“Shoot for the Moon—When It Feels Like the Abyss”

The market puppeteer—let’s imagine for a minute that he does exist—delights in messing with our plans. Several weeks ago I proclaimed that we would eventually hit NASDAQ 3126.

At current levels, I can practically hear the guffaws reverberating across the online universe. Sure, it seems like I must be going mad if I think this market is anywhere close to reaching that kind of high.

Well I am not proclaiming that this will happen today or this week. But mark my words, it will happen. First we have to walk the cluttered path filled to the brim with poor home sales, weak earnings reports and consumer confidence dips. But—and choose a metaphor you like here, my favorite is the pot of gold—we will dig ourselves out.

No matter which indicator you look at (the MACD, PPO, RSI), you won’t find any bearish divergence. We have been chugging along, stretching higher and higher, no matter the new lows that were made in the general market.

With this type of teeter-tottering going on, the data is showing that traders are becoming less risk-averse. No surprise there. Rolling with the punches just isn’t possible when we feel like a battered boxing bag!

That’s precisely why I am recommending that traders stick to the high-beta stocks—like the ones I am recommending in the Trending123 portfolio now—as momentum takes center stage. For those that have their scorecard handy, mark this down: Value is OUT. Momentum and growth are IN.

Sincerely,

John Lansing
Trending123

P.S. Right now in the Trending123 portfolio, our momentum stocks are king. Gains are showing at 15.38%, 17.20%, 29.27% and UP! Find out which of these stocks are ripe for the picking—and which stocks are next on the list to be selected—when you subscribe to Trending123 today!

The Psychology Behind Stock Trading

This migraine-inducing market can understandably have you reaching out for something to soothe the pain. But before you open up the medicine cabinet looking for relief, consider instead, a consult with Trending123’s very own neuropsychological trading coach Dr. Janice Dorn, M.D., Ph.D.

It may sound a bit preposterous at first but think over the last several months and the tumultuous trading situations we have all found ourselves in. Now I ask you, wouldn’t it be nice to get the perspective of a trained professional? We think so. That’s why our “trading doctor” is on staff (and practically on-call!) to answer your questions and soothe your nerves in this precarious market.

At Trending123, you get Trading Wisdom’s straight from the “Doc”— plus you have live access to her in the chat room! Find out how to be a better, smarter stock trader through Dr. Janice’s psychological insights as well as stories of investment success.

Hate Breeds Higher Prices

The most hated entity in the stock market? Stocks. Seriously. Lately, when I recommend a stock to my Trending123 subscribers, you would think I was asking people to commit a felony!

Looking at the Bullish Percent Index (aka the BPCOMPQ), you can literally see the hate oozing out. Anytime the BPCOMPQ has seen extreme lows—way beyond the -25% mark—we can attribute it to the extreme loathing investors are feeling towards the market. We saw it happen back in late 1998 and we are seeing it again in this market.

The good news about all this negativity? When the BPCOMPQ hits these extreme lows, it causes the $SOX (Semiconductor Index) to skyrocket. Thus my original statement: hate breeds higher prices. So I guess you could say something (very) good can come out of something bad!