The Super Hot Stock Market: Bull-ying the markets one day at a time! {Stockshaker.com}

WE MOVED!

2007-02-14T09:14:00.000-08:00

Well. This time we packed up, moved, and unpacked. We are now at our main webpage,

http://www.stockshaker.com

All our previous posts, strategies, picks, rants, can all be found at this site.

Stop by the house warming party. But, bring your own booze.

The Business of Investing

2007-02-05T11:41:00.000-08:00

Successful stock market investing is very similar to developing a successful business: you create a strategy, implement, analyze, change, implement, analyze, change … and so on, until your strategy is where you want it to be.

Unfortunately, this overall system is so basic, that many people want to rush intermediate steps that often some of the key steps are often overlooked. When I started investing, I had an investing strategy, and I implemented it. Looking back, it worked quite well – for a week. After that gears started turning against me, and then the bolts fell off the wagon. I really did not know what hit me!
But to be honest, it was probably the best situation that happened to me.

Why?

Because you graduate onto the next step: Analyze. You analyze what went wrong, and you change it, while maintaining the components that worked. Most times, investors (new, and experienced ones alike) think that when their strategy doesn’t work, they should scrap it, and start all over again.

It doesn’t work this way. Why would you want to do all the work, all over again? That would be like quitting the business you are in, rather than analyzing and changing your business strategy. In the end, all you want is a system that works, and works with little maintenance. Investing is a business. People do this as a full time job. They are able to maintain it as a full time job by treating day to day operations to that of a business.

To create an investing strategy, or investing ‘business,’ you have to look at your goals, desires, and where your passion. The stock market is not just a place for getting these little stock certificates – it is a marketplace. Within this marketplace, billions of dynamic relationships being built. You have to find where you want to fit within this world, and you become good at what you do.

These next few weeks, we’ll look at developing an investing strategy, and how to build your investing ‘business’.

How to Win in a Sideway Trending Market

2007-02-01T15:24:00.000-08:00

There is a conflicting story going on in the markets. One, we have overbought conditions in the market. The technicals show it, and the chart shows a similar picture. Like a plane taking off the ground, we have seen such incredible gains in the markets from August 06 to December 06. But looking at the price action in the last month and a half, we can easily see that momentum is just not there: The markets are fighting within a sideways trend, or struggling to hold highs.

So, who is actually winning in this market?

Unless you’re a day trader, possibly no one.

That is why it is absolutely essential to stick with your original trading plan. Keep flip-flopping trading strategies to follow the flip-flopping nature of the markets will only leave you with one possible outcome: an empty account.

Earnings season is the season of greed, because the shoulda-woulda-coulda types of people come out. I know, I’ve been there:

“I’ve been watching this stock for a week, and today it’s up 25%”
Then you dump in money to follow the short term greed, only to watch consolidation the next day…

There has to be a fine balance between a tactful plan, and following emotion. You don’t want the latter, and the former will make you wealthy in the long run.

Even though things may not be shaping up in the short term, a solid plan will keep you sane during those hair-pulling times.

The best way to remain true to your plan is simple:

Write it down.

Despite trading with the same plan for a while now, I still have my strategy written down, and in front of me at all times. That way when things start looking a little illogical, one can always return back to the central focus.

Write it down.

A sideways trend will test you, emotionally, and financially. A solid plan will keep everything in perspective.

We're renovating!

2007-01-31T09:52:00.000-08:00

“Watch out that’s a foundation wall!”

Ok. We are renovating … in a big way. We started with the template, and now we are messing around with colors, pictures, fonts - seeing if things work. Updating those that don't. Right now we are sticking stuff for placement, and updating them. So if you see that ugly blue picture where a red one looks better (god, thats an awful combo), then you know it's only temporary, and we'll probably get around to photoshopping a better version in the near future.

Now if only we could find which box has our booze. Damn.

If anything looks out of whack, tell us. Otherwise you won’t be invited to the house warming party.

Where's my money?

2007-01-29T15:00:00.000-08:00

Is billion the new million? Ok. I’ll be honest. When it comes to anything involving a billion, I’m interested. Not because I want to know WHAT it is, but how to get my greasy paws on some of it. And if it doesn’t involve me, well, I really couldn’t be bothered, just because everyone seems to be tossing out billion like it’s worthless. Youtube, here’s a billion, Ford, lost a billion…

So when the market failed to perform despite some billion-dollar deals (Merrill Lynch to buy First Republic Bank for $1.8 billion, and Citigroup to buy Egg Banking for $1.13 billion) I can completely understand why: we can’t get our paws on any part of that billion dollar pie. Well, unless you owned shares of those bought-out companies.

But I didn’t.

And chances are, you didn’t either.

So. Here we are, a real snoozer of a day in the markets. Market traders hung out on the side and would probably jump back into the frying pan once the FED meeting starts up. Hopefully this will ignite some sort of movement that would propel the markets to sling out of this quite boring trading range that we’ve found ourselves in.

In the morning the markets were hovering at around 0, then midday, the Dow was touching 50-point increase, only to fall back down to close to 0 by trading close. This anticipation for a meeting almost reminds me of the anticipation for Clinton’s impeachment procedures to begin.

Well it’s Monday folks, and you know what that means. Actually, you don’t because this is my first installment of the series. Without further notice, I bring you:

Ace Marine’s Hot Stock Mondays!

I’m a big fan of horse racing, and Ace Marine is a famous Thoroughbred inducted in the Canadian Hall of Fame. How this segment works is similar to horse racing, well, kind of: I’m showcasing three charts (plus a wild card), and at the end of the week, we’ll examine which one won, and why. These charts were found from a preliminary search (short term technicals), and look poised for a bounce, based on these technicals, only – NOT based on support/resistance, price patterns, or whatever. Basically, I don’t even look at the charts prior to posting them. I just choose three random ones from the list that is outputted based on a few technical criteria. Then, the comment section is open to discussing which company will win, based on percentage gain, but you must post why as well.

On Friday we go over our technicals, and discuss the winner.
So this week's four star horses are:

CAL (closing price: 42.89, 1/29/07):

BELM (closing price: 7.37, 1/29/07):

GTW (closing price: 2.09, 1/29/07):

The Wild Card:

Remember, to get a closer look at the charts, click on them, and you'll see a much larger version.

Let the races begin!

Lights Out.

2007-01-28T20:39:00.000-08:00

This market is ready to be taken down.

Lights Out.

The Party at Ford's Place is Cancelled

2007-01-26T21:53:00.001-08:00

Blink 182’s video, The Rock Show, is a perfect example of a band having fun with excess money. I mean, there’s always the token scene of giving money to charity, or the stripper car wash, but let’s be honest – the best part of the video is when the band’s van reverses (for good measure) into the newly crumpled car (which seconds ago was hoisted, and free fell into the ground below); That, or the woman getting a mullet. Priceless.

THAT is what you do with excess money. Throw one hell of a party.

But, I guess those guys at Ford don’t know how to throw a party, despite throwing away $12.7 BILLION in 2006.

See, I don’t criticize good ol’ Billy Ford (previous CEO who is accountable for the disastrous mis-management of a company his family started … way to leave a legacy, buddy!) But, I do think Bill Ford is a complete moron for having nothing to show for it. I mean, for losing $12.7 billion, at least let the media tag you for using corporate accounts to buy a house built entirely of platinum, or purchasing Granada (hell, do both!).

$12.7 Billion and all you get is a picture of yourself in the paper for being the biggest moron on Wall Street.

Didn’t even buy a Camry… shame on you!

The question is, will Ford be able to come back? What do you think?

