The bull market turns one on Tuesday having surged almost 70 percent from its 12-year closing low on March 9, 2009. History shows that by simply passing that 12-month threshold, it will make it that much more rare for the advance to suddenly end.

The 13 bull markets since 1930 that have lasted more than a year have averaged, a total gain of 153% and a total length of 4.4 years, according to data from Bespoke Investment Group.

“Bull markets that pass the one year mark have almost always lasted two years or more,” wrote Bespoke’s analysts, in a note to clients on Friday. “The one bull that lasted more than a year and ended after 393 days was in 1948, and that bull only saw a gain of 24 percent, so it’s nothing like the current one.”

The research firm defines a ‘bull market’ as an advance greater than 20 percent that follows a fall in excess of 20 percent.

To be sure, as some of the greatest investors like Legg Mason’s Bill Miller to your average investor with a retirement account learned all too well in the last decade, historical performance doesn’t always match future returns. But right now, many smart strategists believe that this bull has earned a lifespan of at least two years based on powerful emergency spending by the Federal Reserve, the tremendous earnings growth by companies because of productivity increases and the resiliency of demand for goods and materials from emerging markets.

“We continue to believe the economy and financial markets remain in longer-term recovery mode,” wrote Brian Belski, Oppenheimer’s Chief Investment Strategist, today. “Therefore, we continue to recommend that investors gain exposure to U.S. stocks at current levels.” Belski recommends for clients to overweight the technology, industrial and health care sectors.

We likely won’t get that next 70 percent this year however. Two other widely followed strategists, Goldman’s David Kostin and Raymond James’ Jeffrey Saut see about a 10 percent gain from here to 1250 on the S&P 500. Both cited powerful 2010 earnings growth that Goldman Sachs believes will hit 33 percent on average for companies in the S&P 500. Historically over time, the stock market has tracked gains in earnings plus dividends.

But why is one year the magical milestone? Perhaps it is because it takes more than a year for a bull market to prove its mettle with the often stubborn and less nimble retail investor, which has sat out most of these gains in bonds. Once they are convinced, their money comes flowing in and provides at least another 12-month lift to stocks.

On Friday I traded CCME with my system on the market and saw a 2% or $500 gain for the afternoon.

That morning with my system I purchased LIWA at 9.16 for 2500 shares and it closed at 9.37 do the math my system brought in 20 cents times 2500 shares another $500!!

This is great way to produce income on the side while working a regular job, or even if this is it for you. Take a look at SCOK and see how it ran from $3.50 to $53 in 3 weeks! This stock is out of control and may be a great short from here right back down to the 20’s…

Enjoy your weekend and if you have any questions about my stock market system please let me know! ben4trials@gmail.com

Regards!

Ben Brinneman

Rebought NEP in the trading account for 3000 shares at 9.04 and started buying CCME here at these prices. Gotta put that capital to work.

Here is the amazing thing about LIWA, we bought at 8-8.40 and it runs all the way to $10. This was based using our stock market system that I sell on here for a minimal $299 and $399 which we will make back almost immediately. Once you sell on our strategy with a massive return it runs all the way back down to $9!!!!!! So we might have a chance to buy in the 8’s again. The rule is never to chase but take your gains, and maybe just maybe let a small amount ride. In these small cap stocks without un-sustained volume they tend to run right back down to cheap prices. Hopefully you are learning and earning at the same time!

Please email me back with your Profits and Losses for encouragement!

