As we enter the last week of summer trading, let’s literally throw out a few stocks market ‘almanacs’…”sell and go away in May” and most recently the “summer doldrums”. Let’s face it traders can’t vacation;). The market is inherently unpredictable, but after a credit crisis, maybe we all should have envisioned the craziness of what is now a new market high for 2009 after a heart -wrenching week for the Bears and shorts. What a week it was!!. A week, where we thought a summer top was indeed achieved a few Fridays ago to switching our tune quickly and pointing to 3 positives at a gap down support levels of 982, a level shorts would be hard pressed to press after a 20pts gap down. Simply, these 3 positives carried throughout the week with Financials leading our proposed squeeze from early Wednesday morning (Chart below on site). A move that carried for ~40SPX by Friday‘s close making it a bullish weekly reversal. 
Anxiety may really be the buzz word now!. The so-called correction, yes it was the shortest on record, must make those waiting for a meaningful pullback second guess themselves. What's new since March really!. The shorts at this point probably just wonder where to possibly start laying down positions. The also must wonder if they have any support from their amigos when and if they do or have they turned bullish as well. Our question is will the ‘almanac’ idea of a weak September and October most are calling for will fall by the wayside like the 2 noted at the top??.
Instead of dwelling on the SPX broad market possibilities tonight, we think we may be coming to point where the best of the breed will begin to get the money flow. If most finally believe we are now in a recovery, why not start putting your money into already worthy EPS stocks as we head into Q4 as these companies are already on track after most recent Q’s. What we probably liked more than a breakout market was some DJIM earning plays from this Q making new recent highs the past few days. Stocks like RKT ROVI ATHR MAIL and sector favourites like WLT. Others like eg. WMS CTSH THS FIRE EMS SWM are seemingly not far behind. Even a couple biotech plays should be on top of your trading list (BCRX HGSI ).
To start the week, we’ll let others try to figure out the broad market, our concentration will be on the list above as a starting point.