A storm is brewing...

2007-01-23T21:10:00.001-08:00

How easy we forget. We’ve had one heck of a run up in the markets since August 2006. That’s great, I love a bull market as much as anyone else. But just like in nature, “what goes up, must come down.”

The last week has not been that great for the markets. Earnings disappointments, oil prices, and inflation – the usual market movers were again at the top of trader’s minds. And we can see that the upward momentum that was in full force during the last half of 2006, seems to be dissipating in the first month of 2007.

Could this be a breather before returning to new highs? Or could this mark the beginning of a consolidation period.

What do you think?

Personally, I think a new storm is brewing. I mean, sure we can talk about how earnings are not as stellar as previous seasons, or how inflation is still a threat, or even how foreclosures are rising in the real estate market. I just don’t care to speculate on what could happen. I just see what is happening at the moment.

And I think that’s where the emotion comes into play. First you have your hard-hitting bulls who are dumping money into the current state of the market, despite the enormous profits they would have seen in the latter part of 2006. Then, you have your bears who are screaming that the markets do not make any sense.

Fair enough.

But just like any technician will tell you, let the charts do the speaking.

Speculating is costly.

As the bears who were slaughtered thus far, and may just be able to regain some of their money should a pullback be fulfilled.

Watch the sky.

Tell next time,

Happy Trading.

Kunal Kalsani

What is Stockshaker, anyways?

2007-01-08T14:29:00.000-08:00

Stockshaker is designed with one purpose in mind: empower the individual working investor.

The stock market is simply just a place where shares are bought and sold: Simple as that. However, what is extraordinary is that millions of people use this simple system to garner huge profits by exploiting different opportunities that present itself every minute of the trading day. I became interested in the markets, many, many years ago because of this reason. And to this day, that reason is what makes me get up at least 2 hours before the market opens to read news and look over charts before things really start getting intense.

When I started trading for myself, I was still working my regular job. I was mesmerized when I started reaching profits that mirrored and surpassed my office job salary. Don’t get me wrong, being a successful trader is a lot of hard work. I remember in the beginning I would spend hours after work, reading, learning, and researching. After some time, you learn a few tricks, you reach a comfort level, and becoming a little more proficient in trading; things started to work themselves out, and the hard work started paying off. Today, I still spend endless hours on researching, but instead of working a day job, I run a stock market consulting group, where we design profitable strategies for our clients.

The beauty of the market is that you don’t need to quit your day job to do well. While I would spend hours after work to look at news and charts based on closing stock prices, I would really only need maybe ten minutes during the trading day to check up on my portfolio (it was a perfect marriage between day job and secret stock market job). And really, what’s the point if you have to check every tick on the Dow?

What my passion is, where I find happiness, is finding the next opportunity. To this day, the company, Stockshaker, is driven by a passion, a work ethic, and a hunger for information as I did when I first started. And that is why our clients appreciate our services: we find opportunities, develop strategies, and comment on the market action – all in an easy to understand, highly illustrative methodology.

Check out our website, we have some great information that most firms charge their clients for. We have amazing, eye popping, completely out of the box strategies that you can start working into your trading practices, right away. Have you signed up for our newsletter? It’s completely witty: good information, peppered with jokes, and fun material. And it is free.

A lot of work goes on behind the scenes, and we are happy to spend the time if that means you can come hang out with us, click around our website, read our stuff, watch our videos, or listen to our podcasts.

So, let’s work together, and make some money in these markets, shall we?

Happy trading,

Kunal Kalsani

Stick to the Original Plan

2006-12-13T15:48:00.000-08:00

A couple days ago, I was at a client’s Christmas party that he was hosting for his staff. After drinking about three eggnogs, I find my client - chatting away with a group of his business friends, and their topic is, naturally, the stock market.

Now, to date, we have been in a four-month intermediate bull market (starting in mid July till present). One person in our group was discussing how he was able to capitalize on the recent market, making profits on, basically, every trade. And that makes sense – the Dow has gone from a low of 10,683 (July 18, 2006) to today’s high of 12,369 (December 13, 2006) – an unbelievable feat! Therefore, if you put any money in the stock market, most likely, you would have made money (of course, there were stocks that didn’t see such gains).

The problem is this (and this was what the gentleman had pointed out): it is so easy to get sided by a new opportunity. This is what he meant: every point in the trading day, there is a new stock that is poised for a technical breakout. Now, many people (myself included) used to close trades where I felt that the momentum had started to slow down. Then, I would take the money I made in my original trade, and invest in this new stock that is ready to explode in a certain direction. Sometimes, the stock doesn’t move the certain way, or it requires more time than expected for “the ball to start rolling.”

Let me tell you what I mean by an example: It was late January 2005-February 2005, during the period when the market was pushing higher. I was able to easily find new stock picks that were prime to move upwards (since the market was moving up). What I used to do was close trades where the stock started slowing down, and invested the money into these new picks that were ripe for moving. And in 80% of the cases, I was correct – they moved as predicted.

However, it was only after all the dust settled, and I looked at my net gains that I realized a very interesting tidbit: if I had stayed in my original trades, I would have ended up with the same amount of gains than the constant buying and selling of positions that I had done.

I would have made the same amount of profit!

Why? Well, I thought about it for a second, and thought of two main reasons:

First: Most people find stocks ready for a technical breakout because it has completed a technical pattern: for example, a penetration of a support/resistance line, completion of a standard technical pattern, or a bounce off a moving average, or price channel. Usually, on a day such as this, the stock has moved a substantial amount already – for example, if a stock breaks a key resistance barrier, it usually does so on great volume, and a great price move. What happens next is a period of trending sideways, or reverses for a brief period (slight profit taking), before continuing as anticipated. In which case, you have already missed the short-term breakout, until it regains strength, and pushes higher (with momentum).

Second: Most stock issues move with the market. Thus, if the market is going up, most likely, your stock will go up as well. That is why if you maintained your original positions (rather than just selling out, and buying new stocks that you think are ready to move), you would see gains no matter what stocks you are invested in.

Net effect: If you stayed with your original portfolio (instead of chasing new breakout), you would see occasional days of nice gains as well (and you wouldn’t’ be chasing them, because you already would be in the position). Second, if the market is going up, your portfolio will go up as well (in most cases). That is why one shouldn’t get swept away with new opportunities, and buying and selling positions to profit from these opportunities – because in the end, you’re going to make the same amount. In fact, I probably made a little less money by constantly buying and selling positions, because of the commissions that were involved.

Am I Missing Something?

2006-12-11T09:40:00.000-08:00

I've been a big advocate of mutual funds and diversification. (That's possibly why I love my ETF's). I read an interesting article on Bill Miller (the guy who manages Legg Mason's Value Trust Mutual Fund).

After 15 years, this is the first year where his fund will not beat the SP500. Now, with dividends, the SP500 has been returning 15%. His fund did 4%.

That is a beat down.

How can you only manage 4%? I just don't understand it. He was investing in Ebay and Yahoo. Now, (despite the fact that I am a professional investor), even the average person can look at those graphs and see something wrong.

Even the casual investor reads the news. What is hot right now? There are so many to name, but I could start by naming a few: outsourcing IT in India, Emerging markets in Brazil.

I mean, just open up this graph for Infosys (ticker: INFY). That has been a gold mine. Hell, even a BEVERAGE company is beating the markets hands down (Hansen, HANS).

4%? Wow. Maybe you should be looking at a real day job.

Buy and Hold - with a Twist.

