Even though we do have long candidates as I have stocks finally breaking out of bases that are SOMEWHAT OK and have stocks bouncing off support near the 50 DMA, I still do not trust this market at all. The fact that the FTD couldn’t take out the 50 DMA on huge volume tells me it is weak and that this is just a bear market rally. Some of you actually have the balls to say stuff like “well if it rallies for a month at least play it right. Make money while you can.” This is a FOOLS statement as the ONLY time you play is when the advantage is in your favor and if you have no perfect charts (like APII and EMIS) setting up with Featured quality or with a price over $10 and volume over 100,000, I am sorry you genius “three year” traders you are missing the whole point of capital preservation. Your dip buying will severely screw up and you will get burned hard in this bear market when a stock finally breaks down well below your support. Then you will get paralyzed and not sell. All the while the smart investor will be short and cashing in on your ass. This game is war. And right now there is not a war just in Georgia there is a war on wall street amongst the dumb money. The mutual funds are out of it, hence the low volume, and they are letting the ignorant money fight it out. When the ignorant newbie traders finally trade their accounts into pathetic figures a new trend will emerge with the beautiful charts that existed in late 2002 with stocks like NTES, SINA, SOHU, SSYS, USNA, GRMN, and many other succeeding before the real FTD launched the real rally. And for you newbies afraid that you have already missed the move: that is my first clue that you are IGNORANT about your history. You can be six to eight months late in a bull market, if it is a real bull market and find TONS OF STOCKS with perfect patterns that will launch 50% to 100% price runs (it used to be up to 300% before the VIX crashed and stopped spiking after the introduction of 10000000 ETFs). Only those that are IGNORANT of their history and the history of the greatest stocks ever make statement like that. So if you are posting on my forums or anywhere on the net that you are afraid you missed the gains…well my friend if no chart setup, that means something is wrong and it is probably going to be very good that you missed those gains. Some people can’t handle the truth, those that can you can start to prepare to make millions with me. The next bull market will be no joke. I WILL NOT MISS IT. This is NOT it. Can base on base patterns be created and turn it into a bull market? Sure! But to do that we will need more than medical, manufacturing, commercial services, and small regional banks to lead before we can have a real bull. When internet, computer hardware, computer software, banks, retail, and bitoceh start setting up in APII type of moves, then I will get happy. Until then, I don’t fall for bear market rallies. I will let the IMMATURE NEWBIE DAYTRADING “I AM TOO SMART FOR THIS MARKET” individuals make the same mistakes their brothers in 2000-20002 did. The day of reckoning for the dip buyers playing this weird intraday volatility will come. It will be ugly and they will wish they learned from the greatest traders and learned to move with the trend instead of “outsmarting” the market. Fools.
new Featured long positions: URBN APEI
URBN is bouncing off the 50 day moving average and breaking out to a new all-time high, on very strong volume. I can not deny the strength of today’s breakout but the base it is coming out of, to those with sharp eyes, have two key flawed areas. One is the are with the red BOP and heavy volume on th selling in May. The second is that the July lows busted through the June lows making it look like it was headed lower. But now it is going the other way and breaking out on volume. It sure is hard trusting stocks that act like that. Cut you final loss with a close below the 50 day moving, if the stock does not move higher immediately.
APEI is bouncing off recent support near the 50 day moving average and breaking out to a new all-time high, on very strong volume. This stock has a 99 EPS rating putting it on the top 1% of all stocks based on price performance over the past recent quarters and the past three to five years. So a very pretty chart with some of the top fundamentals makes this a nice little play. It is a bit risky considering it is a bit aways from the 50 DMA but the chart is really nice and the fundamentals are strong so I will definitely poke at it. Cut your final loss with a close below the 50 DMA, if the stock does not move higher immediately.
new speculative Featured long positions: DDMX IPCM CRD.b
DDMX is bouncing off the 50 day moving average, on strong volume. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
IPCM is a bit risky but it is breaking out of a base on base pattern, on very strong volume. The green BOP along with the strong price/volume moves has made this stock very nice but I honestly believe it will be much safer trying to buy the stock off the 50 DMA and must admit my personal buy will be small and until this stock can maybe take a week or so to pullback on lighter volume I don’t plan on buying too much. If it doesn’t at least pullback some, it will run with only a small amount of my money. But disciplined trading MUST be established here in this horribly volatile index trading. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
CRD.b is breaking out of a nice round perfectly shaped cup, on strong volume. This is a very beautiful chart as the base is perfectly round just to the right degree that I LOVE it. But the stock is thin as it only averages 96,000 a day. While that is not a little it is not a lot for me too get too excited about. It is very pretty but unless it continues to move higher, with BOP staying green or preferably improving to max green, I will not be afraid to cut it short in this market. Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately
new speculative long position: VNUS
VNUS is bouncing RIGHT off the 50 day moving average, on strong volume. If this was any other market than the one we have currently been going through I would take a good size position in this speculative gem due to the way it is set up right off the 50 DMA, with surges in volume. The price move today after a few days of price action is beautiful. However, why couldn’t BOP stay green? I don’t understand that and I know from MY PERSONAL HISTORY that is a red flag when stocks that setup up nice patters with max green BOP dips into either yellow or red BOP and then comes back with green BOP but not max green BOP on the move. I nice stock to put a few extra dollars in. But you would have to be a fool to commit too much to this purely speculative chart pattern. Is it bullish? Yes. Is it super bullish? No. I would always pick a STJ over a VNUS (Featured rules nice charts; always pick a Featured yellow chart over a perfect gree one, if you only have selected funds; if you have a lot of money, buy both). Cut your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.
