Is This A Bear Market Rally, Or Is It A Genuine Turn In The Market?

Guest Blogger today is Adam Hewison of The Market Club and INO.Com. Nobody in this industry can guide us through the market trends better then Adam.


With the Federal Reserve cutting the discount rate 50 basis points to 1%, it remains to be seen if this will loosen up the credit markets. There remains a great deal of mistrust among banks and borrowers at the present time, and until that changes, we would look for the economy to limp along.

The sharp move up, in both the DOW and the other indices on Tuesday was a sharp counter trend rally to what remains a prolonged bear market. One day does not make a trend, and we will not know for some time if the lows we have seen recently in the past month are going to be the final lows of this bear market.

Our gut feeling is, that we will see more sideways action in these markets for some time to come. We would not look for any dramatic upside action in stocks. If we do see a further rally from current levels, it would be perfectly normal within the confines of a bear market. If you are inclined to trade these markets from the long side, I suggest doing so with a slightly smaller position than you would normally trade. We expect the volatility level to subside from its current torrid pace and fall back to a more normal level as we move sideways.

The judicious use of a game plan and money management stops is highly recommended for everyone. These markets can cut you into pieces in hours mainly because of the market’s inability to fashion out a firm trend either on the upside or downside.

Just because the market is going sideways does not indicate that all is over on the downside. The longer we see these markets move sideways, the greater the opportunity that we may be building a base to carry the markets higher.

Adam Hewison
President,INO.com and Co-creator of MarketClub.com

Guest Blogger Larry Levin "Turnaround Tuesday & Government Lies"

Guest Blogger today is Larry Levin. Larry is very passionate about the the government actions during this bear market. I look forward to Larry's newsletter everyday and you can sign up for it here Larry Levin's Newsletter

The market rallied Tuesday - big time. On average, all three of the major indices posted +10% gains. What was the good news you wonder? Well, ummm, there was the - no. Umm, it was - no wait, I can't remember. Oh yeah, it was actually the good news of, umm, nothing actually. Today was a lack-of-selling-rally. The market could not break the recent lows for days on end, and as soon as some of the sellers covered - BOOM - short covering rally. Today's pop was accompanied by anemic volume so I wouldn't trust it longer than a few days. Will turnaround Tuesday be followed by turnaround Wednesday or Thursday?

The answer could come via the FOMC tomorrow. Wall Street (what's left of it) has demanded another interest rate cut so you can bet it's a done deal. Although nothing the Fed has done has "worked," the Street still wants a quick fix.

Will cutting rates right by 50-basis points do anything? I have my doubts since the effective federal funds rate has already fallen to 1% due to a new Fed policy to pay banks interest on the excess reserves they deposit at the Fed. The very point of paying that interest was to reduce the effective rate, so a cut tomorrow is just for show.

Have you seen ANY trickle down of lower rates yet? I sure haven't. Not long ago the Fed Funds rate was 5.75%, and tomorrow it will surely be 1%. The regular Joe sees little benefit from lower rates. Banks just are not passing along the lower rates to consumers in the form of lower interest rates on loans or credit cards. Banks are like roach motels. The nearly free money from the FOMC goes in, but doesn't come out! The savers and responsible people of this country are being fleeced to support all of the deadbeat banks and tapped out borrowers. After inflation (which is still out there - just not as bad as before), savers get a negative rate of return. It seems like there is no place left to flee in this world responsibility matters.

Perhaps tomorrow's cut is the next step in following the Bank of Japan (BOJ)? When Japan suffered its deflationary spiral after its housing bubble, the BOJ cut rates to ?-of-1%. A few months ago it raised rates to ?-of 1%, and is now considering cutting rates to ?-of-1% soon. Maybe, just maybe, if Helicopter-Ben cuts rates to ?-of-1% your credit card interest rate will be cut to 20% or so. In fact, an ex-Fed Governor is recommending ZERO Fed Funds rate for 2009!

Wake up folks, the Fed doesn't give a damn about you, if you get a lower rate on anything; it only cares if their banking buddies are solvent.

Moreover, Fed chairman Bernanke has shown he doesn't care if he follows the Constitution or not. He just declares exigent circumstances, which is his get-out-of-jail-free card. In the I Can Do Whatever I Want file in Bernanke's cabinet we see he is now backstopping foreign governments. Yeah, you read that right: YOUR TAXDOLLARS ARE DIRECTLY BAILING OUT FOREIGN BANKS! Oct. 28 (Bloomberg) -- State-run Korea Development Bank received Federal Reserve approval to sell as much as $830 million of commercial paper to the U.S. central bank, becoming the first Korean bank to tap the new funding facility. Kookmin Bank, South Korea's largest, was also deemed eligible to sell commercial paper to the Fed.