2006-12-11T08:50:00.000-08:00

I am a firm believer of technical analysis. There’s so much volatility in the markets these days, that to believe that the markets are not moving based on traders is just being ignorant. How can a company be traded solely on fundamentals, when new earnings data comes out every quarter – the price doesn’t stay stagnant as investors wait for the next period to be released! Besides news, traders are causing this flurry of price fluctuations. Thus, in order to capitalize on the opportunities that are present, you must have a little savoir-faire when it comes to understanding technical analysis.

Over the long run, (and maybe I’m just a dreamer), but I know the markets have to go up. Sure, there will be periods of times of bearish pullbacks, or even a bear market – but over the years, the markets will continue going up. It has to. The system is based on capitalism – markets are based on companies, and companies will continue to improve their business to accommodate for changes in economy. It’s just cyclic.

Thus, if you are a long term investor, you have two battles to front: you must be able to watch your eggs during these bearish times (when you need technicals the most), but maintain a firm fundamental understanding of what’s going on within the shell of your egg. You can know everything about price patterns, support and resistances, candlestick patterns – but what an oscillator cannot uncover is the push of management.

There are good companies out there that are getting beaten down because of traders. Any true investor knows that equilibrium must be maintained, and those undervalued stocks are poised to go up (and vice versa).

So, why not be a “Buy and Hold” type of investor but with a twist? Buy the good companies, and understand the technicals to capitalize during bearish periods? I’m not talking about day trading, or selling short – I’m talking about taking advantage of overbought situations where everything has to return back to the mean.

Don't get swayed by the big bucks!

2006-12-08T09:07:00.000-08:00

Do you know why a lot of people fail at a new business venture? They try to follow the crowds too much. Now, that isn’t necessarily a bad thing, because really, who wants to reinvent the wheel anyways? But that is not what I’m talking about anyways. I’m talking about the types of people who fall for the picture of big dollar signs.

Now, I’m pretty savvy when it comes to internet marketing, and such – and so I came across an article featuring the creator of a free online dating service, who rakes in roughly $10,000 A DAY through Google Adsense. Now, tell me, who many people looked at that cheque, and then went to a bunch of e-book websites to grab up “get rich quick” books?

Case in point: Don’t follow the dollar signs. He had a niche, you don’t. If you did, then do what he did.

Today, the markets are doing the exact same thing. The jobs number came out strong, and the markets are reacting favorably. Don’t just run out there and grab green-ticking stocks.

But what has the markets being doing for the last couple weeks? They have been fighting sideways trends, fighting against previous highs. Result: no direction.

Before you start plugging in your money into “get rich quick” stocks, be smart.

Did anyone notice that next week is expiration Friday for December options?

Where has this month gone?

7 Stock Market Tips You Can't Live Without Part 1

2006-12-05T10:54:00.000-08:00

Every day there are a dozen new HOT stock market tips that guarantee your financial success. Every day there are hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people are disappointed.

When it comes to popular stock market tips, there is no golden ticket to striking it rich. So I'm going to show you how to make your own HOT guidelines that will ensure you stay on the right course-the one that leads to success.

Stock Market Tip #1: Play Your Game

Develop a set of rules that you can follow. Whether they include some of the tips in this article or are strategies you've always lived by, STICK WITH THEM. An inconsistent, but more importantly an undisciplined trader will never make a profit. Chasing stock market tips won't make you money. Your rules are your money. Again, there will always be hot stock market tips that ensure success, but if you continue to whole-heartedly practice your own tips, you'll see profits in no time.

Stock Market Tip #2: Control Your Risk

There are many adventurous traders out there…and those are the ones that loose their fortunes. If you always look out to protect your capital base you'll ensure your financial safety. Now one of the most important stock market tips I can give you is to continue to let that capital base grow. That way, even if all of your investments fail, you won't be jeopardizing your previous profits. As a general stock market tip, never risk more than 3% of your portfolio on any one trade.

Stock Market Tip #3: The High Road in Cutting Your Losses

Things happen. People lose money…LOT'S of money. So don't be one of them. Basically this stock market tip means don't be stupid. If one of your investments turns sour don't stick around hoping it will right itself. Have a set target loss percentage where you can cut and run. Again, it's about being disciplined, remember? Set it no higher than 15% of your opt in, and you'll have a save exit with every trade.

Stock Market Tip #4: The Sky's the Limit

In contrast to Stock Market Tip #3, if a stock is rising beyond belief, don't jump out in fear of it suddenly falling back to reality. Instead, ride it out as long as humanly possible. This is how the biggest and most talked about gains are made-this is how FORTUNES are made. This stock market tip will ensure that you give yourself the best chance possible of striking that gold mine. Now if the stock does in fact start to fall, go ahead and opt out. It'll be worth more to you to risk that little loss in the end for that huge gain you'll make.

Stockshaker Newsletter: The Red Hot Stock Market Newsletter

2006-11-28T11:34:00.000-08:00

We, at Stockshaker.com, love the Internet. In some shape or form, everything we do is related to the Internet. We think that is because it brings together such a huge audience. We’ve had clients from Australia, to Malaysia – and all was possible because of this great communication tool.

Despite our respect for such a great tool, we are still beginners when it comes to all the tools available for gaining such virtual exposure.

A little while back, we launched our first stock market newsletter entitled (aptly!) “The Red Hot Stock Market Newsletter.”

The purpose was simple: provide practical, thoughtful, and motivational information that can be used primarily for one’s own investing endeavors.

We wanted to make this newsletter have a purpose – discuss an array of interesting and very useful information including topics ranging from: becoming a better investor (developing your own trading plan, what are some great strategies) to capitalizing on market-created opportunities (i.e. how to capitalize on hot sectors, how to play the FED announcements) We also have our own personal experiences when it comes to investing in the markets, AS WELL as stories sent to us from our clients or students.

To be honest, we were a little skeptical about this additional effort, because honestly, who reads emails anymore (HA!)

So sign up! (We DO NOT share your information with anyone else).

Where is my Bearish Pullback!??! Argh!

2006-11-28T09:32:00.000-08:00

Well, I want to get something off my chest. It’s eating me inside – I LOVE BEARISH PULLBACKS!

Hear me out on this one. Ok, I’m the first to tell you that I love my fundamentally sound stocks – I like growth, and I like when they keep going up and up and up. If you have been in the markets for the last, FOUR MONTHS, you would see almost a steep 45-degree rise on the major US indices.

Now, I base all my trades on technical analysis – my entries, my stop losses, cycle dependencies – thus this last four months have brought havoc on all my timing schemes.

Where do we go from here?

Well, yesterday we saw a nice decline on the indices, only to watch today a small recovery – which is what is expected after such a day. Even though it seems like my housekeeper has suddenly decided to give me stock tips, the bulls can’t always win – you have to respect that.

Plus, the easiest, and fastest money comes in pullbacks. Takes months to build, but takes days to fall.

Housing on a tear!

2006-10-12T10:46:00.000-07:00

Well, housing is back with a vengence. I'll be honest with you, I have no idea why housing is coming back so strong. There were a bunch of companies that received analyst upgrades a couple days back, but that still doesn't justify the bullish moves despite the housing stats.

Have you ever played the game "Lemmings"? Essentially, it is one little lemming, following another, following another, and so on. (Don't worry, I'm getting to my relation between lemmings and housing sector). Well, A few weeks back, Toll Brothers (TOL), a major player in the housing sector (lots of news comes from this company), started its ascent. Then, a couple days back, Meritage Homes (MTH) broke thru a sideways channel (look at it now, unreal!). AND NOW, KB Homes (KBH) looks like its at the upper resistance of its sideway channel.