Here is a market update:

Greece’s long-awaited austerity plan wasn’t enough for participants to forget about the fiscal troubles that still face the likes of Spain and Portugal. That left the stock market unable to sustain solid, broad-based gains… Led by the materials sector, stocks made their way to fresh one-month highs. The materials sector had been up as much as 2.0% before it saw that gain cut in half. Still, materials saw the best gain of any major sector as a combination of momentum and a weaker dollar provided it with support… Weakness in the greenback came as the euro and British pound rebounded from recent losses, which were frequently attributed to the fiscal woes that face the likes of Greece, Portugal, and Spain… Greece attempted to quell concern over its fiscal health with the release of a new austerity plan that includes civil service salary cuts and a sales tax increase. Despite such plans, problems persist for Portugal and Spain. That reality caused Europe’s major bourses to show little initial reaction to Greece’s plans, but the continent’s major averages gradually pushed higher to log strong gains… U.S. equities were unable to mimic the move. The Dow, Nasdaq Composite, and S&P 500 each added modestly to the previous session’s gains, but eventually rolled over. That left the stock market to finish flat after three straight gains… The afternoon slide left the S&P 500 below the 1125 line, which many traders believe could act as a springboard for further gains if the stock market closes above it… Economic data received little attention this session. That’s essentially because participants remain cautious ahead of the official nonfarm payrolls number on Friday. Cautious trade also led to light trading volume, which failed to surpass 1 billion shares on the NYSE… A glimpse into the payrolls report was given with the February ADP Employment Change Report, which indicated that 20,000 private payrolls were shed last month. The number was in-line with expectations and the smallest decline in one year… Meanwhile, the ISM Services Index for February came in at 53.0, which was above the reading of 51.0 that had been widely expected and marked the highest reading since October 2007… The Fed’s Beige Book, which is largely full of anecdotal economic news, came with little surprise. It indicated that nine of the 12 Fed districts reported modest improvement in economic activity during February, while consumer spending improved slightly in many districts… Commodities had a strong session that pushed the CRB Commodity Index back above its 50-day moving average. Oil futures prices closed 1.5% higher at $80.87 per barrel, despite a larger-than-expected weekly inventory build of 4.03 million barrels. Silver had another strong session and closed with a 1.6% gain at $17.33 per ounce. Dow -0.1%, Nasdaq unch., S&P 500 unch.

Regards

Ben Brinneman

That’s quite a shocker having been the iPhone Savior myself for just short of two years. Now this guy shows up! Once Oprah elbowed her way in, I guess seeing Jesus on Twitter was inevitable.

It turns out that my own personal iPhone Jesus, now a devout follower of mine, joined Twitter just a day earlier on April 24. His Bio is simple, it reads; “I’m Jesus. I use an iPhone. It’s pretty cool.” He must have enjoyed the whole “Jesus Phone” thing.

jesus with iphone

iPhone Jesus is already following over 1,400 people including the likes of Jimmy Fallon, Alyssa Milano, Lily Allen and The Office on NBC. The wild thing is that Jesus has some 850 Twitter faithful following him in less than a day. I’ve been on Twitter a month and I have only 115 followers.

One of my favorite tweets from Jesus is this one; “Today, I was sitting in heaven, really craving a smoothie. So… if anyone says they saw Jesus at the Smoothie Factory…they were right.”

And his most recent tweet, a response to one user creeped out by Jesus following him, “I’m kind of scared that he’s following me…” Theang said, to which iPhone Jesus responded;

“Don’t be scared, my child, I will only bless you and keep you safe. And retweet your interesting links.”

This proves it… you never know when or where Jesus will show up. How will you respond when iPhone Jesus starts following you? “Block” is always an option. This would be a perfect place to say; “follow me”, but I won’t!

This was written by some guy on a random website and I thought it was hilarious!

Enjoy your weekend.

I would have bought the DECK options we purchased on Thursday afternoon 7 call options at the 130 strike price or .70 cents a piece and you would have been able to purchase 7 because that times 100 time .70 cents equals $490 plus commissions. Right at $500 investment. At the end of Friday or even at 3pm on Friday after noon your $500 would now be worth 7 times 100 times $2.60 so $1820.

Now we would take that and… well you will have to see what happens with our next stock market system or options alert which will take that $1820 and turn it into right at $4000 dollars then we will invest that amount in a few stocks for a swing into options expiration Friday and earn the remainder $1000 dollars! No problem! All in less than 30 days.

