Oh snaps, we got a rally.

What to do with it?

I am not buying up here.  We’ve got the 200-day to contend with, and the iBC machine still showing overbought.  Overbought is bullish, generally, because how does one get to that state except in a bullish envirnoment?  In any event, there are more opportune times to buy, up 130 on CPI data isn’t the time.

I’m still under invested from a trading standpoint, as I sold all my trades before I left, to free myself of the worry.  I kept [[DGLY]] and [[VHI]],  both of which are kicking the aged down steps.

A little more about DGLY:

The epitome of a massive earnings explosion.  Same thing happened to RICK.  Same thing happened to BIDU.  Same thing happened to POT.  If you want a stock trading lesson (Fly is a gracious leader for bestowing such blogging knowledges upon the unwashed, feral, and derelict masses) it is simply go long stocks which break out due to huge earnings.   It is the one underlying characteristic of literally all stocks that make large, protracted moves.  How huge is huge?  Thanks in advance to to briefing.com:

DGLY, which makes video surveillance products for police cars, broke out to fresh multi-year highs last week (dated 4/21) on news that it signed a contract that will allow law enforcement agencies in Utah to purchase the co’s in-car video systems. There are a number of positive catalysts that could bring added attention to this interesting but lesser known small-cap name… DGLY’s flagship product is a small Digital In-Car Video system that is integrated into a car’s rear view mirror. It also allows for wireless file transfer and has live streaming video capability. The stock just recently moved to the Nasdaq from the bulletin board in Jan, giving it added legitimacy. More importantly, the co swung to a profit in 2007 and expects to show continued solid rev growth in 2008… Looking more closely at DGLY’s earnings, we note that revs jumped 370% in 2007 to $19.4 mln, with the co swinging to a profit as EPS jumped to $0.28 from ($0.26) in 2006. The co expects revenue to more than double in 2008 to $40 mln… Looking at valuation here, using the co’s 2008 sales guidance DGLY is trading at 3.25x forward sales… Mkt cap $130 mln, float 9.7 mln, avg vol 58k

I noted yesterday ALTR ONNN and some semis were doing well, and that was reiterated by the Cajun and his magical, money-making screen.  It should come as no surprise to you that me and Ragin’ teamed up will find all the best money making ideas.

Natty G is still leading, while Housing stocks remain strong, and gay. Housing may be gay, but it isn’t ricockulously gay, like the airplane stocks.  Maybe, at some point, I could see myself buying a gay housing stock, not like there is anything wrong with that, but I would rather play Russian Roulette with a shotgun than be caught buying an airplane stock.