3-22-12 Mid day comments

NYSE volume is running ahead of yesterday. NASDAQ volume is running behind yesterday's pace.

I added to my KORS position on the probable pocket pivot. It is important to monitor average cost of positions that you are adding to. Keeping your average cost per share less than the 50-day moving average will serve you well over time. This implies that your largest buy needs to be at the proper buy point and that fewer shares are added to the position as it move up through additional buy points. We should see news on KORS tonight when they announce the terms of their secondary offering.

My last two purchased positions are struggling to climb out of ground effect (SIMO and SWI).

A day of distribution falls out of the count today. Yesterday we had a stall day bringing the distribution at the close yesterday to 3. We also had the B5 market buy signal (living above the 21-day) bringing the exposure count to +6. Since maximum exposure is +5, the +6 creates a buffer keeping us in the market longer incase of some future sell signals. This only happens when we are in a Power Trend. We will not see any sell signals from distribution until the NASDAQ distribution count climbs to 5.