Trading in an uptrend above a rising upper Bollinger is an indication that the online reservation business is strong, and that the market expects continued prosperity in this sector. At the risk of sounding like a paid endorsement, I use Priceline’s hotel room bidding service to find great deals on four star hotels, often 30-50% cheaper than advertised rates.

A break below 133.2 would start a secondary downtrend, suggesting profit taking, but PCLN looks like a great investment in a well branded company so long as it can stay above 99.2. In a perfect world, a pullback to the 120′s before resuming the upward path would provide a great entry point, but only time will tell.

-Alan Greenspan (Fed Chairman 1987-2006, July 18, 2001 monetary policy report to the Congress)

Breaking to multi-month highs with strong volume, FRE is trading in an uptrend above a slightly rising upper Bollinger, suggesting real buying interest. A move below 1.37 would begin a secondary downtrend, but the primary trend will remain intact so long as Freddie holds above .68.

As time passes, more indications of a strengthening economy can be seen, and the market continues to reward risk takers with new highs and broad based participation. Pullbacks will occur, but dips look like buying opportunities as money continues to come off the sidelines.

To my dismay, I was stopped out of one of my favorite leading stocks, STEC. Weakness in a market leader is never a good broad market sign, so I’m growing a bit wary of more bullish proclamations.

Though the trend is technically higher, it is likely that I will be cutting any positions that are underwater and raising my stops to protect my gains. Tops and bottoms take days, weeks and months to form, so I’m not selling the farm yet. Trade what you see, not what you think.

-(A sign in an advertising office)

Though AIG is in a primary downtrend, the secondary trend is above the 20sma, suggesting a target of $30.8. A move below $18.20 would neutralize  the secondary downtrend, but $11.70 is the last visible support on this timeframe.

Regardless, the financial sector continues to skin every last bear, even the blokes at Fannie Mae and Freddie Mac are catching a bid. Shorts are fighting the Fed, and judging by the higher lows and higher highs, the printing press is working.

FNM had a major breakout today, and it’s in a much better technical position relative to AIG. Trading in an uptrend above a rising upper Bollinger is quite bullish in this market, and it has a price target of 1.09. A trade below .68 would endanger the uptrend, but .49 is the last known support.

These government shell companies are casino stocks for savvy traders with a keen sense of position size and time horizon. There is plenty of money to be made, but bear in mind these stocks can move up 300% and crash 75% a few weeks later.

With volatility making lows and more stocks on the rise, the chances of buying and holding a stock for a profit are good, so put your money to work. There is no telling how long the trend will last, or where it will end, but I do have a 1140 price target for the s&P 500.

After breaking out on July 16th at $94.32, the SPY hasn’t looked back, and remains in a strong uptrend above a rising upper Bollinger. So long as the SPY can stay above $85.70, equities look like a good way to keep purchasing power.

Looks like things have played out according to plan, and the prognosis remains the same. So long as RIMM can stay in an uptrend above a rising upper Bollinger, this is a good stock to hold. My only cause for concern is the recent secondary downtrend from June to July, which technically made a lower low.

A breach of 62.28 would jeopardize the bullish thesis, but I’m counting on a break of 86.36, despite the downside price target of 54.89. Fundamentals, macroeconomics and valuations be damned, broad market strength continues to carry everything up, so don’t fight the rising tide.