MOS, POT, CF). They are extremely oversold.

Luckily I had a 5% stop loss on my trades. I got stopped out of POT and MOS very quickly. I should have used a tighter stop, in the 3% range, given the current market conditions. I figured that MOS and POT would hold their support levels but this proved to be wrong. This is a very tricky market. The best thing to do is raise cash.