We will see how this plays out but I have to tell you something it is pretty hard to have an up 11% day and yet have more UGLY charts than we had on Friday. But today did it. That was easily evidenced by my long scans which had almost the identical stocks in it as on Friday. Too bad the stocks, after today, look worse via BOP going from max green to yellow, the RS line moving lower, or the price action was just too V-ish. No matter what, something was wrong with EVERY long candidate.
Now, I am not saying these looked great on Friday. But after the Friday close I had a lot more future long candidates than I did after today’s close. Those who are a Gold or Platinum subscriber can go to the forums and watch my part two to clearly see the longs scans in action. After going over that video you will be able to clearly see what is wrong. Remember, if you think these great big winners show up much later, you are wrong. During the 2002 lows, I had more stocks with NICE and CALM chart patterns than I did at any other time of the 2000-2002 bear market. That was a hint it was almost over. When the market started to weaken after some of those gains in 2002, there were even more stocks that started to show up OR actually broke out. Pretty soon we had the March 2003 FTD and I had more BEAUTIFUL MAX GREEN BOP and heavily accumulated longs than I knew what to do with.
What made it even better was as the rally went along the amount of beautiful charts increased. That was how you knew the bottom was coming, was in, and was over. Right now we are no where near that. I have scans that find stocks basing before they breakout and go on their biggest runs. Those scans have gone BLANK! as nothing meets the criteria that I look for when going long stocks.
If you are an expert at CANSLIM and FULLY UNDERSTAND how to daytrade, then by all means go ahead and put 20% in a futures account and trade the futures on an intraday time frame. This market is going to be ugly for a while and there is no way I will EVER! force a trade. Right now, that is all anyone can do. They can go long and FORCE a trade and TRY to make money or you can wait till it is the right moment and put your money to work in a good looking long, in a bull market for a big gain. The choice is yours. I know what mine will be. I will wait.
Anyways, for anyone, and I mean anyone, thinks that this low is buyable must not understand how the big money is made. Do you think that I held those big winners in 1999-2008 via luck. No, it was all history of how the market works and part experience from being part of a rabid bull market from 1996-1999 and 2003-2007. By now, I know what a chart/stock should look like before you go long AND/or go short. That is why I scored MULTIPLE 50%+ winners on the short side the past 1-3 months and had so many 25%+ winners on the short side from November to January. On top of that with my record of all MY PERSONAL BIG WINNERS from 1999-2008 being available for free to all on the ‘Past Big Winners’ section on the longs pages, there should be no questioning why there are no longs and no shorts.
I hope that most of you, after the 40%+ haircut the market has thrown us, understand that I know how to make the big money UP AND DOWN. I will be ready when we have a new bull market. Right now, this isn’t a new bull market. It is another TYPICAL bear market bounce, for now. You don’t see +11% days in a healthy market. The fact so many on CNBC are calling for the lows should be another red flag. For a real bottom to hold, everybody has to believe nothing but new lows are coming. The fact everyone is embracing this rally on TV tells me this is not done.
Remember, for any of you “newbies” out there that are new to the market, you need to remember what I said about stocks and being safe. YOU NEVER!! go long stocks with the general stock market indexes below the 50 and 200 day moving average. Only once the indexes retake the 50/200 DMA should you even consider going long stocks. Obviously, if the general indexes are up over the 50 and 200 DMA you still need to see “hot” charts BEFORE you go long. You can never FORCE trades. If you FORCE a trade, YOU WILL FAIL IF YOU KEEP THAT UP!
Also for those that are for sure that this is the bottom, I ask you then “why do I not have any FULL COVERS out of my 25 shorts?” The fact that every short I had rallied on lower volume and the fact that they are all still below the 50/200 DMA tells me that the trend is still down. That is unless your time frame is one day…then it is up, I guess. For me, someone that holds stocks weeks to months to years, the trend is still a very nasty down.
This is the free market wrap video. Gold and Platinum subscribers can view the full version and part two on the forums. ALOHA!!:
