John Lansing's Trending123
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The Magic's in the Middle
May 20, 2008

May 20, 2008

"The Magic's in the Middle"

Buy low. Sell high.

If you believe that is all you need to know to succeed in the market, then I say, let's invite grade-schoolers to participate as well.

In all seriousness, you and I both know that it takes a keen sense and qualified mind to properly navigate the twists and turns of the market. If anyone could do it, why wouldn't they? This is not to say that it can't be learned by anyone—with the exception of a five-year old—but it takes patience and lots of practice.

Anyone worth their salt knows that the juiciest plays come from the middle. Since about the beginning of March, the market has been bouncing back and forth through an upward channel. In fact, by the time I was looking at NASDAQ futures last night, we had broken the 61.8% retracement, otherwise known as the "golden ratio". (Read the Education section for more.) We are now on our way to the 72% retracement, which would essentially negate the downtrend that we experienced at the start of the year!

How significant is the rise that I am expecting? Enough to capture doubles and triples from the stocks that I have (and will be) recommending to my Trending123 subscribers.

Right now more than half of our current stocks are showing gains. A few of them, like SOHU, AAPL and RACK are showing gains of 74.61%, 55.59% and 54.81% respectively. The kicker: we're not selling yet. There are more gains to be made. And what about the stocks that are in the red? This comes back to what I said about needing to be patient!

Many of those stocks will come around…all in due time. Of course there are always a few clunkers that we'll have to dump along the way. But I can tell you that all the gains my subscribers and I are seeing now aren't even the tip of the iceberg! I have a slew of stocks on the watch list just waiting to be added to our portfolio. I've also prepared alerts to send out to my subscribers when the conditions are right to add to our current positions.

It's the perfect time to get in to the market if you haven't already. These are good times my friends! Please join us today so that you can take part in the profits to come.

Sincerely,

Signed
John Lansing
Trending123

P.S. My Trending123 subscribers are a vocal bunch: "What's happening right now at T123 is the most exciting thing I've seen since I joined over a year ago." "I joined Trending123.com about 5 months ago and its one of the best ideas I ever came up with." "Just a HUGE word of thanks…" Traders—like you—make my job worthwhile. Take a spin around the Trending123 site. You, too, have what it takes to succeed in this market. Take the first step today!

Learn More

The Golden Ratio

You've heard it before, but I'm telling you again. Fibonacci Retracement is a term used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction.

It is a very popular tool used because it helps to identify strategic places for transactions to be placed, target prices or stop losses.

The key Fibonacci ratio of 61.8% (which, as I said before, we hit yesterday after the market closed) is also referred to as "the golden ratio" or "the golden mean". It is determined by dividing one number in the series by the number that follows it. For example: 8/13 = 0.6153, and 55/89 = 0.6179.

For reasons that are unclear, these ratios seem to play an important role in the stock market. Learning about the Fibonacci Retracement and other tools of technical analysis will enable you to be a better trader or investor.

The 1-2-3's

If you're new to Trade Talk Weekly, you might be wondering why I call my service, Trending123. Wonder no more!

There are three key qualifications to every stock that every trader needs to know:

  1. Direction
  2. Speed
  3. Distance

What direction is it going? How fast is it going to move? And, finally, how far will it go?

You are on your way to understanding how to become a better trader. I invite you to learn more—FREE advice—right here!