Online Stock Trading

Ron Paul on the Current Situation

Posted on September 20, 2008
Filed Under Market Commentary | 3 Comments

Stocks Waste Little time To Take Out Recent Lows

Posted on September 18, 2008
Filed Under Market Commentary | 3 Comments

It pays to be sitting on the sidelines and avoiding the carnage on Wall Street.  There is absolutely no need to step into these muddy waters we call the stock market.  I do not have anything in my favor, odds are against me as hedge funds and other large market participants are vulnerable to redemptions and margin calls.  Good looking charts continue to be sold, New Lows hammer New highs, and VIX is not showing enough fear for a bottom.  My stock scans for longs continue to look horrible and the number of stocks continue to fall.  The horizon looks too dark to step into the market, cash is king and the sidelines is where I’ll be staying.

Enjoy

Market Speculator

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Stocks Find Short Term Bottom; Stock Market Needs More Accumulation and Pretty Charts

Posted on September 17, 2008
Filed Under Market Commentary | 3 Comments

The Wall Street frenzy continues, as the market sorted out Monday’s trade stocks opened well below their lows while volume raced higher.  Fear readings spiked, VIX and VXN both revealed some fear while the put/call was well below Monday’s highs.  Not the typical fear readings you get in a bottom, but nonetheless shorts began to cover kick starting buying action.  Many stocks were at extreme oversold levels and the buying action helped relieve that pressure and with the entire street negative on stocks we almost certain to move higher.  We certainly saw a short-term bottom during Tuesday’s market action its whether or not we can sustain the accumulation and follow through.  Tuesday’s stock market action was positive, but looking at the forest for its trees it is still shaky.

New lows clobbered new highs as new lows hit 1800+ and new highs squeaking out 50+.  With that many New Lows in the market it is telling me that majority of the stocks are very weak at best.  Weakness is not something I want to be a buyer of, I want strength in my stocks.  Strength is what will get you to return 1000% or more in a stock.

More than likely the NASDAQ will want to reclaim the 2300 area.  I will be looking for massive accumulation and more importantly a follow through day.  Without accumulation the market is signalling that the big institutions are not stepping up in this market.  We need the big money to flood the market supporting higher and higher prices.  I am not willing to put my capital at risk until the large instituions are backing this market.

Cash continues to be king, far too many are trying to find action in this market.  Most will burn and churn their account, some may end up flat, and very few will end up making gains.  Odds are simply not in your favor at the moment, if you need action trade emini futures or play online poker.  Stocks are not flashing high odd trades and should be avoided.  Cash is king and be ready for the next bull market!

Enjoy

Market Speculator

No Positions

Stock Market to Open with a Bang!

Posted on September 15, 2008
Filed Under Market Commentary | 1 Comment

The Financial Tsunami continues to flood the streets of lower Manhattan, Wall Street is completely under water.  LEH filed for chapter 11 protection last night, which in my humble opinion is what Bear Stearns (BSC) should have done.  BAC bought out MER for $50 Billion and AIG is seeking assistance from regulators.  What this has done is create the beginnings of a cataclimisic event, but we aren’t for sure if we are going to get it.  Futures this morning were down and down big:  NASDAQ -50pts, S&P500 -42pts, Dow -335pts.  Back in January we did see a drop of this magnitude but we were able zoom back well off the highs.  I’ll be looking at how we come off the lows and how the market will react after Monday’s trading session.

It will be rather tempting to hop into the market Monday at the open.  The absolute best thing to do is step away from the madness that will begin the trading day.  At the moment, there isn’t an edge in the market.  If you are short take the opportunity to cover some at the open as you are probably getting a gift that only comes around so often.  Regardless, the best thing to do is stand back and let the ill-prepared battle it out this morning.

My time will come for a new bull market where we’ll get stocks move 500%, 1000%, 2000% or more, but for now I will remain patient and let the mongrols duke it out.  Monday morning will certainly be entertaining to watch as stocks will fly around.

Good Luck and Cash is King

Market Speculator

No Positions

On the Brink; Stock Market on Edge

Posted on September 14, 2008
Filed Under Market Commentary | Leave a Comment

Regardless of the action in the Stock Market on Friday, it was the weekend and what would take place that had the attention of Wall Street.  As of now BAC has effectively taken over MER for $29/share.  LEH will most likely file for bankruptcy in the morning and WM will let the FDIC take over its banking operations.  Is this the cataclismic event that has been needed?  It remains to be seen, but at this time the mortgage, housing crisis doesn’t want to end.  It will take the housing market to find a bottom, the job market will need to stabilize, and (most important) we start seeing beautiful chart setups.

