View Full Version : Current market notes/comments

11-05-2008, 05:59 PM
Originally sent to my traders on November 4th, election night, the day before the big 4% drop in the markets:

We've just had a multi-day run up in the markets, after my
industry-shattering bottom "buy the market" call on Oct. 20th,
which worked out so well for everyone.

BUT - I think it's a wise time to be lightening up and selling
into the rally, particularly for stocks that have moved up
strongly in recent sessions (for example I sold QQQQ SPY and
others today, to lock in my profits).

I think we may well see some selling within the next few
sessions. Yep, in the midst of this market euphoria. That's
why I do well in my trading; because I'm in and out before
it's "obvious" to everyone.

So what I did was sell off partial positions to lock in gains
for some of the stocks I've been in, that had moved the most,
during today's trading session.

So obviously big picture I'm still very bullish on this
market. Just put another 12 grand in today. But I SOLD
a bundle, too, in my Fidelity account, for many who had moved
significantly in my favor, either all positions or large partial
position sells, to lock in profits today.

Because I'm a TRADER, and I like to sell with a profit, and
buy others in the process of gaining, or who've sold off and
are rebounding (like my SHS buy this morning off the 7.5 lows).

Make sense? I'm expecting a DOWN/SELL day SOON... even though
everyone's all happy and the talking heads on financial news
tv are sounding like mega-bulls, I know it's more bs.. what
happens is, guys like me who correctly BOUGHT the Oct 20th
lows, are selling into this rally to lock in gains... so I'm
expecting a red day (or series of red days) very soon.

Winning Trader Notes: Pay heed to the fact that as I was
piling my $54,000 into the market starting October 20th, not
a SINGLE other trading advisory I'd seen was calling the
bottom -- in fact many idiots were saying to sell half your
stocks during that week... the exact bottom. One well-known
newsletter was even saying to buy a bunch of inverse ETFs (you
know, the short ones, SDS/DXD/QID)... and their traders got
their heads handed to 'em. But not us.

...as I told you publicly, I was buying, with an entire $54,000
SEP-IRA cash account, like a pro, starting October 20th. And
I was right. And I'm up nearly 10 grand so far because of it.
In REAL trading entries. I don't just teach this stuff, I
actually *trade it* and profit, as you've seen demonstrated
with my brokerage screencaps. Demand that from others.

So pay heed when I say we're also likely to see some selling
action "any day now", like tomorrow or later this week, as a
very LIKELY occurrence. Even though everything looks all
bullish. Probably especially because everything looks like
it's a rally buyer's market -- I expect a big RED day soon.

Remember I said this. I was the only active trading newsletter
I'd seen that correctly NAILED the Oct. 20th bottoms for you,
right? And pay heed when I say that I'm expecting some sell
pressure (at least a pullback on longer-term charts, if not a
downright butt-ugly red selling day), coming soon.

So I locked in some profits today and sold some of my best
winning plays, while buying others that I think are so beaten-
down (and bouncing, on hammers/volume/other signals), that
I think they're relatively immune to a large sell day, if and
when comes up soon.

The KEY is, "make the stock work for you like an employee"...
the ones that did great for me, I sold ("promoted them back
to cash with a profit"), the ones that are breakeven/modest
moves, I'll give another few days/weeks to see if they do
well, and if not, then I'll fire 'em and put their "salary"
(the capital I invested in them) to work with another stock.

Remember, the stocks are TOOLS to be used to profit from; once
they've "done their thing" and are reaching key prior resistance
levels and/or have moved sharply in your favor, it's a great
time to SELL And take the PROFIT before a red day wipes out
a percentage of prior trading gains - make sense?

What do YOU think? I'd like to hear from you -- let me know
your thoughts. And I hope you were impressed with my exact
precision October 20th market bottom call (and 54K of my own
cash I put into the market, since I put my money where my
mouth is, to PROVE what I show you, really works)... now don't
be surprised to see an upcoming RED day real soon.

Locking in profits at least on those that have moved nicely,
at least 50%+ partial position sells on large winners, is a
smart idea.

Note that everything feels all rosy and cheery and bullish and
peachy-keen. Which is why I SOLD many of my winners, because
I know that what feels good to the public and talking heads,
is almost always a sucker's play. Are you starting to get it?

Repeat after me, three times, "Booking Profits Is A Good Thing!".
And then actually do it, like I did.

> Nobody else I know is saying sell into this market. Yet that's
just what I did today, to lock in profits on some of my trades.

I can always get back in on continuation moves up, and in new
positions, as I did. So I'm trading more aggressively than
ever -- but I do it by ROTATING my capital, so that it produces
wins, then I cycle out into new positions, lather rinse repeat
and win.

11-29-2008, 09:48 AM
In Vegas we talked about a new sector called "pork" well I came up w/ an acronym of "GAPP". Standing for Governmemt assited pork programs. I thought we could have a blue light special next month and toss in retail for 30 days since we all know they will do poorly.

11-29-2008, 10:10 AM
Sounds good to me... and from the seminar, the "GAPP"/"Pork" sector (AIG etc) should be interesting to follow... :0