Where's the Dow at?

The Coffee Shop
1

News comes, news goes,
How much is already in the markets,
Nobody really knows.

But technically …

For the last 2 days we have one black bar down mirrored by a white bar up on the candle sticks. On the Dow rebounds from a down often happen from this pattern. If it trickles down or stays put tonight this pattern becomes redundant and the 7000 is still being tested.

Anytime intraday within this week (that’s from today onwards), the Dow goes 7500 or, with any volume that’s not dysmal for the day, that’s a clear price-volume-time pattern formed over the week that shows a strong buy sentinment has come in. The next stop will be back to around the 9000 level.

Buying stable under values now will likely see a nice quicky profit back, nice and warm in the pocket. Choose something that is fundamentally solid and has dropped the most with this latest down move and choose something that has shown recently the greatest magnitude of movement up everytime the Dow kicks up. Look at short-term charts and compare magnitude of movements if you have that facility, on line etc.

But it’s now. A day or two later and you’ll likely be chasing the market and lost this chance, this round. Myself, am already in Monday.

***Watch and See. ***Maybe for doom and gloomers you may see the optimistic side of the really fantastic oportunistic markets now, for the steady contrarian smart money trader. There’s no honor in joining the suffering masses.

Also Oil. I’m in earliernthis month at around NYMEX $35 per barrel closest month, into oil related investments that have more magnitude than the oil itself. Let’s see how long it will take NYMEX to trade above $40 again … which will be giving nice returns.

If Gold can drop again close to $800 per ounce … wait and you’ll be missing another round.

2

Maybe for doom and gloomers you may see the optimistic side of the really fantastic oportunistic markets now, for the steady contrarian smart money trader. There’s no honor in joining the suffering masses.

As I’m fond of saying, you can’t buy low and sell high if you don’t buy low in the first place…

3

“a strong buy sentinment has come in.”

Is that what you are thinking personally?

4

I’m talking here about the immediate sentiment Tom. Not the mid to longer term. At these levels, if the Dow can get up to 7500 or more, technically, according to my technical analysis methods (which BTW have done quite nicely for me for a long time and especially since after Oct '08 1st week) that shows that at these levels, buyers will be coming in to bargain hunt.

Maybe it may be the begining of a major spike up, maybe it will just be within the range which is 9000 or so. Either way if you are buying good stuff now you’ll make $$. Look at the Dow chart and see the range of movement and go figure how much there was to be made and how many times, if you had bought each time the Dow dipped below 8000 and sold consequently each time the Dow had hit 9000. Each time the Dow hit below 8000 it was the same old, “Oh no we are heading for another Great Depression.” So each time all the masses stayed even more depressed than that impending depression and only a few smart money made a nice killing.

Nobody’s a fortune teller here. So if by this week that 7500 is not broken, it’s another scenario to be again analysed for next week. For these buys I have at low now, I won’t be losing any sleep because unlike some I am convinced that the downside from here is severely limited. I’ll just wait a little longer but still make my money. Stocks don’t just dive down and keep on diving down after 11 year lows are reached. Never have and I am more than happy to put my money on the belief it never will.

Everytime the markets have taken a really significant low turn like this, unique stories of doom and gloom are everywhere. Nothing really unique about this, this time round.

BTW my Oil related investment (earlier last night first post above) and already today, earlier buys this month should be giving back some nice loose change soon. Last time I looked NYMEX is up to $40+ per barrel and moving.

Follow the Dow from here Tom and let’s see if it drops significantly below 7000 and keeps going down or see whether it does re-bound.

It’s all happening … and self evidence is just around the corner.

If you really want wealth, working yourself to the bone at your own business or at work for the pay cheque for someone will not get you there. You have to know how to make passive income to get that cash flow in to surpass the cash flow out on a significant and consistent basis. It’s not how clever you are, it’s how you choose to think.

5

If you really want wealth, working yourself to the bone at your own business or at work for for the pay cheque for someone will not get you there. You have to know how to make passive income to get that cash flow in to surpass the cash flow out on a significant and consistent basis.

Not that I disagree with you but doesn’t any passive income depend entirely on others working themselves to the bone at their business or working for a pay check? At some point someone has to do the work, you can’t just make money out of thin air, the economy is not Amway.

