Nice IPO setup.

Pulled back after thrust on FDA approval announcement. Watch for follow thru tomorrow.

Nice breakout, great earnings, public offering out of the way.

Below are today’s best looking setups from Bluefin.

Symbol		Sector	Watch List
CBRX	Columbia Laboratories Inc.	Drug Delivery	Emerging 50
MTW	Manitowoc Company, Inc.	Farm & Construction Machinery	Emerging 50
RLD	RealD	Movie Production - Theaters	IPO
IRWD	Ironwood Pharmaceuticals, Inc.	Medical Laboratories & Researc	IPO
VRA	Vera Bradley, Inc.	Textile-Apparel Footwear & Acc	IPO
TTWO	Take-Two Interactive Software, Inc.	Multimedia & Graphics Software	Post Earnings Surprise
CENX	Century Aluminum Company	Aluminum	Post Earnings Surprise
TESO	Tesco Corporation (USA)	Oil & Gas Equip & Services	Sector 50
PDC	Pioneer Drilling Company	Oil & Gas Drilling & Explorat	Sector 50
HOC	Holly Corporation	Oil & Gas Refining & Marketing	Value 50

Below is the Earnings Spreadsheet will all stocks that were up 8% or greater on the day of their earnings announcement (since Jan 1, 2011). It also lists how much of an earnings surprise the company had compared to analysts estimates. Trolling this list, I will look for stocks that have pulled back after the initial earnings thrust for a lower risk entry.

https://spreadsheets.google.com/ccc?key=0AgxAXOuHdkMadG5jN004eHJLOXFteUlkeTBXX1BpZnc&hl=en&authkey=CMPUpJUH

I’m looking for some volunteers to help review the 2010 Earnings lists. If you’re interested drop me an email at patientfisherman@gmail.com.

Last week the market dug itself out from the correction we have been in for the past few weeks. Looking at the charts, the Nasdaq, S&P, and NYSE are all sitting above their 50 day moving averages.

Why do I sound less than enthusiastic about this news? We never saw that huge breadth thrust we have seen at the bottoms of past corrections. Check out the market monitor charts and scroll back through the past year to see what I’m talking about.

We have seen some decent buying over the past week, but the 10 day breadth ratio still sits under our prime trading zone. (Charts are in progress for the 10 day breadth ratio).

At this point, I will nibble on some .25 size positions but plan on maintaining a defensive stance.

With the new market monitor charts up and running, it's a little easier to see how breadth was deteriorating over the past few months. While we're waiting for the markets to stabilize, now seemed like a good time to walk through the past six months. See charts here.

I've taken the Primary Breadth Indicator from the Market Monitor chart and added a chart of the spx so you can see how they work together. (Market Monitor was developed by Pradeep Bonde at StockBee.biz)

Back on August 30th, the market was coming out of a multi-month correction with a bullish cross over on the primary indicators. Not withstanding a few minor corrections along the way, September through the end of December was an ideal trading period for swing and position traders.

Breadth steadily increased and maintained its strength through December. Even when the SPX touched the 50 period ma in November, breadth remained strong and the market rallied higher from that point.

In January, things began to take a different tone. As the market made new highs, breadth started making new lows. And as many people have told me there was still money to be made during that period. You can make money in any type of market, the difference is, leadership was narrowing and our trades have to be more specific to the sectors that were working. Otherwise, breakouts were more likely to fail.

As breadth is increasing, the number of stocks that will likely follow through is higher, as breadth is decreasing breakouts are more likely to fail. Sticking with the very top sectors can keep you in the market longer but eventually something has to give. You can equate it to standing on a strong base made of rock versus standing on thin sheet of ice that can crack any moment.

As you can see, the market was flashing warning signals weeks in advance of this decline. It's up to you to figure out how to interpret that data and act on it.

With the market in a correction, the best place to be is in cash. Take this time to research past trades and see what went wrong and were you went right. Currently, I’m reviewing every Earnings Surprise for 2010 and see how these stocks behaved in the weeks and months after their release.

So how did we get here in the first place and what were the signs telling us to move to cash? While we have a time, let’s look at the trusty market monitor (developed by Pradeep Bonde at Stockbee.biz) and review the warnings signs and know what to look for over the next few weeks.

 

Trouble started on 2/22/2011 with a big 600 plus down day on our daily breadth indicator. This is where you tighten stops and start taking profits while you have them.

