Good news for Prophet.net users – Candlestick Scans are now live!

Using it is simple; just choose Find Candle Patterns from the Patterns menu:

Choose how many symbols you want to view, as well as the time range you want and whether or not you want the patterns to show up on the chart itself (which I would assume you do!):

Choose the patterns to seek:

Click on OK, and check 'em out in the Candle Patterns module. Simple! Here, for instance, you can see AKAM with its pattern identified (which happens when you mouse over any of the tinted areas where patterns have been found).

Like I said, this is only on Prophet.net now, but next week it's slated to roll out to Investor Toolbox, and I think before the month is over it'll be in a TOS release.

As for the markets – – – I've got 4 portfolios. Two were bullishly tilted, and they did well, and two were bearishly tilted, and they suffered. What might you expect on a +216 day? The stimulus plan gets announced Monday. It should make for some good drama in the markets! Have a good weekend, everyone.

One might think I would be getting devastated today, with the Dow up nearly 250 at one point. It's a down day for me, to be sure, but as I am typing this (with the Dow up 184), my portfolios are collectively down 0.73%. The reason is because, unlike most "hedge" funds, I truly do keep myself hedged (even though this is my personal account, and not a hedge fund). I'd be doing better if things were getting nuked, but I can live with a fractional percentage loss in the face of a big up day.

I have been far, far too busy today to look at comments (I've been doing well to even get posts out the door), but I will say this: part of the reason I was so indignant during the first half of 2007 was because I knew the market was based on puffery and lies. I knew it couldn't last. The trouble it, is it hard to tell how long the masses will get fooled before things fall to pieces. As was oft-cited during the run upward, "the market can stay irrational longer than you can stay solvent."

In my opinion, the run-up we are witnessing is just a jumbo-sized con job, this time in the face of a "stimulus" package. As I've said repeatedly, I do think the market will at some point enjoy a sustained, robust rally, and I would be delighted to take part in that. But I don't think that time is here yet.

There are few assurances one can have in life, but here is one I think is very solid: next week is going to be extremely interesting for bulls and bears alike. As to who will prevail………..that remains to be seen. It depends on how gullible the public is, and how long that gullibility will last.

As a side note, I'll be doing a "Spotlight" session with Scott Sheridan this afternoon, so this will be my final post until this evening. Thanks, and I hope you are doing great today (if you're long) or are hanging in there through the storm (if you're short).

The insanely low prices of BAC, C, WFC, and other financials have produced some quick profits for "quickie" bull plays. I bought up financials yesterday, but I'm trimming positions in some cases now (take note of my watch lists, particuarly Long Positions (3 of 3) to see some of my bullish plays). BAC, for instance, has had a great pop today, but let's face it – – this looks like more of a bounce than a great long-term hold.

One pattern I am seeing repeatedly with energy stocks is the inverted head and shoulders. This seems pretty bullish for oil-related equities.

Here are the underlying symbols and the stops I am using.

ASTE 33.99
DRI 31.82
GR 41.67
MIL 63.65
NSC 49.71