There is not a whole lot I have to add to my original thoughts about the bounce. I still feel that volume was weak and that hopefully we can get a long bounce from this but until volume explodes to the upside I don’t think much is going to happen.
When I was going through the top ETFs I noticed that healthcare and banks have been doing the best along with discount stores. I don’t know about you but I like only one of those groups as terms of strength. That is the healthcare. But when it comes to financials leading it would be great if they were leading hitting new highs but instead they are bouncing from a vicious downtrend. My only hope is that is that is the bottom. But you know what I think of hope. Luckily, for us, it has not been horrible.
Since we do know healthcare is working, we do know that we can go long healthcare stocks and possibly do very well. There is a stock now up 16% for us in three days and moves like this makes a bear market easier to deal with. My problem is that the short side has not worked that well as there has personally been more pain than gain since the November to January period where our short sales did pretty well. Oh well, hopefully that will change.
I must admit I am not that happy with the charts and I have a feeling the hope, along with a horribly low VIX of 21, is good for only a bounce. I love seeing 50% of newsletter writers bearish. But with a put/call still not hitting a new 52-week high, along with a VIX no where near a new 52-week high it is hard to have confidence in a market bottom with so few charts that look good.
Study my past, look at those charts. They are so pretty and so beautiful and until 2001-2002 I was used to seeing them all the time from 1996. Now since 2003 to early 2007 I was used to seeing and using them to make great profits. Now I am just waiting for more charts to look like DGLY and PDO which we can honestly say did not last long enough. I am more used to owning MA stocks (held for over a year for a long-term cap gains) with chart patterns like PDO (when I was long for the 300% gain–biggest gains around 150%). The fact that in newer, IPO, exciting stocks this is not the case. Until it is the case, we play the game we are given. It isn’t a great game but if you give up and walk away you are only helping me get to the end.
Right when you give up my perfect charts will appear again. So the best advice I can give to you is TO NEVER GIVE UP. Continue to keep your watchlist updated with top stocks and continue to scan for perfect stocks that can return 300% in a few months and 25% in a few days and hopefully a TASR 2500% to 3000% gain in 11 months or so. They only come once to three times every 10 years so it is possibly TASR was our only one. But I never like to be too negative. i believe before 2010 we will have another huge bull market that last at least long enough to give us some big gains. But until then finding the few stocks that have given us a 17% gain in three days (or 16%, whatever) is all that we can do. Medical is where it is going to be at for now.
Keep your head high, stay positive, make sure you do something with your family to keep you happy and remind you of what is really important (I am taking my gf out tonight, for example), and remember a new bull market is always around the corner. There is also another way to make BIG MONEY in a bear market but it is rarely used. I will explain it to subscribers more tommorow. Until then great luck and I will see you shortly in the chat room.
PS: We are also almost ready to start using voice and command program that will allow you to see what I see in my charts and have me go over my charts in realtime or within the same day (like IBD with its DSA and Market Wrap). So keep an eye on us doing that shortly. Remember, this is our first year. We have a LOT of growing to do. I plan on being around a LONG TIME. No matter how long this bear market last. There will always be big winners. There were in the 1970s and there will be now. Aloha!!