We then saw a series of 200 plus days. At this point I was thinking the market would turn and head higher as it did over the previous weeks.

The next week, the market resumed it’s down trend taking out any remaining stops.

Right now, we’re playing the waiting game. Until the market shows several days of serious accumulation do not step in. How do we know when this occurs? We watch the Daily Breadth indicator – Stocks up 4% or greater as well as the Primary Indicator; stocks up/down 25% in a quarter.

For now, the primary indicator is barely in bullish mode. One large down day from here and we can possibly be looking at a longer term correction. (Green line crosses under Red line).

The last time we saw a bearish cross (red, stocks down 25 or more in a qtr, over green, stocks up 25% or more in a qtr) over on the primary breadth indicator was May thru July 2010.

Towards the end of August 2010, we saw consecutive breadth thrusts that triggered the start of the rally through February. After a healthy correction, this is where the best opportunities can be found for swing and position traders.

This is what we’re looking for; several days were the market is decisively being bought. Until then, we do our research, maintain our watch lists and stay out of trouble.

You can view the historical market monitor charts here: http://www.patientfisherman.com/mm/

These charts can also be accessed by clicking the “Market Monitor” link in Bluefin.

(Updated 6:36pm MST) Below are Earnings Surprises since Jan 1, 2011 that were up 4% or greater on the day of earnings. You can take this list and drop it into Telechart. Sort by 5 day rate of change and look for stocks that have pulled back after their initial post earnings rally. You can access the google doc here: https://spreadsheets.google.com/ccc?key=0AvNNyuRQtpxIdFlPbUJ0TWE4UnhDcmNGWDcyQlNCWEE&hl=en&authkey=CKXyiPcM