Now, two of the three have already created bullish moves, and KBH is poised to do the same, WILL IT? We'll have to watch and see!

If this housing move proves to be a true move to the upside, there is plenty of room for it to move.

Who is building your house?

2006-10-10T10:15:00.000-07:00

Guys, this is an intraday post, so I don't have time to illustrate a nice chart for all, until possibly later.

But as we all know, the housing market has been taking QUITE the beating the last little bit, right? You can easily observe this from any of the following: (1) any main page on a financial website, (2) The FED's reason increasing interest rates (to slow down the boom) (3) all the stats relating to new homes, inventory, etc, etc, etc. (4) Housing stocks. Take a look at KBH, TOL, MTH, BZH or any housing related stock over the last year - like the dot com boom inverted!

So the question is, WHERE IS THE strength coming from in the housing stocks? Look at the same list (KBH, TOL, MTH, BZH), and you can see strength in these stocks in the last month. TOL, in particular, has been climbing like a chipanzee on a banana budding tree! The other stock, which has particularly tweeked my interest is MTH. Just because I was able to ride the downside on this stock earlier in the year, and so I have a little bit of soft spot for it. BUT, today the stock is above a $45 resistance level, the level which marked an extreme of a trading boundary for the last few months.

Today, this stock is clearly above 45, and with conviction! (Look at the volume).

The question is, WHERE is this strength coming from within the already depressed industry? Are these traders who recognize undervalue, or cheap prices?

Because it clearly cannot be due to a budding industry!

I think everyone should lay off the coffee!

2006-10-05T15:55:00.000-07:00

I'll be the first to tell you, I don't miss rush hour one bit. The craziness, the middle fingers, the slow drivers. I blame all the attitude, the rush to get from one place to another, all to coffee.

A coffee cup has become the official extention of the arm, everyone seems to be holding some paper cup steaming with your specialty brew. And you know why? Because it is suddenly cool to be holding a Starbucks cup - you are part of the social circle of those that are "on the go".

And it's only going to get worse. Starbucks has released news of more stores opening up - So now instead of finding a Starbucks on every corner, you'll find a Starbucks BESIDE the Starbucks on the corner.

Just think of the insanity! You can already see this madness in the stock price, over the last two days, it has gone up about 15%!

Maybe with more stores opening, grandma can take a moment to pick up a cup, that way she can pick up the pace at during the rush hour drive.

Market Action Oct 4/06, and the first change on the website!

2006-10-04T17:10:00.000-07:00

So, the first change of the site - our source of charts! I noticed the place I was getting my previous charts was giving me really, really delayed numbers. And we can't have that now, can we?

Didn't think so. So now, I'm using charts from a different source (Prophet.net) Thanks Tim!

Are you surprised by what's going on in the markets? I am! Just when you think things will start coming back down to earth, something like a 100+ point day on the Dow totally shuffles up everything.

Before getting into today's action, I'm very excited to tell you the good news: the NEW marketing campaign on Ebay just started (check out our new listings - user_id Stockshaker).

So. Today. Wow.

Do you remember the move Terminator 2? There was that scene when Arnold is driving around on a car, and the metallic man of a bad guy has these crowbar-like handles of arms, holding on to the bottom of the car. Arnold whips out his trusty weapon, and fires at T1000. No matter how many times he fires, this guy keeps up with the vehicle. Very relentless!

That is exactly how the markets are. Just when you think its ready to fall/pull back, it holds up - But just like T1000, the markets eventually have to get tired.

But will it be tomorrow that it will decide to slow down the pace, and catch it's breath? We'll have to see.

So what happened today? Here's the graph of the SP500

Above is the SP500 (or the SPX). How do you guys like the charts? Looks pretty spiffy, no? Anyways... today was a pretty big technical milestone. The SPX broke the channeling (I've bounded the channel between the two green lines - and circled, Point A). Also, the SPX broke 1340, its former ceiling - another bullish sign.

And just to hit the ball out of the park, the volume (point C) was a pretty big spike (much higher than the 30 day average on this index).

Now, the support levels, should this baby decide to go to bed tomorrow, would be 1340 or even better, Point B, which also coincides to the former high in May.

If you read many info sites and other blogs, many people are saying, "Don't trust this rally - Earnings are coming!" Now, I don't predict the future, I just play what I have, and make alternate plans should things go against me, but today is a breakout (Did you guys see the huge bullish engulfing candlestick on the Nasdaq??? WOW!)

If earnings come in negative, the charts will tell! Then you trade accordingly, right? RIGHT!

Until tomorrow, see you later! And don't forget to check out the Ebay listings!

Welcome to the Mile High Club!

2006-10-03T13:52:00.000-07:00

And there she is, the big piercing of the highest closing on the Dow. I am still very confident in this overbought condition, and that doesn't change my opinion based on yesterday's action. All I know is there is no OTHER place I would rather be invested in than right now. We are seeing some high price action, a lot of media coverage on the current rally, volume all over the place, volatility indices showing very very low levels (check out the VIX/VXN) and some a severe overbought levels - my friends, we are about to see some serious action about to happen.

For the last few months, we have seen a pretty tight trading range (this has also perpetuated into tight trading ranges on many stocks), and with more news being attracted to the current situation, I would not be surprised if we see some type of breakout (either bullish/bearish) from the trading range.

Many investors will be willing to take money/profits off the table, you'll start seeing money come into the markets because of the real estate slowdown, and with corporate earnings just sleeps away - things are going to get real shaky, real fast.

Did anyone notice the WalMart earnings warnings yesterday? WalMart!

Volatility, I can't wait till you come back to the markets. And when it does, hold on!

V for victory (however short term it may be)

2006-10-02T20:15:00.000-07:00

(click the picture to enlarge)

The picture to the left is that of the SP500 (SPX). And theres a picture of Lebron, all victorious. AND YES, it was a victory day. About damn time.

The markets have been going up at a pretty good rate for the last few months. We have yet to see a justifyable pull-back. And that makes me a little nervous to tell you the truth.

Since August, the only thing that remotely resembled a pullback period was that on September 6 and 7. The two day affair would prove to be lost in the weeks to come. Again, today, we had a bearish move, to confirm the almost bearish engulfing pattern that happened on Friday.

Now, the lettering in the above chart. Let's start with Point C. I drew two green lines that enclosed a bullish channel. Last week, the SPX broke out of the channel - bullish (I drew a circle around the breakout). But, I was not surprised that it couldn't maintain the momentum from the breakout. Why? Well, the markets have been going up and up and up without breathing time! Everything is so overbought right now, it seems that the bulls are starting to need some time to catch their breath!

Point A is a support level that coincides with the SPX's high back in May (before the sudden tankfest - eerie, no?)

Point B is also a level that would be a little more realistic considering the price action as of late. However, this also coincides with the bottom of the semi-pullback, back in early September. If the price moves lower than this, we have our classic lower low (which could mean a bearish short term movement) But we cannot read into too much of a bearish movement based on a lower low off of a TWO day pullback - especially considering the markets have been soaring since June.

But at least today showed signs of something that could come in the near future - a nice, healthy, (and much needed!) pull back.

I read a lot of news, and opinions, and a common occurance that seems to come up is how this current action resembles to that in May. I don't make predictions about future events, I just play trends, and until things show otherwise, my friends, we are in a clear bull cycle.

Don't worry about things that haven't happened yet - it causes unneccessary wrinkles (that you don't need)

And that is what went on today in the markets.

Format for postings.

