July 13, 2008
It was a down week for stocks and even though I gave the market only a side glimpse as I watched the overall stocks within the market–I know the trend is already sideways to down, it was quite clear that the few really nice charts that were left are starting to die like they have done so well of doing this year and that (something that could become more bullish later on) many of the big-cap oil, steel, metal, and chemical stocks all showed signs of possibly topping. Even if they have not topped, the fact is many of these have been running since 2001, 2002, and 2003. So if you are thinking of buying a new breakout, try to look at a longer-term weekly arithmetic chart before you go long that shorter-term intraday 60-minute logarithmic chart breakout. A little history and perspective will save you a fortune in learning cost, in the long-run.
Truth be told if some of you are finding this market frustrating it is because you refuse to STOP LISTENING to the talking douche-bags on CNBC. These fools make it so that you are constantly confused. If you just put your trust in someone who has a long term track record of beating the market (I DON’T CARE WHO IT IS AS LONG AS IT IS NOT a yelling madman on CNBC) over the long-term markets of the 80s, 90s, and 00s. A lot of people did well in the eighties and nineties but are now doing HORRIBLE in the double-zero’s. These people should not be listened to unless they have told you to either stop trading or to have reduced your holdings considerably recently. If they have not and are telling you to load up on stocks, I am not sure I can say that you should be listening to that person.
While I believe in buying panic, I don’t think we have real panic out there in price and volume and that can clearly be seen by a VIX around 25. If the VIX was at 40 and I saw a put/call around 1.6, I could say maybe buying stocks for those that do when blood is on the street could. But for now I don’t see that panic to buy stocks. I do think people’s exaggerations about how bad things are is overdone but the quality of the longs and the supply/demand patterns that show up in top quality longs before a bull market simply is not there.
The only thing that is there seems to me is a lot of frustration. Listen the market recently tried to setup and give us some longs to play with but that did not happen. That just confirms we are more range bound. However, when I casually read or hear anything about the market in the media it sounds like the worst is happening. I can’t wait till the market actually crashes and the VIX with the market can confirm what these jokesters are saying. I mean I am sure there are some of you, right now, that know where the futures are. LOL. Dude, if you are trading using my methodology you don’t need to know the futures. Freaking loosen up that tie bro. Luckily, for me, everyday I invest in surf-shorts. So when the next bull market of the 90’s that made so many “geniuses” comes again and I take control of the market and produce the huge winners that 1999 and 2003 produced left and right then I can be truly vindicated ON A REALTIME level that watching the market too hard is stupid. Especially in a downtrending to choppy market. It is so stupid to psychoanalyze this market I do not know where to even start.
I mean sheesh in 2003, we already had 450 stocks up 100%. This year we have ONLY 65 right now. I am not sure why or how some of you do not understand why it is so hard to pick the winners this year. This simple statistic clearly tells me why it is so hard now. The fact is is that I found all 450 back then and found your 65 right now. Nothing gets by my simple scans. No stock can make a huge run and get by me. NOTHING.
Besides there also only being 65 stocks up 100% this year, there are only 20 that are up 200% since the start of the year. In 2003, BEFORE THE BULL MARKET WAS CLOSE TO BEING FINISHED IN JANUARY 2004, there were already 164 stocks up over 200%. That is almost three times more than are up 100% this year. So the reason “why I have not found TASR this year” is because there is no TASR this year. When the next TASR sets up in the pattern that you see in my ‘Past Big Winners’ and not only shows me that beautiful chart pattern but shows me those EPS/sales growth again, I will, once again, be very long the next TASR.
What is so hard to figure out about this and why do some people not understand that a raging bull market is basically EASY for me to make money in (over 80% accuracy in 99 and 03) compared to non-raging years. The fact that I continuously beat the market even in tough time proves that this methodology is still superior to the “sky is falling” crowd we hear on TV every day now. And to be honest that is all I ever hear. No matter what time of the day it is, no matter where I go, or no matter who I have not talked to in Maui or seen in weeks to years, they all ask the same question. “When is this market going to crash?” If they don’t ask that they ask an even more weirder question and ask me “when is the recession going to be over and when will stocks rise again?”
Now I know it has not been a great year at all but the fact that I have produced some winners, have a small victory in my accounts so far this year (even though my gf and friends speculative accounts are in fact down 3 and 1% this year compared to the Nassy being down 16%) with a 10% gain, this has still been a pathetic year.
I am encouraged by the fact that I see everyone everywhere recommending to buy oil stocks. Along with some “soothsayers” that I have been following for over ten-years that are now treated like gods. Some have heard some recent buy recommendation from big oil stock promoters not realizing that weekly arithmetic charts going back to 2001 clearly show that you are not only late to the party but you are anywhere from 100% to 5000% late on some of these. Remember, people, you first want the market to be in an uptrend before you go buying. Second, you have to realize that if you are a fund manager if you have been long a stock for a while and you have a big gain and you want to dump it you need the most “dumb money” you can find out there. CNBC fits that role perfectly. Watch that in this market, if you watch CNBC. If you don’t watch CNBC, congratulations!!! You can actually think for yourself, you probably use charts somehow to help you invest in the stock market, and I guarantee you have a better return than those that do. That is my final plee to stop watching “the sky is falling crowd.”
They are finally IN LOVE WITH OIL stocks and so if those fall, along with chemicals and metals, which are also becoming media darlings, maybe we can have a real bull. All I know is that before we are going to have winners that actually look like 1999 and 2003 charts that work, we are going to have to flush the excess in the commodities market. I believe that is starting. But I have believed in a commodity flush before and was proven wrong. However, I am persistent and this time all the charts are moving around wildly on HUGE volume (this is known as churning in my line of work) and the fact I am already short some large-caps in this environment shows that something must be wrong. I don’t get short stocks unless they are setting up in HISTORICALLY HIGH ODD patterns. I have read the book and studied the charts OVER-and-OVER, from WON’s “How to Make Money Selling Stocks Short.” I am starting to see some of these patterns and that with a lack of my “HOT HOT HOT HOT HOT” max green BOP charts in either CANSLIM or totally speculative but hot industries is a sign to stay in cash and FOR ME TO start to get short.
For most, shorting is not a game to try to even to do. But for those experienced, if these beloved big-cap oil, chemical, and all other type of commodities continue to breakdown on heavy volume. You know what to do on the low volume rallies.
on the sentiment front, while the VIX may suck around the 25 (27.49 to be exact-I know my numbers; we just don’t have to be exact in this realm of conversation) area but the fact that bulls dropped to 27% and bears rose to 47% this week, from last week’s already falling numbers, is another good thing for us “waiting to be bulls.” That with the extremely high 14 NYSE short-interest ratio sure is going to be fun if the VIX can give us some real fear in the market. Then charts like DGLY will make you rich like PDO did and charts like AEHR and ACM can at least act like DGLY did. For now, I’ll take what I can get. And that isn’t much.
At least the Mets are winning again!!!!! They are winning a lot and their streak is hot!!!! Nine-in-a-row baby!!!! Mike Pelfrey. Great time for an all-star break. Not!
Aloha from Maui, where the Mets are over 6,000 miles away yet are still right in my heart where they will forever be; corny but true. Go Mets Go! and please, God, soon, go market go! Just give me some CANSLIM or “Hot” charts.
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