Main Street Fears Lead to Wall Street Profits
May 7, 2008 | Leave a Comment
According to a new CNN poll 79% of Americans when asked ” Is the US in a recession” said yes! Main Street has given into the media constant hype about high oil prices and how BAD the US economy is. Most on Main Street form opinions not on their own situation but what they think others are. Concern for your neighbor is ok, but does it actually reflect the current environment. In these types of situations, Main Street is wrong and does not reflect the actual reality but more so perceived reality.
As Crude Oil hits another all time high, Main Street will be reminded HOW BAD the economy is and how bad the Bush adminstration is. In reality, we have not seen back to back negative GDP growth and we have even seen negative GDP growth AT ALL. Even today, we are seeing selling only on the NASDAQ with higher volume. With that said, it will only be the second day of distribution the index has seen in recent weeks. It takes 5 to 6 days worth of distribution to knock down a market.
Again, no panicing allowed! Turn off the mainstreet media, go enjoy life!
Trading Scared and with Emotions Burns Through your Capital
April 25, 2008 | Leave a Comment
In the past few days we’ve seen some nice runs in stocks and some stocks that have pulled back after gains. An example would be MTL, which we are long for those who are Big Wave Traders. Yesterday the stock was being hammered in the AM. A few members were a big frightened and had no clue what to do. Since we are not day traders it makes no sense for us to be emotional about moves intra-day. By the end of the day, MTL was down 8% but volume wasn’t overwhelming and BOP actually increased. The stock is maintaining its uptrend and has not broken down on large volume through its 50dma or 200dma. We do not panic, Jesse Livermore stated “More money is made waiting on stocks.”
This market is setting up for a big upside run. We do not want to be cutting the stocks that are making moves and rotating into laggards. Stick with your winners!
Money is Made in the Wating Game
April 12, 2008 | Leave a Comment
Stocks are clearly not ready to break to the upside, nor downside. Friday’s painful % decline was not all that bad. GE’s dismal display of earnings had many on the street shaken. Although a GIANT, GE is not a leader in this market and we should be caring about leadership not who is the biggest. GE’s volume accounted for more than 1/4 of the NYSE volume, without NYSE volume would have been pathetic let alone down.
Thursday’s action was definitely a positive sign for the permabull/goldilocks crowd, volume surged while we had price gains. However, Friday’s action is showing that this market isn’t quite ready to break up/down. Jesse Livermore always stated that more money was made by waiting rather than doing. CASH continues to be KING, throwing a large amount of dollars at this market will only get your account to shrink.
We can certainly be taking small positions, we have been here at Big Wave Trading. However, we are keeping a lot of cash on hand so we can be ready for the next big bull run.
Volume Not Following the Rally
March 12, 2008 | Leave a Comment
Volume is running lower than yesterday’s, @ 1:07pm EST pace. Ideally, accumulation will immediately begin after the first day of an attempted rally. At the moment this market is a complete bore! It would have been nice to see volume racing higher today to begin the bottoming process.
We aren’t seeing our bottom. Why? Look at some of these numbers:
New Highs (today): 46
New Lows (today): 202
VIX: 26.02
VXN: 28.80
New Highs continue to be dominated by New Lows and VIX and VXN continue to show the lack of fear at the recent lows. During market bottoms we’d see VIX and VXN race higher with New Highs crushing New Lows. We aren’t at the point yet.
Cash is King
BWT Launches BWT.net
March 12, 2008 | Leave a Comment
The admin team from BigWaveTrading.com is pleased to announce the launch of BigWaveTrading.net where Joshua Hayes and Market Speculator will be posting regular commentary on the market. Check in regularly to say updated on the market, post comments and get involved, subscribe to the RSS feed to get updates (http://www.bigwavetrading.net/feed/), and share your thoughts.
We love to hear from you. If you’d like to share feel free you thoughts on the site via the “Contact” forum at the top of the BigWaveTrading.com or BigWaveTrading.net pages.
Can’t wait to see you at http://www.bigwavetrading.net,
Your BWT Admin Team
FOMC Injects the Market with Cash
March 11, 2008 | Leave a Comment
Here we go, Helicopter Ben Bernanke floods the market with more liquidity. I can not fathom how you can inject a poor market with more cash. This will simply prolong the downtrend, not too mention the flow of liquidity will find its way into commodities.
This move today will not change the overall downtrend, we may be getting our oversold bounce today. Bear markets will produce snapbacks like what we are seeing this morning. It doesn’t matter if it is short covering or small buying interest. What matters is the overall downtrend and we can not disrespect the trend.
Market Speculator
