There were 381 new 52 week highs and only 24 new lows in my universe of 4,000 stocks on Wednesday. Wednesday was the 46th day of the QQQQ short term up-trend. With so many daily highs, and the GMI at 6, it looks to me like it is possible to go long stocks near new highs again. It will be interesting to see whether NFLX will hold on to its post-earnings rebound. Both AAPL and GOOG did not. I am still more cautious than usual, given my concerns about the municipal bond crisis. See this interview with George Soros. AGO, the municipal bond insurer, has been a good short, but has declined for 7 straight days. A lot of the stocks that I follow are now rebounding from oversold levels (CAVM, RVBD, PANL, APKT, CF, NTAP, VIT, BHP, ARMH BIDU, TDSC, OPEN, KKR). The key is whether they can climb back above their recent peaks. A strategy I like is to buy a small amount of a rebounding stock and to place a stop loss order below its recent support level. In that way, I can participate with minimal risk if it resumes its decline.