IS STAGFLATION HERE? - Fed Chairman Ben Bernanke spoke today and the markets clearly didn't like what he had to say. The NASDAQ and other indexes all fell .8% today in higher volume making it the first distribution day since this latest rally began on March 21st.
Technically the rally will stay in tact unless we get 4 or 5 distribution days within a 4-week period (or if the market under-cuts the previous lows.)
Stagflation, a portmanteau of the words stagnation and inflation, is a term in macroeconomics used to describe a period of high price inflation combined with slow output growth, high unemployment, or recession. "Stag" refers to a sluggish economy, while "flation" signifies rapidly rising consumer prices.
Bernanke said the sub-prime mortage debacle was a "threat" to the housing recovery which by itself may have meant he wants to ease interest rates. But then the markets began selling off almost immediately when he said "core inflation readings were "uncomfortably high." Is the Fed now "caught between a rock and a hard place?"
Seems Mr. Bernanke may not be such a "Helicopter Ben" after all. Of course I'm referring to the famous speech where he said he would "drop dollars from helicopters" to stimulate the economy if he had to.
In the mean time the markets remain in rally mode and currently our portfolio has 4 top-rated stocks in the Buy Zone, 5 Setting-Up, and 6 Off and Running.
Thanks for stopping by. Every day I will be looking for top stocks showing exceptional strength, and I will also be keeping an eye on things as they can quickly change. Please look for my recent stock picks at The GOLDEN TICKER.
It's always a good idea to review THE TOP 12 RULES OF STOCK INVESTING YOUR BROKER OR ADVISOR WILL NEVER TELL YOU.
Happy Trading,
Mark Gordon
Chief Market Strategist
GOLDENTICKER.COM
Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
Wednesday, March 28, 2007
Monday, March 26, 2007
THE TOP 12 RULES OF STOCK INVESTING
YOUR BROKER OR ADVISOR WILL NEVER TELL YOU
THE DIRTY LITTLE SECRET
If you are a growth investor (and you should be if you want to
make big money) you should know that this is a trecherous game.
Although growth stocks can deliver powerul gains of 100% - 1,000%
and more, they also eventually lose over 70% of their value on average!
You need to know how to protect your gains or you will be crushed!
The following rules may be the most important stock market information you will ever read!
Print them, and commit them to memory. Your financial future may depend on it.
# 1 - THE MOST IMPORTANT RULE
Sell immediately if your stock falls 7- 8% below your purchase price.
NO EXCUSES!
DON'T EVEN THINK ABOUT INVESTING IN GROWTH
STOCKS IF YOU CAN'T FOLLOW THIS RULE!
Hint: We give you the proper stop loss target for each of our stock picks. We suggest entering an automatic stop loss with each purchase unless you are a very experienced trader.
# 2 - YOU CAN "TIME" THE MARKETS
Hold stocks only when the overall trend of the market is up. It’s very
hard to make money when the market is not acting well - so just get out.
We use an accurate "market timing" system that would have kept you out of the 2000 "tech wreck" and the big crash of 1929!
3 out of 4 stocks follow the general market trend! You DO NOT have to be in the market all the time.
“The stock market generally goes up 1/3 of the time, down 1/3 of
the time, and sideways 1/3 of the time.” --- Jesse Livermore
Hint: By reading our daily Market Updates you will always be "in tune" with the market. By avoiding severe market downturns your investing results should substantially improve.
# 3 - STOCKS MAKING "NEW HIGHS" TEND TO GO HIGHER!
In other words don't "buy low and sell high, buy high and sell higher."
This goes against our basic human nature. We tend to think if something is selling at a lower price than before, it's a bargain. Not in the stock market.
"Bottom-fishing" is a sure way to lose money.
Hint: Our technical buy rules only lead us to the strongest stocks at or near new 52 week price highs.
# 4 - BUY ONLY THE BEST STOCKS
Concentrate on the top 2 or 3 stocks from the top Industry Groups.
