It was a very powerful day for the stock market today as all the indexes jumped from anywhere from 7% higher to 12% higher. The problem with today’s rally is that there are already way too many people calling this move today a bottom. Didn’t people just try to call a bottom earlier this month and were thus quickly proven wrong. And what about the “bottom” in September, or July, or the one in March where EVERYONE was “for sure.” Well if you have learned anything from these very unwise individuals it does not pay to get bullish so quickly after a 40%-plus downtrend. Instead this is simply day one of a new rally attempt and we must see what happens by day four through day ten to determine if this is going to last more than a week or not. What I will be looking for, but doubt it will lead to anything, is for the market to be up 2% or more on higher volume than the day before with volume above average. If that happens THEN I START to look for stocks to buy now. Right now I have only five longs and only one long makes up a significant portion of my longs (LPHI). Since I go with the trend that is a clear tell that stock charts do not look good and are not setup to make investors a lot of money. Study my ‘Past Big Winners’ from 1999 to 2008. Study how many stocks I was long and which stocks I was HEAVILY long from 1999 to 2008. I think you will quickly see that I am holding the LOWEST (3 stocks not too long ago) amount of stocks that I have ever had since I started investing in 1996 with my dad’s AG Edwards account. Most Gold, Platinum, and I hope Silver and Free members (by looking at the ‘Past Big Winners’) know what stocks should look like for a market rally to work. If you have seen the charts, or way better yet, have seen the videos, then you know that what we have now is NOTHING like we had back in late 2002 to 2003. And in 1999 EVERYONE and their grandmother know how beautiful internet stocks were. Too bad nobody kept the money they made because they didn’t know how to sell. If they would know how to take money off the table, for instance like in DMND today, they would have joined me with some great wealth thanks to many massively accumulated stocks thanks to the Y2K fear that was completely overblown. Thanks media. Maybe under Barack Obama the extremely biased massively disturbing left-wing media machine can produce another bubble for this “greedy American” to say that he Presided under. Bubbles are never good but the money that can be made in them sure is. Since the market definitely does not look like the bottom in 2002 there simply is nothing that must be bought and loaded up. However, there is one new long that is an old winner (purchased 5/12/08 and sold some with a 40% gain on 8/14) but has started to setup in a bigger base. Even though there is a V-shaped move in September, the overall shape from the top in August is round (best seen on weekly). The volume was very strong as the stock moved higher from January to August (33 to 55 funds past four quarters), then the volume dried up as the stock based from August to now, and today’s bounce off the 50 day moving average confirms the move on 10/21. The strong move with huge volume on 10/21 turned BOP green again and it is rising steadily to higher levels after being max green in January and July to August. This chart isn’t perfect yet as the right side is just starting but it has the potential to be a beautiful setup that could launch a powerful rally if this market moves higher for more than a few days.
new Featured long position: ISYS
ISYS is bouncing right off the 50 day moving average as it starts to build the right side of its base, on strong volume. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
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