McCain's Secret Weapon?

Dr. Duru Is Into Solars

Good to have another one jumping on board behind us...

"On July 13, 2008, I worried that skepticism in the high price of oil, as demonstrated by the surge in short interest in USO, would translate into a further sell-off for solar stocks. While oil topped at that time, solar stocks experienced a resurgence. Earnings news and major contract news provided the latest catalysts even as shorts increased bets in many solar stocks. Almost all the major solar stocks that I follow on the American stock exchanges are trading at prices above their mid-July levels. Five solar stocks are even trading more than 25% above those levels. It seems that solar stocks have broken their dependence on oil, at least for now. The table below demonstrates the action since oil last peaked on July 11, 2008:...." [click to read more...]


buy this stock

buy this stock



Do you trade dangerously?

Ouch!

Eureka!

The Beanieville System manuscript is ready to ship this coming week. Find out how strong a foundation and what time-tested principle The Beanieville System was build upon. You will be awakened with a new enthusiasm for the stock market like never before. I don't think Jim Cramer himself can get you this excited.

I'm sure it will get you very excited about the stock market like never before. No Cramer hype. Real reasons presented on why you should get in and get involved with the stock market.



The prices are on the left sidebar.


$29.98 - preface/intro

$849 - full version (same price as 2 months at Waxie's chatroom!)

Mutual Fund Stats

"Out of almost 2,100 diversified retail U.S. stock mutual funds that are open to new investors, just 17 have positive returns for both the past 12 months and year-to-date, according to investment researcher Morningstar Inc...."

[click here to read more...]

- courtesy of The Big Picture

Trading with a Masterplan

I'm now done with Chapter 5 of the manuscript. I've cancelled plans for this weekend and want to spend all my time to try to finish the manuscript. My goal is to finish chapter 9 by next tuesday. I try not to put in unnecessary fillers into the manuscript. You are getting it straight to the point, concise and sweet. The full manuscript could be 9 chapters long, or it could be 12. Not sure yet. So i could announce, "Eureka!" on tuesday morning, and as promised i will raise the price and remove the 10% discount offer. The sample will probably go for $30 instead of $20. This is just the heads up on where i am right now, so you don't go,"Wtf!", come next Tuesday. Reserve yours now if you know you will eventually end up getting the manuscript because you want to know what I know and you want to know my masterplan.

"Beating the "Sage of Omaha" Warren Buffett's returns will no longer be an elusive and un-accomplishable task, because now you have access to the "missing manuscript" that will take your trading and investing to the next level. Improving your long term stock market returns is easier than you think, if you would only look at the stock market from a very simple and logical perspective.

Every investor/trader wants to emulate or beat Warren Buffet's awesome 23% forty-years average compound annual returns. Many have tried and nobody has been able to do it yet. Don't get fooled by that 23% return. This is compounding 23% upon compounding 23% for at least 40 years. That means running $10,000 into more than $50 million within the span of those 40 years. If you don't think you'll ever be able to do it, then why are you trading and not invested in BRKA or BRKB?...."

[click here for more..]

Market Ready to Fly Next Week?

Where's your stock going?

Wha..??? No stock picks?!

I've deliberately decided not to make much recommendations this week due to the low volume and the coming Labor Day weekend. This week probably doesn't mean much of anything at all. The big boys won't be back until next week.

For all those traders who like to gamble on "sexy" stocks on earnings:

Beautiful Day!!

buy these stocks: 1;2;3;4;5;6;7;8;9;10;11;12

Original and Powerful

The Bears Come One-by-One

Trap Set For The Bears?

Folks, we gonna go higher tomorrow, possibly massively higher.

There are way too many contrarian signals showing up now.

0) We are short term oversold.

1) Bear blogs back in style, popping up like chiapets.

2) Some bull blogs are shuttin down.

3) Our bastid uncle and auntie are up huge lately, even when the market is down. This, i think, is very significant.

4) The 4th year of the Presidential Cycle is typically a big rally into year end. It could be argued that this administration may be the most manipulative one we have in all of American history. If they want an year end rally, they can certainly make that happen.

5) Lots of bulls have become bears. Probably just about anyone who is ever gonna be a bear, has already become one.

6) Timmay Bear, and other bears of course, just loaded up on (109?) short positions, on LOW VOLUME dipping days. This is a bear trap. Classic contrarian signal?

7) Housing may have finally bottomed, as indicated by the numbers.



#0, #3, #6 supports short term rise, and the rest supports a year end rally. Put in the symbol QQQQ to find out where it's going.


What the bears have been doing to us:

SPX 1260

A break of this will cause a bear stampede. You already know this, so be prepared to play defensive. Where is SPX going?

buy these stocks: 1;2;3;4;5;6;7;8;9

Don't Trade Stocks Drunk

Don't short SPWR. It will burn you.

SPWR closed @ 96.5

With a recent announcement of a mega contract with PG&E, this stock is set to "flame-on". It will definitely be one of the hottest, if not the hottest, solar stock we gonna see in the next solar run. Once it takes out resistance at 100, next stop is the old high of 164.

SPWR could be the next Cisco.


GamePlan

buy these stocks: 1;2;3;4;5;6;7

Solarfun is fun.

Just got an email spam from louie.

