Where we are now... and where we are going
Published: Fri, 06/04/10
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The Market Toolbox : You are receiving this e-mail as a part of your free subscription. If you would like to change your e-mail settings please follow the instructions at the bottom of this e-mail. Welcome To: The Market Toolbox Intelligence Report
June 04, 2010 ~
Dear Toolbox Readers, This was an interesting week in the market. We failed to get above the 200 day moving average a few times on the S&P 500. Today we actually tanked into the close. It will be interesting to see how it plays out in the days and weeks to come.
Europe is still dragging the market down with sovereign debt issues and the weak employment picture in the USA does not bode well for future growth in consumer spending or housing prices.
It is stunning how long it is taking the administration to figure out how to turn the economy around and it is becoming clear that fixing the economy is NOT on the agenda.
If one actually wanted to fix the US economy it could be done in about 15 minutes of effective policy making from our alleged leadership.
The S&P 500 remains below the 30 week as well as the 10 month and 30 month moving averages and the trend for now is still down. The "line in the sand" is at 1040 on the S&P and should we close down there all bets are off.
Traditionally the months of June, July and August are the strongest 3 month stretch of the year and this year could be a real test on that theory. Just try and lay out the case for "buying" this market. It's tough. But trying to lay out a case for caution and or selling could be quite easy.
May stats are closed out now in the Trade Planner in the Research Lab and the winner is... The members!
Total Trades: 6, Hit Entry: 6 (100.00 %), Hit Target 1: 5 (83.33 %), Hit Target 2: 5 (83.33 %), Hit Target 3: 4 (66.67 %), Hit Stop Loss: 1 (16.67 %), Hit Break Even: 1 (16.67 %)
Typically there will be about 10 trades a month on average but this May was the worst May in about 70 years!
As a result of all the broken charts we saw few good set-ups all month and got 4 of the six right at the end of the month as the market stabilized a bit.
The Saturday Training Session this week will be about the "Long
-Term Accumulation Strategy" and if you are a long term investor or a position trader you need to learn this strategy.
You will know how to tell if a stock is "being accumulated" or not and that will help you time your entry into longer term trades and we'll also discuss how and when to add to your position.
ALSO...
This Sunday Night... "Crash or Correction?" on the Market Toolbox LIVE at 8pm Eastern Time. Jeffrey and I will be joined by Derek Hoffman from WallStCheatSheet.com
If you have not seen the site you should check it out. The Wall Street Journal recently ranked it as one of the Top Financial Blogs on the web!
We will be discussing...
-Current Financial Market Conditions (Dow & S&P).
-June catalysts for the overall markets and individual stock plays. -Technicals and Fundamentals of select stocks utilizing the CHEAT SHEET framework for investing and trading. -Crash or Correction? Our insights into which one plays out going forward... The Saturday Training starts at 11am Eastern and the Market Toolbox LIVE is Sunday night at 8pm Eastern. Be there!
If you are not yet a member... take a trial and check it out! We help you work with the markets every trading day in the Research Lab and the Swing Trading Club.
To catch the Saturday Training, just log in, click the link and enter the password.
We'll see you there.
Until Next Time...
Best Wishes and Good Investing,
Doug Newberry & Bill McKinley The Investing Systems Network
We Welcome & Appreciate Members Like You
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