6/11T10:51 NSM/G.F.

Stock: NSM

We have held this stock through the sell off because it has yet to violate support at the 200 day ma and the gap up launch point of $22.90. I believe the only way to make money in this type of market is as follows: Set up positions with clear and obvious stop points, then hold these positions regardless of the market action. Only unwind the position if the stop points are violated and/or volume action develops contrary to our position. This strategy can be applied to long and short positions.

NSM had a great and, what appeared to be, game changing EPS announcement. This is day 4 after the gap up. As our trading rule states, if the gap up is going to hold and the stock is going higher than the 4th day is the day to buy. I am going to double the position as the day progresses and will sell it all if it closes below the $22.90 support.

Gut Feel: All the pundits on the TV are advocating the purchase of Oil stocks and the sale of technology. That just smells like a contrary trade should be set up, especially when we see that the oil stocks have been under performing the commodity for a month now. That type of under performance is usually a negative sign.