Your pop up blocker may be preventing the MarketSmith tool from opening.
Learn how to resolve this issue.
Yesterday’s market action made me bit nervous about whether this uptrend would continue. While it wasn’t technically a distribution day due to the lower volume, we did lose 1.5% on the NASDAQ while breaking the 10 day moving average. And yes, we all took a hit in our portfolios.
Today however, my confidence has been restored. Here is why today action on the major indices was constructive:
I’m taking the time today to reaffirm the strength I’m seeing in the market, my portfolio and individual stocks so that it might be mentally easier to stick with this rally and give it some room for larger gains. We don’t know how long this rally will last, but for now we know it’s constructive. As always you must buy exactly right on the chart. Don’t just buy based on the name or the fundamentals. Find the lowest risk entry you can find on the chart. If you would like guidance on interpreting the charts, call your MarketSmith product coach for help at 1-800-424-9033.
President, MarketSmith Incorporated
Follow Scott O'Neil at Twitter.com/WScottOneil
Scott, thanks again for your posts. They are always insightful and helpful to us individual investors and go a long way to helping us better understand the market. Best wishes, Don
Thanks for highlighting the constructive market actions. It is useful, to step back, especially when you take a hit from stocks such as THO - which I did.
Thanks for the update. The CRYSTAL BALL owes most of its internal knowledge to the O’Neil’s', so thank you!
One trick I have been using to keep the CRYSTAL BALL clear headed is I write down the following on the day of purchase:
1 - U/D ratio
2 - Acc/Diss
3 - RS Rating
Every few days (especially when I am a little nervous about the stock or market) I will tract these for my stocks.
Let me provide an example where this helped me. I bought LNKD on the breakout. It moved very, very slowly and I was getting a little impatient or more precisely, nervous.
But when I noticed the three indicators were actually improving over my ownership that proved THE FACTS OUTWEIGHED MY THINKING and I was forced to keep it. In a side note, who knows what the earnings will do tommorow, but to date the hold has been favorable.
Good luck and thanks again Scott for the affirmation on the market.
The market is looking strong again today, but be careful about buying on strength here. Also keep an eye out for prices rising on lower volume.
Are you saying we should run out an buy some VIX and TZA call options? :)
Of course, only kidding here!
Thank you for the update. If you get a chance Scott, please review the stock Forums, RE: Attn Scott Oneil. Tx much.
Scott, do you have any update for mid February? I felt the same way you did at the time of this posting on the 5th but I became more bearish today. Maybe it was watching ULTA, ALXN, DDD and some of the older names just get crushed that hints at tougher time ahead? I Read the big picture...got it, sort of.... I don't know. Feels like the market is stalling.
~~~~~~ KORs should be on fire, it closed in lower half of the range today (something just doesn't feel right), weekly chart is okay though~~~~~~
~THE CRYSTAL BALL
Be patient "crystal ball"... Give KORS a few weeks. It has superb fundamentals and is of institutional quality based on it's price and daily volume. Take a look at the recent publication "Top Stocks 2012" and you will see that even stocks with the most superb fundamentals often take time to really get moving. The important thing is to try and not get shaken out unless your sell rules are triggered. Going by feel and gut instinct rarely produces a good result.
You are 100% correct. Yesterday was all about FEAR and EMOTIONS! Totay the CRYSTAL BALL said,
© 2013 MarketSmith, Incorporated. All Rights Reserved. MarketSmith® is a registered trademark of MarketSmith, Incorporated. All data provided by William O'Neil + Co. Incorporated unless otherwise noted.