Sell:(FUQI)

Hard as it was, I sold (FUQI) today. It climbed above my $14.10 profit target early in the morning, so I set a stop loss order there. It dipped to that point briefly and then took off the rest of the day, eventually trading above $15 intraday.

Of course it's difficult feeling like I've sold too soon, but I did so for solid reasons, and it's always better to sell too soon than too late. If (FUQI) is a monster stock, it will set up a proper first stage base and give me an opportunity to purchase again.

The important thing is that I've now had a couple of 20% winners in a short period of time - a first in my investing career. My record is now 2-5-2, and 3 of my losing trades were my insane attempt to short the S&P 500 - boy would I like a chance to change that history.

At any rate, I finally have some evidence mounting to support a growing sense of confidence (healthy, not over-confident) that my system can work. I have a long way to go yet, but if you want to build a house you have to start laying bricks one at a time.

Another stock on my watchlist beat earnings estimates after the market close today, and I'll buy it if it gaps up to a new high at the open tomorrow. I owned this stock briefly at the start of this rally, it's been one of the main leaders, and one time I don't care about a stock being in a proper base is when it gaps to a new high on earnings news. In that situation the move is often so powerful I don't mind taking a chance on a stock that's not in some kind of consolidation.

(ARST) made a new high today, not on the kind of volume I would've liked to see but nothing to worry about yet. The weekly chart still looks really good, just needs to close this week with above average volume and I think we're in business.