Symbol	Description	Date	Surprise	ChgEarningsDay	ChgSince
RHB	REHABCARE GROUP INC COM	2/8/2011	8	45.47	0.49
TDSC	3-D SYS CORP DEL COM NEW	2/17/2011	35	40.43	-9.52
BSFT	BROADSOFT INC COM	3/7/2011	47	36.10	-6.88
OVTI	OMNIVISION TECHNOLOGIES INC COM	2/24/2011	45	31.78	-3.60
TBL	TIMBERLAND CO CL A	2/17/2011	61	30.03	1.64
ARAY	ACCURAY INC COM	1/27/2011	800	29.88	0.11
OPXT	OPNEXT INC COM	2/3/2011	45	29.15	2.33
FALC	FALCONSTOR SOFTWARE INC COM	2/10/2011	100	28.84	-9.62
CELL	BRIGHTPOINT INC COM NEW	2/2/2011	26	28.78	1.88
LZB	LA Z BOY INC COM	2/15/2011	9	28.74	-13.32
KND	KINDRED HEALTHCARE INC COM	2/8/2011	23	28.34	-0.12
KEYN	KEYNOTE SYS INC COM	1/25/2011	88	28.17	-8.02
JDSU	JDS UNIPHASE CORP COM PAR $0.001	2/3/2011	53	26.94	-6.59
APEI	AMERICAN PUBLIC EDUCATION IN COM	2/17/2011	11	23.91	-4.53
IO	ION GEOPHYSICAL CORP COM	2/16/2011	100	23.30	-4.85
OPLK	OPLINK COMMUNICATIONS INC COM NEW	1/27/2011	27	23.03	-8.92
ABMD	ABIOMED INC COM	2/3/2011	78	21.64	13.97
REV	REVLON INC CL A NEW	2/17/2011	196	21.45	8.49
TNAV	TELENAV INC COM	1/27/2011	41	21.44	25.03
ELOS	SYNERON MEDICAL LTD ORD SHS	2/16/2011	700	20.72	-2.27
NSIT	INSIGHT ENTERPRISES INC COM	2/14/2011	23	20.67	-1.76
APKT	ACME PACKET INC COM	2/1/2011	13	20.44	5.39
SCHS	SCHOOL SPECIALTY INC COM	2/17/2011	7	19.87	-7.94
EXFO	EXFO INC SUB VTG SHS	1/12/2011	10	19.68	21.96
AVNW	AVIAT NETWORKS INC COM	2/3/2011	100	19.35	-6.74
HGR	HANGER ORTHOPEDIC GROUP INC COM NEW	2/9/2011	15	19.24	-1.36
TRLG	TRUE RELIGION APPAREL INC COM	2/24/2011	3	19.04	-7.14
SCI	SERVICE CORP INTL COM	2/9/2011	38	18.59	1.11
SFLY	SHUTTERFLY INC COM	2/2/2011	15	18.19	-0.94
CBM	CAMBREX CORP COM	2/10/2011	60	17.82	-15.13
ACAT	ARCTIC CAT INC COM	1/27/2011	257	17.57	-16.00
ASGN	ON ASSIGNMENT INC COM	2/17/2011	14	17.10	-7.59
AAN	AARONS INC COM PAR $0.50	2/15/2011	12	17.03	-3.48
ARUN	ARUBA NETWORKS INC COM	2/17/2011	8	17.02	2.11
CDXS	CODEXIS INC COM	2/3/2011	83	16.94	2.06
FTNT	FORTINET INC COM	1/25/2011	57	16.89	8.45
POWI	POWER INTEGRATIONS INC COM	2/3/2011	3	16.75	-12.24
KNL	KNOLL INC COM NEW	2/4/2011	18	16.70	-0.96
PNRA	PANERA BREAD CO CL A	2/10/2011	3	16.45	5.06
PJC	PIPER JAFFRAY COS COM	1/26/2011	102	16.28	-2.29
HEES	H & E EQUIPMENT SERVICES INC COM	3/3/2011	56	16.21	-5.79
RBN	ROBBINS & MYERS INC COM	1/7/2011	33	15.90	0.17
FEIC	FEI CO COM	2/3/2011	33	15.89	4.75
ERTS	ELECTRONIC ARTS INC COM	2/1/2011	4	15.81	2.49
PLAB	PHOTRONICS INC COM	2/15/2011	11	15.79	-9.62
SIMG	SILICON IMAGE INC COM	2/3/2011	133	15.67	-0.11