Now we're buying foreign commercial paper issued by a foreign bank controlled by a sovereign nation. Great. Amazing. WTF! Did you get to vote on this? Are you pissed off YET? If not, what is it going to take? Is this constitutional? Ah, who cares says Bernanke - exigent circumstances! But for whom I wonder? The Koreans? Since when is that our business?

Excuse me, but isn't this Congresses territory? I seem to recall that when the US hands out aid it must be voted on by those who have been elected. Furthermore, Congress decides how the money can be spent. Now Bernanke of the Fed is taking over - exigent circumstances he says.

I think Bernanke should be shackled and thrown in jail. Under what charge, he asks? Exigent circumstances comes the reply!

Mr. Bernanke was never granted this power, but as I have mentioned he doesn't care. It's a form of lying, lying by omission. The $700-billion TARP handout to Wall Street banks was supposed to be lent out to the average guy, at a low rate to boot. After all, the Fed keeps cutting rates - right? However, no money is being lent out. Wall Street banks are using YOUR TAXDOLLARS to pay an estimated $70-billion in bonuses this year. WHAT!??? Bonuses? For what - bankrupting the world economy? They are using YOUR TAXDOLLARS to pay dividends to shareholders. Why cut the dividend when the government is handing out money? They are also using YOUR TAXDOLLARS to acquire other banks. Whatever is left over is being hoarded.

It was another lie folks. You were bamboozled again. Hank Paulson NEVER said this was part of the deal! Hank Paulson, who is now literally being called King Paulson on Wall Street and in D.C., said the $700-billion would be used to buy bad assets? Puhhhlleeaaaseeeee!!! SUCKER!!! I begged you to call your Congressman to stop this. The only thing that is left is to vote against everyone who approved this steaming pile of dung on Nov. 4th.

Are there any more lies out there you wonder? Hmm, let's look under this rock. Ah yes, here's another lie from the government to expose. Congress recently approved a handout of $25-billion for the Big 3 automakers, which are to help speed the availability of fuel-saving technologies - period. But who cares anymore? Apparently nobody.

The White House is working to release $5-billion of that $25-billion immediately for the purpose of GM merging with a private company, Chrysler. According to the Wall Street journal, however, this is only half of what will be needed. The combined entity would need about $10 billion in new equity to cover the cost of laying off workers, closing plants and integrating the two companies, say people involved in the talks.

So I guess that means the merger money, that you were never told you had to pay, is only half way there. You were lied to AGAIN!

Automakers gained on the news of the taxpayer's fleecing. At today's closing price you can get a lunch at your favorite fast food restaurant for one share of GM. It might take two or three shares of Ford for one of those meals. The answer, however, all depends on your McFatty McFat level of consumption. Super size what - my lunch or the deficit? And yes, I'll take a side of deflation, why not.

In today's only economic news, the Conference Board reported its consumer confidence index fell to a record low in October. In fact, it was the largest one-month decline in the index - EVER! As bad as consumers think the economy is now, they are convinced it'll get worse. Consumers say their job prospects are weak, their incomes aren't likely to grow, and the prices they pay are likely to soar.

Unfortunately the story ends there. I was hoping to read WHERE and WHEN the masses would assemble to march on DC, with pitchforks and torches in hand of course, because I'll lead the march. I've had it up to here with all of the Fed's, Treasury's, White House's, and Congresses bu!!sh*t.

Trade well and follow the trend, not the so-called experts.

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Let The Bulls Celebrate.....For One Night

The U.S. stock indexes closed solidly higher today and near the session highs on short covering in a bear market. Stock traders may have also been today factoring into prices the expected interest rate reduction by the U.S. Federal Reserve on Wednesday afternoon. The stock index bears still have the solid near-
term technical advantage. There are still not yet any significant technical clues to suggest market bottoms are close at hand. As the weakening economic news continues to trickle into the marketplace, it will be harder and harder for the stock market bulls to get excited about sustaining an uptrend in prices. Weekly high closes or closes near the weekly highs in the stock index futures would be a first clue that market bottoms are in place.

