A Thought: Your Health

Emotional health is just as, if not more, important than physical health. I think the two can actually compliment each other. If you take care of yourself physically, you will feel better about yourself and be more emotionally healthy. If you are emotionally healthy, you are much more likely to be inclined to keep yourself physically healthy.

On that note, I have had some other recent experiences that has really put some emphasis on the recognition of the necessity for people, especially women, to at least be comfortable with how they look, if not feel attractive. Sometimes, without that comfort with oneself, it can lead to a long-term sort of negative feedback loop on both their physical and emotional health and well-being.

Taking Stock: The Beginning?

I am looking at adding to my short position, which is in ProShares UltraShort S&P-500(SDS). I've been out of several positions, and happily watching them fall lower (it makes you feel good when you sell a position and it has a dramatic drop afterwards). A few of my other positions look as though they are getting weak, and are ready to fall also, so at a minimum I will put in stop-loss orders if not just sell them outright. I'll use those proceeds to add to my short position.

The next thing I will be watching for is for the broad market to at least start firming up, but probobly for it to start showing signs of climbing again.

Taking Stock: I Saw What I Was Looking For

I saw what I have been looking for today, I definitely need to put in some more fairly tight stops, and start adding a position to SDS, on the likelihood of a downswing in the broad market. I want to be making a few more dollars on the downswing.

Every one of the stop-loss orders that I put in before the market open on monday morning were blown through in grand fashion. So, I am glad that I was looking at the pre-market monday morning on the premonition of a possible change in course of the market. I'll expound on how I started to notice that at a later date.

There was a small bounce in the S&P-500 today, but I think it was only because of the broad sell-off from yesterday. The S&P-500 closed below the 200SMA and the 50SMA today.

Taking Stock: I'm Glad!!

I have been observing different developments and events in the market lately, and was having a very bad feeling about what could possibly be happening this week. Several of my positions were at a sort of undecided crossroad, so I did my due diligence this morning before the opening bell and put in several stop-loss orders. Most of those orders were in precious metals, oil, and natural gas related positions.

It looks as though they were all more than triggered this morning, and I will probobly be setting some more. Over the next day or so, I'll be watching to see if it will be a good time to take a position in SDS.

I'm willing to bet that a part of the FOMC presentation this week will contain, implied or otherwise, something to the effect of 'There is no threat of inflation'. So, it was definitely a little past due to bail out of gold and other inflation related positions for a little while.

I'll also be keeping my eye on the Dollar Index (DXY0) in the near future, and waiting to see what the broad market is going to do.

Taking Stock: I Found It

I found something that I have been trying to find, the Cumulative Volume Index. It can be found in the FreeStockCharts.com webpage, listed as T2104.

Taking Stock: When you wish ...

It appears as though the inevitable is finally coming true. First and foremost, the dollar is falling, and Boeing is also finally in production of the 787 Dreamliners. The past few days, the dollar has managed a sort of "dead cat bounce" rally to the now downtrending 20DMA, which the inverse is true for precious metals.

I have also been thinking lately about how much the degree of technical analysis has helped me the past few months, which is a remarkable amount.

I have been busy making a handfull of trades the past few months, to compliment my other positions and to keep the rent paid. My CME trade has been working out quite nicely, and I think my Intuitive Surgical (ISRG) trade will come to fruition soon enough.

Consensus is that the longer term rally is the broad market will eventually cease to sustain. Only the market wil tell, which is when I will be interested in loading up on some of the ProShares UltraShort S&P 500 (SDS). Nothing is safe from a broad-based selloff (fortunately, I have learned that lesson now). What I am anticipating, by accord of the consensus view, is that the market will fall almost to the March lows. I won't hold SDS all the way to that point, though. Another part of the consensus view is that the market will continue to rally for the time being, simply because there are some latecomers just getting back into the market.

Something that I was reading in one of Dr. Leeb's "Market Updates" is that he views the rally as being driven by systemic mechanisms, and he noted his analysis of that everything has been rallying is virtual unision (Dan Fitzpatrick noted something very similar in one of his videos). I'm looking for the DJIA to go up to around 10,000-10,500, simply because it is a round number (it has more psychological significance than you might think). Also, that is where the 200DMA was when the deflationary period started. By virtue of simple logic (overly simplified?), is that all of the "Monopoly Money" was deemed to be worth much less than what it was originally valued at, causing a deflationary period, and now that money isbeing replaced by the graces of the US Government and taxpayers.

Taking Stock: For the Short Term

I have been learning how to do short-term trading, with the aid of the now infamous Dan Fitzpatrick and his website, StockMarketMentor.com.

Making a great trade on Ashland (ASH). I got in at around $13, and am making enough to pay a month of rent.

Chicago Mercatile Exchange (CME) has yet to pan out for me.

Intuitive Surgical (ISRG) is doing nicely, especially today. It seems to be going the same way as Ashland, but maybe that is just wishful thinking.

There seems to be a commonality between multiple stocks, in that they are moving higher in a big way, banging up against their upper bollinger bands. Of course I am not complaining, but only making an observation. The broad market also seems to be inching its' way higher each day, but there are some doubts as to if it will lead to a brand new bull market. I doubt it also. The financials appear to be making steps toward improvement and getting at least somewhat healthier, but apparently they are not lending yet.

I couldn't help but think when I heard the earnings news for Wells Fargo (WFC), "Earnings surprise? How is it a surprise? They were not a part of the sub-prime lending scheme".

I made another interesting observation, in that there is a prominence and popularity amongst the activity in residential housing auctions, like ZetaBid.com. The thing that caught my attention is that the banks have the ability to auction off a considerable portion of the "bad assets" (not necessarily MBS) that they have on their books within a month or so. It isn't necessarily a new idea, but the idea under the current conditions and causes to those conditions makes it noteworthy.