2006-10-02T18:57:00.000-07:00

Ok. Here's how it's going down. I want to put up tech charts of indices, and opinion/thought of the day type of thing. So until something happens to change otherwise, this is the verdict. One day-Tech Analysis, One day-Thought of the Day.

Until things require otherwise, I'll be putting Tech Analysis of the SP500 (as it is the best general indication of the markets). And then, once things get rolling, and more of the behind the scenes work start resolving themselves, we can start putting up more content.

And there ya go.

Hello world (again)

2006-10-02T18:17:00.000-07:00

Well, while this site has been up for a few months, it was more of a on-off type of relationship. Well, NOW we have revamped the image, added a few items, and actually got dedicated to this relationship!

It is almost like a new beginning - and rightfully so. Autumn is around the corner, and I can feel that this could be the beginning of a very good thing. I'm actually very excited.

What has changed? Well first, we got our ebook up and going. Now, we don't have an ecommerce cart set up or anything, so until we figure out how to set up paypal on websites, if you wanted to buy the book, you'll have to go to Ebay.com, and check our listings (under user id: stockshaker).

But, now its time to reveal this new site, right? A new look, a new logo, our company is all set up, and we are equipt with a sense of humor, edgy commentary, and sweet, sweet, photoshop (hence the nice, pretty, pictures).

Lets get some community built up, shall we?

I guess because we are starting up, you'll see changes happen on the fly, as things present themselves. If you notice something odd, comment, or email us (hitme@stockshaker.com) - don't actually send email to that account as yet, because those hosting guys are still getting it active.

Until next posting (which I guess will be right away, becuase I have to do my TA on today's action), BOOK MARK this page!!!

ps. The picture above has huge copyright signs, so I better give recognition to the people: www.fotosearch.com

Kunal Kalsani
Principal

Our First Book, ready to go! Introducing The "My Bluechips Make Wow Profits" Stock Market System

2006-10-01T10:49:00.000-07:00

The "My BlueChips Make Wow Profits" Stock Market System

I, like millions of people, like my Blue Chip stocks. But let’s be honest, it is a love-hate relationship, isn’t it? We love em’ because we love the security in them. Your big name companies are not going to go bankrupt any time soon, and that is a reason why many people design their retirement plans around these companies: their retirement/nest egg grows steadily, plus one can reap the benefits of dividend payouts. However, we hate em’ because Blue Chip stocks are so boring since they move so slowly.

But what if we had a love-love relationship with them? Since these stocks move so slowly and predictably, they provide a wonderful and highly profitable opportunity. Let me explain: everyone knows that we can be profitable in the stock market when our stocks move up, right? But what if we can make money off of these same stocks during periods of sideways, or even better - downwards price movement?

Do I have your attention yet?

My strategy is exactly that – how to take advantage of your Blue Chip stocks, and profit during periods when these stocks are going not just up, but down, and sideways as well. Of course, you can use this strategy on many, many other stocks as well – but I have found that my strategy works best on boring, predictable, and conservative stocks such as Blue Chip companies and other well-known companies.

When it comes to wealth generation, I like this strategy a lot because of two reasons. First, it provides a logical, conservative, and (best of all) repeatable method of making a nice income in the stock market. Second, by using a systematic approach to trading, you remove all emotions from each position (this is the number one reason why people fail in the stock market, because they let their losses ride larger, or they let their profits diminish).

To Purchase: Since we do not have an ecommerce shopping cart, you can purchase our book on Ebay (user_id: stockshaker).

An award for being hard working

2006-09-30T22:06:00.000-07:00

When I think of corporate business, many movies come to mind. Cut throat deals, yelling across multi foot boardrooms, paper flying all over the place, and rows and rows of cubicles. Then there are the undertones of mafia like espionnage - insider tradings, the wall street water cooler discussions about the next "hot" stock.

To me, its all hollywood, or rather, all robotic. Everyone seems to be looking out for themselves, and trying to have "one up" over the next guy - who has the nicest corner office, best parking spot for their Ferrari.

But I'll never know, because I have no intentions of living in the corporate lifestyle. And who knows, maybe the above actually goes on - it makes no difference to me.

But what DID catch my attention, is what is going on in HP. CEO Hurd had to go in front of Congress and explain what has been going on at HP:

"Since H-P admitted on Sept. 6 that investigators working for the company engaged in pretexting -- or misrepresentation of their identities to obtain private information about H-P board members, employees and journalists -- there has been no shortage of blame or resignations from the technology giant. Chairwoman Patricia Dunn, general counsel Ann Baskins, senior counsel Kevin Hunsaker and former head of global-security operations Anthony Gentilucci have all left H-P. According to documents acquired by the House Committee on Energy and Commerce, each of them had some direct involvement in the pretexting case..." - marketwatch.com

See, what surprised me is that Hurd acknowledged the activity, and basically said "whoops". What resulted - applause. The stock price on HP rose signalling that the shareholders still like him - AND THAT is good news. Hurd is changing things at HP; he's shaking things around over there.

Hard work, brings loyal followers. And that is something you don't see everyday, especially not in some money crazied, starbucks jolted place like wall street.

Sellers are Finally Getting It...

2006-09-25T12:38:00.000-07:00

This was the quote by a member of the National Assocation of Realtors. Well, wow, this was exactly what we were expecting, weren't we? Well I was.

For the last few years real estate has been soaring like a boy's attention span to a new Mario videogame. And while I am a stock market investor and trader, I just sat back and watched people who had no experience, no knowledge, and no appreciation for hard work, rack in hundreds of thousands of dollars, basically, over night.

And now, existing home prices are plunging, inventory is increasing, and housing looks like its slowing down.

About damn time. Things like this affect the stock market in a big way. When things get beyond ratinonal thinking, nothing good can ever result. We saw something similar in the stock market in early 2000 with the dot com craziness. And let me tell you this, even though the rush of doubling, no, TRIPLING money over night was a great feeling, the dramatic fall that resulted was nothing short of spectacular beyond belief as well.

With slow and steady comes rational, and thoughtfulness. This is unlike the current real estate market where people are basically seeing a dot-com phase in real estate pricing. And now that things are starting to cool, it would make sense to see the reverse happening, as things slowly fall back down to equilibrium.

Maybe if you were one of the millions who capitalized in this crazy hay-day, its time to start creating a strategy of how to capitalize on the fall.

Because it will happen.

The stats are there, just don't get stubborn.

Why the hell hasn't he posted yet?

2006-08-19T11:26:00.000-07:00

Ok, I've been checking the stats on the blog, and we've been getting more hits on this site. So I, honestly, appreciate the support. But for many returning visitors, I bet you wonder, WHAT THE HELL Is going on with this blog, where are all the posts????

Answer:

As you may know, I am a stock investor/trader by day, but my real profession is as a teacher: I teach people how to profit in the markets. I teach via online, real time taught, classrooms, about basic and advanced stock options, as well a seperate class on technical analysis.

Anyways, with a recent upswing in classes (due probably in part of the real estate sector slowing down, and thus not as hot as an investment as before - in the US), many investors are turning to the stock market, because as many people know, you can benefit (PROFIT) when the markets are going up, down or even sideways.

That is huge.

Since I have been back from Europe (refer to my last post, a whole whopping month ago!), I have been working on an e-book, a practical strategy, called:

HOW TO EXPLODE MORE PROFITS OUT OF YOUR BLUE CHIP (AND OTHER) STOCKS

I am really excited about it, in fact, I'm itching with giddy-ness just writing this sentence.

AND THAT is what I'll post up soon, a few excerpts from the book.

If you are interested in finding more about my classes, or the release date of the e-book, just email or leave a comment.