His people are buying SOLF.

Earnings is next Wed and likely they will beat. Chart doesn't look overbought. Could see 29 after earnings.

Short Finerman and all solar bears.

The "Missing" Manuscript To Your Trading/Investing

Secretly or openly, every investor/trader wants to emulate or beat Warren Buffet's awesome 23% forty-years average compound annual returns. Many have tried and nobody has been able to do it yet. Don't get fooled by that 23% return. This is compounding 23% upon compounding 23% for at least 40 years. That means running $10,000 into more than $50 million within the span of those 40 years. If you don't think you'll ever be able to do it, then why are you trading and not invested in BRKA or BRKB?

What if you tried? What if you're going for the long term? Do you have a master gameplan? What trading vehicle would you use?

Can you do this with penny stocks all the way? If you were to try this route, can you imagine over $1 million dollars worth of penny stocks you'll be holding and trading?

Are you gonna do it with stock options all the way? A million dollars worth of stock options? Is that the way?

How about futures or the forex? How about small caps, midcaps, or large cap stocks?

Have you thought about how you gonna get there? Or, are you just trading aimlessly day by day to see what you can get, without any gameplan?

I don't trade without a master game plan. If you don't have a game plan, it's almost certain you will lose money over the long run. It took me years to formulate this master game plan I call the Beanieville System. Don't get confused that a game plan is some get-rich scheme. This is not a get-rich scheme where you go to sleep for a few months and wake up a multimillionaire. The Beanieville System is a simple and logical long term approach to the stock market, and, in my mind, gives you the best chance, of anything I've seen out there in all my years of trading and investing, at beating Warren Buffett.

If you're a losing trader, a confused trader, a profitable but confused trader, a good profitable trader who are envious of good investors, or just about anyone who wants to trade for a living, then you might want to reserve the manuscript.

The Covestor Revolution

Since this week is such a low volume week, we gotta take it with a grain of salt. I want to take a little bit of time to just talk a little bit about Covestor. I think it is the future of where we're headed. It's about transparency and your (audited) results there speaks louder than anything that could come out of your mouth. Some people there, because of their impressive audited trading results, will end up making a big name for themselves. When you produce results, it will add more weight to what you say regarding trading and the stock market. Every blog owner should join, and all blog owners will eventually need to join. Why? Because if you don't, it could mean even if you have the best charts and recommendations on your blog, you yourself may actually be a losing trader. If you can't even trade yourself above water, what does it mean to all your followers? That's not to say you must be in the green at all times when you're at Covestor, because the stock market is really a long term game and long term results is what really matters. Covestor is only one year old, so the hot hands you see today at the top of the list may not be as hot when the results get tabulated for, say, 5 years. Still, it makes sense to let your audience know how you're doing generally.

Covestor does have some issues, however, that probably needs to be addressed. One major one I find is that it doesn't consider cash at hand in their calculations. So if you make one trade on one stock only, for instance, with 10% of your money, Covestor sees it as though you put in 100% of your money. This gives successful penny stock players somewhat of an unfair advantage in the rankings, if anyone cares about rankings at all. In real world situations, a trader can put in 100% of his money into something like GOOG (actually, that is quite typical if you're trading GOOG), but rarely does anyone put 100% of their trading account in one (or even two or three) penny stocks. Yet, this is how Covestor makes the calculations. The nature of penny stocks is that they move much more percentage-wise than bigger stocks. This is the reason many of the good penny stock players are way up in the rankings, with massive annualized returns. I'm sure Covestor is on its way of making changes to this by considering cash positions.

Despite some issues, sites like Covestor.com will keep on growing, because in this industry transparency is a good thing.

What do you think? Are you in?

3 in One

This post is by guest blogger Ino.com:


It sure is good to be back. This past weekend I returned from vacation in France with my wife where we were cruising the canals just outside of Strasbourg. It was a great deal of fun.

I have to say, every trader needs and deserves a break away from the markets. Normally the August markets are fairly quiet, so it seemed like a good time to get away. Boy... was I wrong. Not wrong on the markets, but wrong on the markets being quiet.

click here

Arriving back in the States having not seen a newspaper for two weeks and with limited access to internet, I was surprised to see some of the moves in the major markets. I was also happy to see the price of crude oil!!

I have known for a long time that news is not the important driver of price action. Most new traders believe they needed to be glued to the news every second of the day, frightened they will miss some news headline.

Here's a little secret... the most important element in the market is not the news, it is the market action itself. Everything else is secondary. In my new video I explain exactly how we look at the market and how you can benefit from looking at the market the same way.

The new video is only four minutes long and I think you'll find it fresh, timeless and interesting.

The simplicity speaks for itself.
click here

Enjoy the video,

Adam Hewison
President, INO

AMED

This post is by our guest blogger 'fortune8':


Looks like beanie is late to the party again.

AMED chart

AMED chart

My trading buy was a little premature. However, I did managed to pick up some for my daughter's account on a longer term basis.

Watch for any rise in OBV which signals buying. Watch for support as well. One of us will be wrong, preferably beanie.

Nasdaq

Do you see in the chart how the Nasdaq cannot make it over 3% of the 200sma?

IWM

This ETF is a somewhat stronger. Notic the beginning of the down turn in the price and OBV.

The infamous quote, "This time it is different." That's the sign of trouble brewing if you ask me.

Stocklemon (aka Citron) slaps AMED

AMED closed @ 55.2

Lots of traders are shorting this one after Citron stabbed them several days ago. Citron has an impeccable record of killing stocks/companies. Once you're on their list, you're like the Untouchables. Most investors will bail you, leaving the sharks to short the hell of you until you implode. Once it cracks $50, say hi to $40 and then $30.

So AMED can be used as an excellent hedge to some of your longer term positions. No hope left for AMED?


Are you a losing trader? Then you might want to reserve the manuscript before it gets done.

Short AAPL

AAPL closed @ 175.7

I just check the DIA, SPY, and the QQQQ, and it looks like we're gonna have a down day tomorrow more likely than not. AAPL looks short term toppy.



Short for daytrade, and if it goes your way you can turn it into a swingtrade. Where is AAPL trending?


buy this stock

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Watch the Waterfall

Another Scary Chart

I posted 'One Scary Chart' (basically a crash chart) not very long ago, but the Elliott Wave people wanted me to pull it out because I "didn't ask for permission to post it" even though I gave credit to Elliott Wave, so I've since removed it.

Today I found another Scary Chart, this time by the evil speculator. Worth taking a look, and explains why we (as bulls) are not really out of the woods yet:

The Beanieville System

I have started on writing a "manuscript" of the "Beanieville System" this month. I don't know how long (or short) it will eventually be, nor do I know when I'll be done with the writing. Writing is not one of my favorite things to do, much less writing a manuscript. I'm going to take it one week at a time.

If you like, you can get the short "Preface" and "Introduction" of my manuscript sent to your email for $19.99. Paypal me at beanieville@gmail.com if interested. (Paypal button is on the left sidebar). Upon the completion of the manuscript, those on my mailing list of having paid the $19.99 for the 'Preface and Introduction' will get FIRST PRIORITY to the hardcopy of the completed manuscript along with 10% off the total cost of the manuscript (which I am tentatively setting at around $500 for those on the first email list). Those on the first email list are guaranteed to receive the full manuscript (if and when completed) in hardcopy form for no higher than $500. After that, the cost of the manuscript could go up to as much as $5,000 or higher. The total cost of the manuscript will also include (emailed) questions you may have regarding the Beanieville System (although my system is simple enough that you may not have any questions) or further help you may want in improving your trading (which I don't think you'll need if you visit my blog regularly). Once you've paid for the system, I want to make sure you succeed and I'll try to help you out anyway I can.

The above is the best offer I can give to anyone interested. I've given pretty much everything else for free (the daily stock picks, daytrades throughout the day, long term picks, market insights, etc). The Beanieville System is the only thing I will NOT give out for free. I know it can help you improve your long term results, but I just can't give that out freely.

Sign up and reserve your copy today, if you find you need help making money in stocks. The more people sign up, the more incentive I have to get the manuscript finished as fast as I can, even though babysitting my daughter and daytrading full time and blogging already takes the bulk of my day.

I'm almost certain that the manuscript will go up in price once it's ready to ship. (How about to $1000 or higher?). I think 19.99 is probably the best insurance you can get right now, to put a capping price on the manuscript for yourself, should you decide one day you might want to purchase it. I think it will be money very well spent.

I'm not here to sell you something made up from thin air that I personally don't live and breathe it, or something borrowed from other sources. As far as I'm concerned, the Beanieville System is an entirely original idea of mine, that makes me more and more excited about the stock market everyday.

All the best,
Beanie


--------------------------------
The following is the first two paragraph of the manuscript:

PREFACE:


As you know, the advent of the Internet changed everything. For one, the explosive growth of the internet worldwide allowed many small businesses to make a name for themselves and to make big money online, whereas it would have been impossible or prohibitively expensive otherwise. The Internet also spawned a new breed of day traders, swing traders and investors who want to extract money from the stock market, either as a part-time affair or as a full-time income generating business. These are indeed very exciting times for those who want to make money in the stock market. These are times made for you and me!


I am excited and thankful of what the Age of the Internet has given me and many others like me. Without it, I would have never embarked onto the journey of becoming a trader and investor. It would not have been possible for anyone who started on a shoestring account. There would be no real time information to trade on, and broker fees would be prohibitively expensive. I am lucky to be able to do the thing I most enjoy doing - to trade stocks for a living. I love it more than any other endeavor I've encounter in my life. This is my calling. This is my life.
----------------------------------


Table Of Contents:

Preface
Introduction
*Can You Beat Warren Buffett?


(to be continued...)

Linda Raschke Is One Smart Gal

Dear Beanieville readers...

I have not had the pleasure of meeting as many professional traders as Adam Hewison from Ino has. The good thing is that with the free version of INO TV, you can meet four of the world's top traders and have a front row seat to their seminars for free.

As a regular user of our INO TV service, I am a huge fan of professional trader, Linda Raschke. Honestly, I don't know why I put her in a class of her own among the other many amazing seminar authors.

It could be that she has had continued success in the trading arena for over two decades. It it could be that I am drawn to her superior presentation skills. It could also be that she is a great role model for young women pursuing a career in finance and/or business.