December crude oil closed up $0.06 at $63.28 a barrel today. Prices closed near mid-range today. Losses were limited today by a rallying U.S. stock market. Crude oil bears still have the near-term technical advantage. Prices remain in a 3.5-month-old downtrend on the daily bar chart. Even with a spike in the markets today the bulls still have a lot of heavy lifting to do to turn the trends around.

What the heck is going on with Gold?

Gold at the moment is perplexing to a great many traders. To many it was a shock when gold recently traded below the $700 an ounce level. So the question is, what happened to the $2,000 an ounce target that most gold bugs were calling for?

In this just released video, we explore that question and look at what we think will be this markets next move. You might find our analysis and conclusions rather surprising.

Enjoy the video!

Just Click here To Watch Video

Check out our website Precious Metals Trader

Where Do We Go From Here?

I know you are just waiting for it to be over. As if we are just going to turn around on a dime and it will be just like the good old days, 2006-2007. It's true that we will get some huge moves to the upside and you will want to already be in the market when they happen so you can take advantage of it. But don't think that it is smooth sailing from there.

The American consumer is completely in charge now. Every day that a DOW company reports weaker earnings will send the markets down. And not only do we have to get the run on the hedge and mutual funds out of our system, we will follow that up with investors selling through the end of December to take advantage of tax write offs. Especially if they fear a new President raising their capitol gains taxes. It will be January before we can really hope to see a solid move to the up side.

Am I still shorting the market? I am being very careful from here on out, but I did go short the S & P 500 with ticker SDS mid day today only to sell it off in the last 15 minutes of the trading day. Holding these positions overnight are just hard to endure. I'll gladly take that profit in any market.

While most retail investors look for a rally on a .50 Fed rate cut from the FOMC meeting that starts on Tuesday, I think the market has it cooked in and that was partially responsible for the pop we got today. I have to believe that it is still time to sell all of these Bear Market rally's.

You have to start adding to your long term positions sooner or later, just do it a little at a time. Happy Trading tomorrow!

Is It To Late To Short Oil?

As I have said many times in my blog I am bullish oil on the long side but for now it is a different story. This Wednesday will be a big day. When we see inventory is down again crude will sink fast. With volatility at record levels and making crazy swings, I will be very careful shorting crude from here on out. I may only keep my positions on for an hour or two at a time, but that's all I need.

Dennis Gartman, one of the most successful commodity players out there came out yesterday and said even he is shocked that all of their research is coming up with $30.00 oil. No way! But it lets us know that falling below $60.00 is just not that big of a deal. Oil needs a cartel that would aid in keeping the prices stable.....oh yea, they have one! What a joke that pack of liars are. They just killing themselves.

The futures are showing a big drop on the open Monday morning, but at this point we just don't have enough sellers to let it fall apart like it has on some of the days with big loses. Remember, it's OK to sit on the side lines in a market like this.

Good luck next week.

Paulson's Bazooka, Out Of Ammo

After weeks, well months of government "cures" for the market and the economy, we are pretty much right where we are started. The one thing that has done the American public any good is the "gas relief bill" that we wrote ourselves. Most of Washington is on vacation and obviously in no hurry to make any changes. They were sure in a hurry to put a lien on our grand childrens future before they took their fall recess.

Just get use to this market, it will be this way for some time. After more than a month of runs on the hedge funds just wait until retail customers get their statements for October, the runs on the Mutual Funds are just getting started.

I don't want to be negative but you have to be honest with yourself. I get emails from investors and traders everyday whose one thought is like that of a small child. Can we go now? Is It Safe to go in now? I admire Warren Buffett so much. But I thought he did the public such a dis-service writing in a major newspaper that "It's Time To Buy". Mr. Buffett joining the market cheerleaders is just wrong.

Am I saying "Go Short Young Man". I am not suggesting that to anyone that does not already have a short plan in place. But of course I will be shorting this market on every rally since that is where the trend is taking us. Especially the NASDAQ. The long term investors that are starting to buy are after large cap companies with great dividends and a great history of paying them. And the NASDAQ has very few of those.

Be careful at there, and don't poke your head out. You know what might happen!

A Bottom May Be In, For A Long, Long Time.

All we needed was a little confidence in the market. The government is doing everything they can for us, right? The Libor rate is falling, that must mean everything is getting better. But that all changes with the release of a handful of emails between employees at some of the major rating agencies.

I think must of us knew the credit rating agencies were on the take when it came to this mess. But to hear it, and have politicians grilling witnesses on it, is another story. In my opinion this will start a new run on the hedge funds and we may still have Mutual Funds that will liquidate large blocks of shares at prices that will drive us all down.