ALSO, with a brand new rotation of online classes about to begin, I want to really start plugging in more time on here, with INTERACTIVE market commentaries (done in Flash!), and possible watchlists (along with good analysis of what I see), since I have a tendancy of posting on other people's blogs about all this TA info, without any graphs (OOOPS!)

Thanks for reading.

email/comment if you have any questions!

By the way, Europe WAS amazing!

Up and Away!

2006-07-06T15:44:00.000-07:00

Well, guys, things are going to go a little more slower than anticipated, as I have got some buddies, picked up, booked a flight, and en route to Europe to watch the final World Cup match, right in the heart of the action. I will update, and even upload some nice pics of the action, but it will be a little tougher than if I was back at home, naturally.

Bear with, and al lwill be good!

I am actually looking at the markets for the first time, while waiting in the Toronto airport. I am still a firm bull-liever, and I think we are still in rally mode, despite oil, despite N. Korea. The reason? Earnings season. But I'm just taking a look at the Starbucks, and they just announced a less than impressive earnings.

Is this a foreshadow of what is to come? Maybe . But I think the reason why this rally will continue is a means of bargain hunting, as people feel current levels are a way to make up what was lost in May.

Do I have your Attention??

2006-07-03T21:41:00.000-07:00

Well, ladies and gentlemen: we are finally going to do something here.

Let me tell you a little bit of what's going on. I am personally in the middle of writing my first book, that will be distributed online. It will focus on making money in the stock market, and a strategy that I, personally, use on a very regular basis.

I want to start putting up excerpts and the goods on the blog. And when I get to a level where I feel that this will be allowable, I am sure you will be the first to read it. That and all the legal mumbo-jumbo about copyright and all that doo-dah.

So, with this new step being taken, I want to start making this blog into something. I want a direction, a focus, and some study topics which can lead to discussion.

Now, if you are a regular reader, you will notice that the blog gets updated about once every 2-3 days. I am going to keep that update schedule the same. However, each post will have a certain appeal, a subject. Here's what I am thinking:

(1) Technical Analysis - I'm going to put up some TA (haha, yeah, some of that).
(2) Hot topic - what is some juicy news happening in the market?
(3) Good reads - I read A LOT of websites, and books, and this will be like a Stockshaker Book Club, where it can be open to discussion about good reads.
(4) Lesson of the Day - A good trader needs good lessons. This is where I can pull out my philosophical lessons, and pass them on.
(5) REPEAT!!

If there are some more areas that develop once this schedule gets underway, yes it will be put into rotation.

how's that sound?

This is all in preparation as we start getting more readers to the blog/site. It should have a purpose anyways, a reason to come back, no?

So pay attention, class is about to start!

Quick Bucks??? THINK AGAIN!

2006-06-29T08:38:00.000-07:00

I always get people asking me: “What are you investing in?” “Do you think ethanol will continue to soar?” “How do you do it?”

Sure, it inflates my ego, but I have to tell you the truth: I don’t have a secret when it comes to the stock market.

I am not a stock broker. I don’t have buddies who know the “biz” and tell me their secret information (that is illegal by the way). I don’t have a secret crystal ball that I am hiding in my closet.

I am just like you. I read information that is readily available on the internet. I choose well known stocks, not some new startup that has no information on it.

The secret that I use is this: HAVE A STRATEGY.

It is easy as that.

I may be able to make money on the markets, but that doesn’t mean I have been right all the time. I have made mistakes before, and YOU CAN BET I will make mistakes in the future. But what separates those who win in the markets and those who don’t is that those who win, HAVE A STRATEGY.

They know when they will get into a trade, and also when they will get out (be it if a profit target has been met, or if their trade turns sour).

If you’re wrong, ACCEPT THAT YOU ARE WRONG, and GET OUT. You won’t always be wrong, and I am sure if you got out, and entered a better suited trade, you will not only recover your loss, but tack on profit.

I know this, because I have done it time and time again.

HAVING A STRATEGY eliminates your emotional instinct. Get out of a trade if it reaches a price.

BUT YOU HAVE TO HAVE A STRATEGY BEFORE you enter a trade.

It’s simple as that.

THIS RULE is so simple, and so overstated, but so easily forgotten, because everyone thinks that a losing trade will turn around, and become profitable.

NOT ALWAYS THE CASE!
Have targets, have a strategy, and you will be fine.

Are You in a Casino?

2006-06-26T15:03:00.000-07:00

FED rate decision looms in three days. We are in a sideways run, barely hanging onto multiyear support on the indices.

Today's only news were three major mergers, worth billions of dollars. And this was announced in the morning.

The whole day we spent hovering around 11k on the DOW.

AND THEN ... BOOM, buying going into closing. Dow ends up 50 some points. WHY ARE YOU BUYING right now? Are you ready to face consequence when the FED raises rates (almost certain). Ben is eager to pop housing, and slow down growth.

What makes you think that the long term outlook of the US economy is something worth buying into?

Well. Time will tell, and right now, I am a little confused to the buying. But at least, according to the volume today, it shows that the only people buying are few, and if you were one of them, you should have some nice stops put in place.

We are no longer in oversold territory, and to see the market fall even more, is very plausible.

Until the 29th, I'll be a little confused to see buying into the current conditions of the market. I believe that if you are buying into the markets right now, you are taking a little bit of a gamble, that isn't entirely on your side. Unless of course, you are buying for a nice day trade before the announcement, then that's a whole separate game.

And until the 29th, a nice little holiday is a perfect thing to have, rather than watch a light volume struggle between bulls and bears.

Have pen, will travel

2006-06-23T16:45:00.000-07:00

The pen is mightier than the sword.

With the economy looking like it's about to fall into shambles, we have received an influx of new clients looking to find out how to benefit from a possible Bear Market.

To me, I find it a little funny because I once was talking to a stockbroker buddy, and he, nor his company short stock (which is a very pessimistic move in the States - did anyone read the headline page of Marketwatch last week about Short Selling?)

Anyways, not only that, but none of these "professionals" trade options.

New clients, however, are ready to take on the challenge of learning about options, and how to protect their portfolio against future possible downspins.

In an effort to prepare new studying material, I decided to write a little interesting piece entitled "How to Rent Out Your Blue Chip Stocks For Cash"

In the next few days it should be done, and I can start posting some hot excerpts.

The actual piece will be sold as an Ebook, and the link will be posted on this site.

Your feedback, whether thru the site or email, is always welcome.

So, you wanna be like Warren, huh?

2006-06-21T19:51:00.000-07:00

It doesn’t matter if you like Warren Buffett’s trading methods, because if you are like me, or the billions of other investors/traders, or stock market spectators, you cannot afford to dump and leave money in falling equity: you cannot afford to buy and hold equity right now.

Why?

Your enemy is volatility.

Today’s markets are just too volatile, that your investments will slowly shrink in a matter of days. I’ve seen it happen first hand, and let me tell you, it was absolutely devastating. The reason is that we are in a period where the nation’s economic growth is uncertain and that is governing bodies are trying to cool down the hot sectors. For this reason, we see a lot of volatility as investors/traders try to decipher what will happen in the future.
And you are seeing high levels of volatility due to market speculation.

But, all this is common knowledge; you can read these hints of “Bear Market” in many of today’s popular financial websites.

So, what does all this mean?

You need to learn how to read charts, because with all this speculation, the market price movements are based on emotion, and patterns, NOT fundamentals. And the main way to stay profitable at these times is to learn how to trade technically.