IF you follow my every move with that $500 we could easily do this within the month. OR your $50 per month stock market system alert subscription back!

I could come up with some other clever ways of earning 10 times on your money but this has to be the best one for me. I might actually sell some old furniture pocket that change and then invest that in the market or re-invest in someone that could make my money grow. But good luck any other way and you will prolly lose all your hard earned cash trying to do it on your own!

For now check out my STOCK ALERTS and my course for sale

We will see you on board shortly!

Below is a market update read through what happened on Friday.

All the whipsaw action earlier this week left participants subdued for most of the week’s final session. That left stocks to spend most of the session trading listlessly in a tight range… Participants were generally unmoved by the revised fourth quarter GDP numbers. The headline growth rate was upwardly revised to reflect 5.9% annualized growth rate, which exceeded expectations, but the personal consumption component increased at a softer-than-expected clip of 1.7%. Core personal consumption expenditures increased at a faster-than-expected quarter-over-quarter clip of 1.6%, though… The rest of the morning’s economic data also failed to lift the mood of market participants. Specifically, existing home sales for January made a surprise 7.2% month-over-month drop to an annualized rate of 5.05 million units. Meanwhile, the final February Consumer Sentiment Survey from University of Michigan was little changed at 73.6 and in-line with expectations… During recent months weakness in the dollar has been cause for stock market gains, but participants shrugged off the dollar’s latest dip. The greenback had gyrated in the early going as the euro garnered support as news that United Kingdom GDP was upwardly revised overshadowed the latest batch of headlines regarding Greece’s fiscal woes. The greenback eventually rolled over to finish with a 0.5% loss against competing currencies… Financials attempted to provide the stock market with a late lift, but the move lost momentum into the close. Still, JPMorgan Chase (JPM 41.97, +1.33) led the financial sector to a 0.7% gain, which was better than that of any other major sector. Though there was no specific news item to account for strength in JPM, it was still able to put together its best single-session percentage gain in more than three months… AIG (AIG 24.77, -2.74) was a laggard in the financial sector. The booked its worst single-session loss by percent in nearly three months after its latest quarterly results proved disappointing… In other earnings news, a better-than-expected bottom line from Gap (GPS 21.50, +1.11) helped shares of the retailer put together their best single-session percentage gain since September… Though the broader market was able to eke out a gain, it wasn’t enough to turn stocks positive for the week. Instead, the S&P 500 settled with a weekly loss of 0.4%. Despite that slip, the stock market finished February with a 2.8% monthly gain… Trading volume on the NYSE exceeded both its 50-day moving average and its 200-day moving average as more than 1.5 billion shares exchanged hands on the big board… Commodities finished the month on a strong note. As such, the CRB Commodity Index finished the session with a 1.2% gain, which helped drive a 3.5% monthly gain… Treasuries had a relatively quiet session. Though the benchmark 10-year Note settled off of its high, it still netted a few ticks to push its yield back toward 3.60%. Dow unch., Nasdaq +0.2%, S&P 500 +0.1%, Nasdaq 100 +0.3%, S&P 400 +0.1%, Russell 2000 -0.3%

Hope you have a great Saturday!

By Josh Funk, AP Business Writer , On Saturday February 27, 2010, 2:49 pm

OMAHA, Neb. (AP) — Berkshire Hathaway Inc.’s fourth-quarter profit bounced back sharply, thanks largely to an unrealized $1 billion gain on derivative contracts and investments.

Warren Buffett’s company said Saturday that its insurance and utility divisions performed well enough to help offset weakness in subsidiaries hurt most by the weak economy, such as NetJets, Acme Brick and other manufacturing and retail businesses.

Berkshire generated $3.056 billion in net income, or $1,969 per Class A share, during the quarter. That’s up from $117 million net income, or $76 per share, a year ago.

