Toe Dipping

Well Traders, I entered into SMALL positions yesterday in BHP, CLF, GRMN, PCL, PICO, SWIM and SWK. I only bought limited shares because I felt after such a pop yesterday, there may have been some profit taking today, which would drop some of these prices to even better levels in which to buy.

On another note, I made some HUGE gains in the CNBC Million Dollar Challenge by getting into BUCY and JOYG the first day before these two suckers popped today. Wish I had done the same with my real account! What was I thinking?

By the way, check out this chart of the $INDU 5-Year:The $INDU was traveling nicely in its Ascending Channel until last October when it broke out. You'll see that last week's action brought it all the way down to previous Channel Resistance (now Support). This may mean that the sell off has subsided for a bit, but in order to be sure, we need to make a Higher High now to maintain a Bullish trend. IMHO, we may sideslip here for a bit until the "Sell in May and Go Away" mantra sets in.

Here is a closer look:Happy Trading!