For that reason I will continue to stay out of individual stocks. All of the signals for the Indexes show we are in a downtrend. With big sell offs like we had today giving us an oversold market, we can probably count on a dead cat bounce rally. But don't be fooled, we are not only going to test the bottom but in my opinion we will set a new bottom. Luckily we have options as traders to make some money on the move, it just might be tough for some of you to sleep at night leaving double short index trades on the table at the end of the day. Remember, that a lot of traders will take the trade off and accept a lose if any trade is down 8% or so. You pick the number.

So let's keep emotion out of it, trade the trends and ignore the stockpickers!

Keep Emotion Out Of It, Stick To Your Plan

All three indexes experienced much welcomed large gains today, bringing with it a lot of optimism. And that very well could be well deserved. But if you rely on the trends [which I personally have been lately] it looks like the Bulls have a lot of work to do to call this a bottom.

If you have kept up with my blog you know that I have been using the double short and double long indexes to trade on what I like to call my "sling shot trade". That trade may be a little tougher now as the VIX [CBOE Market Volatility Index] settles down. But even though we have had the biggest one week gains in 5 years, this was done on low volume [especially today] and that has me wondering if we are going to test the bottom again. A weekly high close, or close to it, on Friday would be a bullish technical clue that lows are in place in the stock indexes.

The oil service industry led the charge today but that could be quickly deflated if crude oil demand in the U.S. and especially China continue to spiral downward. A lot of smart people are calling for a trading range in the $50 to $70 dollar range for crude oil. I am bullish long term for everything crude oil, but will be looking to short oil again with the DUG especially since a correction may be due with DUG losing more than 35% in less than a week.

I may be looking for a chance to go short on crude but I will not be playing that game on the indexes anytime soon. I will go double long with the DDM,SSO and QLD on every pull back. That's my plan, what is yours?

Free Video: The Game Changer

There’s no doubt about it, these are volatile times and that is reflected in the broad swings in all of the markets. One market that had a huge move today (10/16) may have produced a game changer that you can make money on.

I’m referring to a major commodity that has not acted like it would normally act in an economic crisis. In this short video, you will see exactly how we have positioned ourselves and what we expect will be the course of this market in the short term.

The new video, which requires no additional download, also includes a well know stock that tracks the above market very well. You will see first hand where we expect this market to go to.

The video is available now. There is no charge and we believe it will help improve your trading in these volatile times.

In This Market, It's Not Over Til' It's Over

Rushing into any market because it looks inexpensive or cheap is not the way to trade. Often times when you see weakness in the market, it means that the market is headed lower. The market we are looking at today is a classic case of a market that should have gone up (which it did), and then it turned dramatically lower.

Click Here To Watch Video

There are always ways to make money in the markets and this eight minute video goes through each trade in the last couple of months and details how you would have made out in this market using a methodology that eliminates emotion and fear. The market we are covering in this video produced a gain of over $46,000 on an investment of less than $10,000.

You don't have to listen to the news and you don't have to watch cable. You don't even have to listen to gossip or tips on the market. All you have to do is follow some simple trading rules and the odds are you will do very well.

The video is available free of charge. This video will be up for a limited amount of time. I strongly urge you, given the markets volatility, to watch this eye opening video as soon as possible.

Click Here To Watch Video

Good Trading!

Testing The Bottom Again!

Another 733 points down on the DOW today. Must have been some politicians on TV today! But in all seriousness, this should be enough for everyone to understand that any benefits that the government "interference" will have on the economy or our markets, will be slow in coming.

If we are back to trading on fundamentals it will be a sad fall trading season for traders of individual stocks. I hate to bore everyone, since everybody loves a great stock pick. But this is no time to own individual stocks. Or at least not for long. Very few professional traders are holding any stocks right now. Are you so much better then them that you can know where this thing is headed?

For now I am sticking with what I am now calling [remember, you heard it here first] the "Slingshot Trade". When we become so oversold it is pretty easy and you can almost throw a dart at a list of stocks and do pretty well. For now we are sticking with trading the Ultra Shorts and the Ultra Longs, [DXD, DDM, SDS, SSO, QID, QLD] including the DUG and DIG on crude.

If you are not familiar with these it is time to get on board. We bought the DUG last night and sold it at close today. I'll let you go do some research and the math. We are continuing to short crude for now but that doesn't mean that we won't go long [DIG] one day if we have a catalyst that will turn us around for a day. And with the movements [down] that we have had it doesn't take much.

