I TOLD YOU SO...

Natural gas continues to make a nice move. Since I mentioned it on the blog last week, the natural gas stocks have been on a tear...CHK is up $5, APA is up $4, and APC is up $4. Some other recent picks include SOHU (up $3 since the breakout) and RIMM (up $5 since the breakout). I mentioned the coal sector yesterday. JRCC is up $3 over the last two days. PCX is also up over $3 which is a 30% gain for this lower priced stock. I talked about BIDU in some of my classes. It has gone up over $55 since I mentioned it. It's time to take some profits off the table. I know I sound like a broken record, but if you aren't taking profits, you aren't trading properly. The VIX is sitting right at 23...the same place it was on the July 24th low. The problem is that the market has moved much higher than its July 24th high (remember that the VIX has an inverse relationship). This could be looked at as another divergence....combined with the divergence in the RSI, MACD, CCI, ADX, PPO, OBV, MFI, etc. Many of these stocks I've mentioned are a bit over extended for new entries. I think AAPL and IBM could still be in good entry areas although a lot depends on how they open tomorrow. If they gap up in a big way, don't chase them. If they move down in a big way, we are probably having a sell off in the entire market which could bring the price down much lower...thus creating a better entry point.