Focus on Stocks with Strength...

Hey guys,

In times such as these it is very important to cut you laggard stocks and continue to feed your winning positions. History has shown that laggards continue to lag behind while strong stocks continue to post increased gains. This is true no matter what kind of market enviornment. Even during the bearish plunge in May 2006, there were still a handful of long candidates (CPY and CTCI for ex) that continued to outperform the market. It would have been an ideal strategy for one to have had several strong short positions in their portfolio, while anchored with those 2 previously mentioned longs. Today we are faced with a situation in which one has to cut loose the losers and feed the strong stocks:

Strong Stocks: HINT, FLL, ATRI, ESCH, AGL, AWI, ADY, ATX, CALM, CDZI, HMIN, ITMN

Weaklings: GRC, EPHC, ROCM, SLP (I still think most of these will do fine in the long run. Regardless, they are still taking a hit today along with the general market.

New Longs (added withing the last few days): EBS, CCF, ARKR, NVH, SPAN, MAPS, CSU, ATX, FLL, VNUS