Friday, August 22, 2008

Stocks End The Weekend The Way They Started: Without Volume And Flat

August 23, 2008

This was one of the lamest weeks all year as stock market indexes barely went anywhere. Not only that I have to admit that not much happened that would have me excited about the upcoming week. The only exciting moment in my stock market life is that we have the power to create screenshot videos and show you exactly what I am looking at as we go along. That can only help you become a better trader.

My biggest problem right now is getting inexperienced investors to stop trading this trendless market that is doing its best to drive a lot of traders nuts. The smartest traders realize that most breakouts in market environments like this fail immediately. But there is still a handful of egotistical traders that believe they can be the 10% that can beat the overall market when it is in a position not to be beat. That is about the only thing that is driving me nuts right now because I know when it is time to not be doing anything and that time has reached us.

There are some people that are for sure there are great stocks out there and that we just can’t find them. Those folks are wrong and the fact is that the only stocks that are doing well right now are stocks that do well in bear market environments. That is medical stocks, consumer durable stocks, and other safety stocks like soap and other products that sell well even in a market that is going nowhere.

That is my biggest problem with this market right now. I have never had a problem with a bear market. I understand that stocks mus fall and that it is only fair to be able to profit from them as long as they setup in correct short patterns. However, if the stocks dont set up and go past logical shorting points there is nothing you can do and you just have to miss making money on the short side. It sucks but it is the way it goes sometimes.

I am not for sure which way the next break will be but the way the charts look and the lack of beautiful charts setting up I would have to say eventually we are going to break lower. If that is the case I will se looking to go shor the best of the best from 2003 to 2007. There were tons of stocks that made double to triple digit gains that will eventually come back to earth when this is all said and done.

Right now, until an uptrend or downtrend is clearly presented in itself in the Nadaq, NYSE, DJIA, or IBD indexes, it is foolish to go either long or short right now. I know many traders who are going short and failing and many traders going long and failing. Besides a few longs like XSI, DGLY, PDO, and XCO it has been a very pathetic 2008. This has been the worst year of trading for myself since 1996 and back then I did not know what I was doing. So I am hoping that an uptrend or downtrend can come about and end this sideways action that is killing my personal accounts as I can not make a solid living returning 0% this year.

At least I am not losing money. I have heard a recent horror story of someone trading their personal account down 48% this year. That is horrible and that is impossible if you learn to cut your losses. This is why I stress that you must always cut you rr loss at 7-8% or at the 50 day moving average NO MATTER WHAT. When you are wrong, admit you are wrong and do not suffer any more unnecessary pain that what is necessary.

Aloha and I will see you Monday where hopefully something else moves like XSI. I need more beautiful max green BOP medical stocks that are setting up and breaking out of sound price patterns on strong volume to salvage my year. As you can see in the mutual fund section all of the best mutual fund are doing horrible. Even the best funds are having horrible years. So if you are flat for the year and are used to triple digit returns during strong bull market years like 98, 99, 03, and 04 just remember this happens and you will have to deal with it. This too shall pass and eventually another great bull market will come along with many 100% to 2000% winners. For now we just have to deal with this flat market. Rememer, this too shall pass.

Until the time comes feel free to learn in realtime about the stock market in my new videos section. It is only available to the gold and platinum subscriers and the information in each of the videos I am sure will greatly enhance your investment ability. The videos have already been received very well and I can only assume as we get more winning stocks showing up and I can get in depth with the past true PAST BIG WINNERS the videos will only help you become a better investor as time goes along.

For now, that is all we have until the market turns up or down and a downtrend or uptrend restarts. For now this market is bumming me and most participants out. But thankfully I know my history and know a trend will soon return. It is all about patience, protecting your capital, and keeping your watchlist updated. Be careful out there and remember this too shall pass and we will soon have a powerful rally one of these days that make us a ton of money. Just be patient and do NOT force trades. Whatever you do just be patient and let the max green BOP, heavy accumulation, and perfect price patterns come to you. Don’t you go looking for them; they should find you.

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