The three analysts surveyed by Thomson Reuters had expected Berkshire to report fourth-quarter earnings per share of $1,208.33 on average.

Berkshire said it generated $30.2 billion revenue in the fourth quarter. That is nearly 23 percent higher than last year’s fourth quarter revenue of $24.6 billion.

A year ago, largely unrealized losses of $3.3 billion from Berkshire’s investments and long-term derivative contracts weighed heavily on the Omaha-based company’s fourth quarter profit. But the value of the company’s investments and derivatives, some of which are tied to the value of stock market indexes, was significantly higher at the end of 2009 and added a $1.03 billion gain.

Buffett reiterated Saturday that he believes the derivatives will be profitable over their lifetime, partly because Berkshire held about $6.3 billion in derivative premiums at year end that it can invest.

Berkshire released its annual report along with Buffett’s letter to shareholders Saturday. The company describes the performance of its subsidiaries throughout 2009 in those reports, but doesn’t break out detailed information about the fourth quarter alone.

Buffett said Berkshire’s insurance unit, which includes Geico and reinsurance giant General Re, remains the “engine behind Berkshire’s growth” because the insurance companies give the company money to invest at little or no cost from premiums it holds until claims must be paid. That money, called float, grew to $62 billion at the end of 2009.

Buffett said Geico had 8.1 percent of the auto insurance market in 2009, but the company’s growth may slow this year because of slumping vehicle sales and high unemployment.

Berkshire’s insurance businesses generated $1.01 billion in net income from underwriting in 2009, down from $1.7 billion last year. But the investment income in the insurance division grew to $4.1 billion in 2009 from last year’s $3.5 billion.

Berkshire’s utility division, which includes MidAmerican Energy Holdings Co. and PacifiCorp, added $1.07 billion net income during 2009, down from $1.7 billion in 2008.

In future quarters, Berkshire’s utility division will include its newest subsidiary, Burlington Northern Santa Fe railroad. Buffett said the railroad’s results and capital-intensive business are similar to a utility, so it made sense to put BNSF with Berkshire’s utilities.

The manufacturing, service and retail unit at Berkshire generated less than half the profit it did the previous year. Those businesses generated $1.1 billion in net income in 2009, down from $2.3 billion the year before.

Those businesses suffered because of the recession last year, and many of them, such as Acme Brick and Shaw Carpet, are tied to construction.

“These businesses continue to bump along the bottom, though their competitive positions remain undented,” Buffett said.

Berkshire owns roughly 80 subsidiaries, including clothing, furniture, jewelry and corporate jet firms, but its insurance and utility businesses typically account for more than half of the company’s revenue. It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

Berkshire Hathaway Inc.: http://www.berkshirehathaway.com

DIA SPY QQQQ SMH AAPL AFAM AGM AMED AMZN ATVI BAC CBAK CCME CHBT CHL CHOP CLDX CREE EGMI F GAXC GGWPQ GNW GS HEAT LIWA NEP HIG LNC MIC NFP MOS POT SEED FEED RINO TRIT TSTC NFP SYNM TIE X

Starting with the indices…

The indices are sitting at the 50 day support/resistance. Wavering Wavering. Boring.

CLDX is the only thing on my list that has started to move significantly to the upside. This was my latest trade idea that generated right at 20% so far and I believe still has some upside to it. I will update if I see anything on it that would change its story, but so far so good.

GNW hit new 52 week highs today, lots of strength, but could be a great short with our stock market system as it has hit some resistance. Watch it.

BAC looking strong

CBAK I bought this at 2.43 according to our stock market system and sold at 2.43 no upward movement so I decided to put my capital where it would work.

CHL long the june 52.50 calls

EGMI is halted and now a worthless stock because of a possible fraud within the company.

(Here are the current numbers which are accessible to anyone. Unless the company hired a chef instead of a CFO right from the get-go these should have been accurate.

