Blue skies, nothing but blue skies do we see, and…EEB, XLF and…a host of others

100106inp100106fxi

100106mooEverywhere you look there are bullish signals.  What happened to the double dip?  Could it be that that rectangle in the Dow and S&P took the place of the downwave?  Could it be that some of those bears threw in the towel?  We read in Marketwatch this morning that some were doing this.  Their losses are the inevitable result of being married to an opinion and not responding to market realities.

Now if you buy these there are two ways you can stop them.  And if you don’t stop them you will be no better than the mutual funds who lost upwards of 47% in the great bear, and the clever bears who are licking their wounds right now.  You can take the latest high and use its low as a Basing Point and put your stop 5% down, or you can find the nearest wave low and put your stop 5% under that.  The second method is inherently more conservative.

Remember.  Every investment starts out as a trade, and every trade is an experiment, and every experiment must have a benchmark to determine when the experiment stops working.

Anyway, above typical charts of the INP, FXI AND MOO, all buyable as are EEB, XLF,  and even IWM.

This Post Has One Comment

  1. alain

    some more to look to: POT, HLS, MBT, MXB, NUS, FUQI & JOYG (again), BIDU, HEAT once more?, SOLR, THC, UGP; some of them will need to breakout and others to confirm the breakout. Reversals can be fast and deep as usual for momentum stocks: high risk.
    But Prof. Bassetti is correct, why not to appreciate the market as long as this upmove returns profits.
    Alain

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