In This Edition.... Market Update: Short Term Ceiling in Place, Working on the Floor  Takin' Care of Business - Trade Exits & Updates  Do You Twitter?  Short Term Ceiling in Place, Working on the Floor Did you know despite all the gyrations we've seen over the last seven trading days (counting today), the net change during that time is basically nil? That's right... after surging to new multi-week highs two Mondays ago, we've basically gone nowhere since.  That's not to say the last week and a half have been a waste though - quite the contrary.  While the market's not moved much (I'm using the S&P 500 as my proxy), some important lines have been drawn that we can and should use as guideposts for future trades.  The big one I'm seeing is horizontal resistance at 950. The index has tested that ceiling three times over the last seven days, and failed to cross it each time. Needless to say, that will be the key if the current uptrend is to remain alive.  On the flip side, I suggest you not get too pessimistic just yet. Today's not a great day, but it hardly breaks the overall uptrend. In fact, the S&P 500 could sink all the way back to the 20 day moving average line at 915 and we'd still be in a bigger-picture uptrend.  That's not a waver from my generally bearish, intermediate-term stance. It's simply an acknowledgment that, technically, we really don't have a great deal of evidence right now that favors the bears.  As for what kinds of 'evidence' I'm looking for, I'll have to save that chat for an edition that's not as loaded up as this one is. Hopefully we can get to it before the end of the week (when we'll have more data to work with).    Takin' Care of Business We took care of a lot of trading business on Monday, so there's not a whole lot for today. A handful of items need some attention though.  Raise (or lower) the stops on... Drugstore.com Inc. (DSCM) This one goes back to a late April entry at $1.45. We've not looked at it much since then, as there were no fireworks. Instead, we've seen a slow and steady march up to the current price of $1.92... a 32% gain for us so far. Let's go ahead and push the stop up to just a little above a break-even, wherever that is for you.  iShares S&P U.S. Preferred Stock Index (PFF) Who woulda' thought a preferred stock ETF of all things would be one of our biggest winners? It's true though - the iShares S&P U.S. Preferred Stock Index is up 32% since our January entry. Crazy. Anyway, I know we upped the stop on PFF just a few days ago, but as I look at the chart it seems as if the rally is finally starting to slow up. Buying volume is tapering off too (though volume for an ETF doesn't mean as much as it does for an outright stock). So, the strong possibility of a retreat from current levels necessitates that we play tight defense here. I don't want to tell you where to draw the line in the sand for PFF. I just suggest you think about how much ground you're not willing to give up on any trade up by more than 30%, and then set a stop just above that mark. And, I think it's time to make exits on..... American Vanguard Corp. (AVD)  I had such high hopes for this small cap fertilizer manufacturer. So many other stocks in the industry seemed to be doing so well, I figured AVD was in line for the same. After a little more than three weeks of zero progress though, I'm not going to be stubborn. Let's go ahead and cut this one out, and move on to better things.  Oh, and don't worry - we do have a fertilizer play. China Agritech Inc. (CAGC) is up about 26% for us so far, and is still going strong. Clearwire Corp. (CLWR)  We went short on Clearwire in late May after a severe breakdown turned into a downtrend. The trend didn't really take hold though, and since then we've actually started to see higher lows. Granted, we've also seen lower highs since that point, translating into what's approximately a wedge shaped chart. However, there's no strong indication of which side of the wedge is apt to crack first. So, the smart thing to do is just pull the plug now while we're close to a break-even. Look for some new entry ideas next time. I had a couple of ideas on the radar I still may or may not take. But, quality is more important than quantity, and with the market as indecisive as it has been of late, this is no time to be careless.    Do You Twitter? Once again, if you're not Twittering, you're not getting our picks and comments the fastest way possible. Twitter can even send you a text message over your phone, not to mention get you involved with one of the slickest and most-used social networking sites available.  Signing up for our Twitter feed is easy - just go here and choose 'follow'.    Good News and Bad News as Small-Cap Earnings Start to Roll Out  The big news today is that Big Cap bank stocks are seeking approval to redeem their preferred stock issues from the Treasury Dept. After paying back their TARP loans, the bankers really don't want the government to have any vested interest in them. No comments yet on regulation (which will happen). The stories linked below are just as significant to investors, however, as Small Cap earnings begin to roll out. With a strong dollar globally, excess capacity and a decrease in wage pressures, Where's the money to be made in Small Caps?  Read the rest at our community pages.        Four Small-Cap Stocks For the Obama Administration You can think of Alternative Energy, Healthcare, Infrastructure and High Yield as sectors that should perform quite well under the Obama Administration. Here's a bit of food for thought on some Obama-flavored small-cap stocks:  The bulk of Obama's $5.5 billion stimulus allocation will go toward installation of solar panels on Federal building roofs as well as to install high-tech energy meters and smart lighting systems that adjust to daylight.  Government agencies will be on a pretty tight schedule. The following timetable shows the specific percentages and deadlines they must meet to increase renewable sources:  3% or more in fiscal years 2007 through 2009  5% or more in fiscal years 2010 through2012  7.5% or more by 2013  That's a 150% increase in the percentage of energy sourced from renewable means, like solar, by 2013. These companies stand to profit from a solar influx. Read the rest at our community pages.