I'd say good Friday but the truth is I haven't seen a gap down this ugly in quite some time but it most definitely doesn't come as a surprise. We've been making it pretty clear ever since we called this selloff that the rallies couldn't be trusted and last week's short-term bounce again only proved to be an opportunity for short sellers to open favorable entries. The good news is, we're at a level now that could potentially allow the major indexes an opportunity to find a solid base. However, that's yet to be determined.   Advertisement New Breakthrough Fuel Could Power Your Car It took the earth 300 million years to make the oil we burn. Imagine if we could squeeze that whole process into just a few months... a few weeks... or even a few days. Because that's exactly what could be happening. At least a half-dozen labs and companies are working on this, right now. If they get it right, we could literally "make" as much gas for your car as you need. We could make fuel for planes, trains, and diesel trucks this way too. Find out more by clicking here. Advertisement I've included a weekly chart of the NDX here. With 2629 on the NDX providing a backstop, let's see if this market wants to start forming a bottom now or if it needs further downside to create enough fear in the market to move higher. I wouldn't freak if I were you as the recent weakness hasn't even pulled this market back to a 3/8 retracement level from the parabolic rally that started all the way back in December. If the NDX can't find support around 2625, I suspect we're headed another hundred points lower or so which would be a perfect 3/8 retracement and puts the NDX between 2507 and 2570. For those of you trading the index options, I seriously doubt the NDX will go to 2525 in a straight line so there will likely be some relief rallies that will provide excellent opportunities to get short the market for some very nice gains. If you're willing to take a shot, now might actually prove to be a decent time to pick up some QQQ call options to play a bounce. One thing we've found to be certain in this market is if you're willing to play the volatility, there's some excellent money to be made. For long term investors, it's imperative that if you believe in the equity markets, you've got to muster enough guts to step in when there's blood on the Street. Although current levels suggest bargain hunting, I would only slowly start adding select ideas to your portfolios with the idea in mind that there is a good chance the markets have more downside exposure. Let's get the weak hands out of the market now so we can build a base to take it higher throughout the Summer. Everything so far is setting up exactly as we've called it. As a matter of fact, there is absolutely no publication out there that we're aware of that has called this market more accurately this year than we have. You are more than welcome to peruse our newsletter archives at the site to see what we mean. All we ask is that you refer your friends and colleagues to become Members at SCN because we work hard to keep you well informed. Speaking of keeping you informed, we've got some key updates today on some of our ideas so without further ado... LUXR Breaks Out One of our most recent ideas, LuxeYard (LUXR) has definitely given SCN Members something to smile about. The stock continues to stare naysayers in the face with incredible price action and volume support. We brought you this idea at $.80 cents roughly three weeks ago and the stock has provided investors with over 100% gains since. What makes LUXR even more compelling right now is the stock has most definitely got the wind at its back from a technical perspective and much of the move has come with very little news from the Company. We all know the social commerce space is red hot with VC valuations and stock price valuations through the roof. LUXR appears to be no exception. The stock broke out this morning establishing a new high close to $1.80. I've included a daily chart here. As you know, we're not fans of chasing breakouts, so the best way to play LUXR would be to exercise some patience and play the pullbacks. If you're still in from our initial alert of $.80 cents, use trailing stops because this has been an absolute homerun for you, so no sense in letting a huge winner turn into a base hit, don't be greedy. Remember, bulls make money, bears make money but pigs get slaughtered. Congrats to all of you who jumped into LUXR when we brought you the idea. LUXR is the perfect example of just how rewarding small stocks can be. It's going to be interesting to see what LUXR does from here because there's literally no ceiling now but if the stock appears like it may be forming a top, we'll let you know. For now, enjoy the ride. DSCO's & VRML Down but Don't Freak Just Yet We got a few emails yesterday from an individual who completely lost it on us. He went on to say how could you suggest something that is going down now??!! I want answers!! You guys are doing this in bad faith?!! All I can say is, really? In the vast world of small stocks, you are NEVER going to have winners every time. That's the nature of the beast... and DSCO along with one of our other new ideas, VRML are no exception. DSCO sold off on their earnings announcement yesterday and VRML is lower by roughly 10% as I type. I didn't make a big deal about yesterday's earnings announcement because quite honestly I didn't see anything there that overly concerned me. It's a biotech people. Biotechs love to lose money until they hit it big. That's just the way they are. My honest opinion is market makers and fund managers used yesterday's announcement as a catalyst to shake investors out of some cheaper stock. I'm only speculating because over the next few days we're going to know if the trend is still intact or if we just managed to catch a loser. I think it's important to understand the Company just did a new round of financing and there's quite a few warrants out there that are convertible at $2.94 if exercised by May 22nd. That's not a bad deal for the Company. VRML along with DSCO are simply subject to a weak market right now. For the reader who emailed us yesterday, that's what most stocks do when the market is weak, they go down. Get a clue or get off our list because we're not going to pull the plug or freak out on a stock just because it's down a bit. Kentucky Oaks and Kentucky Derby Picks Today and tomorrow are two of my favorite days in horse racing. Yes, I'm an avid horse racing fan. It has been a passion of mine for many years. To me, it's the greatest game and sport there is. Unless you're into it, that probably doesn't make much sense to you but I do have a history of success when it comes to the biggest races of the year and I hope this year is no exception.   Advertisement Something Very Big Will Happen in America Within The Next 180 Days! It will touch Americans deeper than anything since the Great Depression. It will hit like a brick wall. Most people will not like what we have to say until they see the facts in this controversial new video. Our first five predictions have already come true. Fail to heed this financial warning at your own risk! Click here to see this video here now. Advertisement Today, some of the best fillies in the world run in the Kentucky Oaks at Churchill Downs with tomorrow being the coveted Kentucky Derby. For what it's worth, here's my two three selections in each race in no particular order. Kentucky Oaks: Summer Applause, Grace Hall & Hard Not to Like. Kentucky Derby: Went the Day Well, Daddy Long Legs & Bodemeister. Good luck! Make some money and we'll see you next week.