We have a confirmed sell signal in all of the major indexes except the Russel 3000. We never know how long this trend down will last,  In the last 3 years, there were two  times when the change of trend lasted for only 2 weeks.

Trend Change…Bright red is the signal to go Short

(click on image to enlarge)

What do we do?

This is where you want to be aggressive and get into the sell signals early.  Last year when we got the buy signal, the first few weeks had signals that were the biggest winners. The same thing happened when we got the short signal in September 2008 for the sell signals.  Take a look at the power scans that are sell signals and put more volume on your scan to get the best of the scans.  When Shorting the market,  l look for stocks over $20.00 and 20 million shares a week or 4 to 5 million shares a day if I am using the daily scan. The more volume, indicates that there are a lot more institutions involved. They have to be in liquid stocks and ETFs.

ETFs

Type the word “ultra” in the search for symbol box  and check the name button in the search for symbol box when you run the scan.  This will give you the way to short the market by buying the ultra etfs.  These are inverse ETFs.  You can also search by the inverse selection box as well.  Put some volume into your scans to find out where the institutional money is going to hedge their long positions.  The inverse ETFs are  the favored  way many of the mutual funds hedge their long positions.  Also try the name scan of 3x Shares.  This is 3 times the indicated ETF. There are many different sectors that have the 3x(times) allocation. Watch it closely and only use it on the daily scan.  Only take the weekly signals if you have a larger account and can manage the risk.

Risk Management.

This is what you might call  the primary tenet that controls investing.  We will never know which one of our trades is going to be the biggest winner or how much we could possibly lose on a trade.   That leaves us with one tenet of trading that we can control…Risk.   We can control how much we are going to lose.  That is why it is important that you use the stop signal to get you out of a  losing trade.

Most people who trade, or invest, are thinking about how much money they are going to make on a trade. They should be focused on how much they could lose.  That doesn’t mean that you should stay out of the markets.  If you are not in the market and don’t take the higher probability trades, you are not going to have the chance to catch the trade that will trend.  I have seen many who don’t take a particular trade because they just lost too much money from the last trade. Many trades are made with high emotions, and the higher the stakes in a trade, the higher the emotions. That is why I have always said to take the higher probability trades.  With the Wizard we have set up a platform that is designed to take as much emotion as possible out of your trades.  Still there are many of you who have called in to support and I can tell in your voice that you are scared to death, that the next trade is going to wipe you out.  If you have experienced this, you are trading too large of a position.

In the new Wizard we will be introducing the money management system that will not allow you to show a trade of more than 5% of your portfolio in any one trade. I like the position size of 2% myself.  This is the wisest way of making your emotions less of a problem in trading.  Many of you are violating these basic risk management principles and destroying your confidence and portfolio.

Remember, we react to the market and take what it gives us and realize that is all we are going to get. When building a portfolio to a greater size, you will have better results with walking up the mountain instead of trying to run up the mountain.  Just remember that you do trade your personality. That means 99.9% of us have to take the emotions out of the trades. Believe you me I learned the hard way and hope you can learn from the Wizard that there is an easier way.

I hope you will focus on your position size with all of your trades, and keep your portfolio’s safe from a major swing in value. Always recalculate your position size every month at a minimum to guarantee growth and protect yourself from major losses.  If you make money you will increase your position size. If on the other hand your portfolio is down this month, you should decrease your position size.

The Wizard Network

Don’t forget to sign up for the opportunity at theWizardNetwork.com.  The engine is running and the take off is imminent.  Also, make sure you sign up for the webinars this week. They are on the events tab.

As always, have a great week trading and God Bless,

Gene Stunkel

Creator of the Wizard

This is from the blog in September 20,2009.

This has been a longer than expected trend.  It looks like the S&P will go to 1150 if the trend continues. That is my target. I am looking for the turn to take place some where between October the 9th and 12th.  If it goes beyond the number or date, other factors, probably international or national are involved. As you know targets are not always hit, but it is good to have one.

Well, we hit the target and went to 1150.45 and backed off from it.  That is how the markets react when they hit these targets.  Many of you have seen that happen time and time again.

I am looking for the Wizard to tell us to go short soon.  I think it is important for you to take profits if you haven’t done so.  The target long term on the down side is 875.00 on the S&P once we get the Sell signal.

