I am seeing a lot of momentum stocks which have broke down below their trend lines. CPLA is a good example. During the trend, the stock has continually bounced off either the 20 day or 50 day moving average. Just as important, down moves have not shown much distribution. That's not the case right now.... Continue Reading →
The "Throw Up" Trade Produces My Greatest Trading Day
When things were at there worst yesterday, besided feeling like throwing up, I felt the markets were extremely oversold and ready for a bounce. I entered seven short term positions which I sold into today's strength (please note that I posted tickers of my entries yesterday). The only thing that links these positions is that... Continue Reading →
If You Feel Like Throwing up, Go Against Your Better Judgment
I subscribe to the theory that when things are at their worst, when you have that knot in your stomach that makes you want to throw up, and you feel like there's nothing but gloom ahead, that is the time to do the opposite of what your emotions are telling you to do.I call this... Continue Reading →
Five Things You Need to Know About the Market
I often get asked by my readers where I think the market is headed. To the surprise of many, I never make a prediction, and quite frankly, am not good at making arbitrary market calls.However, once I get the correct signals, I have a good feel for when it is time to get heavily bullish... Continue Reading →