Will We Hold It Wednesday – S&P 1,880 Edition

What a recovery!

Things are so good, they could hardly be better – as long as we ignore the non-existent volume that this house of cards is being built on, of course.  80M shares traded on SPY is half of the volume we got during the sell-off but it doesn’t take 2 up days to make up for one down day – not at all.  In fact, it’s only taken 5 up days with a total of 548M shares traded to erase 6 prior days of declines in which 860M shares were traded to the down side.

[Chart by Dave Fry]

Still, we have to respect the phony technicals while they last and it’s not like we’re not willing to play along.  Our Long-Term Portfolio remains very bullish, as we only expected a short-term correction anyway, and has jumped $13,000 (2.6%) since last Thursday’s review.  So GO MARKETS, from that perspective.  We don’t care if it’s a fake rally – as long as we can make some real money trading it, right?  

[Chart by Dave Fry]

Yesterday we did a Live Trading Webinar (replay available here) where we reviewed a dozen bullish trade ideas in 90 minutes and today, at noon (EST) we will do a special presentation expanding on our “7 Steps to Constistently Making 30-40% Annual Returns” featurning two additional trade ideas and you can sign up for a FREE CLASS RIGHT HERE.  Here’s the intro video: 

And what is step one of our 7 step program?  Wait for a sell-off!  Well, we just got one and that’s why we found lots of things to buy.  Despite our Long-Term Portfolio’s impressive gains over the past two days, it’s still playing catch-up to our Income Portfolio, which is up 7% for the year because we cashed it out at the top in March and now we are able to go on a shopping spree, picking up things that have gotten cheap in the recent sell-off.

The S&P may have come roaring back but it didn’t bring everything back with it. CMG, for example, is still down 20% after an earnings disappointment but people are very hung up on the fact that food costs went up faster than CMG is hiking prices (squeezing margins) while ignoring the 13.4% same-store sales growth.  Overall revenues for the chain were up 24.4% from last year – as they are also rapidly adding new stores while YUM and MCD have both reported flat numbers – and CMG hasn’t even gone to CHINA!!! yet!