Low Volume Selloff Doesn’t Effect Big Wave Trading Members One Bit As We Know Cash Is King Here

July 28, 2008

This market is starting to really show its true colors as the action is getting down right dreary. My long scans that I use to find stocks are returning fewer than they have since 2002. This is my clear indication that we are in for some rough times. Luckily, like always, we do have a few stocks moving up that are making us some money so it isn’t all that bad. What is bad is how bad the media talks about today’s times like it is the end of the world. Somehow deep down I feel that this will lead to a mother of buying opportunities. But not just yet.

It has been a rough market for those that think every dip must be bought as we are in a market enviornment where every dip should NOT be bought. Instead every low volume rally should be sold until some real leadership and real nice charts set up. I know they will come around again. Heck you can see stocks like QLGC setting up nicely which proves there are still stocks out there that want to set up and run despite what the overall market is doing. The problem is making money in stocks like that. It is a tough time for investors of any type right now.

I am so proud of my platinum and gold subscribers right now because it is clear that they have listened to me and have gone to cash. By going to cash you protect your capital from the death that could be caused by being long a stock like MTL which Putin’s power grab has once again reeked havoc on a once shining enterprise. The fact that market action like this is the norm right now should have everyone scared to invest there money.

There are a few areas that are doing well but serioulsy the majority of stocks are in a lot of trouble and unless you have a lot of money to “play” with, there is no reason to be going out and getting long or short in this market. The trends are simply not there. It is a mixed bag of carnage. And do you know what I do when I get a mixed bag like this? I baton down the hatches, keep my trades small, and study study study my past trades and read my classic stock market books. This is what keeps me alive and ready and happy while I wait for this destruction to stop. Eventually, it will stop, and then there will be another great bull market with plenty of pretty green charts waiting to rally. When that time comes I will be there. But my question is still the same thing: Are you going to be ready when the next bull market starts? Have you studied the past big winners from 1999-2008 that I have posted on my web site? Have you studied the chart patterns (volume and price and BOP patterns) so that you can automatically recall what FMDAY, HIL, or EVOL looked like before their big move? I suggest you go over my past big winners so that when the time is right you will not miss a thing.

I am going out to see the new Will Ferrell movie tonight. It has to be more enjoyable than this market. Not only that after two weeks of utter imobility on my part due to a nasty staph infection I finally got to surf some near head high waves today at my favorite good surf spot. There are always bright spots to bad markets. The bright spot about this style is that when things are bad you have plenty of free time to do the things you want to do while saving a lot of money by not losing it in the market.

Aloha and I will see you in the chat room. Some of you have been not showing up in a while. I suggest you show up and spread the love of your knowledge to the newbies. The new guys are around a lot but my pros are chilling a bit too much. I would love to see you come in and reinforce what I have been saying to the new guys so that they do not do anything stupid in this market.

I love you all, this too shall pass. I know it will. They always do. There is always going to be another bull market. Will you be ready? I know I will.

Subscribe To Site: