Before you open the champagne bottles thinking about today's big gains, let me pop the balloon.... this isn't celebration-worthy yet. The market is still overbought and vulnerable, for reasons that I've detailed below.  Don't freak out though - I'm not calling for a total meltdown. The market's just gotten a little ahead of itself, and needs to regroup and gather some more troops before making another breakout attempt.  After that, we'll take a COMPLETE look at the overall real estate market. This one-data-nugget-at-a-time stuff makes it hard to get a feel for it as a whole, so I've assembled a report card of sorts. Let's just say this part of the financial world isn't coming to an end, despite the chatter.  And finally, we'll wrap up with some highlights from our community members. On deck this week areTelestone Technologies (TSTC), CEL-SCI (CVM), S3 Investment Company (SIVC), Brightpoint (CELL), and more.    Don't Start the Party Just Yet I know today's big gains so far are re-inspiring the bullish outlook that was stirred up over the first two weeks of the month, when the market came roaring back.... out of nowhere. I'll just remind all of us that three days ago - Tuesday - most of us were seriously thinking the party was over, and that a dip (of some size) was on the way again.  That's not to say we won't see stocks continue higher from here; we may well do it. That's just to say the outlooks of late have been almost entirely rooted in the momentum d'jour. Problem is, you can't chase trends like that and expect to make any real money. You've got to be willing to be in the minority and take contrary positions when your instincts are screaming at you, even if it feels uncomfortable.  Yes, that's my roundabout way of saying I'm a short-term bear, but I at least have a specific reason for the stance..... two of them, actually.  The first one is that nagging upper Bollinger band (gray) at 1149, for the S&P 500, though all the other indices are dealing with the same technical problem. As nice as today's gains are, they still haven't taken the index past that big ceiling. And, considering what a problem that band line has caused for months now, we can't afford to ignore it now. [If I'm wrong, it will be clear soon enough.]  The other reason I'm looking for a pullback before the bigger uptrend is resumed - the buying volume has been fading since the second week of the month. Oh, the market coasted higher for a few more days, but even as we were hitting news multi-week highs late last week and early this week, we were actually seeing a growth in selling volume, and a decline in buying volume.  The NYSE's 'up volume' and 'down volume' bars on the nearby chart make this reality all too clear; the black lines overlaid on the bars are moving averages of each, and effectively act as a trend line. It's hard to argue that there's been anything bullish about the market's depth over the last week. And just for the record, the NASDAQ has seen the same up/down volume trend.  Truthfully, if it were just one of these clues or the other, I'd be willing to entertain the idea of remaining on the bullish side of the fence, and seeing just how far we could continue to ride this momentum. To see both of these realities materialize on the chart at the same time though? That's tough to dismiss.  The good news is, it won't take much of a pullback from here to satisfactorily bleed off the current overbought pressures. I'm guessing a return to the 1100-ish area will do the trick for the S&P 500, though that's just a guess.  The bigger factor in finding the bottom will be in spotting the point where the majority of the crowd is certain things can only get worse.... the contrarian view. We'll look at those clues when the time comes.    Real Estate Report Card Though it's not quite part of my daily repertoire, I have been keeping tabs on the broad real estate picture (even if only to be able to distinguish between reality and the media's hysterics). While it would be impossible to say the housing sector is on 'good' shape, if you're a data junkie like me, there are at least some bright spots.  Take housing starts as an example. If you wanted to get technical about it, they're actually trending higher again when you factor in the seasonal ebb and flow. I wouldn't say building permits have quite edged into an uptrend just yet, but they're getting there.  Other bright spots include the fact that existing home sales as well as new home prices both rose last month. It wasn't by a lot, but considering the impact that the expiration of the tax credit made, any improvement here is an encouraging one.  We can also see that total inventory hasn't swelled up, at least for now negating the rampant fears that all this phantom inventory would crawl out of the woodwork and continue to push prices lower.  On the flipside, new home sales continue to struggle (leaving me to wonder why the revival of the starts and permits). Part of the answer may be the possibility that multi-year low levels of new-home inventory means there's not enough supply - builders are ramping up production to meet the need. That's a less-likely scenario though. Mostly, the lack of new construction is an indication of a lack of demand for it.  That being said, we're still hearing the echoes of the tax credit's death, which skewed things for the better in the first half of the year, and set up weak-looking numbers in the second half. Frankly, it will take a couple more months to really clean the slates to gauge the real estate market's true health. Even with what we see now though, we can tell it's not the rampant disaster the media seems to want it to be.  Oh, and here's a full-screen shot of the real estate data chart.  Helping you get more out of the market, James Brumley Editor - Small Cap Network    From the Community - New Commentary -  Fresh Thinking, Accolades, and Peace with IBM: CELL, PLAB, ACTU Looking for a way to play the revival of the tech sector without jumping directly in to semiconductors or data storage? Dennis Askew has found it - Photronics Inc., (NASDAQ:PLAB). The company makes the equipment that most hardware manufacturers need, but very few people even realize is a 'product'. Better still, it's a turnaround story in progress.  Getting Lean, Mean and Refocused: SPAR, TSTC, JMBA You know what's better than a potential short squeeze? A potential short squeeze that's supported by some impressive sales and earnings numbers. That's Telestone Technologies Corporation (NASDAQ:TSTC) right now. With 20% of the float behing held as shorts, this Chinese telecom play is a brewing storm.  What do ONP, CHBT, DYP, DGW, CGA and UTA Have in Common? What do Orient Paper (ONP), China Biotics (CHBT), Duoyuan Printing (DYP), Doyan Global Water (DGW), China Green Agriculture (CGA), and Universal Travel (UTA) have in common? Larry Isen has the answer, and in his answer you'll find the silver lining behind a very large and very dark cloud.... at least for some of these stocks.  And They're Off.....ACAD, LOCM, and URG Are On the Go, For Better or Worse Looking for a good old-fashioned trade? Take a look at Local.com Corp. (NASDAQ:LOCM). This website operator's stock took an unfair beating in August, but has since started the recovery process, knocking down some key technical hurdles along the way. With just one more in its way, LOCM is on the verge of being a nice buy. Is CEL-SCI a Win/Win Scenario? Though rumors are a lousy reason to own a stock - especially rumors of an acquisition - CEL-SCI Corporation (AMEX:CVM) may well prove to be worth the effort and risk. The reality is, with or without a buyout, there's a light at the end of the tunnel. James Brumley has some thoughts on why.  - New Trades -  A Sleeper Penny Stock Worth Looking at! - Biagio R. Rao wasn't kidding about S3 Investment Company Inc. (Pink:SIVC); he's already up 25%, yet more meat is still on the bone.  CSIQ Will Be The Last Company To Make A Move In Solar Field - Max Rios may well be right about that. Canadian Solar Inc. (Nasdaq:CSIQ) has been oddly lagging over the last several months, but something lit a fire under the stock on July. It's been knocking out resistance lines for weeks now.  SCHW Silent but Deadly - If Henry Fisher is right about Charles Schwab Corp. (NYSE:SCHW), it won't be silent for long..... and it may well bring some portfolios back from the dead.  CELL In The Spotlight - Don Henderson recognized that Brightpoint Inc. (Nasdaq:CELL) shares are starting to mend; just a little more progress will carry the stock past the last of some big resistance.    We Value Your Feedback Got comments, questions or suggestions? 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