IPSU	IMPERIAL SUGAR CO NEW COM NEW	12/29/2010	21	15.56	-13.47
DIOD	DIODES INC COM	2/9/2011	10	15.52	-3.88
PLCM	POLYCOM INC COM	1/20/2011	14	15.45	8.73
MMSI	MERIT MED SYS INC COM	2/17/2011	10	15.41	-0.28
KONG	KONGZHONG CORP SPONSORED ADR	3/2/2011	62	15.40	17.99
NFLX	NETFLIX INC COM	1/26/2011	23	15.21	-3.00
EHTH	EHEALTH INC COM	2/16/2011	100	15.21	-6.79
ALNY	ALNYLAM PHARMACEUTICALS INC COM	2/17/2011	54	15.20	-13.98
SFN	SFN GROUP INC COM	2/2/2011	31	15.18	13.93
IPHS	INNOPHOS HOLDINGS INC COM	2/7/2011	7	15.10	-2.10
IMN	IMATION CORP COM	2/1/2011	633	15.05	-3.61
KAI	KADANT INC COM	2/23/2011	46	14.80	-1.97
SD	SANDRIDGE ENERGY INC COM	2/24/2011	12	14.71	-0.38
BOOM	DYNAMIC MATLS CORP COM	2/24/2011	25	14.67	-1.97
GMCR	GREEN MTN COFFEE ROASTERS IN COM	2/2/2011	12	14.62	55.80
JRCC	JAMES RIVER COAL CO COM NEW	3/7/2011	258	14.62	-11.68
SSI	STAGE STORES INC COM NEW	3/8/2011	1	14.45	0.60
OPNT	OPNET TECHNOLOGIES INC COM	1/27/2011	44	14.44	20.43
HLIT	HARMONIC INC COM	2/3/2011	22	14.42	-10.16
GT	GOODYEAR TIRE & RUBR CO COM	2/10/2011	300	14.31	4.76
PPO	POLYPORE INTL INC COM	2/23/2011	24	14.13	-3.86
EL	LAUDER ESTEE COS INC CL A	2/3/2011	18	14.13	1.01
GRB	GERBER SCIENTIFIC INC COM	3/3/2011	75	13.92	-8.18
SSYS	STRATASYS INC COM	2/9/2011	24	13.80	10.76
SBH	SALLY BEAUTY HLDGS INC COM	2/3/2011	16	13.78	-8.98
AVAV	AEROVIRONMENT INC COM	3/8/2011	37	13.53	3.42
APOL	APOLLO GROUP INC CL A	1/10/2011	21	13.36	3.80
NATI	NATIONAL INSTRS CORP COM	1/25/2011	7	13.34	2.61
LQDT	LIQUIDITY SERVICES INC COM	2/3/2011	70	13.31	-6.78
LXK	LEXMARK INTL NEW CL A	2/1/2011	15	13.23	-7.20
GTLS	CHART INDS INC COM PAR $0.01	2/24/2011	12	13.15	0.54
AAWW	ATLAS AIR WORLDWIDE HLDGS IN COM NEW	2/14/2011	18	12.97	2.09
RECN	RESOURCES CONNECTION INC COM	1/5/2011	12	12.93	-8.22
MSTR	MICROSTRATEGY INC CL A NEW	1/26/2011	72	12.91	11.80
BWLD	BUFFALO WILD WINGS INC COM	2/8/2011	6	12.89	3.31
INWK	INNERWORKINGS INC COM	2/15/2011	40	12.85	1.50
ANN	ANNTAYLOR STORES CORP COM	3/11/2011	12	12.72	0.00
RBCN	RUBICON TECHNOLOGY INC COM	2/16/2011	28	12.70	4.20
ISRG	INTUITIVE SURGICAL INC COM NEW	1/20/2011	34	12.68	-0.35
COHR	COHERENT INC COM	1/27/2011	23	12.67	8.96
PNSN	PENSON WORLDWIDE INC COM	2/10/2011	15	12.65	-6.24
FCFS	FIRST CASH FINL SVCS INC COM	1/26/2011	9	12.64	-2.24
DV	DEVRY INC DEL COM	1/25/2011	5	12.62	-1.74
RRGB	RED ROBIN GOURMET BURGERS IN COM	2/17/2011	140	12.50	1.64
RICK	RICKS CABARET INTL INC COM NEW	2/9/2011	50	12.50	-3.28
CENX	CENTURY ALUM CO COM	2/15/2011	237	12.49	-1.44
NRF	NORTHSTAR RLTY FIN CORP COM	2/24/2011	269	12.48	-5.55