With us down 733 on the DOW we may be testing the lows of last week. So if it falls apart again tomorrow look for this thing to rip again as buyers flood back in. We'll be right back in the DDM as we get under DOW 8,000.

Good luck tomorrow, you better strap in!

Video Lesson: FEAR

Here is a great video from Adam Hewison of INO.TV and Market Club that can benefit any trader in the current market.

Click here To Watch Video

A Word of Encouragement for the "Average Trader"

I’m going to cut right to the chase…READ THIS!! Our good friend Norman Hallett from DirectYourMind.com has been an expert in the psychology of trading for years! He’s helped, and helping, thousands of traders a day to get their minds right. So read this article and check out Normans site.

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“Deep recession!”

“Depression!”

“End of the world as we know it!”

Anyone who’s tuned into CNBC or CNN has heard these statements of doom and gloom.

They may or may not be true.

We are not in control of what happens to the economies of the world.

We ARE in control of how we handle our personal finances in light of these possibilities and, as traders, how we choose to TAKE ADVANTAGE of all situations… including this one. No, ESPECIALLY this one.

We know that price action is a reflection of what is perceived “to be”, not what is. We know if we take a position and employ money management techniques, then
if we are wrong in our position, we will get pinched and not punched… and we’ll re-analyze and go again.

It’s the way of the trader.

For the trader, the greater the economic challenge, the greater the opportunity to better ourselves and our family… through our trading.

When most individuals are hiding behind excuses, the trader steps up to the plate.

We are lucky, indeed.

But don’t fool yourself. Being a trader, is not easy.

I look at markets in turmoil and I “feel” for the average trader.

The average trader has every good intention, but lacks the two basic elements to consistent trading success…

A formulated trading plan, whose elements are the components of a good trading system or systems, is the first element. And having the mental and emotional discipline to run that plan is the second element.

The GREAT NEWS for the ‘average trader’ is that it doesn’t take years to elevate your level of trading… months, yes, but not years.

The further GREAT NEWS is that we are in historic times.

The opportunities that will unfold over the coming weeks, months and years could result in windfall profits for those traders who choose to master the two elements mentioned above.

Shake-outs like we are experiencing now in the marketplace yield new super-trends that may be followed.. and ridden… by those who are prepared.

So should you “drop back and punt”, and stand aside while the market displays its current violent ways?

Only you know the answer to that.

Are your two basic elements solid?

Is your trading plan MEANT to handle extremely high volatility?

For any average trader… these are the type of markets that exploit your weaknesses.

FOR YOU, it’s time to re-group and prepare yourself for the opportunities that are about to present themselves as the smoke starts clearing.

Adopt a solid trading plan, based on a solid trading system. AND

Start now to make the development of your trading discipline a PRIORITY.

Without COMMITMENT to these two elements, you will not succeed on a consistent basis and will not be able to take advantage of the opportunities to come.

This is NOT the time for excuses.

It’s your time for admission… recognizing that you do, in fact, possess these two elements, or admit that you don’t and work NOW on shoring them up.

I’ve been trading for 25 years I can say with confidence that the opportunities that are about to unfold will be historic.

Fortunes will be made.

The Disciplined Trader with a tested trading plan and possesses solid trading disciplined will gather the money of The Average Trader who continues to downplay both.

It’s time to prepare.

Norman Hallett

My Simple View Of Todays Narket

After another day like today we should keep to the facts and keep it simple.

The U.S. stock indexes closed sharply lower again today and hit fresh contract lows amid ongoing financial market uncertainty. News that General Motors ratings were lowered by the ratings agencies further spooked the market. GM is on the verge of collapse and its stock price is lower than it was in 1929. Bears still have the solid near-term technical advantage in the stock indexes, amid no technical clues that market bottoms are in place. Look for any rallies in the stock indexes to be selling opportunities in the near term.

Once again, that's all I got. Let's get a good night sleep, don't take the street home and live to trade another day.

Blogging About Stocks A Lot Like Trading

We are going to spend quite some time trading in an environment where traders will basically be looking at each other and saying....."You Buy It"....."No You Buy It".

Being the first one to call a bear market always brings some grief from the Bulls. But here is the first few lines from one of my favorite investment bloggers......

Dow to Fall ANOTHER 2,200 Points
by Martin D. Weiss, Ph.D.

Dear Subscriber,

Today's 508-point plunge brings the Dow closer to our long-standing target of 7,200. But to get there, it still has a long way to fall — over 2,200 points......