I was on the Gabriel Wisdom show on Business talk Network this week, and Gabriel asked me what I thought the market was going to do.  I told him I do not predict the markets. What I did not get a chance to tell him was that the Wizard has targets as we demonstrate every day.  I thought it would come a lot sooner than it did, but the Wizard is smarter than I am.  Isn’t that the way it is with investing?  Your emotions (or the news media) tell you something that you can’t use when making or managing a trade. One more time….let the Wizard tell you what to do and take your emotions and all of the other sources, out of it.  Every trade will not be a winner, but you will wind up ahead in the end with more profitable trades.

If you are looking to get short, start looking at stocks over $20.00 with volume of 25 Million shares a week and double reds.  The alternative to that is to take daily signals stocks over $20.00 with 2-5 Million shares a day.

Take a look at the sectors and you can see that short term arrows are red and all but four long term arrows have turned dark green.  Dark Green means we are still in an up trend and it is telling us that we are in a consolidation, trading range, or that we are starting to change direction.  With the way Washington is messing up everything they touch, the prospects of the market retreating are pretty good.  But as I always say,  we will react to the market and let it tell us what to do. We can always get back in the market if it takes off again.

If you have not signed up yet to be a part of theWizardNetwork.com you need to as soon as possible.  We are getting ready to launch the Network real soon.  Go to theWizardNetwork.com and register.  Also you can check out the whole site. There is a lot of information about the WizardNetwork a video and my interview with Gabriel Wisdom.

There is a lot going on and I am way too busy, but I love it.

As always God’s blessings to all of you.

Gene Stunkel

Creator of the Wizard

“There are some shorts that are available as aggressive trades and I will post them below.” When I said aggressive trades that was the case.   We were in a choppy market and the market had not given us the main signal of double red. This is a perfect example of taking an aggressive trade and not being in any trend.  When we are in these consolidation areas you can get hurt. Patience is a virtue in trading as well. When we wait and get the signal we make money.

We are still on the side lines unless we are locking in profits from conservative trades. I don’t like taking the shorts this week since we have the dark red in the short side of the S&P.  So I will stay on the side lines this week. I will keep the shorts that we have taken on the from last week.

Scan posted last week

(Click on image to enlarge)

There are no Wizardpicks for this week.

We are waiting for the next signal from the markets and we will be ready to load up when that comes. As I always say wait for the signal, be patient and we will get in to the trend and make some money.

As always have a great week and God bless you all.

Gene Stunkel

Creator of the Wizard

We have a signal to get out of the market with the dark green showing up in the Long Term  S&P. Now as always you can wait for the stop, or you can get out here and stay out of the consolidation area.  However, I am not looking for Pre-Buys in this market.  They would not be high probability trades. Those of you who are using the WizardPicks,  this is where we always get out.

There are some shorts that are available as aggressive trades and I will post them below.  If you look at the chart below we practically made the last target on the weekly scan.  It missed it by a about 40 cents and it changed about the week of the12th to 20th of October which I thought would be the time of the change, as I said in a previous blog. If you took the Wizard Weekly Aggressive signal you would have a profit in the S&P ETF of 18.60%.  If the market does not go any higher than this, we should test the lows.

(Click on image to enlarge)

Pre-Sell Trades

(Click on image to enlarge)

Sectors that you should take the short Pre-Sells from.

(Click on image to enlarge)

Cash for Clunkers

Well, the Wizard figured out what to do when the boys in Washington decide to throw money towards the car companies and the related industries.  We got long in those stocks and look what an amazing reward we received.  You do not have to be a genius to figure out that these companies were going to make a bundle when the Feds put  Billions of Dollars into there pockets.  Here are the results. Wow!!!!!

(Click on image to enlarge)

I will keep you posted on any change in the market if I see one.  I have noticed that a competitor is starting to say that there are myths in the market.  You should not buy and hold, the market cannot be timed etc. Maybe we are teaching them something and they are starting to get it.

Forex and Futures

Watch the dollar. I think we could see a bear market retracement soon.

As always, Great Investing to all and God Bless You.

Gene Stunkel

Creator of the Wizard

Market will not quit……..A new buy signal

This retracement was short lived. The market has still got momentum pushing it higher.  With all that is going on in the national and international arena, I am surprised that we are moving higher. With all of the money on the sidelines, it must be burning a hole in the pockets of the funds.  Nevertheless,  we are moving higher on lower volume.  If you are still in the market, make sure you are locking in most of your profits.  It is imperative that you at least follow the targets on the conservative scans and take the profits when you hit the target prices.

I said a couple of weeks ago, before we got the dark green signal on the S&P, that we should go to 1150 on the S&P. I thought we would get there this coming week.  Lets see what happens.  I am taking some long signals with double greens,  and I will watch them with a close eye.  Remember that we are looking at most of the laggards where we are getting the double greens signals . The stronger stocks always emerge with a breakout normally first. There have been a lot of indications from the charts that we are topping out.  If we do not get filled on these entries we know we are probably there.

