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• Featured Product ... Main Scale Trading System
• Our Weekly Look Inside the Market
• New This Week at Investing Systems...
• Capitulation?...

Hello Everyone,

We like to take a broader look at the market to see where we think its going. It's funny how much attention goes to the "DOW" when after all... it's only 30 bloated stocks.

We like to watch advancers and decliners as well as new highs-vs-new lows and the number of stocks trading up for the year.

On a YTD basis the DOW 30 is being led by Boeing, Altria & Exxon Mobil. With only ten of thirty trading in positive territory it shows an overall lackluster year in stocks so far.

Just 34% of NASDAQ 100 stocks are up for the year with some doing very well indeed. Sandisk is up over 100% and there are a few more big winners in Celgene up 94.95% and Altria & Apple up more than 60%.

We think that the short term bottom might well be in, we talked it over yesterday and today saw a nice swing to the upside. Only time will tell.

The recent market stats are as follows...

Yesterdays new highs and new lows showed a huge disparity but today saw some evening out of the numbers, although new lows still outpaced new highs by far. Do not lose the fact that advancing shares exceeded declining shares by a huge margin.

Below you will see how badly the market has sold off in the last month.

Conventional Wisdom Says...

Sell weakness... but as we learned statistically the best time to buy is after the sell off, so now might be a good time for selective entries into quality stocks.

If you are looking for winning stock picks you might be interested in the research lab we'll be opening soon. But for now, our best selling stock picking software is still the Stock Picker RT. You really should take the trial version for a spin... especially during earnings season.

Now for our "Featured Product Of The Week" ...

MainScale invests in good under-valued stocks and provides the Automated Profit System to tell you exactly where to buy and where to sell. MainScale Automated Profit Systemtm is a proprietary investment system developed to profit from the short term gyrations of an individual stock regardless of the longer term trend of the stock or the market. The system is very easy to use. We establish target entry points for a portfolio of stocks that fit our criteria. We are careful to diversify into different sectors to avoid overloading in a particular segment. We typically target stocks $4.00 and below to give us the flexibility to buy more shares in a wider variety of companies and to limit our downside scale capital investments. In just 15 minutes a day, you can manage a profitable portfolio that will make you money in any market. The MainScale Automated Profit Systemtm was developed from 20 years of in-the-market experience. Years of studying which technical and fundamental indicators work, how they work, and how to properly apply the indicators to specific stocks at the correct time. Let us give you a sample of some of the indicators that are used in developing the MainScale proprietary system... MACD, Stochastics, Money Flow, ADX, RSI Wilder, Moving Averages, Relative Straight Indicators, earnings, debt, insider buying, cash per share, book value... MainScaletm is able to determine stocks that are truly undervalued, thereby REDUCING THE RISK. The Automated Profit System determines the exact price to purchase each stock and the exact increment to make additional purchases and sales, thereby INCREASING PROFITS. CLICK HERE to see our Scale Trading Strategy The track record is quite impressive and not to be missed

New This Week at Investing Systems...

We have added three free hot stocks to watch to the Market Toolbox desktop portal. There is a link right on the homepage. Also new this week our own Investing Bookstore. Check it out when you are looking for some interesting new strategies.

And Finally...

Capitulation?

I think it's possible that the weekly bar breaking down that hard could be the ever elusive "capitulation". While we could see a small sucker rally and then a continued slip to the downside. I think that we might have seen a bottom.

I have a couple reasons to think so. 1) people are way to negative. When everyone is negative is a sure sign to buy. 2) I think the economy is much better and stronger than people think it is.

Only time will tell and we'll keep an eye on it for you.

Until Next Time...

Best wishes and Good Investing,
Bill McKinley & Doug Newberry
The Investing Systems Network