It has been an extremely busy day in the chat room and I produced three videos tonight with the third one focusing on the best gold and silver stocks that appear to be building bottoms and making right sides of bases. The length that it took to make these three videos with all the conversation in the Gold Forums and Chat Room means that I am just going to keep this short tonight.
The market had a WONDERFUL rally today due to the huge rate cut. However, I want to remind everyone that when the Fed RAISES rates it is telling you "the economy is hot and we need to cool it down." This means usually that stocks are rising and on fire. When the Fed cut rates it usually means that they are saying "things are REALLY bad and a .25 basis point will not be enough so we need to go deeper since the data is so ugly."
Since we have eyes we can see how ugly the market has been. But the fact that after all this carnage they are still SLASHING rates is a HUGE red flag to me to be ready for more lows. This also worries me about the dollar and believe that fear is being realized via the accumulation in the UDN and the distribution in the UUP.
However, this is not saying that we can not have a santa clause rally into Christmas and the New Years. Still, you guys and girls need to remember that a rally without volume nine times out of ten leads to lower prices soon after. To have a sustainable rally you need volume. Did you all look at the volume on the indexes today? There wasn't any! Volume was below the 50 day volume average on both the NYSE and the Nasdaq.
The only bright spot that I could see in today's rally was Gold and Silver stocks. I am not listing them here but if you go to the Gold Forums you can watch video three and take a look at the 30 or so gold and silver stocks that we are watching to complete bases so that we can get heavily long a proper setup and breakout. This will take some time for those stocks to setup in the beautiful bases that led to my gains in these stocks in 2005 (ERS 550% ZEUS 90% etc...). Still at least we have some stocks that do appear to be setting up.
The other problem with this little rally. Where is the leadership? Why did so many stocks that were leading breakdown right before this move (AXYS, ISYS, DMND, etc...)? All of these questions really put question marks on all those people that are saying "the bottom is in for sure." Really? Really? You believe we can have a bottom without fear? You believe we can have a bottom without a capitulation day? You think we can have a bottom without accumulation on the rally following the "lows of the year?"
Well if you want to believe the people calling a bottom now, you do that. I remember what they said in March, July, September, October, and November. No need to believe these jokesters now. I have gains for the year. Even though I have lost a lot of my gains that I had in November, I am still crushing all the "geniuses" that have their own TV show. LOL. That is all that matters. In the long run, I will be here and they will retire. Why? They can't adapt. My charts will always work.
Speaking of charts: Can TCNet please get OTCBB stocks!!!! Once again, we now have the old OTCBB data on AIPC and it clearly shows a breakout in June with huge volume and max green BOP that EVERYONE in our Platinum Chat Room noticed. If we would have taken that as a long we would have had a 124% gain now from the first buy and a 98% gain from our second buy by now. I think TCNet's BOP works best with small caps and that is all that exist in the OTCBB arena. If I could use TC's charts with those cheap POS stocks, I would have no problem taking 100% to 1000% gains in scam stocks with nice chart patterns. I think we should all flood TCNet asking for them to add OTCBB and Pink Sheet stocks to their NYSE, Nasdaq, and AMEX listed securities. I mean let's be honest...are any of these exchanges not crooked or scammy? I think not.
Stock Market Wrap Up Video 1 (general market), 2 (longs and shorts in the scans), and 3 (gold and silver stocks, futures, and sectors) is available in full size on the Gold Forums. Free YouTube Video 1 small version is available below:
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