- They have 12m+ in the bank
- They have a debt / equity ratio of 0%. In other words they have no debt
- Their return on sales is roughly 46%
- Their return on equity is over 35%

Whatever the case, there has long been a struggle for power at EGMI, I’m not sure of the exact details, but I imagine that the board & management are at odds based on the lack of execution over the last few months. I think this power struggle lead up to the events of last week.

I believe there is a chance that they do have the 12m cash that they always claimed to have. We have no choice but to wait, and hope that there is something brewing internally and we’ll hear all about it next week before the stock re-opens. Whatever the case, even if they have a glowing story and “it was all just a big misunderstanding” the stock will likely drop before it moves back up. Borrowed from Bullsonwallstreet.com)

NEP is riding up with Oil and has found its trading range here in the upper 9’s, on a dip, will be a great buy again and again. With our stock market system we nailed NEP at 7.86!

GAXC I keep a peripheral eye on this anything under .90 cents Ill start accumulating it again.

LIWA is so cheap right now thats all i have to say (buy buy buy)

CHOP has no volume but wait till some fund sees it true potential and starts to buy it. IFLG is a good example of what could happen in one day to these equities that are super undervalued.

CREE Looking to buy the calls once it dips 2-4 bucks will let you know.

TSTC I mentioned at 10 now at 20 and some change. This has some really good volatility but I have yet to purchase any shares and try it for a swing trade or investment. Great company. Strong company.

MARKET UPDATE:

Stocks rolled over in the final few minutes of trade to log their first loss in five sessions. The downturn came after the stock market failed to extend a move that took it from a modest loss back to its opening high… Financials were integral in the afternoon advance. The sector was a steady outperformer for the entire session and finished with a 1.1% loss, despite a lack of clear catalysts within the sector. While the broader market inevitably failed to follow the financial sector to a gain, its strength helped limit losses… Technical support at the S&P 500’s 50-day moving average also provided support. The line acted as a floor for trade during the entire session. It even held firm as stocks extended their opening slide into negative territory amid news that President Obama has proposed to broaden the Medicare Hospital Insurance tax base in his latest health care reform plan. Despite the negative reaction to the news item, health care stocks finished fractionally lower… Energy stocks were the worst performers. They shed 1.3%. Schlumberger (SLB 61.57, -2.33) was a primary laggard following news that it has agreed to a stock-for-stock merger with Smith International (SII 41.03, +3.33)… In other merger and acquisition news, Thermo Fisher Scientific (TMO 48.10, -1.12) has made a $6 billion bid for Millipore (MIL 87.35, +16.01)… Treasuries traded in quiet fashion this session. Results from an $8 billion auction of 30-year TIPS did little to stimulate interest in the space. As such, the benchmark 10-year Note finished just a few ticks lower… The dollar also traded quietly along the flat line. Its movements had little overall effect on the broader market… Trading volume was paltry once again as fewer than 1 billion shares traded hands on the NYSE. Dow -0.2%, Nasdaq -0.1%, S&P 500 -0.1%, Nasdaq 100 -0.3%, S&P 400 unch., Russell 2000 +0.1%

Until next time;

HAPPY TRADING!

the C² Trading Team

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This coming week I am going to be much more aggressive in my trading. I am currently up 10% for the month of February and 20% for the month of January. My stock market system is simply a strategy that takes a lot of real time practice as you work towards learning to become a full time trader.

I wanted to quote some Think and Grow Rich by Napoleon Hill. Out of his 31 major causes of failure, I will quote one of my favorites.

Lack of a well-defined purpose in life.
There is no hope of success for the person who does not have a central purpose or definite goal at which to aim. Ninety-eight out of every hundred of those whom I have analyzed had no such aim. Perhaps this was the major cause of their failure.

This makes me ponder what is my goal in investing and trading? What are my financial goals? What are my life goals, and where can I help others. Where can I fulfill my goals and help others in living a more productive life and be more efficient at their daily tasks.