Technical analysis is based on price pattern recognition, and how to exploit the likelihood of future movements based on the completion of said price patterns. Based on this information, you can make target points of where you should remain in on a trade (let your profits run), or where you should get out of a trade. You can pinpoint exact prices where you should make entry/exit points – and in a time of volatility, you must be able to determine these points prior to getting into a trade. By doing so, you eliminate emotion in your trade, and you avoid getting ‘married’ to bad trades, and cut your losing trades quickly.

And with today’s divorce rate, sometimes you are better to not get married anyways.

Flirting with Disaster

2006-06-19T17:23:00.000-07:00

Hi there, Miss 11,000. I passed by a couple times in the past, but today, I confess, I can’t get you out of my mind. I saw you from across the room, our eyes met three times, and I could feel the electricity. You are such a flirt, I can tell – and I know that you are bad for me, probably playing this game with all the stock market guys. But you had me – I just wanted you to know.

And then, I did something stupid, and I turned away for a brief second. And when my gaze returned to your direction, you were gone.

Until we meet again, I bid you ado, Miss 11,000.

With 11,000, such a psychological level, being whipped from underneath us, we are now playing a new ball game. There is no question (well, there are always questions, because, hell, I can’t predict the future) that a Bear Market could be lurking from around the corner. It seems like every hour, between economic indicators, FED rate hike warnings, and housing stats, there always seems to be a new article screaming “WATCH OUT! YOU SHOULD BE LEAVING THE MARKETS” – and you don’t need to be a market professional to decipher these headlines…

(let’s see how many I can scoop up in two minutes searching Marketwatch’s website, I’m sure we’ll be able to find similar articles at other major websites:

Housing Economic slowdowns:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B57D1C3F0%

2D3AA2%2D4DED%2DA259%2DC4E68DE13BFF%7D&siteid=mktw&dist

Fed increasing rates, and how this will effect economy:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA1BD61BA%2D
0DDD%2D4179%2DBCE2%2D9D5E4236EB71%7D&siteid=mktw&dist

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5FE1C1B1%2D
07C2%2D4D8C%2D9FB0%2D5BB2776129AC%7D&siteid=mktw&dist=

CPI and increasing worries:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD48581A6%2
D2D08%2D4BEC%2D9F07%2DDF205AFC7C29%7D&siteid=mktw&dist=

Retail taking a beatdown:

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B28EA98F8%2D
9C79%2D43BB%2DB41C%2D73DFFCCAA191%7D&siteid=mktw&dist

And this list, just took me about one and a half mintues to whip up.

So, the whole idea/trader’s alamanc saying – “Make your profits from beginning of the year until May, and then walk away,” has proven to be correct thus far. And if Big Ben keeps up with the rate hikes, I am sure we haven’t seen the worst of the correction/emerging trend reversal – because the market is still left with the uncertainty of :

WHEN WILL THEY STOP?

And like what has been done in the past, our only answer to when Bernanke and team will stop, will be data depenedant.

(click to see larger picture)

Some people may argue that there is a bullish sentiment occuring right now, which started forming at the end of the day, today. I could see a bottom happening, but the two pieces we have to look at are: 1. Volume increaseing on the way down, not up (Look at volume in Ex. A compared to Ex. B) 2. Look at the evening star candle formation occuring - bearish to say the least.

Tomorrow, I’ll go over the technical standpoint of the markets.

He shoots! He misses!

2006-06-18T09:52:00.000-07:00

THIS IS HOW many stock market investors will feel in a few months.

What I find very interesting is that a few months ago, there was so much speculation whether the FED would stop hiking interest rates.

They will do it once more, and then stop was the general market consensus since the beginning of the year. We were right in one sense, when the FED DID meet, they DID increase the rates Â but what we were SO wrong about is that they would stop. In fact, they left the door wide open for more rate hikes.

And now, we are seeing the effects this has on the markets. One of the biggest fears in the markets is : Uncertainty.

With the latest data showing that a rate hike in June is certain, the biggest uncertainty is whether the FED will go TOO far - triggering a economic MELTDOWN.

Well, maybe that is a little too far of a term, but an economic slowdown is certainly on the rise. And while all this could be CERTAIN to occur, the biggest UNCERTAINTY is WHEN this all will occur.

Its only until recently when we have started reading more articles from FED representatives on economic slowdown, global slowdown, and keeping the housing market from busting. (refer the latest: Fed's Hoenig warns on growth hit from imbalances).

With all this information becoming modominantent in the market spotlight, it makes for many to think that the FED may overshoot the comfort zone, triggering a sooner economic slowdown than expected.

We'll have to wait and see.

Calm before the storm?

2006-05-15T20:18:00.000-07:00

So here we are. Down two hundred points later, and we see a small little bounce on the green side. What do we make of this? I can tell you this - all the major financial websites are all geared up into thinking of a comeback.

But is it?

I ain't no fortune teller, but I can tell you this much, right now, we are in some much needed consolidation period.

But to call for a bear market? Maybe thats getting ahead of ourselves a little bit.

If there is one thing I can tell you from MANY MANY mistakes, is, don't get ahead of yourselves. Right now, I agree, maybe bearish, but on what basis can someone say, "Oh, I think we are due for a 15% correction in teh Nasdaq, or ..." WHAT? No. Thats how you lose money - because you put your head into thinking a certain way, and when things don't go your way, you're too stubborn to change.

Its a risky play. The best play, is to play for the NOW, not the FUTURE.

Calm before the storm? I see some rain, and clouds. But a storm? We'll wait and see - but I'll be ready to shut the windows.

Don't cry bear, it could be false.

TO ALL BUY AND HOLD INVESTORS: BEWARE OF LOSING YOUR SHIRT!

2006-03-15T18:03:00.000-08:00

Anyone who has money invested in the stock market today knows that the current times are proving to be very very volatile. And I agree with you, there are times when the market moves in complete random ways that makes you scratch your head and ask, "WHY?"

I watch the markets on a daily basis, maybe checking to see how my investments are doing about twice while the markets are open - Three times if I need to trade. Last week, the markets were poised for a bearish trend - and this was confirmed, it went down, with the Nasdaq being the greatest declining index (I beleive it went down 1.4% for the week - but I'm going off the top of my head).

But this week, the trends reversed, and the bulls are in control at the moment - but for a lot of investors who placed shorts, we got caught this week.

DO YOU KNOW WHY? Becuase the markets are volatile.

Now, this isn't a bad thing, because it means more opportunties exist, greater profits to be made in a shorter time span. But conversely, if your wrong on a trade, you lose money faster, or profits are easier to evaporate right in front of your eyes. And this hurts more for the investor who buys and holds, because if you don't adapt to the markets, you will get eaten alive.

The markets are not calm, storms are rolling in, and new storms brew everyday, EVERY MINUTE that the markets are open.

What you need to do is read more, get involved, learn how to adapt, and ride the trends to successful trading.

How Stops Help You To Make Money In The Stock Market

2006-03-14T21:32:00.000-08:00

To make money in the stock market, setting stops is an imprecise science and involves a lot of trial and error, but it is an integral part of being a successful trader. A good analogy is to compare stops to buying insurance for your business. Should you avoid insurance altogether just because you’re not sure exactly how much you need, or because it will cost you a little money? No. Instead, you estimate and do the best you can, and in the end it will be well worth the effort.

Where insurance limits risk of loss through disasters, stops limit your risk of loss on bad trades. Stops make it possible to take small losses and get out when a stock goes against you, protecting your capital. Yet, some traders find that they are unwilling to take a loss on any stock. They don’t want to admit that they made a mistake.