AET	AETNA INC NEW COM	2/4/2011	2	12.47	-2.46
SNCR	SYNCHRONOSS TECHNOLOGIES INC COM	2/7/2011	11	12.42	-10.39
EPAY	BOTTOMLINE TECH DEL INC COM	1/27/2011	32	12.42	-9.39
NDSN	NORDSON CORP COM	2/22/2011	18	12.39	-2.29
TREX	TREX CO INC COM	2/28/2011	144	12.30	0.63
AUTH	AUTHENTEC INC COM	3/10/2011	17	12.24	0.00
HAR	HARMAN INTL INDS INC COM	2/3/2011	52	12.16	1.19
SONC	SONIC CORP COM	1/4/2011	20	11.98	-20.95
DELL	DELL INC COM	2/15/2011	43	11.86	-1.80
MRCY	MERCURY COMPUTER SYS COM	1/25/2011	16	11.77	-6.92
ARGN	AMERIGON INC COM	2/17/2011	50	11.73	7.29
BORN	CHINA NEW BORUN CORP ADR	3/3/2011	8	11.63	-17.21
ENTG	ENTEGRIS INC COM	2/1/2011	21	11.50	-8.79
SCSS	SELECT COMFORT CORP COM	2/9/2011	30	11.34	-1.11
AN	AUTONATION INC COM	2/3/2011	29	11.33	6.45
CAB	CABELAS INC COM	2/17/2011	9	11.31	-15.55
EAT	BRINKER INTL INC COM	1/25/2011	19	11.30	6.62
RCKY	ROCKY BRANDS INC COM	2/15/2011	105	11.17	-2.78
SMTC	SEMTECH CORP COM	3/9/2011	15	11.16	-0.84
CLNE	CLEAN ENERGY FUELS CORP COM	3/10/2011	6	11.00	0.00
CPSI	COMPUTER PROGRAMS & SYS INC COM	1/27/2011	42	10.98	15.30
IDTI	INTEGRATED DEVICE TECHNOLOGY COM	1/31/2011	7	10.97	0.00
SYNO	SYNOVIS LIFE TECHNOLOGIES IN COM	2/23/2011	60	10.88	4.82
TSYS	TELECOMMUNICATION SYS INC CL A	2/3/2011	200	10.84	-10.22
TPX	TEMPUR PEDIC INTL INC COM	1/20/2011	16	10.79	11.55
ECPG	ENCORE CAP GROUP INC COM	2/14/2011	19	10.76	-4.40
ESI	ITT EDUCATIONAL SERVICES INC COM	1/20/2011	1	10.74	2.88
BBOX	BLACK BOX CORP DEL COM	2/1/2011	5	10.61	-13.01
BONT	BON-TON STORES INC COM	3/9/2011	3	10.51	-5.99
SNHY	SUN HYDRAULICS CORP COM	3/7/2011	3	10.50	-1.25
SBGI	SINCLAIR BROADCAST GROUP INC CL A	2/9/2011	3	10.45	10.65
SIRO	SIRONA DENTAL SYSTEMS INC COM	2/4/2011	19	10.45	-0.68
TLEO	TALEO CORP CL A	2/9/2011	28	10.43	-2.10
IPGP	IPG PHOTONICS CORP COM	2/25/2011	6	10.41	-6.67
FWRD	FORWARD AIR CORP COM	2/14/2011	11	10.25	-9.77
ICUI	ICU MED INC COM	1/31/2011	36	10.22	-3.41
COO	COOPER COS INC COM NEW	3/3/2011	27	10.19	-1.60
CMN	CANTEL MEDICAL CORP COM	3/9/2011	6	10.15	0.12
PLCE	CHILDRENS PL RETAIL STORES I COM	3/9/2011	21	10.12	-2.01
AVID	AVID TECHNOLOGY INC COM	2/4/2011	362	10.10	16.19
HLF	HERBALIFE LTD COM USD SHS	2/22/2011	17	10.09	3.21
CFX	COLFAX CORP COM	2/15/2011	18	10.05	-0.05
AIRM	AIR METHODS CORP COM PAR $.06	3/10/2011	30	10.01	0.00
ANDE	ANDERSONS INC COM	2/8/2011	60	9.94	4.59
NVDA	NVIDIA CORP COM	2/16/2011	32	9.84	-29.71
ATML	ATMEL CORP COM	2/8/2011	56	9.82	-24.91
FLWS	1 800 FLOWERS COM CL A	1/27/2011	24	9.80	-2.50
