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
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