Check out the turn in the US; good date if ever there was one, August 6.
(Hiroshima day) You should learn from this. What is happening is that on
our key monthly dates, they are the times most likely when our
collective consciousness will make decisions en mass.
We have a higher low in place in the US now, (follow this at barchart.
com, click on industrials) both lows are on our key dates we watch for,
dates you can calculate in advance (nice isn't it - still think markets
and life in general is random ??) so this forecasts a reasonable six or
seven week rally at least. Of course this may not eventuate, it's what
stop losses are for, but I feel that I would have to consider giving up
my Gann studies if we did not get some sort of US rally at this point,
after the higher low in place today. That means news must come out over
the next few weeks that is interpreted by the players as positive for
the market. (eg a rate cut, or talk of one) Anyway, I have no more
shorts left, and have had a close look at what I think might be good
gainers in the next few weeks, ie the stronger stocks. (see below)
These are my thoughts at least; but trade the stock trend, not my
thoughts. Time lows like that on the Dow 24/7 and 6/8 rarely break
immediately. Nevertheless, Mr market will do all it can to try to trick
those playing. But reading bottoms and tops based on those time dates
emailed to you is one of only very few ways I know of, that can help us
overcome the tricks of Mr market; the others ways being time cycles and
gann angles, more of which I will email about later. One would forecast
the next important turn for the US at a mid point retracement.
Right now, I thought I would take the time to rewrite a little about one
method of finding stocks; here is what I do at least.
I try at least monthly to flick thru the stex charts; stex on auto, 3
second delay, looking for stocks doing the following;
-Approaching new highs, e.g. GAP last week (buy the break)
-Approaching new lows, e.g. ALL, at present, SEV last week (short sell
-A pattern of accumulation at low prices (buy the break of accumulation,
usually effective longer term trades, were plenty on the longer term
portfolio) e.g. HCN at present could be accumulating - note you do not
need to guess, nor try to appear smart here, wait for the break into new
highs, if there is one
-already in a good trend, e.g. DTL, GUD (buy the new high, or buy a
midpoint retracement once confirmed, e.g. ASL) -going sideways in
accumulation or distribution phase, (e.g. SEV last week, SBC at present)
I note the codes, then create a watch list of each for later viewing.
This is my watch list for the month. I will also keep a daily eye on the
AFR rolling year records as this list helps me gather trending stocks. I
discard immediately those in the AFR list too thin or not traded every
day, and there are plenty like this.
I would also note the best trending sectors of the market. It's the same
process, over and over each month, bit like going to work really, 'cept
I'm my own boss. (The market is my boss really though, since it opens at
ten whether I am there or not).
The only battle remaining is then with my emotions, with which I have a
VERY hard time; see amp for my latest battle, short sold at 1399 26/7,
bought back on the 30th, exiting on an emotional error. Looks woeful
doesn't it, even worse in hindsight. I accept this as the price I pay
for my independence. You have to be philosophical about it; I traded a
bottom to a top with pin point precision, just the wrong way that's all.
And I am still learning to kick the habit of kicking the cat so to
speak, then missing the next trade. This will always be my issue to deal
with I think, anger at myself when I do something really dumb. Those who
can laugh at themselves in such a situation have a great skill I feel.
We all have different attachments we have acquired over lifetimes.
Once I have viewed all my lists, I try to narrow down the lists if I
have to, then see if any dates stick out on chosen stocks, look at
repeat prices, assess mid points etc, all that which I email you about.
I find that doing the maths like this helps reduce errors, as it is
always very easy to buy on impulse.