With all my best and wishing you Successful Trading,

God Bless You All

Gene Stunkel

Creator of the Wizard

Dark Green means caution or get out of your trades

We have had a tremendous run since our April signal to buy the market. This is a time to be cautious and stand aside even though the stops have not been hit.  There is no signal to take any more trades to the long side.  We will wait until we get the bright green or bright red signal to enter a trade.  If you are long with trades take your profits and get out of the market.

Another action would be to hedge your trades with either put options or offset with the index ETFs.  We could still head up farther, but it is tenuous at best. I was looking for 1150 on the S&P and the turn of the market next week. We may have gotten the turn a little early.  What ever happens we will let the market tell us and react to  the signals we get from the Wizard.

Remember patience is a virtue especially when trading or investing.  Also remember that Buy and Hold does not work. We know that the Wizard never misses the change of trends. Now we relax and wait for the confirmation of direction.

Multi-Level Marketing

Multi-Level marketing is right around the corner for the Wizard.  We are excited with all that is happening with the Wizard.  We will be announcing the schedule and how you participate soon.  For all of you that have sent inquiries to us, we will make sure you get the information for becoming a distributor. Won’t it be wonderful to make money with the Wizard and also share it with your friends for a profit.

Mutual Funds

For all of you that have IRA’s and 401K’s,  we will be calling over 20,000 mutual funds soon.  You will be able to see the calls exactly like you see the stocks.  The Wizard will be another way for you to monitor your long term investments. The results are amazing.

Charts

This is a sneek peek of how we have it designed at the present.

(click on image to enlarge)

The calendar colors are on the bars and the signals are on the right side. Volume is next to the bottom and the scan of the stock is on the bottom. For you chartists, you will like this.

Have a good week and as always I wish you the best.

Creator of the Wizard

Gene Stunkel

Gene’s Commentary

The winners from this trend have been spectacular.   I have listed them below.

This has been a longer than expected trend.  It looks like the S&P will go to 1150 if the trend continues. That is my target. I am looking for the turn to take place some where between October the 9th and 12th.  If it goes beyond the number or date, other factors, probably international or national are involved. As you know targets are not always hit, but it is good to have one.  The low volume on the way up fooled everyone, including me.  That is why we have to take the emotions and too many indicators out of the mix of trading.   If you look at the 2009 calendar for the S&P you will find that the Wizard stayed with the move all the way up.  We had larger gains in the beginning of the move, and now the gains momentum have fallen off a bit. I am posting the 2009 S&P calendar below.

For all of you who are  wondering how TheWizardPicks have been doing, The Wizard has been Picking Winners quite well.  We are up 8 out of 9 weeks, and the losing week is less than 1%. If the market keeps going up as expected we will be positive on that week as well.

I have been very busy with the new marketing program that we will be announcing very soon. We will be launching a Multi-Level Marketing Program within a couple of months. If you have an interest in being your own boss and creating you own future drop me a note to sales@thewizard.com. You are going to be able to participate and grow with the Wizard over the coming years.

The S&P Long Term History

(click on image to enlarge)

EVERY SECTOR WAS A WINNER AND THE WIZARD PICKED THEM…..

Conglomerates                29.62%

Basic Materials                 60.58%

Aerospace                        41.11%

Oils-Energy                      39.45%

Consumer Discretionary   60.39

Computer and Tech          58.76%

Industrial Products           37.40%

Consumer Staples            48.62%

Construction                    98.12%

Utilities                            22.60%

Transportation                 35.83%

Business Services             77.73%

Medical                            53.77%

Finance                            28.62%

Auto-Tires-Trucks         101.66%

For all of you trading the Penny Stocks look at these returns

I like to look for penny stock scans with these settings:

(click on image to enlarge)

These are the results with this type of scan.

(click on image to enlarge)

The Wizard Picked some Great Winners From the ETFs.

(click on image to enlarge)

The Wizard did not leave the Futures out either

(click on image to enlarge)

The Wizard did not forget the Forex either.

(click on image to enlarge)

As always, I wish you the best, and great trading.

Gene Stunkel

Creator of the Wizard.

The S&P, Dow, and the Nasdaq have all shown buy signals.

