http://www.ino.com/info/263/CD3399/&dp=0&l=0&campaignid=3

Make no mistake about it, the market action on Wednesday (November 19th) was extremely negative for all of the indices that we track. The close below 8,000 on the DOW can only be described as negative, indicating further weakness to the downside. This index could trade down to around the 6600-6700 level.

Watch the new video right here. http://www.ino.com/info/263/CD3399/&dp=0&l=0&campaignid=3

Looking at the charts using “Trade Triangle” technology, it is clear that the Dow has been under pressure since the first major sell signal at 11,290. There is no reason to alter this stand right now, as the trend will continue to be on the downside. Expect to see further weakness in the weeks and months to come.

What’s an investor to do? As a trader or investor there are three choices you have as an investor:

1. You can go long a market.
2. You can go short a market.
3. You can move into cash.

Its often amusing to see when people start buying “defensive stocks.” Why not get out of the market entirely when it’s going down. Doesn’t that make common sense to everyone?

However, most brokers want you to stay in the market at all times fearing that they will miss a bottom. Truth is, most investors (including brokers) missed the top, so what makes anyone so sure that they’ll catch the bottom? The key in trading is not to get out at the top, or in at the bottom. Anyone who tells you to do that isn’t playing smart in the markets, and most likely claims that they are holding the “holy grail” of trading.

An investor’s goal should be to capture 70% of a move. The middle is the sweet spot, and if you make enough in the middle then who cares about the tops and bottoms.  Forget picking up the 15% on the top and 15% on the bottom, it doesn’t work consistently to use it as a trading strategy.

Check out the new video here http://www.ino.com/info/263/CD3399/&dp=0&l=0&campaignid=3 and see exactly where we got out of the indexes and where we see them headed right now…

Click here for MarketClub.

Enjoy the video and Happy Trading!

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