It's a tough one to swallow but I am afraid we are going to have to. Forget the fundamentals, sell all of your stocks on every rally [we'll still have those] except the ones that have a safe dividend in the 10-15 percent and even then only the best large cap companies. You think their market value makes you sick now. Imagine losing another 2,200 points!

And don't expect any help from Washington anytime soon and that is about the best news I have heard all week. Can someone please figure out exactly how many DOW points we lose per word that Uncle Ben speaks!

The more Bernanke [and is boss] say, the worst the market feels. It's a confidence game now and it is obvious any real leadership out of Washington will have to wait for the next president. And of course the congress and senates much needed vacation.

No sense in talking about trades, I'll be putting on the same Swing Trade I have wrote about in my latest post. Today I got hung up with the DDM when I bought it at about DOW down 300 and it continued down. Looking for a rally to sell it off and buy the DXD or SDS.

That's all I got!

We Are Headed DOW Down DOW

All traders anxiously stared at television screens this morning expecting the fed announcement for a rate cut. When it didn't come the outcome was obvious, we are headed down. My call for DOW 10,000 which I got more then a couple of nasty emails about is starting to look like a conservative call.

It it is obvious that we are having a run on the hedge funds. They are being forced to sell at ridiculously low prices as investors demand cash.

So for today I will be sitting tight as I expect to go lower through tomorrow morning when I will take a position in the DDM [Ultra Long DOW 30] expecting a dead cat bounce Tuesday afternoon. I am not trusting any stocks for trades right now, while I will make small purchases in my long term positions. The second I sell off my DDM I will be purchasing the DXD [Ultra Short DOW 30] This trade has and will continue to work until we get some consolidation in the market trend.

There is money to be made so keep your head out of the sand.

Watch how to Swing Trade in a bear market Click Here

Forget The Fundamentals, Trade The Trend

I think I feel about the same as every other trader right now, hung over. It has been a tough week or two for everyone. But as I have said in previous post we can control our anxiety and stress by formulating a plan and sticking to it. Even if it means sitting on the sidelines for now. But I don't think you have to. There is money to be made.

We are at a point where we need to forget the fundamental technical analysis and trade the trends using catalyst for our buy and sell points. I am tempted to say don't buy any stocks right now, but that wouldn't be right. There is best of breed companies that are getting knocked down to levels that I personally have to add to my positions on. I am adding to FCX and NOV just to name a couple. But I am still sticking to my plan to sell them on every rally. Until we get some consolidation in this market I will sell every rally then turn around and short the market using the QID for the NASDAQ and the DXD for the DOW. Most likely this week it will be the DOW with the levels that the NASDAQ has reached.

Now that the "bail out" vote [yes I'll call it that] is done what is our next catalyst? I think it will be the Federal Reserve lowing the interest rates. The Street seems to be betting that if financial markets remain unsettled, the first rate cut could occur before the Federal Reserve's next meeting on Oct. 28-29. Some are saying as early as this week!

The trend is down no matter how the talking heads want to polish this thing. Stick to your plan, take your profits and don't trust this market.

Create FREE Portfolio Click Here

Must See Dollar Index Video

Rarely do I find something that I feel like my readers just have to see. This is one of those times. I know we all get bombarded everyday with the latest hot stock picks and trading methods, but Adam Hewison with INO.Com has a new video that will open your eyes to trading the Dollar Index, Ticker DX.

I am always a sceptic, but the returns I have made on Adam’s advice during these turbulent times have made me eager for every new video he puts out. Do your portfolio and your grandchildren a favor and take a few minutes to watch the video.

Click Here To Watch DX Index Video

The Ostrich Trade Still Won't Work

I am sympathetic. With a market like we have right now it is real easy to just pull the covers over your head and ignore everything. But there is just as much money to be made right now as there is at any other time.

On Wednesday I bought the QID, the QQQ ETF that shorts the NASDAQ 100. I sold that at the close of trading for a tidy 9 percent+ gain. That's almost 10 percent in two days. Now I don't know about you but that is as good a trade as I can get even in the best of times!

So my stock tip of the day....forget the stock trade and trade the trend. Right now I think every smart trader out there knows we are headed further down. I for one am holding to my goal of DOW 10,000 and we my continue down through that. But with the sucking sound of money coming out of Washington with the vote today we are likely to get a pop on all three indexes.

If we do I will either pick up the QID again or more likely the DXD, Ultra Short DOW 30 since the NASDAQ has been beat so hard.

So pull back the covers, stick to a plan, forget the stocks and trade the trend.