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I’m hooked on twitter and this is where you can find real time updates during market hours. I also post my summaries from the GilmoReport.com, GIl Morales be-weekly newsletter. This newsletter is great and full of CANSLIM and William O’Neil “secret sauce”.

 

A stock market gift?

 

I believe the market gave me a gift yesterday as GLD, SLV, and the QID all pulled back to support areas. I took this opportunity to add on to GLD and SLV, and initiate a position in QID. Surges, like yesterday’s, are common in bear markets; and usually amount to “fakeouts” before continuing lower. BUT, one must always be on guard as new rally’s start when least expected.

Crash Alert!

The markets went on crash alert yesterday as the DOW breached Nov lows. The NASDAQ seems to be tracking the same stair step pattern of the 2000-2002 dot com crash. Is this a guarantee that our current market will take the next step down? Absolutely not! Does this mean that the market is more likely to go down than up? it Absolutely!

 

My first trade in 7 months – GLD, SLV

The nice thing about disciplined investing is that it protects you. Kudos to Investors Business Daily (www.investors.com) and the Gil Morales report (www.gilmoreport.com) for successfully navigating me away from the financial tsunami and keeping my investment ship in calm, peaceful waters.

The indices are toying with previous lows. In this environment of continued forced selling (deleveraging), the markets will likely break these lows and begin another leg down

The flight to safely buy is Gold and Silver. Either the real stuff, or GLD and SLV, which are their tracking ETF’s. I was able to get into each in the Jan 28th pullback and both have been on a tear! If you’re game, wait for pullbacks into their support zones .

Whipsaw Market- be careful!

  

With wild volatility whipping stocks around, it is a very difficult environment to make any moves. The best bet for now is to wait for the market to settle down, establish a trend, and wait for leadership to strut its stuff. The charts above of failed breakouts illustrate this point well.

Emerging Leadership

I’d like to see the rally prove itself before diving in, but am willing to nibble and nimble. Keep in mind if today ends as a distribution (lower close on higher volume than yesterday on the DOW, S&P500, New York, NAS), then this rally will have a high probability of failing. However, if this rally holds, look for leadership in the railroads, biotechs, solars (maybe).

CANSLIM guru Gil Morales likes the action in the computer services in recent newsletters, a group I missed in my scans. These include IBM, ACN, and IT.

Me in Investor’s Business Daily

That’s me on page A4 of today’s IBD. The AP photographer was shooting these at the same time my SKF was tanking, so this was the best smile I could muster up. While I have my 5 minutes of fame, I like to thank some folks. God, mom, Susana, Rachel, Sarah. And the pros who help me keep an eye on the market: Covestor, IBD, Gil Morales and his newsletter service www.gilmoreport.com, Gary Kaltbaum’s Investor’s Edge radio show www.garyk.com.