The Russell 2000 has delayed the buy signal for now, we will see if it follows suit.  I am going to watch this closely and I will post any contradiction of these signals intra week, if something occurs.  I am posting a copy of the Browse sector page so that you can see that all of these sectors are giving buy signals for the first week.  This is not one or two sectors changing, but about three quarters of the sectors giving buy signals.   There are plenty of good buys in each of these sectors, so make sure you do some searches in each sector and the hottest industries in each one.  Remember that all of the sectors and industries are ranked by momentum.  That means the stongest are at the top of the list and the weakest at the bottom.  The low volume is making me suspicious of this move, but I believe we will see some of the stronger companies do well.

Browse Sectors

(Click on image to enlarge)

The WizardPicks launced this week and we had eight picks on the Pre-Buy list.  The response has been tremendous and we are looking for a great year.   We have our work cut out for us, since last years signals were close to a 60 % return (based on the simulated signals we followed).

We are hoping to launch the Iphone application in the next few days.  We are waiting on Apple’s approval.  The application is done and functional.  The IWizard will only have the Dow 30  calls.

Good Trading and we will post again soon.

Gene Stunkel

Creator of the Wizard

Stocks

The markets are very volatile at the present. Too much manipulation in Washington and the other G8 financial circles. Whenever we get to these dark green or dark red areas I am going to cash and staying out of the markets.  When I talk about dark green and dark red areas, I am referring to the Long term calendars for the major indices.  The Dow, S&P, Nasdaq and the Russell 2000.  They all have been dark green for a couple of weeks and finally the Nasdaq turned dark green this past week.  The scans that I have done looking for the entries short have not given the double reds at a minimum price of $20.00 or more, so therefore I did not enter.  Stay on the sidelines for now, and the trend will come and we will get back into some trades. If you look at the S&P calendar for 2008 you will see that we actually entered only 5 trading trends.  Four of them were short and one was long.

ETFs

Same story with the ETFs.  No trades that interest me.

Futures and Forex

Same story, no trades.

Patience

I have talked about this trading trait many times.  But let me tell you about a couple of things that I have found in building the WizardPicks site.  If you simply get out of the market when we turn to  darker colors, (not bright green or bright red) you will make more money.   The other idea is that if you are in the trade and have not taken many profits, hedge the trade by buying  puts or call options.  This way you have a head start if the market or security continues in the direction opposite of your original trade. And when it continues in the same direction and turns the bright color, simply release your original trade, if you have not already been stopped out. I hope these simple tips will help you when you are trading nervously in these markets.

Thanks for being a part of the Wizard family.

Gene Stunkel

Creator of the Wizard

Great Results during this bull run

This is simple stuff.  You do not have to be a genius to find a Double Green Pre-Buy to get yourself into a high probability trade.  During the last eleven weeks we have done just that.  The sector did not make much of a difference.  It was a matter of picking an industry and sector that were Bright Green. Personally I did not think it would last this long, but it has.  We can guess when it is going to turn the other way but if we take the emotion out of the trade and follow our signals, we will be better off.  Isn’t it amazing what patience and discipline will do for your trading portfolio.  We should get a change soon.  But for now, I would make sure I took smaller positions if you are taking trades at this time.

Take a look at the winners in the top sectors.

Basic Materials

(click on image to enlarge)

Oils and Energy

(click on image to enlarge)

Consumer Staples

(click on image to enlarge)

Auto-Tires & Trucks

(click on image to enlarge)

Computer & Technology

(click on image to enlarge)

Retail Wholesale

(click on image to enlarge)

Penny Stocks

The Wizard picks the penny stocks the same way it picks the higher price stocks.  It give you an entry when the stock breaks out of the consolidation area.  If you find a sector that is double Greens, there will be some penny stocks, (less than $2.00) that will move with the sector as well.  If you have a small account this can be a good alternative. It has been particularly well with the oil stocks.

The main issue with any trading plan is to follow the rules and have the patience to follow through with the rules of the trading method.  The following chart shows the gains from some of these penny stocks.

(click on image to enlarge)

ETFs

We have caught the moves in the ETFs as well. Look at these trades

(click on image to enlarge)

Futures & Forex

Here is the Futures contracts for the recent run in commodities.  The Wizard does very well with the futures. If you are looking for more leverage, take a look at how theses contracts are performing. The Forex is a Weekly Chart. I am showing you how the big traders trade the Forex. To have the patience is the key. Of course a larger account helps out as well.  All markets trend.  The Forex and currencies in the Futures are no exception and are some of the best.

Futures

(click on image to enlarge)

Forex

(click on image to enlarge)

Have yourself a great trading week.

Gene Stunkel

Creator of the Wizard