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Because of your emails

Investors411 is back.

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However, instead of a daily basis

411 will  published two times a month

The focus will be the same

Stocks/economics/politics

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The comments section,

as always remains open

on a daily basis

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For Your Patience

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As many of you know this editor

and many of you spent much

of the last three months

working for the election of

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Rachel Maddow on

The results

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STOCKS

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PAUL’S CORNER

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I had the great pleasure of attending Ian Woodward’s HGSI Workshop this past October in Palos Verdes California. Lots of great review and always some new material that would as Ian suggests “knock your socks off!” and it did! Ian shares some of the finest market knowledge you can find. Ian produces a great blog and it will keep you on the right side of the market.

IAN’S BLOG

Ron Brown presented some great new searches for finding strong stocks. Ron suggests following stocks with strong consistent accumulation and he gave us the software to find the winners. Ron also gave a great presentation on trading options.  He showed us how to find proper stocks to trade options using the HGSI software. Options are new to me and the information Ron gave will be a great lesson.

Gil Morales, a long time analyst that worked for William O’Neil of Investor’s Business Daily, gave us an excellent presentation on shorting stocks. We came home with Gil’s presentation showing proper chart formations for shorting.

Dr. Jeffrey Scott, a longtime HGSI user, gave a good lesson on creating your own index of stocks to follow that will show when the market is breaking down. As a group we selected 24 strong stocks with great chart patterns. These sorts of stocks usually are fat with profits and will be the first to cash in with a collapsing market. Here is a chart of the index and it shows a break down with the market, but bounced nicely Friday. The leaders are usually the first to bounce up when the market turns up, we’ll keep an eye on this

Chart.


The following chart of Nasdaq Composite clearly shows the warning signs as we headed into this correction. A look at the chart with moving averages is all you need!

Chart

The current MO for the NYSE is -53.92, past history shows we usually bounce from this point, but there is a lot more to the down side that the MO can go. It’s probably too soon to start nibbling.

Watch the comments section if the market turns up I will start posting a


“stocks to watch list”.

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Even when Barr takes a break from posting, remember we can always post comments and questions to the latest blog post, so don’t go away mad………

Paul

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Obviously much of 411′s data  (see links at heading on top) is out of date.

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Over the Thanksgiving holiday

I’ll try to update

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There are many significant problems for stocks

including the fiscal cliff, tax selling, Europe, wars, and more

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But , as Paul points out,

our main tool

reached oversold/buy territory

last Thursday and is now

sitting just above oversold levels

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So I’m thinking about nibbling on stocks

rather than selling

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But, I sure understand being hesitant.

The main danger to bulls is unpredictable

fiscal cliff and Mideast war

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How to use McClellan Oscillator

here

(Scroll down)

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A Trade

Those of you who know how, my best advice is a put/call combination trade whose options expires in January/February or beyond. This is based on the belief that US markets will move dramatically as fiscal cliff deadline looms. (42 days) Also if there is a solution stocks will move dramatically.

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Long Term Outlook

(3+months)

NEUTRAL.



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