The market kept moving up in Nov. partly because there was no tangible bad news except the Dubai one. Technically speaking, we are in a medium uptrend and I am cautiously bullish. When every one is bullish, the bull is at its last gasp. The reason is simple. The market goes up because of the buying pressure from the money on the sideline. If your grandma or the cleaning lady next door is bullish, then everyone has already bought in, which means the buying pressure has been exhausted.
On Twitter or StockTwits, you can see that there are still a lot of bears that have not surrendered yet. A lot of them actually have merits in their reasoning. One, arguably the most important, is that we have not seen any real green shoots as the Government claimed. However, the market is seldom rational because It is driven by human emotions most of the time. If you look at the daily, weekly, and monthly charts of S&P 500, they are all in a very clear uptrend.
For me, Nov. is just another month in 2009, in which I made around 2000. I do not think I made many mistakes in Nov except the MOS short. As 2009 is approaching the end, I can proudly say that I have been doing well consistently throughout 2009. My goal is to get back to my trading performance before 2008.
A few very strong stocks that I like are LFT, GNK, PCLN, AMZN, RINO.
Extremely hard work and a few solid trading books are what you need to become a successful trader. There is no shortcut! By the way, you can always check out my portfolio, in which I post my trades real time.
Would you like to become an active trader like me? Would you like to receive the latest trading ideas or other updates from my blog? Then join hundreds of others on my mailing list below. It is totally free and easy to opt-out.
Loading ...