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How will this move end?

Posted on 5/31/2012


With a big breadth thrust.

So far it has not seen brutal selling. That kind of selling leads to capitulation bottom. Low intensity selling is more in line with correction after a big up move.

So far the Primary indicator has not reached extreme zones indicating probability of  bottom forming. More time spent in range might create that bottom.

So far the market has corrected around 8%. Overall US market is holding up well compared to other markets.
The low breadth on the move down indicates possible view by funds that the Europe crisis may not dent US.

It is time to start making tentative buy list. 

Task cut out for dip buyers

Posted on 5/30/2012

The markets have had 13 down days and 6 up days in last 20 days. The attempt at stabilization at this level is normal behavior after back to back selling days.

Today the gap down will test the buying pressure. Let us see if dip buyers step in.

A series of buy days like yesterday can be constructive. A failure of the move will probably result in volatile range like we saw last year for some months. 

The market continues to be in correction mode

Posted on 5/29/2012


Nothing in this brief buying phase indicates trend change. The market continues to be in correction mode.

Weak buying so far does not set us up for a enduring rally. Big rallies start with big breadth thrust.

We have not seen a 300 plus day to upside since start of correction. That indicates low buying interest. Even counter trend rallies in bear market have higher breadth days than we have seen so far.

A bounce from oversold condition

Posted on 5/22/2012
A low volume bounce after a severely oversold condition. What happens next. We will likely get few days follow through to work through the severe oversold condition.

Markets are stretched to the downside and most stocks are below 40 day moving average so time will be required for stock to setup again for further move.

However some stocks have held up well during this correction and they are the one worth having a look.

Some of these stocks are:


  1. pcyc
  2. mlnx 
  3. avd
  4. abmd
  5. crus
  6. swi
  7. fire
  8. vrtx
  9. wibc

T2108 is approaching extreme zone

Posted on 5/21/2012


If you have been reading about the market, you would have noticed many are pointing out , this is one of the longest streak of back to back losses for market going back many many years. What it tells you is lack of buyers.



 Breadth continues to deteriorate and is not yet near the December low. The T2108 readings are at 16.31, indicating that almost 85% of stocks are now trading below their 50 day moving average.



A severely oversold market , that can not put together a bounce for a day tells you the impact of external catalyst and lack of confidence.

Slowly most stocks are breaking down as selling has accelerated. This is a good thing as we want to see less and less stock holding up.. That kind of action will in the long run lead to explosive rally.



A bounce here has to be extremely convincing to get excited. Absent that it might get sold aggressively.



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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.

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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.

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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.

Gaps and breadth

Posted on 5/14/2012
Another gap down open. In last 5 days gaps have been common. But the intraday follow through on gaps has been absent. Gaps have lead to weak turnarounds.

The underlying breadth patterns are bearish.


As long as breadth patterns continue to be bearish weak bounces are not going to help much. A breadth flip from negative to positive will signal change in market direction. As of now there is not enough breadth thrust for that.

JPM and the bounce

Posted on 5/11/2012
A JPM bad news induced  gap down, if bought aggressively will show that there are buyers at this level. 




In last 4 trading sessions there have been several attempts at a reversal but they have not been very successful. A oversold bounce that does not stick by end of the day is a sign of weak buying pressure. That tells you a lot about the market.Today offers another opportunity for the bullish crowd to take a stand.

Overall breadth trends are in negative territory

Posted on 5/10/2012


Buyers have stepped in 3 days in a row on weakness. Which makes a probability of a short term bounce here higher. But overall breadth trends are in negative territory.



Previous bounce attempts have not been confirmed by breadth. We need a bounce with huge 500 to 700 plus day for a meaningful rally. that kind of breadth will also need follow through breadth day.

Till then range bound action with bearish bias.

Stocks down 25% plus in a month

Posted on 5/08/2012

Indexes are down 3 to 5% in last few months. However some stocks had big drops. Some were going up for last 3 year and now may have topped for long period of time to come.

ACHN
AH
APAGF
AXTI
BEBE
BODY
BVSN
CAAS
CARB
CBOU
CERE
CGEN
CRESY
CTSH
DANG
DRCO
END
ENTR
EPAY
FSYS
FURX
GMCR
GNI
GPRE
HALO
HLF
HNT
KITD
LEAP
MDRX
MITK
MXWL
NCIT
NFLX
NIHD
NOK
OCZ
OTT
RVBD
SZYM
TC
TNP
TPX
TSPT
VPHM
XG
XRM
YPF
ZNGA

. The Stockbee 401k Lemonade Strategy

Posted on 5/07/2012


Weak breadth during the bounce attempt was a sign of weakness. In last couple of days we have seen the market giving up the gains.

The Market Monitor numbers never moved big during the rally attempt.



A 8 to 10% correction would be good. But let us see. As of now the breadth on sell side has not been really high.


The market will offer yet another opportunity to make money in 401K. The key is to be focused and not miss the turn opportunity. The Stockbee 401k Lemonade Strategy has been in cash since March, that way we protected the gains from October bottom signal. The Next Lemonade strategy signal will be on  MM extreme readings and a  breadth flip.



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.

Range bound action

Posted on 5/02/2012
After a big move from December to January, the Rusell 2000 is stuck in multi month range. Weak bounces have been followed by bouts of selling.


A convincing range breakout or breakdown supported by breadth will make life easy. But as of now it is small moves market.

Some of the stocks I am monitoring for possible breakout in next few days are:


  1. AGEN
  2. MNTG
  3. CLUB
  4. GEO
  5. HOTT
  6. TTC
  7. DNDN