ALKS	ALKERMES INC COM	2/3/2011	60	9.78	-11.62
KNOT	KNOT INC COM Status Alert: Deficient	2/10/2011	400	9.78	-18.34
NHP	NATIONWIDE HEALTH PPTYS INC COM	2/28/2011	2	9.70	-3.70
FORM	FORMFACTOR INC COM	2/1/2011	7	9.70	-7.56
ESE	ESCO TECHNOLOGIES INC COM	2/3/2011	111	9.60	-9.13
HP	HELMERICH & PAYNE INC COM	1/27/2011	15	9.52	8.65
AMSC	AMERICAN SUPERCONDUCTOR CORP COM	2/1/2011	21	9.50	-18.69
MALL	PC MALL INC COM	2/15/2011	10	9.40	26.00
CSL	CARLISLE COS INC COM	2/7/2011	11	9.32	-1.46
BIDU	BAIDU INC SPON ADR REP A	1/31/2011	9	9.30	5.25
NETL	NETLOGIC MICROSYSTEMS INC COM	2/2/2011	25	9.28	-0.03
EXEL	EXELIXIS INC COM	2/22/2011	24	9.19	-2.43
TSCO	TRACTOR SUPPLY CO COM	1/26/2011	8	9.19	3.15
BCO	BRINKS CO COM	2/3/2011	49	9.11	-1.42
CYOU	CHANGYOU COM LTD ADS REP CL A	1/31/2011	5	8.94	5.06
EVR	EVERCORE PARTNERS INC CLASS A	2/2/2011	13	8.87	-7.13
ROK	ROCKWELL AUTOMATION INC COM	1/26/2011	18	8.86	7.24
CNA	CNA FINL CORP COM	2/7/2011	71	8.83	-3.11
MTZ	MASTEC INC COM	2/23/2011	19	8.83	15.65
TTI	TETRA TECHNOLOGIES INC DEL COM	2/25/2011	43	8.71	0.95
TNB	THOMAS & BETTS CORP COM	1/31/2011	22	8.69	10.43
SF	STIFEL FINL CORP COM	2/15/2011	31	8.66	-0.11
SATS	ECHOSTAR CORP CL A	2/24/2011	2100	8.64	3.28
CAVM	CAVIUM NETWORKS INC COM	1/31/2011	7	8.62	-12.06
HS	HEALTHSPRING INC COM	2/18/2011	14	8.62	0.32
INT	WORLD FUEL SVCS CORP COM	2/24/2011	14	8.61	-6.82
MLNX	MELLANOX TECHNOLOGIES LTD SHS	1/26/2011	24	8.59	-8.55
BEAT	CARDIONET INC COM	2/17/2011	19	8.56	-4.98
BLUD	IMMUCOR INC COM	1/6/2011	11	8.54	-8.59
PCLN	PRICELINE COM INC COM NEW	2/23/2011	6	8.53	0.18
HERO	HERCULES OFFSHORE INC COM	3/9/2011	73	8.52	0.34
GNTX	GENTEX CORP COM	1/27/2011	4	8.48	-17.10
LMNX	LUMINEX CORP DEL COM	2/7/2011	40	8.48	-6.74
SWK	STANLEY BLACK & DECKER INC COM	1/27/2011	14	8.47	4.03
RA	RAILAMERICA INC COM	2/23/2011	245	8.46	12.09
NVMI	NOVA MEASURING INSTRUMENTS L COM	2/15/2011	8	8.43	-15.10
AVGO	AVAGO TECHNOLOGIES LTD SHS	2/23/2011	14	8.42	-8.09
STMP	STAMPS COM INC COM NEW	2/10/2011	76	8.39	-8.46
ARMH	ARM HLDGS PLC SPONSORED ADR	2/1/2011	40	8.35	-5.09
LFT	LONGTOP FINL TECHNOLOGIES LT ADR	1/31/2011	7	8.33	-14.87
RL	POLO RALPH LAUREN CORP CL A	2/9/2011	33	8.28	1.50
TSLA	TESLA MTRS INC COM	2/15/2011	6	8.27	-2.67
CLWR	CLEARWIRE CORP NEW CL A	2/17/2011	2	8.25	2.13
PTRY	PANTRY INC COM	2/8/2011	24	8.19	-14.32
IPG	INTERPUBLIC GROUP COS INC COM	2/25/2011	16	8.18	1.11
HOG	HARLEY DAVIDSON INC COM	1/25/2011	40	8.06	3.88
TRK	SPEEDWAY MOTORSPORTS INC COM	3/9/2011	280	8.05	-4.78
SCSC	SCANSOURCE INC COM	1/27/2011	7	8.04	-2.45