Ok, ok... I wont play the gender card. I am completely aware that over 91% of you individual traders are men. However, no matter what gender you may be you can recognize Linda's trading intellect and appreciate the tips and strategies in her seminar that we present in the complimentary version of INO TV.

"Classic Indicators - Back to the Future"

Besides lecturing to thousands of individual traders in over 18 countries, Linda is a principal trader for several hedge funds and is president of LBR Group, Inc. She was profiled in Jack Schwager's book, "The New Market Wizards," and frequently is featured trader in numerous financial publications and on national radio/television
programs. Currently she is the vice president of the American Association of Professional Technical Analysts.

Self-directed traders have spent big bucks to learn from Linda, but we are offering one of her lectures for absolutely no cost.

She is one of my INO TV personal favorite trading experts and I hope you will become fond of her as well.

Watch her seminar, "Classic Indicators - Back to the Future" today at no cost on INO TV.

click here

Enjoy Linda's Seminar,
Ino.com


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SPWR: The Rising Sun

SPWRA closed @ 78.5 (but gapping $6 afterhours on great news)

SPWRA announced that they and OptiSolar just signed a monumental contract with PG&E, to build a total of 800 megawatts solar plants, enough to supply over 240,000 homes annually. That is magnificent for the industry. If solars are not viable as the bears claim, why is PG&E buying power from SPWR and OptiSolar (a Silicon Valley startup) and buying so much of it?

Get ready for the mega bull market in solars! Can it be? Where is SPWRA trending?

buy this stock

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Are you ready to get long RIMM?

RIMM closed @ 126.9

Ok, the stock formed a long legged doji pattern. That indicates indecision between the bulls and bears, and since that was formed from a recent downtrend, this could indicate a reversal move coming up.

So look for the stock to turn green before entry, for a day or swing trade. You start with a daytrade and if it works well you can turn it into a swing trade. (The previous pick for a RIMM short on Wednesday worked out well for us daytraders.)

Note that Thursdays tend to be down days but since we were down on Wednesday, Thursday could just be a sideways to small down day. We'll see.


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Inspiration

Steve Jobs: 2005 Stanford Commencement Speech

Short RIMM

RIMM closed @ 128.2

Looks like the short term top is in. Should come in lower tomorrow. Short it for a quick trade. A gap up tomorrow would make a very nice entry. Where is it likely headed?

Day/swing trade. The stock has been rallying pretty hard the last four weeks after the July 15 low. It needs a breather. Most of the gap is filled.

buy these stocks: 1;2;3;4;5;6;7;8;9;10;11;12;13;14;15;16;17;18


The next Google? Read all about it

Read the blog that I read. Register for all the latest Trader's Blog postings Today. Click Here

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Mental/emotional toughness software training for the trader.

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Wear Your PennyStocking?

If there is one thing related to trading risk that I've learn throughout the years, it is that buying options and buying penny stocks is a fool's game. Yet, many traders for whatever reason are drawn to the game that only the insiders and manipulators win. The only good thing about options is that they can be used as a hedge to your long or short stock positions during very volatile and dangerous times. There is hardly anything good about buying penny stocks, which are for dreamers. Surprisingly, only one kid from Tulane University has figured this out: The way to play penny stocks is by shorting them! You don't buy trash from the penny universe, you sell/short trash. Makes very good sense, yet still more people buy penny stocks than shorting them. If you absolutely must play penny stocks, shorting is the more profitable way to go.

This following post is from our guest blogger Timothy Sykes:

"Think Penny Stocks are too risky to touch? Wait until you hear how I turned $12,415 into $2 million all within a few years by trading thousands upon thousands of these tiny companies without using any leverage. And I’m not even that good of a trader–I’ve always been too greedy and undisciplined for my own good. Imagine knowing exactly what to do, but never having the patience to wait for all the right variables to align. It’s maddening–I’ve made millions, but I’ve also left many millions more on the table.

It was almost inevitable that constant lack of discipline would catch up to me as I lost 1/3 of my assets on one stock that stubbornly held onto for 2 years. Wait, I’m publicly admitting to a huge loss? Yes, that’s right, as you’ll soon discover, I hold nothing back. I’m tired of all the BullShip marketing programs out there that have given Penny Stocks such a bad reputation. I bring up these losses to show you that I’ve experienced both the ups AND downs of Penny Stocks and that’s why I believe I’m uniquely qualified to show you ALL the risks and rewards associated with this market. Don’t trade or invest in another Penny Stock until you watch this DVD, I can help you avoid the many pitfalls I’ve encountered over the past 9 years.

I won’t lie to you, Penny Stocks are risky. But, everything in the stock market is risky–no matter what scumbags brokers say–and if you’re looking for a little risk that could yield huge rewards, read on…

No other instructional DVD is so raw and honest because few people have the guts to bare it all. No other Wall Streeter is willing to detail all their greatest successes and failures to help people learn and that’s sad. Thanks to the success of my TV show and the many, many spiteful comments written about me, I can take it all because I really have nothing to hide.