Another key to make money in the stock market, what often separates a good trader from a bad one is the ability to take small losses. Your goal, as a successful trader, is to take small losses and make big gains. If you do this, you’ll be profitable. But, you ask, what if you stop out of a stock you still want to trade? Well, you can always buy it back later, and likely at a better price, if the trade still has potential.

Besides limiting risk and helping you take small losses, stops are valuable because they protect profits on winning trades. As I discussed in a previous article, you must lock in your profit when you trade, or you can lose it. You can ensure that you keep your profits by using trailing stops. A trailing stop is a stop order you place below the current price of a long position, progressively moving it up as the price of the position increases so that the stop follows the position up. For a short position, to make money in the stock market you set a stop above the current price and then move it progressively down, following the position as it trends downward.

This means that once you have a profit, you move your stop nearer to the current price so you’ll stop out with most of your profits intact if the position moves against you. If the stop executes and you decide you want to trade the position again, you can buy it back at a better price than you sold it for and then ride it up again. That’s how a good trader makes and keeps money, make money in the stock market by taking small profits multiple times, rather than risking too much waiting for a big win.

At Last .. A Trading Veteran Reveals The Truth About Technical Analysis of Stocks vs. Fundamental Analysis

2006-03-14T21:31:00.000-08:00

Nothing we do in society prepares us to function effectively in the commodity markets and an environment with no real boundaries. But, most of us are brought up to function well in society, so we`ve acquired strategies for fulfilling our needs and desires that are geared toward social interaction and acceptance. We don`t just take what we want, we take other people into consideration, too. Not only have we learned to depend on each other to fulfill our needs and desires, but in the process we`ve acquired many socially based techniques for assuring that other people behave in a manner that is consistent with what we want.

The commodity markets may seem like a social endeavour because there are so many people involved, but they`re not. While we may have learned to depend on each other to fulfill basic needs, the market environment is different: it`s every person for themselves.

Not only can you not depend on the market to do anything for you, but it`s extremely difficult to manipulate or control anything that the market does. If you`ve become effective in your personal lives at fulfilling your needs and desires by learning how to control your environment, but are existing as a trader in an environment that does not know, care, or respond to anything that is important to you, what do you do? You take control.

One of the principal reasons so many successful people have failed at trading, is that part of their success, outside the market, is due to their ability to control their social environment. To some degree, everyone has developed techniques to make their external environment meet their needs and desires. The problem is that none of those techniques work with the commodity markets. The commodity markets don`t respond to control and manipulation, unless you`re a very large trader.

However, you can control the way you deal with market information and your own behaviour. Instead of controlling your surroundings so that they fit your idea of the way things should be, you can learn to control yourself. Then you can view information objectively, and choose to behave in a manner that is in your own best interests. You do this by creating rules to trade by, and following them.

Nearly everyone agrees that you need to have rules to be successful in trading, but most traders have no intention of following any. Most people who are interested in trading resist the idea of creating a set of rules. The resistance may be subtle, but it`s still there.

Often this is a response to how we acquired our first set of societal rules. Our parents, relatives, teachers, or friends gave most of the guidelines we live by to us when we were children. These guidelines were taught to us, we did not create them, an important distinction. During this time, many of our natural impulses to move, express, and learn about the nature of our existence through our own direct experiences, were stifled. Some of these impulses were never reconciled, and can still exist inside of us as frustration, or disappointment. The accumulation of these types of feelings can cause a person to resist anything that keeps them from doing whatever they want, whenever they want to.

The very reason most people are attracted to trading, the unlimited freedom of choice and decision making inherent in trading, is the same reason they feel a natural resistance to rules and boundaries. The need for rules may make perfect sense, but it`s difficult to generate any enthusiasm for these rules when you`ve been trying to break free of them most of your life. It usually takes a great deal of effort to break down a traders resistance to establishing and abiding by a trading regime that is organized, consistent, and reflects prudent money management guidelines. But, once they do, the possibilities for attaining consistent trading success are limitless.

About The Author

David Jenyns is recognized as the leading expert when it comes to designing profitable forex trading systems.

Discover the "secret formula" of trading that anyone can use to consistently generate BIG profits from the market by downloading your FREE copy of David's new Ultimate Forex Trading Systems course.

Click Here To Download ==> Forex Trading Systems http://www.ultimate-trading-systems.com/forex.html

Steal Warren Buffet's Stock Market Lesson Plans?

2006-03-14T21:30:00.000-08:00

by: David Jenyns

Why should you want to steal someone else's stock market lesson plans?

First, let me tell you that a trading plan is only useful if you follow it. Following your plan will make you successful, yet many traders circumvent the stock market lesson plans that they have carefully created. They become emotional invested in a trade, to the point where they ignore all warning signs. Remember, when the market corrects itself, which it always does, no position is immune, no matter how strongly your ego may be tied to it.

Many investors have stock market lesson plans that watch as their portfolio values are cut in half or more, yet they will still hold their positions. They may fear being left out of a big gain, or be so deep in loss that they felt they couldn't possibly sell at that point. But even if you believe that all positions will recover from their losses, and the truth is that not all of them will, this is a terrible way to trade.

You tie up too much capital, and your rate of return plummets. Just as you shouldn't become emotionally involved in a trade, you should also never become tied to ideas. By this I mean becoming so fond of a particular strategy or trend that you cling to it even after it has stopped working. You need to have strategies, and to have plans, but you must also be aware of the shifts and swings of the market, the beginning and the ends of trends.

When you first form your plan for a trade, you should consider what price or price range you think the stock is likely to reach. This is often called a target price, which gives some traders the wrong impression. A target price is not a price that the stock has to meet. A stock does not have to do anything. If you treat your target price as a goal, it can lead to many problems. Your target price should only be used as a guideline.

The target price helps you figure out your risk to reward ratio, and it gives you an exit point in your trade. At the least, it should give you a point where you'll reassess the trade's ability to continue to moving upward. But your trade may never reach your target price. Many market factors can interfere with its progress, and you may have set your target higher than you should have. Since there's no way all your trades will hit your price targets, it is a good idea to sell half your position at a more conservative target. Routinely taking profits will reward you in the long run.

There are a number of things that can interfere with a stock's movement and force you to close your position sooner than you'd anticipated. Your stock market lesson plans should cover all of these possibilities, but here are some reasons that should always prompt you to close a position:

1. The end of a trend. All trends end some time, and you should be prepared for this.

2. The stock's upward movement has slowed or been abruptly broken, ending its momentum.

3. The stock is approaching a major psychological barrier, perhaps reaching 100 dollars or 200 dollars a share, which should have been anticipated in your plan

4. The stock is about to reach a resistance level it has been unable to break through before.

This technical barrier should also have been anticipated in your plan.

5. A sudden market wide decline, or the threat of one, or some other serious uncertainty,

which leads to unsafe market conditions.

Exiting a losing trade is not a big deal. Ending a position whether or not the stock reaches its target price, in accordance with your stock market lesson plans, is good trading. The best traders would rather lose a small profit than take an unnecessary risk. You don't have to win on every trade; no one does, and it's dangerous to try. In fact, by limiting losses, a good trader can be profitable overall, and make money on only 40 percent of his trades. Cut your losses and start fresh with something else when you need to. You'll be happier, and you'll make much more money.

And here we are!

2006-03-14T16:55:00.000-08:00

Well, here we are. I personally have no idea what to expect out of this blog, but essentially just to make a discussion of what happens in the stock market.

Provide thoughtful opinions, and useful information that readers can use.

So as always, keep checking the page, and see whats going on but also contribute.

Happy trading.

On the Internet

2006-03-12T09:26:00.000-08:00

We are here!