Stocks sold off heavily Friday finally following-through to the downside after a previous down session. There have been a few times this month that the market looked like it wanted to breakdown hard. However, it was always followed by support from oversold laggards that remained up while C and BAC failed previous supports. However, the lack of leaders in the current rally attempt is finally giving way to a weak market and that is why I have been saying to either quickly take your gains on longs or better yet to safely stay in cash, during this past rally.
The biggest problem I have had the entire rally attempt off the November lows is that leading stocks with leading fundamentals in leading industries were not leading the market higher. Instead it was oversold laggards that have had the living life beaten out of them. The fact that these laggards led the way higher was my clue to tread carefully in this market and not get too excited about a possible rally holding any time soon.
Instead it is the shorts that have continued to hold up (err...down) while this low-volume rally went on the past few months. Well it really wasn't even a rally as the market has gone no where the past three months. Instead, while the market went nowhere, stocks broke down from nice patterns and current shorts continued to trend barely higher on low volume. This was the clearest "tell" that bears were still right, even in the short uptrend and that longs were at best "hopeful" that the rally could last longer than it appears that it is.
The only difficult part about the market right now, for me, is finding anything new to talk about that I have not already gone over thousands of times. Especially, for my subscribers. Anyone reading this that is not a subscriber is obviously only getting around 5% of what this whole website offers in regards to information. Even with this information in hand, you would have known the market topped in October of 2007, to have sold all your mutual funds by November of 2007, and to have been HEAVILY LONG CASH the entire year of 2008 if you were a new investor. I did not tell you once to buy the "bottom" of any of these false rallies and have told experienced investors to go short.
While the last year was a very mixed year between shorts working and shorts not working, the shorts that have worked have worked very well as you can see in the recent update yesterday of my current shorts. I don't expect for those shorts to be losing too many of those gains and do expect them to make more. Especially if the GDP continues to get worse. Remember, everyone, as goes the trend of a nation's GDP so goes the trend of the stock market. Don't believe me? Look it up yourself on Google. :)
The market has been very tough even for the most serious and experienced professional and the great news is that if you survived the 2008 stock market then there is no reason you should not be prepared for the 2009 market. We all know the market looks bad, the US Dollar looks good, Gold Silver and Platinum look good, and that is all you need to know.
Now when it comes to timing those buys, with my past track record, there is no way I can just give those out. However, I think it is safe to say that for everyone a little worried about their retirement funds I wouldn't hesitate to go out there and put SOME of your funds in Gold, Silver, and Platinum if you can. I know it sounds like a bandwagon play but the commodities are re-entering another uptrend and gold looks like it is ready to breakout to new highs. Along with that a lot of Gold stocks are setting up in very bullish chart patterns. When those breakout, you can be 100% sure I will not miss the next ERS up 560% in 5 1/2 months.
Please make sure to watch my videos posted the past week. You will see how I did not get suckered into the rally by the "biased" and "self-interest" filled CNBC. Remember, no matter what a guy who was down 40% tells you, using technical analysis the RIGHT way (it is a windsock, not a crystal ball) will always help you make money than BLINDLY buying based off another man's recommendation.
In this world, it is time to take control of YOUR OWN finances. 30 minutes a day with IBD for a couple of years and some training by professionals that do this for a living and have a track record of making money in bull markets and either MAKING MONEY OR SAVING MONEY in bear markets and YOU CAN AND WILL take control of YOUR OWN financial future. You NEVER EVER need to rely on someone else wants you learn how to read the market like me. So please take your time to learn. It will pay off.
Aloha!
Video 1, 2, and 3 on the general market and commodities, our longs and the longs in our scans, and our shorts and the shorts in our scans will be up by Saturday night in the Gold forums for Platinum and Gold subscribers.
Free Youtube Video:
No comments:
Post a Comment