I hope to usher in a new age in the finance world, one that is filled with total transparency and learning. Big dreams, but I think it’s possible. While my losses have been very painful, they’ve also taught me more about Penny Stocks than my gains ever did. If I had made this DVD before I had suffered any losses, it wouldn’t be very helpful–it would probly be dangerous for you. Only now, through my firsthand experiences, do I truly understand that the key to success is controlling your losses to prevent ANY chance of ever having to take a large loss. Sounds pretty obvious, right? Trust me, it’s not as easy in real life. But, for all my mistakes, and there have been many, I’m still worth over $500,000 so I can still trade my beloved Penny Stocks and that’s what counts. and considering 90-95% of all trader lose, I’m doing alright. Check out my DVD."



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The Recovery Is Here!!!

Gosh, i don't know how else to say it, but AT WORST we got one more quick down leg and that would be the end of the bear market. Friday's move was, imo, extremely significant. It was a move that nobody expected, except those who saw the manipulation the last hour of thursday to set up the rally on friday. The last couple of fridays have been flat to down, but last friday was surreal. Something was different about it. Last week was the smart money getting in the market because they are seeing a recovery around the corner. Remember that stock prices are forward looking; they usually project about 4-9 months (average is 6 months) into the future. That is where the big boys are seeing the recovery. That makes sense if they're buying now, and there are signs they are buying now. You see, the average recession lasts about 16 months. As of right now, by some estimations we are 10 months into the recession. So that means we may very well be out of the recession in another 6 months, for a total of 16 months. But the smart money doesn't buy when it is obvious the economy is better. They usually buy 6 months or so BEFORE we actually get out of the recession. That's why they're called the "smart money". Which means, they are buying about RIGHT NOW.

The Fed has already done their job by aggressively lowering interest rates. And the dollar appears to be on a turnaround, as in, the dollar has already absolutely bottomed. The reason I say we could, at worst, get one more quicky leg down is because historically after the dollar has bottomed and begin it's reversal to a bull market, the market tend to go for one more quick leg down to new lows and then that would be the end of it and the market finally recovers. The thing is, maybe that last leg down may have been in July!

We Are Done With The Bear Market! Start nibbling into stocks!


Get a trend analysis now.


Get a free look at Jim Cramer's Action Alerts PLUS portfolio. Click here


buy these stocks: 1;2;3;4;5;6;7;8;9

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2008 Olympics Opening Ceremony

This Pic Borrowed From The Mao

Miss World

Pics Of 2008 Olympics

The Recovery Is Here!!!

Gosh, i don't know how else to say it, but AT WORST we got one more quick down leg and that would be the end of the bear market. Friday's move was, imo, extremely significant. It was a move that nobody expected, except those who saw the manipulation the last hour of thursday to set up the rally on friday. The last couple of fridays have been flat to down, but last friday was surreal. Something was different about it. Last week was the smart money getting in the market because they are seeing a recovery around the corner. Remember that stock prices are forward looking; they usually project about 4-9 months (average is 6 months) into the future. That is where the big boys are seeing the recovery. That makes sense if they're buying now, and there are signs they are buying now. You see, the average recession lasts about 16 months. As of right now, by some estimations we are 10 months into the recession. So that means we may very well be out of the recession in another 6 months, for a total of 16 months. But the smart money doesn't buy when it is obvious the economy is better. They usually buy 6 months or so BEFORE we actually get out of the recession. That's why they're called the "smart money". Which means, they are buying about RIGHT NOW.

The Fed has already done their job by aggressively lowering interest rates. And the dollar appears to be on a turnaround, as in, the dollar has already absolutely bottomed. The reason I say we could, at worst, get one more quicky leg down is because historically after the dollar has bottomed and begin it's reversal to a bull market, the market tend to go for one more quick leg down to new lows and then that would be the end of it and the market finally recovers. The thing is, maybe that last leg down may have been in July!

We Are Done With The Bear Market! Start nibbling into stocks!

Get a trend analysis now.

buy these stocks: 1;2;3;4;5;6;7;8;9

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Simple Is Simply Better

Click below:






-- Article written by Ino



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Market Enlightenment

This is a guest post by "Winace" of Channellines


"Welcome everyone! Hopefully here, at Channellines, I will be able to offer you some enlightenment regarding the markets and the practices of their participants.

The average trader or investor blindly wades into the depths of the markets and typically gets slaughtered by those professionals that have been playing this game all their life. That is the way the markets need to be viewed, as a game, played by the all powerful entities that be. When you have amassed more wealth than you possibly require, what is next on the agenda? For many, it is the quest and greed of power. Do you believe these multi-million and multi-billionaires study news releases day in and day out? Or better yet, slave over charts to determine their financial success? Not hardly. The markets are a game of numbers, a numerical game that can only be beneficial to the all powerful and extremely savvy investor/trader. The most interesting point of the whole game is that the profitable players are just along for the ride, they provide what the markets need, not what the market players (sheep) want. From this point forward, I will refer to the larger flock of traders/investors as sheep, the larger money players and entities that support the market will be the wolves. Let's begin with a few basic principals, first the terminology of overbought/oversold. If the markets are oversold, are the wolves overbought? These terms are only relative to the context of the user. In some instances, yes, the wolves are overbought. Every market transaction requires an opposing counter transaction. If the sheep are shortselling the market, investors are selling, and everyone wants a piece of that action, who is buying these issues? The wolves. What are the wolves gonna do with it? Turn right around and screw you with it. This game is stacked against the average man by some extremely powerful entities, the markets need to move in two directions to allow these players to be profitable. If that counter trend does not develop, low and behold, it is there. This is the nature of the beast. So, keeping this in mind, I started doing some experimentation. Do you realize, with an unlimited amount of capital, you would NEVER lose a trade? This is accomplished by the art of "averaging down". If you have the capital to absorb the total market depth, you never lose. Take a look at the graph below:..................."