“Best of breed” stocks will make you the most money.
The group leaders usually make the biggest moves, while the "also rans" barely budge.
“The key groups lead the market up and down” --- Jesse Livermore
(But Always Sell on Technicals)
Be patient; wait for proper bases to form, and never buy unless the stock’s breakout is on “big” volume (50%+ above average).
Only enter trades with the “wind at your back.”
“Huge volume breakouts are the best clue that a stock is going much higher.” --- William O’Neil
Hint: We monitor the markets daily looking for the handful of superior stocks that meet our exacting standards. We do the work so you don't have to.
#6 - NEVER FOLLOW A STOCK TIP
Listen to the market and individual stocks - not the "experts" or your friends.
Our stock picking system is based on how the markets really work, not on rumors or advice from the many TV, radio, internet, and newspaper pundits.
Hint: We use many of the same rules and principles developed by the world's greatest traders.
Rules that have stood the test of time. Very little changes in the stock market over the years because basic human nature never changes.
#7 - “DEFENSE is MOST of the GAME .
Leading growth stocks typically correct 70% or more from their highs and can devastate your portfolio.
“The leaders of the current bull market are typically the losers of the next.” --- William O’Neil
You must learn and commit to memory solid sell rules to protect your
hard earned gains or they could be wiped out.
Hint: We have a dedicated an entire section of our training program to
market-tested sell rules that have stood the test of time.
#8 - NEVER BE SCARED OFF BY HIGH P/E's
If you are not willing to pay an average of 25 to 50 times earnings (or even much more) for growth stocks, you automatically eliminate most of the past great investments available like GOOGLE, APPLE, CISCO, etc.
The stock market is essentially an auction marketplace and stocks tend to generally sell for about what they are worth. Hi P/E's show big demand for the stock.
Hint: We only look for the best quality stocks regardless of P/E's. Period.
# 9 - AVOID CHEAP STOCKS
Concentrate on stocks priced above $15.
Big institutions (mutual funds, banks, insurance companies, pension funds, and hedge funds) control 80% of the buying, and most of them wouldn't even consider buying a stock under $15 or $20, so why should you?
Obviously, stay far away from penny-stocks and stocks on the "pink sheets."
Hint: We base part of our stock selection on "institutional sponsorship." The stock must be being bought buy highly rated institutions for us to even consider it.
#10 - LEARN HOW TO TAKE A PROFIT
Most stocks run up 20-25%, then correct.
Take profits on most stocks as soon as they run up this amount.
Most people never learn this and watch their gains disappear time after time.
Hint: We give you target prices with each stock pick to help you avoid this common mistake.
#11 - KNOW WHEN TO LET YOUR PROFITS RUN
If your stock runs up 20% or more in the first 3 weeks – try to hold for at least 8 weeks (unless a major sell signal is triggered.)
These stocks tend to be your real winners capable of going up 50%-%100, %500 or more!
“It’s not the trading that makes you money in the markets, it’s the sitting.” --- Jesse Livermore
Hint: You will need to master our sell rules to be able to maximize your gains.
#12 - DON'T OWN TOO MANY STOCKS
Experienced investors should hold no more than 6-8 stocks.
When you get aboard a big winner, you want it's performance
to have a big effect on your portfolio.
Also, it's nearly impossible to follow 15 or 20 stocks properly.
Always sell your worst performing stocks and move the money into your best ones. Your best performers should always be your biggest positions.
You will make your “big” money in just a few stocks in every bull market.
THIS WORKS!
You will be directed toward many “life changing” young companies in vigorous infant industries that have great earnings and fundamentals, and that are setting up for a “big volume” move out of a solid consolidation pattern after a previous big move.
We live in fantastic time of innovation and prosperity.
Incredible opportunities happen every year in America.
We wish you unlimited success!
Happy Trading,
Mark Gordon
Chief Market Strategist
GOLDENTICKER.COM
"Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