Today’s action took out both of my stops and I’m back in cash. At this point I will take the cue from the market and stand aside until we can get some clarity.

Below are Earnings Surprises since Jan 1, 2011 that were up 8% or greater on the day of earnings. You can take this list and drop it into Telechart. Sort by 5 day rate of change and look for stocks that have pulled back after their initial post earnings rally.

Symbol	Description	Date	%Surprise	%ChgEarningsDay
RHB	REHABCARE GROUP INC COM	2/8/2011	8	45.47
TDSC	3-D SYS CORP DEL COM NEW	2/17/2011	35	40.43
TBL	TIMBERLAND CO CL A	2/17/2011	61	30.03
KND	KINDRED HEALTHCARE INC COM	2/8/2011	23	28.34
ABMD	ABIOMED INC COM	2/3/2011	78	21.64
REV	REVLON INC CL A NEW	2/17/2011	196	21.45
ELOS	SYNERON MEDICAL LTD ORD SHS	2/16/2011	700	20.72
BW	BRUSH ENGINEERED MATLS INC COM	2/24/2011	33	20.43
SCHS	SCHOOL SPECIALTY INC COM	2/17/2011	7	19.87
CRUS	CIRRUS LOGIC INC COM	1/27/2011	3	18.81
ACAT	ARCTIC CAT INC COM	1/27/2011	257	17.57
TYPE	MONOTYPE IMAGING HOLDINGS IN COM	2/17/2011	31	17.26
KNL	KNOLL INC COM NEW	2/4/2011	18	16.70
PJC	PIPER JAFFRAY COS COM	1/26/2011	102	16.28
HEES	H & E EQUIPMENT SERVICES INC COM	3/3/2011	56	16.21
IMN	IMATION CORP COM	2/1/2011	633	15.05
TUP	TUPPERWARE BRANDS CORP COM	2/1/2011	8	14.97
GT	GOODYEAR TIRE & RUBR CO COM	2/10/2011	300	14.31
EL	LAUDER ESTEE COS INC CL A	2/3/2011	18	14.13
GRB	GERBER SCIENTIFIC INC COM	3/3/2011	75	13.92
SSYS	STRATASYS INC COM	2/9/2011	24	13.80
SBH	SALLY BEAUTY HLDGS INC COM	2/3/2011	16	13.78
VDSI	VASCO DATA SEC INTL INC COM	2/17/2011	125	13.40
LQDT	LIQUIDITY SERVICES INC COM	2/3/2011	70	13.31
LXK	LEXMARK INTL NEW CL A	2/1/2011	15	13.23
GTLS	CHART INDS INC COM PAR $0.01	2/24/2011	12	13.15
MSTR	MICROSTRATEGY INC CL A NEW	1/26/2011	72	12.91
FCFS	FIRST CASH FINL SVCS INC COM	1/26/2011	9	12.64
PIKE	PIKE ELEC CORP COM	2/8/2011	400	12.53
NRF	NORTHSTAR RLTY FIN CORP COM	2/24/2011	269	12.48
AET	AETNA INC NEW COM	2/4/2011	2	12.47
DEST	DESTINATION MATERNITY CORP COM	1/27/2011	19	12.24
HAR	HARMAN INTL INDS INC COM	2/3/2011	52	12.16
ARGN	AMERIGON INC COM	2/17/2011	50	11.73
BORN	CHINA NEW BORUN CORP ADR	3/3/2011	8	11.63
ENTG	ENTEGRIS INC COM	2/1/2011	21	11.50
AN	AUTONATION INC COM	2/3/2011	29	11.33
CAB	CABELAS INC COM	2/17/2011	9	11.31
EAT	BRINKER INTL INC COM	1/25/2011	19	11.30
UTEK	ULTRATECH INC COM	1/27/2011	4	11.13
NOR	NORANDA ALUM HLDG CORP COM	2/16/2011	25	11.02
OKSB	SOUTHWEST BANCORP INC OKLA COM	1/20/2011	112	10.98
UA	UNDER ARMOUR INC CL A	1/27/2011	19	10.97
SYNO	SYNOVIS LIFE TECHNOLOGIES IN COM	2/23/2011	60	10.88
ESI	ITT EDUCATIONAL SERVICES INC COM	1/20/2011	1	10.74
SBGI	SINCLAIR BROADCAST GROUP INC CL A	2/9/2011	3	10.45
SIRO	SIRONA DENTAL SYSTEMS INC COM	2/4/2011	19	10.45
IPGP	IPG PHOTONICS CORP COM	2/25/2011	6	10.41
AVID	AVID TECHNOLOGY INC COM	2/4/2011	362	10.10
CFX	COLFAX CORP COM	2/15/2011	18	10.05
FLWS	1 800 FLOWERS COM CL A	1/27/2011	24	9.80
HP	HELMERICH & PAYNE INC COM	1/27/2011	15	9.52
AMSC	AMERICAN SUPERCONDUCTOR CORP COM	2/1/2011	21	9.50
TWI	TITAN INTL INC ILL COM	2/24/2011	220	9.41
BCO	BRINKS CO COM	2/3/2011	49	9.11
HYC	HYPERCOM CORP COM	3/2/2011	5	9.08
EVR	EVERCORE PARTNERS INC CLASS A	2/2/2011	13	8.87
ROK	ROCKWELL AUTOMATION INC COM	1/26/2011	18	8.86
TTI	TETRA TECHNOLOGIES INC DEL COM	2/25/2011	43	8.71
SF	STIFEL FINL CORP COM	2/15/2011	31	8.66
SATS	ECHOSTAR CORP CL A	2/24/2011	2100	8.64
TWX	TIME WARNER INC COM NEW	2/2/2011	8	8.64
HS	HEALTHSPRING INC COM	2/18/2011	14	8.62
GNTX	GENTEX CORP COM	1/27/2011	4	8.48
SWK	STANLEY BLACK & DECKER INC COM	1/27/2011	14	8.47
NVMI	NOVA MEASURING INSTRUMENTS L COM	2/15/2011	8	8.43
ARMH	ARM HLDGS PLC SPONSORED ADR	2/1/2011	40	8.35
RL	POLO RALPH LAUREN CORP CL A	2/9/2011	33	8.28
PTRY	PANTRY INC COM	2/8/2011	24	8.19
IPG	INTERPUBLIC GROUP COS INC COM	2/25/2011	16	8.18
HOG	HARLEY DAVIDSON INC COM	1/25/2011	40	8.06
ORB	ORBITAL SCIENCES CORP COM	2/17/2011	57	8.01
CY	CYPRESS SEMICONDUCTOR CORP COM	1/27/2011	4	7.99
ASH	ASHLAND INC NEW COM	1/25/2011	22	7.94
BRNC	BRONCO DRILLING CO INC COM	3/4/2011	700	7.93