(continue looking at the charts, which doesn't fit onto this page, and reading more at Channelline Lessons)



buy these stocks: 1;2;3;4;5;6;7;8;9

Psychology of The Bottom

I just came across this post this morning and thought I'd pass it along to you:


"As bull markets roar to a top, it is relatively easy to see the emotional or psychological signs of an impending top. Virtually every source of news will provide coverage of the seemingly endless climb towards higher levels. Greed infests the public as the inexperienced flock to get a piece of the action. Finally, when it is “impossible” for a market to decline and everyone who wants to buy is in, the top will be struck. Buyers become sellers and a downmove ensues.

To an extent, the same sort of pattern unfolds at major bottoms. However, since the events surrounding the decline are not as exciting or newsworthy as those in a bull market, the signs are harder to see. Instead of greed permeating the atmosphere, fear becomes the emotion of significance. As the news becomes per- ceived as increasingly bearish, traders who had been bullish give up. The emotional stress of margin calls and “bad” news finally forces long liquidation.

Despair, disgust and disillusionment abound among the public traders. Producers resign themselves to selling their production near current levels and, in fact, often sell future production as well. They become convinced the market is destined to move even lower. As the bearish attitude spreads, an important sign of a nearing bottom is declining open interest. This is especially true if this long liquidation of futures positions drops the open interest below recent low levels. In markets where individuals are the original holders of production, an additional sign is liquidation of cash positions.

Traders and marketers take any rally as a “gift” to sell on. Bullish fundamental conditions which may exist are discounted as the memory of the persistent downtrend remains entrenched. As a market starts up from the lows, the rallies are viewed with suspicion. Even the few who remained bullish don’t trust the rebounds and often take advantage of early rallies to liquidate long positions. Setbacks from the early rallies are often sold as the participants don’t want to miss the next washout to new lows. And, if enough gain this attitude, the break will not continue and traders then have to wonder why the markets won’t go down on “bad” news. Eventually, their short covering triggers additional gains.

A final important component of an approaching bottom is the inability of a market to sustain a downmove on bearish news. The most common form of this action is seen when government reports are released. The bulls no longer rationalize a bearish report into a bullish one. Instead, the bulls resign themselves to additional declines. Bears move towards overconfidence and start selling the breaks as well as the rallies. Bearish reports often trigger downmovement, initially, but then additional declines fail to materialize. Moves to new lows are rejected as everyone who wants to be short already is and the longs have been liquidated, thereby leaving the markets with no one to initiate new selling. And, as at the top, but in reversed roles, the sellers become buyers.

--- Article written by Ino "


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Death Of The Bear?

I know some of you are very bearish and remain steadfastly so, but you gotta play what you see in the charts and the charts mostly indicate bullish point and figures right now.

IWM, DJIA, NASD , RUT are positive, while the SPX still points down.

If we turn down again, you'll see it in the charts.

I still think we're in a bottoming process and that the july low may well be the ultimate low. I may end up looking like a fool later if we make a new low but I think so much of the bad news is already built into the stock market.

I personally think that Bernanke and Company have done an excellent job with the monetary policy, and our government had done a great job in eliminating panic and protecting our financial system by aggressively keeping the Financial Armageddon Bears at bay.

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Is V the next Google?

V closed @ 71.4

When you get your monthly bank statements, do you notice that it seems bulkier than in the past? Yeah, it's due to the Visa "check card" transactions and it is making Visa rich, very rich. You see, every transaction that you make with those highly convenient checkcards, Visa gets a cut somewhere along the transaction chain. Checkcard usage is growing at a phenomenal pace. Many stores and restaurants now don't require your signature when the transaction is less than $20. This is one step much closer to a cashless society. That's where America is headed - a cashless society. We love convenience. I hardly carry cash anymore.

Visa's international growth is at an amazing pace of 35-40% over last year. It is now leaving Mastercard behind. Mastercard didn't have the "masterplan" and they ate dirt at the recent earnings announcement.

Speaking of international growth, Visa is apparently the top sponsor at the China Olympics this summer. They have essentially penetrated the Chinese market, and by all accounts it's gonna be absolutely huge.

So if you ask me who's gonna be the next GOOG, I'd have to say V! Ok, it probably won't be as big as crazy Google, but it could be the closest thing to it in the financial sector. I'm very surprise that Warren Buffet never got in on the Visa or Mastercard pre-ipo. What was he thinking?

V is a strong long term buy at all dips. Put in the symbol V to see where it's likely headed.


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Learn from This Doctor:


The next Microsoft? Read all about it


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Who Should Not Be A Trader?

