If you are not involved in these areas, you’re missing the boat

Cash is king for a short time.
It is where I am right now.

Several reasons. One being that I am up 7% for the year so far and am not
willing to risk that right now. I would rather sit on that lead for a while.
The extension of that lead will take shape during the last 3 trading days of
the month. The last two days of January will be especially interesting. This
year is certainly controlled by the bulls and they certainly have not lost
their compass and are in pursuit of higher price points. The action is
positive across the board. Energy and gold are hot and will continue to be for a while. If you are not involved in
energy and metals then you are missing the boat. I am involved in nothing
right now and I can’t begin to tell you how hard that is for me. I have to be
involved. It is my nature to be involved. I do far better when I take periodic
breaks. That is what will occur as I move into travel mode and swing into NYC
on Friday and move on to the left coast on Monday and end the adventure on the
pier at Santa Monica. I will be back on January 24^th. The plan is
to scalp another point or two in the final days of trading this month and come
away with a gain of 8.5%. Right now I am up 7% for the year while the SPX is
up 3.32%. I am in the catbird seat. I am ahead of the game this year. I intend
to stay that way. That is my commitment. There is a rock on my desk that has
engraved in it the saying “never never quit”. I don’t quit. I am still here.
Still here after the brutal beating taken over the last 6 years. Only one good
year out of the last 6 and that was 2003. This year will be a good year. Not a
great year. A good year. The market will soften into the 3^rd
quarter and bottom out sometime in September. Then the explosion will occur
and watch the sparks fly. Sentiment is overly optimistic right now. The tape
is powerful and stronger and more constructive then it was in November. It is
the best start in years. The tone is set for a good year in stocks. Expect
double-digit returns this year. I am up 7% already. Now let’s get into the
instruments that will be employed to get us there. I am involved in nothing. I
own none of the stocks that I am writing about. I am 100% in cash right now. I
will get back into the battle for investment survival upon returning from L.A.
Let’s get into a few stocks that I am focused on and ready to get back involved
in. Its 4am right now and I am wide awake and ready to begin the process that
will enable another 1.5% gain into the strength of the typical end of month
mark up.

WebMD Health Corp

(
WBMD |
Quote |
Chart |
News |
PowerRating) 38.21

I am out of this stock right
now. It is extended. I mentioned it in the market letter delivered last week.
The stock traded under 30 at the end of the year last year and now trades
above 38. It is up 31.5% in the first 10 days of the year. I am out of it but
for those lucky few that took it on then you are up over 31% in it right now
and I suggest taking a few chips off the table and book the gain. I am coming
back into it hard after it comes in. It will come in. They all eventually come
in and provide the chance to get involved. So get involved in WBMD on a
pullback into the 35 zones. Place the long-term stop under 29.

U. S Express Enterprises

(
XPRSA |
Quote |
Chart |
News |
PowerRating) 18.08

I mentioned this stock a
number of times over the last couple of months many percentage points ago. It
is up big since October and the advance has plenty of headroom. It is slightly
extended right now and could be had coming into the 16 zone. Place the stop
under that.

St. Jude Medical

(
STJ |
Quote |
Chart |
News |
PowerRating) 54

It is already up 7.5% this
year. It is up over 38% in the last year. It is in a solid advance and is
expressing no sign of stalling. In fact it is in a strong phase within its
long-term steady advance. I intend to get back into STJ coming into the 52-53
zones. The group is hot right now. It will stay that way. You know the story
and the real story is in the chart. Place the stop at 49.99.

Conextant Sytems

(
CNXT |
Quote |
Chart |
News |
PowerRating) 2.83

Now I am going to admit that I
was wrong having sold my stake in this stock and I must come back to it if it
ever comes into a decent range. It is a good stock to get into right now and I
blew it frankly. It is going to trade above 3 bucks. I hate being wrong.
Remember the distinction about picking stocks and trading them. CNXT is a
great pick that I managed to screw up by selling it. It is as simple as that.
So now that I am thoroughly pissed I will go back to objectivity and tell you
that this is a great stock about to break out. It is a great stock right now
and ought to be owned. Don’t chase it. If you must stick in a toe. Hope is
useless and a thought just came into my mind about a wish that CNXT could just
stand still and wait for me to return. Well, I will say that it will be there
and I will be examining it. Find a way to get involved in this sweet advance
that is taking shape in CNXT.

Synopsys

(
SNPS |
Quote |
Chart |
News |
PowerRating) 20.98

Joe Kennedy got out of the
market in 1928 after a shoeshine boy gave him a tip while shining his already
perfectly shined shoes. He got out and the market kept climbing and he didn’t
care at all. His friends chided him as they raked in the dough and he just
went to Hollywood to have fun and cheat on his wife. That is what he did. I am
out of the market for 10 days or possibly till February when the battle
begins. I will be in L.A while the “January Effect wears thin. What an effect
it has been this year as all the Wall Steet guys come out in all there stuffed
shirt glory spouting forgetful words of wisdom. It is bullish on the street
right now and not much to worry about. The mood is bullish. The tape is
improving. This stock SNPS is about ready to challenge the 21.20 zone and a
rise above that level provides more favorable odds to extend its current young
advance. It has plenty of headroom and a rise above resistance at 21.20 will
take it to higher zones and that is the buy signal, 21.20. Place the stop at
19.89.

Creative Technology

(
CREAF |
Quote |
Chart |
News |
PowerRating) 8.95

I sold near the top. It is
higher right now and ready to explode. I am out of it and the stock is ready
to explode. Yes,I am having my head examined. I am listening to Billy Joel. My
hero. From Long Island. Sing songs about women. It is rock and roll after all
and Billy Joel is the best rock and roll performer of the last 50 years. I am
a rock and roller. Have been all my life. It began with Elvis and I never stop
enjoying the music. I am passionate about the rhythm and pace of the market. I
am passionate about employing stocks to get what I want. What I want is a lot.
So I am serious about making as much money because I want a lot. CREAF is an
instrument that is highly favorable right now and has the ability to get you
what you want and that is more. So here it is for you served up on a silver
platter. Right here on a silver platter presented with impeccable elegance.
CREAF is in a healthy advance and a rise above 9 sends it well on its way to
challenge 10. It is highly probable that that happens. Place the stop at 7.89.

There it is in a nutshell today on January 11^th, a day when lots of
exciting things are happening in every single mind that floats around the
planet. The market will open on a firm note. Futures are slightly up. I must
confess that when I looked at the indications in CNXT I cursed out loud, very
loud, in a loud voice that you could only imagine. And it is all about having
the ability to follow a trading discipline that at times is interrupted by the
need to deliver performance. The lesson learned is that it is always about the
instrument you are involved in and the overall market action matters much
less. The strategy to get to 8.5% for the month revolves around all the
instruments mentioned in this journal. Markets across the globe are up this
morning. I am done for the day and might as well go golfing after all it is a
balmy here in the sleepy old nations capital. But first it is that favorite
time of day when the time is taken to reflect on winter and what the squirrel
has in store stored away in his surprising and at times annoying bag of
tricks. A cup of green tea sans lemon and honey has a Zen like affect on the
whole being and that is just the ticket as I remember to get my tickets out
for tonight’s exciting basketball game between my beloved Colonials of GW
against those rascals from Saint Louis. Go Colonials. Stick it to them. Stick
it to them hard.