Think of some of your own daily trading and long-term investing goals, write them down, pursue them and you will succeed.

Here is a link http://www.finviz.com/quote.ashx?t=nep,gnw,mic,x,cree

to see what a stock does when it hits new highs, it generally gains momentum and goes higher.

NEP above 6 and goes and almost doubles.

GNW anything above 13.68 and then 15.20, it went higher and higher.

CREE just hit new highs should continue much higher.

X just turning around moving higher and wants to fill that gap. WATCH out above.

Market Summary

The Fed’s decision to hike the discount rate after the prior session’s close stirred market participants to dump stocks in pursuit of the dollar, but the dollar inevitably drifted lower and stocks managed to recover and finish the week with their fourth straight gain… Given that the Fed’s decision to lift the discount rate to 0.75% from 0.50% marked the first rate hike in one year, participants panicked a bit and made a knee-jerk decision to sell stocks. The announcement shouldn’t have come as a complete surprise, though. After all, Fed Chairman gave market participants a clue during his recent testimony before the House Financial Services Committee that a modest increase in the spread between the discount rate and the target federal funds rate was expected before long… Still, to help quell concern about what may be in store, the Fed expressed that its decision was not a signal for any change in the economy or monetary policy. Several Fed officials made similar, separate comments of their own about how to interpret the move, but many seemed to ignore the notion that the increased discount rate was a tacit sign that the financial system is back on firmer footing… In conjunction with the announcement the dollar was pushed higher, such that the Dollar Index climbed as much as 0.5% to new multimonth highs and even broke through a key technical resistance level that restrained its gain in the previous session. However, the greenback eventually rolled over and finished at a session low with a 0.5% loss against a basket of foreign currencies… A softer-than-expected inflationary reading played a hand in the dollar’s downturn. The Consumer Price Index (CPI) for January made a 0.2% monthly gain, which was slightly below the 0.3% increase that had been widely expected. Excluding food and energy, consumer prices for January actually slipped 0.1% month-over-month, instead of the 0.1% monthly increase that economists had forecast… As the dollar surrendered its gain, stocks were able to regroup and make a broad-based bounce to positive territory. The move took the S&P 500 above its 50-day moving average to a one-month high, but buyers didn’t step in at the higher price points to help stocks extend the move into something more meaningful. As a result, stocks traded with choppy action into the close and left the stock market to settle with a modest gain, in-line with its 50-day moving average. Still, that was enough to give the stock market its fourth straight advance and a weekly gain of more than 3% — its best weekly performance in three months. Dow +0.1%, Nasdaq +0.1%, S&P 500 +0.2%, Nasdaq 100 unch., S&P 400 +0.5%, Russell 2000 +0.4%

Have a great weekend.

Ben Brinneman

I continue to be cautious and see where I can join the momentum play but really havent seen anything significant lately. I did purchase some SEED to see if they would move in my favor over a buyout interest from several investors.

I alsop purchased 3000 shares of CHOP today for another trade and we shall see is what I wrote next to my description of why I traded it.

There are some signs that the economy is recovering but things are still in the pooper. The Philadelphia Fed Business Outlook increased from 15.2 to 17.6 in February. The consensus expected the index to increase to 17.0. The index has remained positive for seven consecutive months and signals further growth in manufacturing. The details of the report were strong. Growth spiked in new orders as the index increased from 3.2 to 22.7. Shipments increased from 11.0 to 19.7. The increase in shipments, however, was mostly due to the filling of old orders as the unfilled orders index declined from 3.6 to -7.5. Inventories posted the first positive month since September 2007. The increase is in-line with the Q4 aggregate manufacturer inventories data.