Trading is a tough business. You need to have enough conviction in your methodology to realize gains while also managing your ego so you don’t get ahead of yourself. Personally, most of my biggest mistakes occurred when I was trying to force my method for big gains.

With the trend in social networking, it’s easy to get an idea of how other traders are performing in real-time. Joe Trader just made 30% on this trade, Jill Trader just doubled her account over the past month. With all these inputs coming at you, it’s easy to feel like you are under-performing. In this case, there are too many unknowns, what is their performance over the past year, five years, ten years, how much money are they actually trading with, are they even telling the truth?

Being the youngest of four brothers, I’ve been pretty much conditioned to compete in almost any activity. Yes, it does push you to try to go further, but with trading it can be a curse. Constantly trying to keep up or prove something is a recipe for a draw down.

To overcome “trader envy”, removing your ego entirely from the equation and coming at it from a neutral state of mind is ideal.

Boiled down to its most simple form, each day you are making a choice that your next trade will go up based on a set of variables you have defined as important. That’s it, we’re not curing cancer. Whether we make a thousand dollars or a million, we’re just making a bet that the stock will go up. Sometimes we’re wrong, and hopefully more often we are right.

We have to measure our progress to know whether our efforts are worth the precious time and energy we pour into them day in and out. This is where the indexes come into play. We know if we buy an index fund we can at least reproduce the gains or losses on that index. We’re dealing with fact, not the huffing and puffing of some stranger out on the social web. I like to use the S&P, which is currently up 5.05% YTD.

At this point, you need to define what would be a reasonable return compared to the S&P to make your efforts worthwhile. Would 1.5x, 2x the S&P be worth the time, possibly 3x the S&P? This is for you and only you to define. Using this, you can check in every quarter to gauge your performance. At the year’s end, lay out everything on the table and figure where you went wrong and where you went right.

If you’re just starting out, your expectations should reflect the fact that you are learning and will make some mistakes while mastering a methodology. Trading is a culmination of your efforts over time. By using a neutral benchmark such as an index, you will be able to gauge whether your methods are working and avoid the “trader envy” trap. From there, you can adjust and refine your method so you can consistently extract profits from the market.

Looks like the market is trying to resume it’s uptrend. Breadth was in the 160 range the last time I checked. If we follow through towards the last hour of the day, the stocks below will offer some opportunities for gains. Look for stocks closing towards the top quarter of their bars.

Symbol	Sector	Watch List
BLTI	Medical Instruments & Supplies	Emerging 50
LBTYA	Catv Systems	Emerging 50
WLP	Health Care Plans	Emerging 50
ADTN	Communication Equipment	Emerging 50
FN	Electronic Equipment	IPO
AH	Business/Management Services	IPO
ITMN	Biotechnology	Post Earnings Surprise
BX	Asset Management	Post Earnings Surprise
OIIM	Semiconductor-Integrated Cir	Post Earnings Surprise
SVVS	Business/Management Services	Post Earnings Surprise
JDSU	Communication Equipment	Post Earnings Surprise
HSC	Steel & Iron	Post Earnings Surprise
BGC	Industrial Electrical Equipmen	Post Earnings Surprise
IRBT	Appliances	Post Earnings Surprise
BLTI	Medical Instruments & Supplies	Sector 50
WNR	Oil & Gas Refining & Marketing	Sector 50
JDSU	Communication Equipment	Sector 50
TDSC	Multimedia & Graphics Software	Short 25
SSYS	Computer Peripherals	Short 25
STEI	Personal Service	Short 25
BXG	Property Management/Develop	Short 25
APEI	Business/Management Services	Short 25
WNR	Oil & Gas Refining & Marketing	Value 50
TSO	Oil & Gas Refining & Marketing	Value 50
SNX	Business/Management Services	Value 50