In this vicious hedge fund unwind liquidation phase of the bear market, even stocks I thought might be enticing on a pullback have gone through my pullback numbers like a hot knife through butter. For example AMED is now around 48 and AFAM has pulled all the way back to its 50 day MA around 35. In the case of AMED it is now almost 30% off its 52 wk high, and AFAM is now in the middle of a 21% correction. Hence the dangers of trying to catch a falling knife. And a great lesson for those who try and play upside momemtum in a bear market. DON'T try this at home!

In these troubled times it is difficult to search for the bright spots of the business scene. We previously pointed out pawn shops as an obvious choice. Here is another--Home Health Care. The aging population of the U.S. demands home health care services for the foreseeable future. The leader in this field is Amedisys, Inc. symbol AMED. AMED is very overextended. Do not buy this at its current $62 area. Wait for a pullback into the $53 to $57 area. Another company is AFAM, but I did not do enough research on this one yet. These companies are showing very good relative strength vs. the rest of the market, so the group is not a secret to professional money managers. But I do believe that this story has legs, and with the proper entry point, there is still good money to be made.