OTOH I would contend that there are quite a few “Wealthy” businessmen that have gotten wealthy off of “Working themselves to the bone”. Just so happens that our economy also allows others to make money off of others “Working themselves to the bone”. However the second everyone takes your advice, you can kiss your “Passive income” bye-bye :slight_smile:

~Matt

6

Not that I disagree with you but doesn’t any passive income depend entirely on others working themselves to the bone at their business or working for a pay check? At some point someone has to do the work, you can’t just make money out of thin air, the economy is not Amway.

OTOH I would contend that there are quite a few “Wealthy” businessmen that have gotten wealthy off of “Working themselves to the bone”. Just so happens that our economy also allows others to make money off of others “Working themselves to the bone”. However the second everyone takes your advice, you can kiss your “Passive income” bye-bye :slight_smile:

All I’m saying is no one ever got rich from just using his own capacity for work to make wealth. Even wealthy businessmen are rich because they have broken beyond the barrier of just what they can personally do to make the cash inflow. Most succesful businesmen would also use their cash to grow their cash further. Many do so in such a manner that their investments surpass even their good businesses in cash making. Many around the world have made huge wealth simply from property buying and selling.

There will always be the masses willing to slog. No danger of them becoming an extinct breed. It’s just smart to realize that besides slog to pay the bills the only way to substantially increase wealth is passively. It’s nice to work because you want to not because you have to.

A Donald Trump doesn’t need to work, he nows how to keep on increasing his wealth without working for sure. He works because it must be his hobby not a requirement so it’s not really work. If you care to notice many of the wealthy are not the ones rushing to work 5 days a week, but are the ones on the Golf Course or cruising in their yachts.

Warren Buffet hardly spent a day in the office.

Personally I have been fortunate in my working career to have some decent paying jobs including one with the now defunct Lehman. But now that I spend all my time at home, schedule myself and have loads of spare time, go to the office maybe once a month or so, I bring in more cash than I ever have with the potential to do even a lot better.

I love these markets now and over the next four years I intend to be set for life … a luxurious lifedoing whatever I like to do … and there’s lots of that.

Work to the bone, work because you like to and not because you have to, be wealthy be poor … it is a choice not a fate. Again … there’s no great honor in slogging it day in day out and staying poor. It may give a sense of self satisfaction but the price of suffering is way too high for a wasted life. Want a better life? Leave that old fashioned ilogical belief behind.

Here’s some common references best sellers -

Think and Grow Rich - Napolean Hill

The Millionaire Mindset - T Harv Eker

Rich Dad Poor Dad - Robert Kiyosaki

They all pretty much say what I am saying here. Do you want to be more wealthy with more time to play Matt?

7

when market goes up - it’s an opportunity to go short (not for me tho - not my thing)
.

8

Yes of course, short, market goes down you make money.

Shorting is pure speculation, not much different from gambling. It’s margined and and that means you can make the big bucks because you are playing with a lot of money you have not committed. You can also loose your shirt and your house from losing way more money than you committed. If you play a tight stop loss strategy to try and reduce risk, you’ll often get stopped out and just lose 50% or so of your trade again and again. You’re sitting at a Poker Table with a lot of the big boys staring down at you too.

If shorting were so easy, lot’s of people would be flying high making millions in this market over the last year and a half. Have you heard of any? … because I haven’t. On the other hand you can be sure those in the smart money will be making tons from the markets at these levels in the near future.

Been there, traded institutionally in the old days, looked into it with in depth passion and gusto, studying up whatever I could, trying whatever I can, made some loss some, decided after being slapped in the markets many times including Black Monday '87 before waking up to the fact that I am just not a gambler. But there are some, a few and far between, that are. Biggest example George Sorros. Of course he had to go bankrupt before learning. If I was bankrupted from it I think I still couldn’t learn.

It wasn’t a waste because I got plenty of trading smarts to be used on less risky stuff. So much so I have developed my own techniques which I am extremely comfortable with.

But investing astutely? The market is not a beast out to get you, it’s a blessing meant to make free money from. And you don’t have to be a Rocket Scientist. Just someone willing to adopt a wealthy mindset as opposed to one of the kazillions of sheep thinking people of the masses.

Hey-hey, NYMEX right now 42.46, thank you.

Dow looks not to move yet. Looks like some tight consolidation can break either way. I want to see that 7500 breached and then we’ll see a kick back up to 9000. Of course I am hoping for that quickly to take a faster profit. For those not in yet, the market is giving another day to get in. Once it breaks that’s over for this round’s opportunity unless there is a break out from this range. That’s too much guess work.