I'm kinda out of trading ideas today, aside from the usual stocks I daytrade. So you're getting another long article. Was just perusing the financial blogosphere and saw this article below. Can't say I agree with everything but it's an interesting read anyhow.
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"From time to time, Dr Brett Steenbarger states that certain people should not trade. He usually states that these are people who are impaired, in some way. They have deep-seated psychological problems that problems that must be addressed first. Then, and only then, can they be coached into becoming a good trader. Now, of course, no one believes that they are the ones with those deep-seated psychological issues. So I started thinking about this question: "Who should I try to dissuade from trading?" This is the list that I came up with. It is not exhaustive. And some of my conclusions may be controversial. But nevertheless, here it is.

1. The Ill-prepared. This goes without saying. No one should commit their money to a trading career without thorough and rigorous preparation. I have been harping on this since the inception of this blog.
2. The Lazy. Like our anonymous trader who was so incensed because Woodie would not call out his entries or exits - and for free! If someone is unwilling to put in the work, then how can they really expect to reap any reward?
3. Substance Abusers. I've talked about this frequently. How alcohol and other drugs of abuse will deleteriously affect our judgment and ability to learn. That is, to modify our behaviors.
4. People with psychiatric disorders. The severely depressed or manic patient will view the market and, indeed, the world through his own distorted view. How can he objectively assess a complex market when he is nihilistic or wildly exuberant?
5. The Rigid Perfectionist. The market, no matter how good your indicator, is not amenable to rigid analysis. It is chaotic and even tempestuous. The perfectionist will demand 100% perfection in his indicator. Or worse, in his performance. Frustration at the inevitable inability to be perfect in a chaotic market will erode his self-confidence and emotional control. It will likely lead to emotional eruptions as the acute stress response arises when trades do not go as predicted.
6. The Gambler. This is kind of the opposite of The Perfectionist. The perfectionist demands predictable, reproducible results. The gambler knows that this is not the case. He throws his money into a trade and hopes to be rescued by "Lady Luck" or "The Gods of Chance." As they don't exist, his wins and losses are random events. The worst thing for a gambler is to hit a winning streak. His belief in his "luck" or his "winning system" will encourage him to rapidly escalate his "bets" and, therefore, his losses.
7. The Indecisive. This may, or may not be, a sub-category of The Perfectionist. He demands predictability, but knows that that is impossible. And so he hesitates. Or, he may be inadequately prepared, and so lacks confidence in his trading plan. Or he may have experienced a loss or series of losses and so that weighs on him. He may know that losses are a part of the game, but is unwilling to accept that fact.
8. The Under Capitalized. As noted above, losses are a part of the game. You may have an excellent indicator with an 80% win rate. But what if your first 20 trades are losers? Can you withstand the draw-down?
9. The Impulsive. I discussed this in my last series. Are you willing to wait for the proper circumstances. Are you willing to sit and wait? Can you follow your trading plan without modifying it on the fly? Can you say to yourself: "Wait. Be patient. Do the harder thing."
10. Those, who by training and education, becomes perfectionists. By this, I mean Doctors, Architects, Engineers, and, perhaps Lawyers. Many professionals are trained to go "beyond a reasonable doubt." They frequently demand absolute certainty in their decision-making. Would like an architect or engineer to design and build a skyscraper or bridge that would only be safe 55% or 65% of the time? Would you go to a doctor or trial lawyer who could accept losses; cut them short; and walk away saying: "Well, the next one will turn out better"? And yet, that is exactly what the trader must accept and do. It may thus become very difficult for these highly-trained professionals to mentally switch gears and do what, instinctively, goes contrary to their very nature.

As you can see, some of these issues are not an aspect of "trading psychology." Nor may they have anything to do with "controlling your emotions." Some of these issues may be deep-seated, characteralogic issues. They may be deeply ingrained in a person's character and psychological make-up. I doubt that any "Trader's Coach," without a thorough background and training in psychology and behavioral therapy can adequately address these issues in a few 30-minute telephone sessions.

-- Dr Bruce Hong of Traderpsychology "

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Is Options Trading Blowing Up Your Accounts?

Let's be honest with ourselves. Let me start by confessing that in ALL the years I've ever traded stock options, I have never made any money in my options account. Never positive for the year. NEVER. I consider myself a pretty good stock trader, but I get bent over every time with buying options, EVEN when I get the direction of the stock or the market correct. (If your annual options trading returns are good, then a congratulations is in order and this post is not for you.)

Any trader who purely trades options (which i vehemently do not ever recommend even to my worst enemies, unless your analysis is as good as Zee's) will by necessity have to have many many positions. It offers some diversification; not much if you're going only in one direction (i.e. puts), but better than taking only a few positions. The rest of the folks here who don't own many positions, will end up absolutely getting killed. Absolutely, if they trade purely options. No doubt in my mind. Absolutely no doubt.

In my opinion, options are so freakin stacked against you that in most cases it's like going to a casino. All my accounts that have been blown up in the past, have always been due to trading options. It wasn't even due to penny stocks! Not only is the "time-decay" working against you everyday, you also have to worry about "implied volatility", where if you buy options when the stock is volatile and then for some reason it becomes less volatile you lose money. (If you played the FSLR earnings like I did recently, then you know what I mean.)

I don't really need to write this post to explain why options are bad for your accounts, because you already know this. Be honest with yourselves, you know options trading blows up your accounts faster than you can say,"Sh*t, what happened?!"

