Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.

Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume
breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).

Please keep in mind that
I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.

Tuesday, September 16, 2008

Stay 100% in CASH.

In view of the recent market action, I wanted to share the letter I received from Investor's Business Daily which I felt was a strong message to stay in 100% CASH during tough times as these are.

Dear Investor,

The market outlook is in a correction, and you're probably hearing a lot of bad news with the 500–point drop in the Dow on September 15 – especially in regard to the financial sector.

All of us at IBD understand that it's easy to feel nervous or have questions at a time like this. But we also know that countless individual investors, just like you, have weathered challenging market cycles by following a sound set of buy and sell rules. We can't stress that enough.

In a downturn like this, the best strategy is to remain in cash.

Don't attempt to make new stock purchases, even if you hear a tip about a so–called “great stock,” or notice a stock that seems to buck the market trend.

To help you get through this correction and make sure you're ready when the market inevitably rebounds, we invite you to view our Daily Stock Analysis and Market Wrap videos each trading day. These videos will help you do two of the most important things you can do during a correction: (1) build a powerful watch list, and (2) spot when the downturn has ended and a new market rally has begun.

Daily Stock Analysis:

Market Wrap:

If you have any questions about the videos, tools at Investors.com or the CAN SLIM Investing System, please call us toll–free at 1–800–664–2013 or e–mail us your questions.


Kate Stalter
IBD Market Commentator
Investor's Business Daily