I will continue to trade and train my subscribers on how to buy and sell securities in a timely and profitable fashion. I am also learning more strategies to put together and to show others how to endeavor in this weird, boring, id rather “watch paint dry” market

Near the bottom of this article is the Comparison CHART[ad]

The areas that are circled are the comparisons, see how they match each other in a similar way. One main difference is that the plunging of our sell-off didn’t start until about one year into the bear market whereas in the Great Crash it happened almost overnight. Either way we have declined about the same percentage amount. If the rest plays out to match the 1930’s we could see the Dow 2000’s. I hope that never happens but the reality is that we are in a really bad economy not just in the United States but globally speaking! This makes the market a traders market and a great place to learn to trade and profit from the volatility.

Like any sports star that took years to figure out how to bat the ball, make a 3 point shot, or kick a field goal, trading and investing also takes a hundreds of hours of practice. The sports industry has produced a number of successful traders and investors. To name one, Pete Najarian, the Pit Boss, is ranked one of the top 100 traders by Trader Monthly magazine, is co-founder of optionMONSTER.com, a news and information site for options traders. Following a football career that included several seasons with the NFL’s Tampa Bay Buccaneers and Minnesota Vikings, Najarian took up options trading in 1992 joining his brother, Jon ‘DRJ’ Najarian, at Mercury Trading, a market-making firm at the Chicago Board Options Exchange (CBOE). Two years later, he assumed responsibility for Mercury’s risk and arbitrage and later led its entry onto the New York Stock Exchange (NYSE). (quoted from http://www.cnbc.com/id/18945714)

There are others that failed at the game. Lenny Dykstra being one of them. Dykstra played for the New York Mets during the late 1980s before playing for the Philadelphia Phillies during the early 1990s. He threw and batted left-handed and played primarily as a leadoff hitter. (quoted from http://en.wikipedia.org/wiki/Lenny_Dykstra) In August 2009, Dykstra was living out of his car and in hotel lobbies. He owes more than $30 million to investors of which he lost all their money in the market crash of 2008 and beginning of 2009.

One strategy that is used by traders to avoid catastrophe in unknown waters is one that I will describe below. This is not a majeur force strategy just a way to earn some income in the markets while being indecisive about going all in with your sideline cash and investing for the long haul. Until all this mess with the economy blows over , you will want to wait for big-sell-offs of various equities especially in the over-bought emerging markets such as China. Currently there has been a large sell-off in Chinese ADR’s listed on the american markets and they have presented some good buying opportunites fundamentally (numbers) and technically (charts) speaking.

Below is a written out version of part of my strategy which works extremely well in this market.

These companies that I have researched, traded, and invested in have been outperforming the market on a day-to-day basis. Even when the U.S. markets are down, my account will remain flat or even go up because of the resilience of these companies. Many of these equities have a “low float” (a low number of shares outstanding), precluding that whenever a flood of buying occurs, the stock soars or vice versa the stock tanks on selling, a lot faster than an equity with a large number of shares outstanding, such as existing U.S. companies that are listed.

Value-Growth Chinese companies are relatively undiscovered, and once investors realize what potential future growth they have, they will be drooling at their low PEs and beautiful fundamentals and piling in. I would be cautiously optimistic allocating only 35% of my portfolio in China.

I have a dynamic watch list, 13 trading rules, and a training video that I give out for free at www.csquaredtrading.com, but the most important part is the strategy that I have developed with a partner over the last ten years in order to trade in and out of these volatile and uncertain markets accurately. Without this, you fellow trader and investor, are merely shooting in the dark like a midnight cowboy as you trade. Even if you are investing, this will help you create a margin of safety on your purchases. This is where a sports fanatic can relate as it ties in to having an edge in what you do. Has somebody ever covered a topic or a problem and never handed out a possible solution? Well I have outlined just a few things below to keep in mind when purchasing or selling a stock.

A million-dollar-banker buddy of mine used to purchase stocks he liked at whatever price. Now he calls me to verify a good entry point on a company that he loves! The strategy is named the Triple-Whammy Trading Technique. Below is a description of a piece of the puzzle and how it works. (Remember there are many other moving parts to the market and this is just part of the many tools required) You may need to do a bit of research to figure out what some of these words below mean.

