Tuesday, August 26, 2008

A Whole Lot Of NOthing To Talk About

August 25, 2008

Usually on a day that sees all the indexes fall 200 points there is a ton to talk about. But the fact that volume was extremely low and that I have been talking about this recent volume failing there was not a whole lot of anything new that happened today.

I think the oddest development was that volume was so low today. I know we have had a lot of low volume days but to have such a wide and broad selloff where so many stocks got hit by low volume was quite weird. The low volume breakdowns make it very hard to go short a market that could be coming up to a selloff on heavier volume. By the time the heavy volume comes into the selloff most of the stocks will probably will be too extended from a safe short pattern.

So for now cash continues to be my old faithful. I mean when you go long strong stocks like HGR and you immediately get hit with that kind of reversal there becomes know question why being long is so dangerous. There is one long that starts with the letter X that is doing well for me but overall one stock out of 8,000 that looks HOT! is not a good sign for a long-term rally. Especially when the SP 500, NYSE, DJIA are all under the 50 DMA and the Nassy is below the downtrending 200 DMA.

This is a lame pullback and from 1/24/08 to 8/25/08 the stock market has barely moved .20% on the Nasdaq. From November ot the January lows (intraday) the market fell almost 22% making it very easy to pick off shorts in that bear market. What we have here is NOTHING like what we had from November to January. And for those still trying to go long stocks “heavily,” it is obvious that you have not read any of the books I have recommended and you continue to not listen to me when I say DO NOT GO LONG STOCKS IN A DOWNTREND. 3 OUT OF 4 STOCKS FOLLOW THE GENERAL TREND OF THE MARKET AND WITHOUT HOT! HOT! HOT! MAX GREEN BOP PRETTY CHARTS, CANSLIM STOCKS, AND A MARKET MOVING UP ON VOLUME THERE IS NO WAY PEOPLE SHOULD BE GOING LONG OUT THERE. Be very careful out there and REMEMBER CASH IS KING.

For Platinum and Gold members two more new videos are posted. My daily “market wrap” video and another video on another PAST BIG WINNER that CLEARLY made a climax top which signaled you to get out on the way up. Many of you seem to have a tough time with this so tomorrow we will go over another one from 2006 called ERS. Aloha and I will see you in the chat room which is more active than this market. ALOHA!!!

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