At the moment too many are focused on trying to catch a bottom we’ll continue to these small “blips” or rallies off lows only to see stocks roll back over.  It’ll take a lot of work for stocks to begin looking great and leadership to emerge to take us into a new bull market.  You will continue to see carnage on Wall Street.  I will continue to watch this mess of a stock market sort itself out and will continue to watch for stocks setting up.

Enjoy the week.

Market Speculator

No Positions

Stocks Move in Bullish Fashion, Are We There Yet?

Posted on September 12, 2008
Filed Under Market Commentary | 1 Comment

There seemed to be two sides to the Market on Thursday.  One side you had LEH and MER the other was everything else.  LEH and MER took tremendous hits to their stock prices on Thursdays, no question it was due to their ability to survive as stand alone entities.  The other side performed quite well once the initial shock of the mornings trade wore off.  There is an overwhelming negative sentiment seen by the II and AAII Bull and Bear surveys it was almost impossible to continue the slide further.  However, sentiment reflects feelings about the market and not necessarily the actions taken by those who were surveyed.  At any rate, we bounced higher on higher volume on the NASDAQ and lower on the NYSE.  We should see continued strength but at best it’ll be weak.

Volitility indexes, put/call ratio, and NHvsNL are not signalling we’ve hit our ultimate bottom.  These numbers are saying we haven’t bottomed yet despite what Jim Cramer and his followers might have to say.  There is no doubt CNBC will be ushering in bottom callers from far reaches of this country trying to get you to buy the feces that is falling to the floor.  We are simply not close to a bottom, short term we may but starting a new bull market here is highly unlikely.  From early 2003 all the way to Oct 31 of 2007 we had a bull market, we simply do not pull back for a year and are ready to move higher.  However, IBD research has shown if a bear market lasts more than 6 months it will last at least 2 years.  In the meantime, those who will follow Cramer and the talking heads on CNBC will burn and churn their account.  When the next bull market appears they’ll be left battered, bruised, and without capital to jump on the new rally.

I am prepared to sit on the sidelines as long as it takes, it may seem crazy but it its the right thing to do.  Stocks are not positioned to race off into new high territory, there isn’t enough leadership to take the market forward!

Enjoy!

Market Speculator

No Positions

The Market Bounces Back, But Volume Remains Low and Stocks Still Remain Under Pressure

Posted on September 11, 2008
Filed Under Market Commentary | 2 Comments

Wednesday’s market action was filled with choppy price movements as Wall Street was trying to figure out if WM or LEH or both would go under that day.  LEH and WM are about to be worthless as traders continue to hammer the stock and Wall Street firms back away from both.  Bill Gross was on CNBC stating PIMCO still had LEH as a counterparty.  This is far from the truth, more than likely his firm PIMCO has a few termed trades that were put on back in March.  Technically, they are still a counterparty but he is hardly putting on new positions with LEH.  Washington Mutual (WM) continues to deal with bad loans and to no surprise they are about to be wiped out.  Yesterday’s action was merely an oversold bounce with volume coming in well below Tuesday’s level.  Again, this market is very sick and will continue to slide.

Do not let the talking heads of CNBC or any other news outlet (remember these are journalislt) convince you its time to buy stocks.  It is also important to remember those who are “professionals” on CNBC and other news outlets have motives that you may or may not know.  Go with history, read Livermore and O’Neil, Boik, Darvas, Koteshwar, ETC and you will find that a time like this it is best to be on the sidelines in cash.  Cash is king!

Enjoy

Market Speculator

No Positions

Stocks Get Sold Hard!

Posted on September 10, 2008
Filed Under Market Commentary | 2 Comments

It didn’t take long for the euphoria of the nationalization of FNM and FRE to wear off.  Stocks simply fell apart as NASDAQ volume was higher and NYSE volume was essentially flat compared to Monday.  It is clear as day the trend is down and what is making it worse is nationalization of the entire financial system in the United States.  We are now seeing breakdowns in AAPL, RIMM, BIDU, and GOOG continues its demise despite is low price/earnings.  We are far from seeing the end of this decline, Tuesday’s action proves we are still in a downtrend.

The market wants to test the July lows and the NASDAQ will want to test its March lows.  Its not the time to be getting long this market.  I will continue to wait and stay patient as I know at some point we’ll turn around.

Enjoy

Market Speculator

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