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The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)
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Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.
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Wednesday, September 28, 2005
Market Recap
Thank God for Mr. Christopher Columbus, otherwise I might have thought the world was flat based on the recent stock market activity lately. It was a mixed market again today with a tight range and no movement on the indices. The DOW was up 16 points, the NASDAQ lost a point and the S&P gained a point. This is about as flat as an open can of soda left on the counter for a week. There is not much that you can do in a flat market with zero volatility.
However, there were some big winners on the bulletin today: AMLN, FTO, NGAS, NWRE, CRZO, BBSE and SWIR. Also, the oil stocks were all up today as that sector just keeps going higher. On the short side, the housing and the retail groups continue to look extremely weak. There are always some stocks on the move up or down in any market. We believe our pre-market watch list can get you off to a great start for the day. Please watch for this in your email between 0900 and 0930 EST each morning.
Inside the Markets
Everything on the face of earth moves in cycles. Cycles exist in many facets of life. The markets also move in cycles. There are four stages that represent the whole life of a stock or a market in any timeframe. Stage 1 is the ambivalent stage, where professionals accumulate. Stage 2 is the bullish period, also known as the boom or accumulation part of the cycle when many of the masses start to pile in. Stage 3 is the uncertainty stage, where poorly informed market participants begin to doubt themselves and their newly acquired stocks bought late on stage 2 while professionals begin to distribute. Stage 4 is the fear (distribution) stage, when heavy selling comes in and the novices are in constant fear and sleepless nights occur. These cyclical moves repeat themselves over and over again, but not necessarily at the same time in all markets and sectors.
Constant Rotation
Money is constantly being put to work by the professional trader in the form of rotation. It rarely sits idle (in cash). Whether it is in stocks, commodities, bonds or other investment vehicles, there is constant rotation going on. Thus, different markets might and will be in different stages of its particular cycle at any given time, as they face different levels of supply and demand. Stage 2 in a stock may occur at the same time as stage 4 in commodities. Thus, sectors of stocks directly linked to commodities might experience bullish moves, even as the general market (measured by the major indexes) is in a down trend.
There is Always a Leader
One common misconception that people have is that when the stock market is in a stage 4, all stocks in that market will be in that general stage. This is not necessarily true. Even though a great number (about 75 - 80%) of stocks will follow the market indexes, a smaller percentage will move in different directions. Diligent traders know that in any market environment, there are going to be stocks and whole sectors that buck the trend and some that will lead the market in the same direction of the trend. Even in the bear market of 2000-2003, there were dozens of stocks rising. Sectors like gold, defense, energy, and homebuilders were the leading groups on steady up trends while the NASDAQ was steadily dropping and ultimately lost almost 80% of its value from its 5000 peak in 2000. Using this year as an example, even as the market remained in a sideways stage for the first half of the year, the sectors mentioned above were not necessarily in the same stage.
Unfortunately many investors or traders will generalize the whole market by looking at just the indices and forget to dissect further inside the market to find those groups that have assumed market leadership. Because of this, they will miss out on excellent sector opportunities that the different stages of the markets might present.
STHQ Chart Index
If you go to the chart index in the left side menu, you can review and study charts that we have annotated for each stock listed in the past.
For New Members
For all of the new members with us, please make sure to read the link “How to use Bulletin” at the bottom of the Bulletin page on the website. It is critical that you know how to use this trading tool before trying to trade the stocks mentioned. The effectiveness of your trades will diminish if you do not completely understand how the information is presented.
Earnings Calendar
We have added the earnings link for each stock on the bulletin. To access the link for earnings, you can either use the link below or click the link on the bulletin for the corresponding ticker. Click the online bulletin in the left side menu for access to the earning calendar for each stock listed. It is not recommended to hold a position through earnings. You can always buy the stock back after the dust settles.
http://www.earnings.com
Stockcharts Listing
Please vote for us once a day at stockcharts.com.
http://stockcharts.com/def/servlet/Favorites.CServ...
Thank you all for voting.
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