Deep Thoughts on The 'Rally'?

I love rallies. It is so American.

Today we have the E-Trade Bottom.

I have been waxing caution and patience the last week based on the price action and to some been downright bearish. Crazy since I only had bought puts yesterday (covered them this morning). The puts would have worked out if not for the assanine panic call from Citibank which just sped the bottom up. Great.

The “Fleckenstein” crash article that I linked to yesterday coincided with the bottom as usual. Now, that’s not to say that cocktail Party smart Fleckster won’t have his crash one day. It’s just that the indexes may not give it too him anyday soon. It has been a rotational meltdown type of market for the last few years. Time will tell and he will write many more crash pieces and eventually be right.

What I do see in this rally is poathetic moves in every stock save the leaders. the typicals are mirching higher – RIMM, Apple, Baidu. Googster, GS, But we have lost many leaders in this down cycle.

All I care about is who may lead us higher if indeed yesterday was a bottom. Again, time will tell.

So far, I am thinking PETS is the industry that leads us higher :) . Check out NEOG , WOOF (a favorite Wallstrip show of mine ) and ABAX . More on that industry later.

Today, all I bought was VMWare (VMW) in the low 80’s and Hansen Medical (HNSN at $28.50) which I had been selling in the high 30’s and has plummeted back to it’s breakout point. Hansen and ISRG are on Wallstrip tomorrow by the way for you ISRG fans that keep nagging me.

Disclosure – Long the usual, VMW and NEOG