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Time for a Head Check
February 19, 2008

“I would rather be out of stocks wishing I were in, then be in stocks wishing I were out.”

One of my subscribers recently told me this while we were in the Trending123 Chat Room and I have to say that this statement is about the best way to sum up overall investor sentiment at the moment.

No argument here — this is a tough market to be in.  To say it’s volatile would me a massive understatement.  But to say it’s impossible, would also be a giant miscalculation.

There are ways to determine where the market is at and where it is soon heading.  And having that knowledge in your back pocket is really the only way to survive the ebbs and flows of the market.

Keep Your Head Above Water

Knowing the tools of the “trade” as well as I do—thanks to my many years of experience—makes this market not only survivable but very likely, profitable as well!

For instance, I know that the Bullish Percent Index is the best way to effectively measure market bottoms.  And wouldn’t you know it — right now we are seeing EXTREME lows in the bullish percent index.

Take a look at two of the charts that I am using right now to assess this very telling situation.

Now, if you notice the lower part of both charts is where the bullish percent index is telling the story.  It hasn’t hit so low in over a decade!

So what does all this mean? Well, in 2001, when we just barely grazed the twenty mark, there was an almost-instantaneous bounce!

What we are seeing now — with the unprecedented lows in the Bullish Percent Index — is telling me one thing: We are in for a bottom, after that I expect a massive bull run!

That’s not to say it won’t be a tumultuous ride… in fact, double-check that your seatbelt is securely fastened!  Don’t let this market run you — you have to run it!  I can help you every step of the way, starting now.


Sincerely,

Signed
John Lansing
Trending123


P.S. I just added 3 new high beta China plays to the Trending123 portfolio.  The upside on these stocks is nearly perfect!  Get their names, entry points and targets here.

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Six Steps to Success!

At times like these, being a trader can be downright emotionally—and perhaps even physically—exhausting!  But that’s not to say that we should fall over and play dead until this all blows over.

As I see it, you have one of two options: success or failure.  Of course everyone in their right mind wants to succeed, but clearly not everyone does.

Why is that?  Quite simply, they are not deciding to succeed.  You have to choose to succeed in order to actually find the success you seek.  It sounds simple but many traders find themselves unable to commit to the positive thinking that is practically required to “win” at this market game.

Commit to these 6 beliefs and you WILL become a successful trader:

  1. The markets provide a constant stream of opportunities.
  2. If I miss an opportunity, another one will soon follow.
  3. If the position is stopped out, then I need to reconsider the trade.
  4. I trade one trade at a time, and stay in the present moment.
  5. Losing small is part of my trading plan to maximize profits.
  6. I seek a standard of excellence, not perfection.

I also seek a standard of excellence with my Trending123 service — find out more about how I can help you succeed today.


Get Inside the Market’s Head

Market indicators and sentiment charts tell us where the market is likely go, so understanding them is of prime importance.  Think of them as the key charts that reveal the answers to why the market has been acting the way that it has.

The Bullish Percent Index (BPI) is a market breadth indicator calculated by dividing the number of stocks currently trading with Point and Figure buy signals in a given exchange, industry, etc., by the total number of stocks in that group.  ***It is important to note that the Bullish Percent Index is not something that can be applied to a single stock but rather an index that is calculated for a group of stocks.***

Bullish Percent levels above 70% are considered overbought, whereas levels below 30% are considered oversold.  Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%.  Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%.  It is a very effective indicator of major market bottoms but a less effective indicator of tops.

Learn more about how using technical analysis can help you succeed in this volatile market — join today with this special offer!