| Turn Off the Tube! |
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| January 22, 2008 |
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Have you heard — the FED cut the interest rate by three-quarters of a point! The FED cut the interest rate by three-quarters of a point! The FED cut… oh, I’m sorry, am I being repetitive? Remind you of anything?
I urge you to turn off CNBC and Bloomberg TV today. If you’re unable to turn it off, at least put it on mute and move the TV to a place where you can only see it if you make a real effort. Watch the charts instead and drown out all the noise from the media!
Days like these are never pretty. However, this is the time to keep a cool head, keep your senses about you—and if you need help doing that, join me in the Trending123 chat room, where I’d be more than happy to help calm your trading nerves.
There was global carnage in many markets last night. The Indian Stock market was halted within ONE MINUTE after it opened and remained halted for an hour! This crazy behavior might affect indexes like the DJIA — and no one should have to listen (or watch) while it happens.
Many of you have never seen anything like this before, nor have the young gunslingers (some of them likely shooting themselves or others in the foot —unfortunately) that are presently running billions of dollars. You will see monies coming out of all commodities (as I have been predicting) in order to raise cash.
So, my advice? Sit on your hands and do not panic in or panic out of anything! Just allow this cleansing to occur. This might certainly be one of the greatest learning days in your trading career!
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The ETF of Choice
The USD (ProShares Ultra Semiconductors) is the ETF of choice to play the chip rally. If you have somehow missed me telling you about this before, let me say it again: An imminent bounce will occur in the chips! And if you are (wisely) looking for a way you can get exposure to the chip rally, short- to medium-term, you can latch onto USD — the ETF, not to be confused with the US Dollar.
Ride this ETF from where it is—the mid-40s—all the way to target—63. You won’t be disappointed!
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Keltner Channels
Keltner Channels represent the average of the high, low and the closing price of an issue. On each side of the middle line are bands that are formed from the daily high minus the daily low over a period of 10 days.
Technicians believe the theory that the price of an issue is most likely to trade within the boundaries of bands or envelopes. The trader is to sell the issue when the closing price exceeds the upper band and to buy the issue when the closing price falls outside the lower band.
Right now, if you look at the $VIX—the only index worth following, in my opinion—you will see that we are so far up out of these bands. Just another indication that now is not the time to panic. I don’t expect a top until May of this year — that’s why we still have plenty of stocks in the Trending123 portfolio (with some new picks on the way very soon)!
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The best thing to remember—turn off the TV! You don’t need any more stimulation than necessary. But for those of you that give into the uncontrollable urge to watch CNBC—and I know some of you will—come see me in the chat room or on the message board when you start to panic. I’m there everyday for my Trending123 subscribers but days like today that are especially rough, you just might need that extra coaxing to just relax!
Sincerely,
John Lansing
Trending123
P.S. Truth — that’s what I am “selling” you today…and everyday. If you want conjecture or even straight up lies, look elsewhere. I’m telling my Trending123 subscribers—and now you—that 2008 is going to be even more volatile than 2007. A tug-of-war with you caught in the middle! But you CAN navigate around the potholes and into the sweet spots of the market. Please join me today—at a special low price—to find out exactly where I am putting my money for future gains.
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