Obviously today confirmed my thought process. Between today and yesterday we have seen a number of fundamentally strong stocks breakout to news highs and bounce off their 50/200 day moving average on strong above average volume (APKT, VMW, SNDK, IPXL, SXCI, etc...). Pullback bases are plentiful and most are in a position for early entries and breakouts(AAPL, CREE, LULU, CRM, etc...).
There is no need to rush and get overleveraged (determine your own risk appetite). If this market continues its current action, you will have plenty of time to take advantage. What's most important is that you DO NOT CHASE or you'll risk getting shaken out by a normal pullback. Shakeouts in stocks and markets have become more common place then in the past.
As I stated in my last market update, Market Action Very Similar To 8-16-2007 - Bullish - Updated - NFLX, APKT, SNDK , I believe that this will be the most profitable part of this rally. It is important to keep in mind that you DO NOT want to get into a buy and hold mentality when things get real good. Buy only stocks with the strongest fundamentals that have already proven they can move and held up strongly in the face of the NASDAQ's 15% swoon. This is what I call the "DUH" part of a rally.
Stay patient and get your research done so you are prepared.
SIDE NOTE:
It is amazing how everyone views the market differently. This afternoon, a CNBC guest stated that if we were to top now, this entire rally from March 2009 would have been one of the weakest in history. How a 100% move by the NASDAQ and multi 100% moves by leading stocks is the weakest in history is beyond me.
FD: I own APKT, NFLX, CREE, AAPL, CSTR