This morning is a good reminder why you cannot chase ANY stock. We mentioned it in this weeks webinar and in previous blogs. You will lose every time. Unfortunately, this market isn't like the 90's, where sometimes we got away with rookie mistakes. Also, the incremental investing concept mentioned numerous times previously is critical to follow. You can't be in deep with no cushion. No matter how good a stock's story is, find the proper entry point on the stock chart and buy the correct (predetermined) amount.  Look at MA's reversal in the first hour. Those that thought they were going to catch up "to the others" and buy a lot of MA just got flamed.....that fast. It can happen at anytime. Go easy. Also, remember rebalancing by the large funds in January.....January is never a fun month in the market. We also have to be careful here because of the elevated distribution count on the indexes. Look at your charts and determine how many days you count and position yourself accordingly.  Volume is up this A.M. on the NASDAQ.  Have an exit plan in place should this uptrend fail on us. Never get caught off guard or freezing up in the stock market. Last to remember, on the flip side,  Bill told me many times over the years, "try to hold your best stocks to the last".

Best Returns,

Scott O'Neil

President, MarketSmith Incorporated

Follow Scott O'Neil at Twitter.com/WScottOneil