The Recent Rally Attempt Is Dead As Three Of Four Major Stock Market Indexes Make New 52-Week Lows
November 19, 2008 | Comments Off
It was a brutal day if you were a falling knife catcher as the market took those impatient bulls who believed the lows were in out and beat them silly with a 6.5% loss on the Nasdaq, a 6.6% loss on the NYSE, and a 6.1% loss on the SP 500. The losses were made even more damaging by the fact that they hit new lows from the recent rally attempt and volume picked up giving the market a very heavy distribution day.
This distribution day adds to the pressure the market is facing as each and every day passes. The market in terms of the Nasdaq and Nasdaq 100 are now down over 51% from the October 2007 highs. These losses have been extremely damaging to the psychology of many market players and has done some major damage to individuals portfolios.
This sad news is made even more sad knowing that the market does not appear to be near a low–at least as far as the market is currently concerned. This is obvious to me via the volume that is coming across the board on the indexes.
Bullish Intraday Reversal On Higher Volume Sets Us Up For A Relief Rally
November 18, 2008 | Comments Off
I don’t know how long this rally attempt will last or if it will even last. What I do know is how to prepare for either a market that is about to rally or prepare for a market that is going to go right back to its usual downtrend before we know it.
Right now, the market is in a very long term downtrend but on the short term, after the market reset its rally attempt on Thursday, things have been looking a little better each day. On Thursday the entire market staged a bullish reversal and ended up closing higher on stronger volume. After a lower volume session on Friday followed by an even lower volume session on Monday, today came with another bullish reversal and pick up in volume.
While this is good on the short-term it still is not an “all clear” sign that the market’s downtrend is over. Instead what we have is a market that is putting in its second up day on day four of the rally attempt. This now puts the market in a situation where we can look for a follow-through day.
Stock Market Indexes Start The Week Off With A Low Volume Selloff; All Indexes Are Holding Thursday’s Lows
November 17, 2008 | Comments Off
Stocks did what they have been doing for the entire past thirteen months and that was finishing with a lower close. This weak close was made worse in that it was yet another volatile late day move. This time it was a rollover to the downside with the indexes finishing right near their lows-of-the-day.
This very weak close was very nasty to see but some consolation can be taken with the low volume that came with the selling. That lower volume was the second straight day of a lower volume pullback that has come since the reset of the rally attempt on Thursday.
On Thursday the market dipped to new lows on a few indexes that reset the previous rally attempt. However, by the close, the market reversed to a very bullish close on much higher volume. That put market players who have been watching this selling for thirteen months now in a better mood.
The pullback the past two days have made some pretty upset that the market can’t hold onto the gains. However, these people refuse to look close enough to even understand that it is on lower volume and that there is a chance that we could rally and move higher for God knows how long.
Bep Verberk
November 17, 2008 | Comments Off
Joshua,I only recently stumbled upon your site. I have read O’Neal’s book and also subscribe to the CANSLIM method. However I would like to make a suggestion. Your results are what matter, not what some dick puts in the comments to your blog entries. I think its very generous of you to share your analysis (If I were a successful speculator I highly doubt I would be so generous). Frankly I would not even respond or acknowledge these idiot remarks. Everyone has an opinion, but lets see their trading results.I often discuss with friends the direction of certain investments - some have very strong opinions - but they never seem strong enough to have any money at risk.cheers,BTW,you should try surfing in Nova Scotia in November
RMH
November 17, 2008 | Comments Off
i don’t know if you remember, but when i first signed up i mentioned my one year contract with gorilla trades; a while back he was listing a 4% gain in a short that was a “protected” financial, you know, you cannot short it. a subscriber called him out on it and admitted he did not realize it was a protected financial. i emailed and asked if he was a paper trader and he said he was. unreal.
you keep it real. you have your own skin in the game.
hey bro don’t let the turkeys bring you down your track record speaks for itself. since i got my computer back and signed back up, i have locked in about 3500 in profits from lll,spg,enb and rgld. in 3 weeks. and i am a chicken, i only short < 10k in any one position.heck, my first short after coming back made 800 overnight and paid enough to subscribe for the rest of the year.
you rock dude,
tnx, rmh
Anonymous
November 17, 2008 | Comments Off
Love and light be with you Joshua bye for now!
R. Herbert
November 17, 2008 | Comments Off
woo freakin hoo!!!!!!!!!!!!!!!!!!!!
fri 200 at open + $347.
mon 200 more at open
=19%; $1700 in two days
you rock!
i may end up not having to work again.
since i got my computer back and re-subscribed, i am up $5000 in 5 weeks
and remember, i am chicken little with shorts, i only put on $10k in any position and i don’t hold the shorts for long.
i would rather pocket 15-25% than hold out for the big 75% you do.
soon brudda, soon
SteveO
November 17, 2008 | Comments Off
I only trade on your picks, so I’m definitely not looking to go long (except CFFN, CNQR, OSIR) and doing quite well on your shorts (AAPL, RIG, GGB, RIMM). I understand you are very passionate at this and when a question like this comes in, it’s disappointing for you, but trust me, even your rants are great learning opportunities. I should have known better to not ask seeing how the chart wasn’t up to par, but I was looking to see if this could potentially be one to watch at this time (and not looking for buying advice).
Anyway, I love the site and the videos and I’m glad to be helping out (while learning a lot).
RMH
November 17, 2008 | Comments Off
Very nice! it was a battle to get the short,went through this morning cuz mon i used a limit order. any way, $752.00 profit in one day with 100 shrs. about 10:00 i was tempted to double up to 200; oh well shoulda woulda coulda.covered in the after mkt cuz i was gone before the close, missed $200.also put on 100 LLL @91.3; again used limits on monday.
hey how bout that jim cramer touting bob steele and wb and 3 weeks later putting him on the wall of shame. i emailed cramer that he should be on his wall of shame. he really is the worst stock pickr on the planet. i almost want to subscribe to “leonard the monkey”.
to sum it up, in one trade in eight hours, i made enough to pay for the whole year! kudoes, josh.
tnx, rmh
Robert
November 17, 2008 | Comments Off
I cannot believe you are so willing to teach your subscribers to do what you do.
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