Let me open your eyes right now right here. You CAN make serious money just by trading stocks. Often times, you make more with trading stocks than with trading options. Ok, you can make 500% on one options trade but the problem is it will only be a small position and thus won't move your portfolio that much. If it does, then you are trading too risky and a wrong move on the options trade can set the stage for blowing up your account. On the other hand, you can put a BIG part of your porfolio into a $50 stock and make more money (and being safer) than options.

You might think that you need lots of money in order to make money trading only stocks but it's simply not true. You can have $6000-$10,000 and be able to trade a $50 stock and still make money. You may end up using a little bit of margin at times, but it is not a necessity. However, you probably will end up using the bulk of your portfolio on one stock. But generally, a liquid $50 stock has quite a bit of support from the big boys, enough to keep it from massive implosions we so frequently see with smaller stocks. (Stay away from small to medium sized biotechs, though.)

I'm telling you to stay away from options trading is not because I have any jealousy against people who trade them. I am telling you this is because the odds are VERY stacked against you. Most of you will end up sorely disappointed and quit the stock market altogether, when options trading blows up your accounts time and time again.

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A Pedicure for The Stressed?

Trader's Mindset? Is that the answer?

While perusing the financial blogosphere, i came across this post:

"Its a funny thing… the information that new and struggling traders need the most, is the information they think they need the least. Its the element of learning to trade that is given the least attention, and often not at all, until its too late - until the bubble bursts, and the worst happens. But by then its often too late, the damage has been done.

What am I talking about? The Trader’s Mindset.

The trader’s mindset is the crux of why so many talented, intelligent people are unable to be successful at trading. Not because they can’t analyze the markets, not because they haven’t found a good trading system - but because the human mind and physiology is designed in such a way as to almost guarantee failure, unless we learn alternative mental and emotional strategies. Because so many traders don’t believe that mindset is important and worthy of focus — quite simply, they fail.

In the heat of the market traders need their objectivity and full faculties of perception the most. And yet at the very same time they are usually dealing with feelings of fear and stress which close down the full range of perception. Traders become quite literally blind to the possibilities. Its why traders so often make poor decisions in the moment - and in hindsight say “Why on earth did I do that?”, or “How on earth could I have missed what was staring me in the face.”

I remember reading the two bibles of trading by Mark Douglas - The Disciplined Trader, and Trading in the Zone quite early on when I began trading. These are both extraordinary books, spot on the mark, which in later years I really appreciated. But at the time it was “yeah, yeah that’s good, now what about my trading method.”

When we’re starting out, reading books, studying up on the markets, we hear the same thing again and again and again - trading is 80% mental and only 20% method. And yet paradoxically most traders ignore this sage counsel - and focus almost exclusively on method.

This is the sad story of a guy I know… a successful business professional, who after one false start at full time trading in which he lost a small fortune, vowed to get it right. He went all out to learn to trade profitably. He spent more than a year researching, back testing, and practicing a method which had a significant edge. He worked like a fiend at his day job to save money to recapitalize himself, and he studied until late at night week nights and all weekend. Finally after extensive testing, fully confident in his edge he began trading….

After three months you would have found this guy sitting on the edge of his bed crying - a grown man reduced to tears because after all that hard work, a year of careful preparation, he’d blown his account. He’d totally under-estimated the impact of his mental state and emotions on his trading. Despite being a smart guy, successful in his career, a highly effective trading method, in the heat of the market he would lose his composure and turn into an over-trading train wreck. His story isn’t unique…by a long shot.

The reason I know this particular guy’s story so well is that he is me. I went through that, and learned my lesson well. I spent and continue to spend a lot of time working on mindset, on developing more effective thinking strategies, and on finding effective ways to clear emotions.

For those of you that are struggling to reach your potential as traders and investors - despite being talented, intelligent and successful in many other regards - I say this - take your mindset seriously. Give it the greatest amount of focus in terms of training yourself for success.

Devour “Trading in the Zone” and read it over and over until your get it. Learn techniques for clearing your emotions. Be persistent - it takes time, courage and willingness to change. At the end of the day, learning to master yourself will pay you back with the success you’re looking for, whether in trading or in any other area of your life.

Safe Trading,

Mo" of Tradingadviceblog

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What would Warren Buffet say? Yes, even though he's an investor and not a trader, successful investing is just as tough as trading. Do you ever hear of Warren Buffet talk about "Investing in the Zone" or expressing techniques on how to clear your emotions before investing? Pennystocker Tim Sykes seems to be doing pretty well for himself and he's just a kid. I sure don't hear him talk must about trading emotions and mindset. Jim Cramer doesn't talk too much about emotions and trading the markets. Neither does Waxie. (Obviously, being unable to control one's emotions is bad for just about any endeavor.) I just think some people are meant to trade (which can be broken down to stocks, options, futures, forex), some are meant to invest, and some are just meant to do something else outside of the markets. But you don't know which category you belong to unless you have the sound and profitable techniques of trading and investing. Once you have that, then you really know which category you belong to, when you get to apply what you've learned. And yes, some people are just meant to stay out of the markets.... even if they have the best and most profitable techniques, they'll still fail. Jmho. What do you think?

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