(Important Note: The Triple-Whammy Trading Technique only works well if the direction of the Bollinger Bands is primarily from left-to-right, rather than primarily up or down)

Set up your chart: Make your chart-settings as follows:

(1) Time Period: For day trading, 30 minutes or one hour; for swing trading, 3 days or longer
(2) Chart Style: Candlestick
(3) Chart Frequency: For day trading, one minute; for swing trading, 10, 15, or 30 minutes
(4) Upper Indicators: EMA (9 period) and Bollinger Bands (20 period)
(5) Lower Indicators: MACD (12, 26) and RSI (14)

Now you’re ready to proceed.. There are three essential components of this set-up:

For quick profits with a Triple-Whammy Perfect buy (Buy-Low-then-Sell-High; or Buy-to-Cover Short-Sell), these three legs are as follows:

(1) The candlesticks will violate the lower Bollinger Band.
(2) RSI must fall into oversold territory, under 30, and preferably in deeply oversold territory, under 20.
(3) The MACD (blue) line must be under the signal (red) line, and falling; and then must turn back upwards and cross the signal line. The crossover is the final confirmation — but if the turn upward is sharp enough, you know it’s getting ready to do a crossover, so it’s best to go ahead and act, if the prior two conditions are already in place.

For quick profits with a Triple-Whammy Perfect sell (ShortSell-High-then-Buy-Low; or Sell-to-Close Long Position), these same three legs are as follows:

(1) The candlesticks will violate the upper Bollinger Band.
(2) RSI must rise into overbought territory, over 70, and preferably in steeply overbought territory, over 80.
(3) The MACD (blue) line must be above the signal (red) line, and rising; and then must turn back downwards and cross the signal line. The crossover is the final confirmation.

This strategy is available as well as an additional advanced strategy that we just put together called the VWAP Support Swing Setup. Both of these strategies will greatly enhance your trading right away by informing you of the trading ranges that you are in and how to enter and exit your trades. There are other various disciplines for learning how to participate in the market, however I would have to write a book and not an article to cover those points.

As time goes on you will notice the shift into other emerging markets and you will wonder how come I did not participate? You will eventually be able to correctly identify these companies with a little bit of research and some technical analysis, and not only that, but make a brilliant entry into the equity/investment. Buffet even mentions entry, or margin of safety as a critical part to his investment thesis.

Another item to mention is that the market never discounts the same thing twice. In other words the news that is currently out has already been priced into the market. It would take a major bank failure to really crack this market lower (my vote is C Citigroup Bank). If this happened then everyone would start selling on the news and grabbing profits from the last six to eight months where they have just ridden the upward wave. GDP was positive 5.7% but most of that number came from an increase in businesses buying to re-stock their low inventory. This does not mean customers are flocking to their stores and purchasing. Consumer spending is still weak (except in China and Brazil).

A discovery for Alzheimers or Leukemia could be in the making for this year strengthening the bio-tech sector as a relatively good sector to be involved with.

Financial reform is in order for 2010, stagnating bank growth for the next year or two. However, whenever bank reform is in the air the powerful boys of Wall Street will create new financial vehicles to earn more and more money. Where do you think Private Equity, Hedge Funds, and Bundled Securites came from? Historical bank reform leads to present investment vehicle modifications.

With all this said I want to summarize by saying we need to remain cautiously optimistic about where we invest our cash into these precarious markets. If we do get a pull back to those Great Depression like lows, it will be a good time to hedge your portfolio with some short sales, and book profits from the recent March Lows meanwhile keeping your money at work trading and investing following a specific set of rules. Continue practicing no matter what happens whether that be in sports, life or the trading and investing.

Here is the chart.

Bear Market Chart Comparison

Until next time;

HAPPY TRADING and INVESTING!

the C² Trading Team

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