Thursday, September 04, 2008

The Trend Is Still Down On Most Time Frames And People Are Still Trying To Buy “Bargains”; When Will It End–At The Bottom When They Are Broke

September 3, 2008

Today was a basically nothing day as it was just another session that showed an overall weak market in play minus the DJIA which inched up 15 points. This is nothing I would get excited over with the rest of the market falling. So take the gains in the DJIA as it is which I believe was a great session by one stock named General Motors (GM).

The upside leadership remains a joke and even though the SP 500, NYSE are in clear downtrends with the 50 DMA being trailed by the 200 DMA and the Nasdaq is rolling over I am still getting a few NEWBIE investors that are not familiar with the CANSLIM strategy continue to ask me which stock I am buying. I think I have made it clear to platinum investors and I think I will make it clear here.

Unless the stocks sets up just like XSI has in June and August, there is no reason to go long any stock here. I continue to SHOW YOU and REMIND YOU that the best stocks that move up 500% to 3000% during a run that last around 12 months come in BULL MARKETS WHERE THE INDEXES PRICE IS ABOVE THE 50 DMA AND THE 50 DMA IS ABOVE THE 200 DMA. Unless the stock market where the underlying index is coming from is moving up with the moving averages lined up correctly THERE IS NO REASON TO LOAD UP ON ANY STOCK–THIS IS EVEN IF IT HAS SETUP PERFECTLY LIKE XSI. XSI trades too few shares and is too low priced of a stock with the trend being down to yell at everyone to buy it. But if you were a member of my chat room there was no question I was adding to it on 8/13 as it has been the ONLY PERFECT STOCK out there in a market full of ugly stocks. You know why? Because it is in a rising sector called Health Services-Specialized Health Services and the stock is experiencing HUGE EPS and Sales growth where the sales or eps has not been below 114% since the June 2007 quarter.

So you have a stock rallying on strong accumulation and a lot of accumulation, it builds its way from green to max green BOP, and sets up in a nice round perfect chart pattern, while not another single stock looks as good as this stock, and it has EPS 150% and higher the past four quarters with sales 114% and higher the past four quarters. This was an easy long to buy in a negative market as the max green BOP and 95% gain in a little over two months proves it. Why did so many people miss this and why are they recommending stocks down on such strong volume.

I heard a loud talking head on CNBC bought NOV, right after I saw some “smart” analyst tell viewers to buy HAL and NOV yesterday. Did you see how HAL and NOV did today? In a bear market these guys are set out to sell to you. Just like when Heebner was on CNBC telling people to buy PBR. That day I received over 5 questions asking me if I should buy PBR. I tried to sell them on an arithmetic chart how exponentially to an actual climax top it was having. I believe this was on May 20th and if my math is right I saved 5 people 36% as Heebner got the bids from the CNBC viewers to help sell into without crushing the stocks.

When a mutual fund with great returns has gone from $100 million into funds to $7 billion into funds and is now regular guest on investment shows, trust me, they are not out there telling you what stocks to buy. They are telling you what stocks to buy so that they may sell to you. That way your bid keeps the stock from falling too far too fast. If you look at UPL, NOV, HAL, ATLS, RIG, HES, and CLB and if you think you see bargains instead of dangerous stocks on the verge of a major breakdown you really need to either subscribe to this site or take the time to watch my market wrap videos on YouTube which have me going into detail on the major market indexes and why they are so negative right now compared to any time like 1999 and 2003. There is no coincidence that by now we have only had 227 stocks go up 50% this year compared to 1,266 stocks up 50% by this time in 2003. In 2003 there were 587 stocks up over 100%, so far this year there have only been 69. So why are you newbies still buying stocks. Unless it looks like my past big winners or XSI, do not buy it!!! That means there is not ONE STOCK OUT THERE you should be buying. I have screens that show me XSI before they breakout. Those screens are EMPTY right now. So watch out for going long in a downtrending market. You can really lose a lot of money and by the time the real bull market comes you will be out.

Don’t forget to watch my free market wrap videos on YouTube. I have many other videos on past big winners and how I use IBD but that is for Gold/Platinum Members only. Also the YouTube format is a shrunken version so if you want to see a larger sized version sign up for Gold or Platinum and then you get full screenshot videos.

There should be the Wednesday market wrap up by Thursday morning. If it is up earlier I will post a LINK here. ALOOOOHAAA!!

No comments: