Thank You for your support

Thank you all the readers for your continued support and making this site a Daily Read. Wishing You a Happy and SUCCESSFUL New Year. In 2013 lot more new useful content and functionality will be added to the site. The site will continue to offer new methods and techniques for  traders.

 Stay tuned.

Thanks also for the over 2000 member Stockbee  Member site members for supporting the site and more importantly for you continuous high quality trading ideas and discussions. Your active participation everyday makes the site the most unique trading community.

Are you serious about your trading?

If you are serious about your trading and want to build an enduring edge the Stockbee Member site might help you. Members tell me they have tried lot of things before coming to my site and it has offered them the most extensive and detailed methods to swing and position trade.

It is only for those who want to develop their own self sufficient trading method. It is not a stock picking service. It is service for you to build your own scans and trading method to have your own daily pick based on your method.

Be warned it will take you time to learn to trade. Learning to trade is difficult art and unless you are willing to spend months or years to perfect your strategy and also develop your mental edge you are unlikely to succeed in this game. Unless you understand that no site, no service, and no mentoring is going to work.

Why traders come to stockbee?

The member site is one of the most recommended site for learning to trade by other traders and bloggers. You will see no advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant twits self promoting the site, no free trial  and no tall claims of making you instantly wealthy, and yet the site attracts new  members everyday. Members come from all walks of life and all kinds of trading size and trading styles.

You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.

Over the years thousands of traders have been members and those who benefited from the learning talk about the site to others or talk about the methods used and that is how new members learn about the site.

What will I learn in the members site?

The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.

As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

You will learn about Stockbee Trend Intensity Breakouts method that uses momentum based swing trading to find 3 to 5 day swing trades for 8 to 40% profit.

You will learn about Stockbee Episodic Pivots Breakout method which uses Post Earnings Announcement Drift (PEAD) to find stocks that had a game changing earnings and that are likely to rally for 3 months to 12 months.

You will learn about  Stockbee Dollar Breakout method that uses momentum, range expansion and swing trading approach to find 5 to 40 dollar moves in high priced stocks.

You will learn about  Stockbee Lemonade Strategy for 401k which uses market timing and momentum to invest in 401k. You will get weekly update on how I am using the strategy on our 401k to do allocation decision.

You will learn about Stockbee Market Monitor method for market timing using breadth. It allows you to avoid risky periods in market and allows you to identify market turns. It is used for 401k allocation decisions.

You will learn about Stockbee Double Trouble method to find stock with confirmed upside momentum using anchored momentum and that are likely to continue their up move.

You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.

You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.

You will learn about Telechart 2000 and how to use it effectively to scan for swing and position trade ideas and to set up your 401k strategy.

You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.

You will learn how to set up your own scans, select right kind of stocks, how to set up stops, when to enter , when to exit, how much to risk, how to track your trades and all other details about trading. You will learn about developing your own methods and not relying on others for trade ideas.

The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

The site gives you opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different background and experience willing to help each other. The emphasis is on continuous learning and up gradation of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors and new traders.

If you are looking to develop your own trading strategy the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.

Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years  of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.

How can I become a member?

To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.

Happy Holidays

Small caps leading

In last 2 days the small cap index has bolted higher. That is a good sign. Small caps tend to make bigger and more explosive moves.

We are witnessing good buy pressure in last 9 days. Breadth has been improving steadily. The correction has created good setups and seasonality favors more upside.

Breadth improves

Last week we had 3 days of pullback on low volume, on Monday market bounced back. The breadth trends continue to improve.

The rally got some help from encouraging news on fiscal cliff negotiations. As a result we are now at level that started sell off post election. Since then we had massive stimulus announced by Fed. Let us see if that acts as a catalyst for taking out that level.

Next week will be very thinly traded due to holiday's. So probability indicates this move might continue in to new year.

Fed wants higher market

The Fed has been very aggressive and creative in their determination to juice up the economy. Having learned lessons from the policy failures of  the Great Depression and Japanese post bubble deflation, it has been trying various ways to jump start the economy.

Yesterday the Fed announced another round of massive bond buying. This has the potential for higher stock prices , but market yawned. The reaction was muted and the small bounce post announcement was faded quickly. Is that a sign of Fed policy  fatigue? We will know in months.

As of now this market continues to have a low volume rally and has not shown clear signs of distribution yet. As long as that continues the bulls still have upper hand. Any big selling will negate that picture. 

Small caps index breaks out

There was a convincing breakout in small cap index. This sets us up for year end rally.

Lot of stocks are setting up for breakout and we may get good Santa rally. The underlying buying seems to be improving. 

Small caps setting up for breakout

The small cap stocks have the best setup currently for possible breakout. After the first up leg from bottom, they are having very orderly pullback and any high volume breakout will be a buy.

The small caps Russell Index is trading within few % of its all time high. A breakout above the 2007 high will be very positive.

The fiscal cliff negotiations have resulted in market going sideways here. It seems to be setting up for move in either direction post the agreement. The sideways move is creating some good setups on stocks with momentum and stocks with good earnings. Once the market breaks out, there might be several good setups.

Consolidation

Market is in consolidation mode after a V shaped bounce. While individual stocks like AAPL have had some trouble in last 3 days, rest of the market has held up well.

Special dividends being announced by stocks after stocks has provided support to many large caps.  Many stocks are rallying in anticipation of special dividends.

If more selling hits the market then it will be time to be worried, till then it is a pause with probability of higher price.

A little pullback

A small pullback after a gap up. Straight up moves and V reversals are rare , so some kind of pullback/consolidation is not a deal breaker unless there is sustained follow through.

A multi week consolidation/pullback would be better setup, but market does not always \follow the script you want it to.

Many beaten down stocks rallied in this move, stocks with momentum comparatively were not where big moves were.

For sustained up move I would like to see small caps and stocks with momentum taking on leadership. 

Markets move in direction of breadth

Breadth trends continue to be positive. As long as that continues the ball is still with bulls.

A orderly pullback or sideways move can setup for move higher from here.

As you can see we have series of positive breadth days in last 10 trading days. That indicates good buying pressure. 

The intraday volatility is largely news driven. But at end of the day breadth has continued to be positive...

Markets move in direction of breadth. Unless that changes the bullish move holds.

Aggressive dip buyers

Aggressive dip buyers have been buying up every intraday dip and breadth continues to improve.

Unless we see a big negative breadth day the benefit of doubt goes to bullish side. But most things look extended so how much more of gains the indexes can make without pullback is worth watching.

As has been the tendency in last 2 years beaten down stocks have led the action. Now in second phase stocks with momentum will take over leadership.

Trends in last 2 years is for choppy rallies, so far this rally has not had much choppiness.

A pause

A straight up V shaped rally was any way lower probability event. So we are getting some minor correction so far at this level.

Many stocks were also extended, a correction here or sideways move will help them setup for further gains.

Eventually a deal on fiscal cliff will be reached , but before that there will be lot of drama. That will get reflected in the market over next few weeks. Each rumor will move the market. 

Breadth is improving

Market had a approximately 8% correction from the high. The correction knocked down most leading stocks.

Now market has been attempting a bounce back. The last 6 trading days have seen steadily improving breadth.

V kind of bottoms tend to be rare. As you can see in last 4 years , the corrections have taken some time to play themselves out before sustained up moves. Which might mean this correction will need some more time to play itself out.

Another noticeable thing in last 4 years has been steadily declining magnitude of the successive rallies. As you can see the biggest rally was from 2009 bottom, since then each of the rally has had shorter duration and smaller and smaller moves. 

Sharp bounce

Market experienced a sharp bounce from a oversold level. Now it needs to build on the bounce for possible bottom. The usual suspect AAPL was one of the better performer in the bounce.

However breadth needs lot more work for a bottom. We will know if that happens next week. Expecting low trading volume for next 2 days. 

The most important thing to watch will be breadth

This is a holiday shortened week. Essentially we will have only 3 days of active trading. Volume would be low.

As the market has corrected substantially in last few weeks without a bounce, a bounce here will not be a surprise. Unless the bounce has significantly positive breadth, it is unlikely to stick for longer term direction change. The most important thing to watch will be breadth.

The most beaten down stocks are likely to bounce the most. That has been market tendency for last few years. 

Some momentum stocks are setting up near their recent high

We continue to grind down lower. The S&P is down around 6% from high and other indexes are in similar territory.

We had 5 back to back negative breadth day. That is an indication of distribution by big funds.

At the moment we are not extremely negative breadth levels. So A setup for enduring rally is yet to develop. 

However some momentum stocks are setting up near their recent high and may be the first to breakout when overall market decides to rally. The top 300 stocks by 6 month momentum that are near their six month high are the one that I would focus on. 

Breadth trends continue to be negative

Primary breadth trend is negative and market is in correction mode. All breadth indicators like Stockbee Market Monitor or publicly available indicators like $BPNYA are in bearish territory. What they show is significantly higher selling pressure than buying pressure.

The $BPNYA is below both its 5 and 50 day moving average. For any reversal from this level we need to see significant buying pressure. 

Markets topped out after Fed interest rate decision. The market was rallying in to the decision. Once the decision was announced , that marked the top of this move.

Earnings trend has sharp deterioration this season. It was worst earnings earnings performance since 2009 bottom.

Number of multi year leaders like AAPL, PCLN, CMG, QCOR, alxn scss, mnst, cat, dltr and many others are now near or below 200 day MA.

The selling so far has not been heavy, but has been persistent for few weeks.

Any bounce is suspect unless breadth trends change....

Are you serious about your trading?

If you are serious about your trading and want to build an enduring edge the Stockbee Member site might help you. Members tell me they have tried lot of things before coming to my site and it has offered them the most extensive and detailed methods to swing and position trade.

It is only for those who want to develop their own self sufficient trading method. It is not a stock picking service. It is service for you to build your own scans and trading method to have your own daily pick based on your method.

Be warned it will take you time to learn to trade. Learning to trade is difficult art and unless you are willing to spend months or years to perfect your strategy and also develop your mental edge you are unlikely to succeed in this game. Unless you understand that no site, no service, and no mentoring is going to work.

Why traders come to stockbee?

The member site is one of the most recommended site for learning to trade by other traders and bloggers. You will see no advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant twits self promoting the site, no free trial  and no tall claims of making you instantly wealthy, and yet the site attracts new  members everyday. Members come from all walks of life and all kinds of trading size and trading styles.

You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.

Over the years thousands of traders have been members and those who benefited from the learning talk about the site to others or talk about the methods used and that is how new members learn about the site.

What will I learn in the members site?

The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.

As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

You will learn about Stockbee Trend Intensity Breakouts method that uses momentum based swing trading to find 3 to 5 day swing trades for 8 to 40% profit.

You will learn about Stockbee Episodic Pivots Breakout method which uses Post Earnings Announcement Drift (PEAD) to find stocks that had a game changing earnings and that are likely to rally for 3 months to 12 months.

You will learn about  Stockbee Dollar Breakout method that uses momentum, range expansion and swing trading approach to find 5 to 40 dollar moves in high priced stocks.

You will learn about  Stockbee Lemonade Strategy for 401k which uses market timing and momentum to invest in 401k. You will get weekly update on how I am using the strategy on our 401k to do allocation decision.

You will learn about Stockbee Market Monitor method for market timing using breadth. It allows you to avoid risky periods in market and allows you to identify market turns. It is used for 401k allocation decisions.

You will learn about Stockbee Double Trouble method to find stock with confirmed upside momentum using anchored momentum and that are likely to continue their up move.

You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.

You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.

You will learn about Telechart 2000 and how to use it effectively to scan for swing and position trade ideas and to set up your 401k strategy.

You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.

You will learn how to set up your own scans, select right kind of stocks, how to set up stops, when to enter , when to exit, how much to risk, how to track your trades and all other details about trading. You will learn about developing your own methods and not relying on others for trade ideas.

The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

The site gives you opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different background and experience willing to help each other. The emphasis is on continuous learning and up gradation of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors and new traders.

If you are looking to develop your own trading strategy the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.

Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years  of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.

How can I become a member?

To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.

How breadth trends look

This is a graphical chart showing breadth trends since start of this year. As you can see at key turning points there were breadth flips. This chart has been prepared by a Stockbee Member.

The breadth data used is based on Stockbee Market Monitor data of daily, half quarterly and quarterly data.

Big selling day

Selling dominated the post election action. The selling was focused on sectors which were bid up pre election in hope of Romney victory by some. The Financials and coal were two sectors that saw lot of selling.

How big was the selling in breadth term? It surpassed the last big day of selling 6/21/2012 in our Stockbee Market Monitor breadth monitor.

Will there be a follow through. Probability favors that as breadth has been deteriorating for sometime.

The sellers were in complete control on Friday

It was disappointing to see no follow through on Thursday's 300 plus day.

In fact the selling on Friday resulted in many of the breakouts from previous day completely giving up the b/o gains. Add to that bearish range  in number of stocks that were holding up well or near 52 week high.

The breadth trends continue to be negative. $BPNYA is below its 5 day moving average and is showing  divergence with price.

Chip Anderson of Stockcharts.com has a blog post explaining the importance of tracking the $BPNYA to get a read on market direction. It is worth reading his post on it and his previous posts on it.

It's a question I get everywhere I go.  After every talk I give, someone comes up and asks "What's the one market indicator I should watch to see where things are headed?"  Many years ago that question gave me fits.  In my brain I'd immediately have 1,000 thoughts:  "There are so many indicators to choose from" and "Each indicator is interpreted differently" and "What if there are conflicting signals?" and "What if the NYSE changes its membership?" and...  You get the picture.  Needless to say, the answer that came out of my mouth back then wasn't pretty, or easy to understand.
Now the answer is simple:  The NYSE Bullish Percent Index - period.
I've written extensively on Bullish Percent Indexes (BPIs) before.  If you are not familiar with them, pleaseclick here to learn more.  The NYSE BPI ($BPNYA) is the "granddaddy of them all" and is one of the broadest BPIs we publish.  On numerous occasions in the past, it has been a leading indicator for the market and it always deserves periodic attention from serious ChartWatchers.

The sellers were in complete control entire day and snuffed out any hope of intraday bounce. The only place for hope was the end of the day breadth figure on negative side. They were below 300.

The market has potential catalyst for a big move in either direction in the form of the election results. Realistically a clear trend may not emerge until the election is over.

A complete capitulation kind of move with heavy and sustained selling will be good for the market to setup for a end of year rally.

Are you serious about your trading?

If you are serious about your trading and want to build an enduring edge the Stockbee Member site might help you. Members tell me they have tried lot of things before coming to my site and it has offered them the most extensive and detailed methods to swing and position trade.

It is only for those who want to develop their own self sufficient trading method. It is not a stock picking service. It is service for you to build your own scans and trading method to have your own daily pick based on your method.

Be warned it will take you time to learn to trade. Learning to trade is difficult art and unless you are willing to spend months or years to perfect your strategy and also develop your mental edge you are unlikely to succeed in this game. Unless you understand that no site, no service, and no mentoring is going to work.

Why traders come to stockbee?

The member site is one of the most recommended site for learning to trade by other traders and bloggers. You will see no advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant twits self promoting the site, no free trial  and no tall claims of making you instantly wealthy, and yet the site attracts new  members everyday. Members come from all walks of life and all kinds of trading size and trading styles.

You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.

Over the years thousands of traders have been members and those who benefited from the learning talk about the site to others or talk about the methods used and that is how new members learn about the site.

What will I learn in the members site?

The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.

As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

You will learn about Stockbee Trend Intensity Breakouts method that uses momentum based swing trading to find 3 to 5 day swing trades for 8 to 40% profit.

You will learn about Stockbee Episodic Pivots Breakout method which uses Post Earnings Announcement Drift (PEAD) to find stocks that had a game changing earnings and that are likely to rally for 3 months to 12 months.

You will learn about  Stockbee Dollar Breakout method that uses momentum, range expansion and swing trading approach to find 5 to 40 dollar moves in high priced stocks.

You will learn about  Stockbee Lemonade Strategy for 401k which uses market timing and momentum to invest in 401k. You will get weekly update on how I am using the strategy on our 401k to do allocation decision.

You will learn about Stockbee Market Monitor method for market timing using breadth. It allows you to avoid risky periods in market and allows you to identify market turns. It is used for 401k allocation decisions.

You will learn about Stockbee Double Trouble method to find stock with confirmed upside momentum using anchored momentum and that are likely to continue their up move.

You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.

You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.

You will learn about Telechart 2000 and how to use it effectively to scan for swing and position trade ideas and to set up your 401k strategy.

You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.

You will learn how to set up your own scans, select right kind of stocks, how to set up stops, when to enter , when to exit, how much to risk, how to track your trades and all other details about trading. You will learn about developing your own methods and not relying on others for trade ideas.

The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

The site gives you opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different background and experience willing to help each other. The emphasis is on continuous learning and up gradation of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors and new traders.

If you are looking to develop your own trading strategy the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.

Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years  of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.

How can I become a member?

To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.