How to Boost Your Returns With ONE Secret ETF Strategy

[Thierry Martin]

Random Thoughts

As I wrote in the Layman's Guide To Trading Stocks, the stock market can go 25 years or more without making a new high. I was concerned about making my case but the market made it for me. While the book was being written, the stock market made 13 year lows. As I wrote in the above article (warning: spoiler alert!): "Markets go up and markets go down." As traders (and since buy and hold doesn't work, if you consider yourself an "investor" you seriously need to think about learning how to trade), our job is to get aboard these trends. Yes, I'd love to ride out a nice gradual uptrend for the next 10-20 years but right now, that's not happening. It appears that stocks are headed lower. And, when that happens, our job is to short the market.

I do "top down" analysis in a "bottom up" fashion. Every day I look at nearly 2,000 stocks, a few hundred ETFs, and over 200 sectors. This gives me a good feel for what's really going on. And, by the way, if you want to understand markets, you too can do this daily (or, of course, pay me to do it for you)-but I digress. Anyway, the last thing I do is study the indices. By this time I have a pretty good idea of what's going on under the hood. With that said, yesterday, if you took away my index charts and asked me what the overall stock market did, I'd tell you that it was down hard. My point is, the indices were flat to slightly positive but internals were crap. This is not a healthy market. Don't believe me? Well, spend the next couple of hours looking at all of those aforementioned charts and you too will be a believer.

So what do we do? My methodology is pullback in nature. And since the market is probing new multi-month lows, they are not many stocks setting up. This is probably a good thing since the market is becoming oversold at this juncture. Therefore, the plan remains the same. Take partial profits on existing shorts as offered and trail your stops lower. Further, honor your stops on any remaining longs. In summary, manage what you have and wait for the next cycle (i.e. pullback) before looking to establish new positions.

Futures are flat to firm pre-market.

Click here to watch today's Market in a Minute.

Best of luck with your trading today!

Dave
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Expert swing trader Dave Landry comments on the charts for the major markets, indexes and sectors for the upcoming trading day in his daily one-minute video.

Make sure your sound is turned up. A new browser window will open and the video will begin playing within a few seconds.

[Thierry Martin]

FB (Long/$25.00 Stop) - Since it's debut Facebook has been in a tailspin headed to the ground floor. As of yesterday's close ($26.90), the stock appears to be oversold. The chart pattern is a typical three push down pattern that is indicating seller momentum is waning.

Now, this does not mean buyers are going to get aggressive, it simply means that sellers are getting tired and that, at current... levels, the bulls may find the stock appealing. Also, a typical protracted move usually ends with a three push pattern which could also mean that shorts will now be tempted to cover their positions. If this does happen, you could see a short-term bounce back to the low $30's.

In any case, if you've been waiting on the sidelines for an opportunity to get involved, this may be it.

[Thierry Martin]

We didn't need a watchlist today! Stocks running left and right straight off scan. EFTI went 150% from alert, AUMN went 20% and plenty of other runners today, CBLI BPAX BWMG EEDG USEI SMBL ZLCS etc. Join us in chat tomorrow. It's free for a limited time. Here's your list for Tuesday:

CBLI BPAX INSM AUMN SMBL GV XNPT PTNR MVIS GMO REED NG MUX NVTL FTEK NCIT HWAY HNSN SNTA CLSN AAU PSUN AUTH VRNG ZLCS

OTC's: BMWG EEDG GWBU EFTI GMND IPRU MDHI USEI

[Thierry Martin]

ETN has gotten pounded the last few days... I thought the beating it took last friday was overkill... Picked up up Friday evening. Hoping it would go up today...

Boy I was wrong... Thank god for a tight stop loss order...

What am I missing on this stock.. Great P/E Ratio, good management, I guess the biggest risk, is all the companies they have bought this year... But is that really the reason for the beating its taking?

[Thierry Martin]

Stocks To Keep On Your Radar Screen next week - Full article and charts

Could be an interesting week for Career Education Corp. (NASDAQ:CECO) investors as the stock is showing some signs of a possible technical rebound in the making. The MACD and CMF are still showing positive divergences and the MFI is moving up and currently it has a value of 63.60 below overbought region of 80. There is positive money flow for the stock. The key technical resistance level investors will be watching is the 7 area. A breakout above this level could send the stock on a major push higher.

[Thierry Martin]

The "Chart of the Day" is Coca Cola Femsa (KOF), which showed up on Friday's Barchart "All Time High" list. Coca Cola Femsa on Friday rallied to a new all-time high of $117.90 and closed up 1.70%. TrendSpotter has been long since April 20 at $106.59. In recent news on the stock, the Bill & Melinda Gates Foundation in Q1 had a 6.2 million share position in Coca Cola Femsa. Coca Cola Femsa, with a market cap of $21 billion, produces, markets and distributes soft drinks throughout the metropolitan area of Mexico City, in Southeastern Mexico and in metropolitan Buenos Aires, Argentina.

To access recent archived Chart of the Day reports, please go to:
http://www.barchart.com/headlines/se...=BC&series=COD

[Thierry Martin]

Chart of the Day (June 4, 2012) - AIG in a nested pattern (AIG)