GMI: +6; CME and GOOG end weak

@ 11:33 pm

Gmi714 To my visitors: I am only one trader, not a guru, and not a financial advisor.  I am presenting my own opinions and my own experiences and people are welcome to decide for themselves what, if anything, on this site is of value to them.  Please refer to the additional comments, highlighted in red, at the end of this post.

Indexes in up-trends but note that CME and GOOG could not hold their gains today.

Send me your feedback at: silentknight@wishingwealthblog.com.

Please remember that the stock market is a risky place, especially now.  I am not providing recommendations for you to follow.  My goal is to share tools and methods that I have used over the past 40 years of trading, so that you may learn from them and adapt them to your trading style and needs.  While I do my best, I do not guarantee the accuracy of any statistics computed or any resources linked to my blog.  Please consult with your financial adviser and a mental health practitioner before you enter the stock market,  and please do not take unaffordable risks in the current market environment.  See the About section for more statements designed to protect you (and me) as you navigate this market. Past performance does not guarantee future results, but I would rather learn from a former winner than a loser.

GMI:+6; GDW; Shame on you, Cramer

@ 11:48 pm

To my visitors: I am only one trader, not a guru, and not a financial advisor.  I am presenting my own opinions and my own experiences and people are welcome to decide for themselves what, if anything, on this site is of value to them.  Please refer to the additional comments, highlighted in red, at the end of this post.

I was out late tonight and will not write extensively.  Suffice it to say that the GMI held steady at +6, but there were only 265 new highs.Gmi713_2 Only about one half of the Nasdaq 100 and S&P 500 stocks rose, compared to 80% of the Dow 30 stocks.  The rally ebbs and flows. Note that GDW, one of the consistent long time winners I have talked about hit a new high today……………… 

Tonight I heard Cramer make the distinction between the short term trader and the investor.  Traders should cut their losses at 8% but investors who know the "true value" of stocks can buy on the way down.  What a prescription for disaster!  No one should average down and no one should let their losses on a purchase exceed 8%.  One could have bought Enron all the way down by being a true believer in the accounting statistics and the repeated optimistic company announcements.  By the time we outsiders learn the facts, the insiders and people in the know have already sold at much higher prices.   No amount of "homework" or research can protect us. That is why one must react to the stock’s behavior as seen in its price chart, not to the corporate propaganda. Shame on you, Cramer.

Send me your feedback at: silentknight@wishingwealthblog.com.

Please remember that the stock market is a risky place, especially now.  I am not providing recommendations for you to follow.  My goal is to share tools and methods that I have used over the past 40 years of trading, so that you may learn from them and adapt them to your trading style and needs.  While I do my best, I do not guarantee the accuracy of any statistics computed or any resources linked to my blog.  Please consult with your financial adviser and a mental health practitioner before you enter the stock market,  and please do not take unaffordable risks in the current market environment.  See the About section for more statements designed to protect you (and me) as you navigate this market. Past performance does not guarantee future results, but I would rather learn from a former winner than a loser.

Another good day; GMI: +6; Stocks to watch

@ 11:30 pm

To my visitors: I am only one trader, not a guru, and not a financial advisor.  I am presenting my own opinions and my own experiences and people are welcome to decide for themselves what, if anything, on this site is of value to them.  Please refer to the additional comments, highlighted in red, at the end of this post.

Another good day, but weaker than yesterday.  There were 495 new highs, down from 629.  Only 60% of the Nasdaq 100 stocks advanced, compared to 52% of the S&P 500 and 47% of the Dow 30 stocks.  Gmi712 The GMI remains at +6.  If you look at the chart of the Growth Mutual Fund Index in IBD, you will see that growth mutual funds are doing well now.  The Index is well above its 50 day average, and rising.  84% of the stocks in my universe of 4,000 stocks closed above their 10 week averages and 65% of all of the stocks are in a short term up trend, up from 42% just 6 days ago.  If we can’t generate profits in this market something is wrong with our trading technique…………………………..

Still, there were a few warning signs today.  BOOM could not hold its gains today and NTRI and SHLD also retreated from their highs today.  On the other hand, there was renewed life in CME and NDAQ and LDG today. SWN, BBY, MW and HANS are still consistent climbers.  (I own some of these.) ………………………………..

Send me your feedback at: silentknight@wishingwealthblog.com.

Please remember that the stock market is a risky place, especially now.  I am not providing recommendations for you to follow.  My goal is to share tools and methods that I have used over the past 40 years of trading, so that you may learn from them and adapt them to your trading style and needs.  While I do my best, I do not guarantee the accuracy of any statistics computed or any resources linked to my blog.  Please consult with your financial adviser and a mental health practitioner before you enter the stock market,  and please do not take unaffordable risks in the current market environment.  See the About section for more statements designed to protect you (and me) as you navigate this market. Past performance does not guarantee future results, but I would rather learn from a former winner than a loser.