SubscribeBlocking Wall Street’s One-Two Punch
If you didn’t pay attention to my warning yesterday about the markets, now is a good time to tune in. The Dow and other indices gave us a sell signal on the one-year weekly charts. The quick bounce yesterday was a short-term “dead-cat bounce.” It is a typical bullish reaction when the market becomes temporarily oversold. Think of it in terms of steps. In this case, the market takes two steps down and one step up. The process repeats itself to keep foolish bulls in the game longer than they should because these investors feed off the short-lived rallies and keep faith that the bottom is near.
Excuses….Excuses….I hear them all the time
“I’m dollar cost averaging”
“My stocks are good picks, they’ll eventually bounce back”
“I’m in it for the long-term”
“I refuse to accept the fact that I was wrong”
That’s dogshit.
There is nothing wrong with taking a few punches. Hang on to your capital, be patient, and wait for your next move.
I was bullish on (TIE) but unfortunately I was stopped out. Sure I was disappointed. However, look what is happening in the market today so far. The Dow is down another 200 points and (TIE) was hit up for another $1.71, or approximately 9.28%. Thank you stop loss 
Good Investing…
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Comment by Juan on 1 March 2007:
How do you set up a stop loss?
Thank you. I like you site.
Juan
Comment by Stephen Oakes on 2 March 2007:
Hey Juan!
Welcome to Jutia Group and thank you for your question. I will respond in my next post to help illustrate the process.
-Stephen