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Wednesday, July 31, 2013

Stocks Being Distributed By Insiders To Retail Investors

We have insiders which include  Market Makers, Specialists, Hedge Funds , Large Operators and Professional Money. Their main job is to buy at the bottom and fill up their coffers. Then they distribute this stock at the peak to retail investors and speculators. Let us look at the few charts

TNA  This is reverse of TZA. Look at how they load up at the bottom and Sell at the top at the highest prices.All rallies now are nothing more than distribution of stocks near the top to retail investors.

SPY which is ETF for SPX. Here again any new highs are merely distribution near the top.


The way to distribute stock is to move it Up &; Down with GOOD news. They will move the market up in the morning and close near the low with several UP & Down Moves all day long. It is again happening today on good news. They may even make a new high in DJI, SPX & Nasdaq to suck in those who shorted a few days ago or who were hesitating till today.

 Once they have distributed all shares near the top, they will take the market down again to fill  up their coffers again near the lows.  The best way to distribute stock is to use media to publish good news. The retail investors BUY because they are afraid of missing a rally. It is all because of greed.

 All stocks, Gold &  Silver are being manipulated so that suckers can buy and insiders can get out.  Exchange markets are manipulated by Governments around the world but eventually they fail.  Look at what is happening to NIKKEI.
They showed today that  US GDP was up 1.7% today. Guess what. It is based upon new way of calculating GDP . Othrwise GDP would have been down to -0.5 probably.

The market is like a large  tanker. It takes time to change direction. Look at SPY . They have kept it near the top for 11 trading days. Folks, they are  distributing stocks to the willing lambs before they butcher them mercilessly.

Why should not they do it? They make billions and SEC lets them do it legally. The best way for us is to follow the insiders and sell when they sell & buy when they accumulate.

We have a SELL signal on DAX ( German Market) today. Here again they are distributing stocks near the highs.


Nikkei continues to go lower . It has still long way to  reach its bottom. Any rallies now will help the insiders distribute to the retail investors.

GOLD & Silver also gave SELL signal today as Dollar has started strengthening .
GOLD GLD (ETF). Unless Gold makes a new high above recent highs, it is going lower . So is the case with Silver.


Silver SLV ETF
TLT  Long Term Bond ETF hit a new low and 10 year treasuries hit 2.68%. Where is the FED?


Monday, July 29, 2013

Interest Rates Not Going Back to Previous Lows

If we look at 20+ Treasury Bond ETF    TLT ,  it is sitting near the lows even though stock market has been going  higher. It tells the story better than what the Fed Heads tell us that they will continue to keep rates low. These bonds made a high(when the rates were low) in early May and are sitting near the lows. 10 Year Treasuries are at 2.58% also way above 1.45% in early May.Imagine how much money  all the bond holders have lost. Most bond funds are negative for 2013.  This massacre will continue. It will be even worse for Municipal bonds after what happened  due to Detroit bankruptcy.


Gold is in a holding pattern. It needs to go above  above $1337 for the rally to continue otherwise we could start the decline below previous lows. Take a look at GLD chart. There is no sell signal yet

Nikkei continues to go lower reaching a 4 week low today with a decline of 3.32% today

Dow, SPX & NAsdaq did not give SELL signals on Friday but it is getting closer. We will know after 7 AM which way the market wants to go. Continue to sell your long positions to lock in your profits.

Dollar has started rising against other currencies today.This may be the start of a big rally on a short term basis.
Dow Jones transportation continues to go lower after the SELL signal last week.

TZA just gave a BUY signal , as both RUT & IWM gave SELL signals

Here is RUT chart giving a SELL signal


Here is IWM chart giving a SELL signal

Friday, July 26, 2013

Nikkei , Shanghai & DAX Give SELL signals

As yen strengthens  against other currencies, Nikkei ( Japan) took a big hit today and so did the Shanghai  ( China) market. DAX is also ready to give a SELL signal.
SHANGHAI



NIKKEI


DAX

DJI will give a SEll signal if it goes below 15450

 IWM will  Give a SELL Signal  if it goes below 103.35

Buy TZA to day even though we do not have a BUY signal yet


The above chart shows clearly   how we  used our trend following approach to make 25% profit recently with TNA.( See Last Chapter of  our book)

NASDAQ will give a SELL signal if it goes below 3573




Thursday, July 25, 2013

Look At What The Charts Are Saying

We have a SELL signal in FTSE (UK)  & Dow Jones Transportation. No Sell signal on  DAX (German) markets

FTSE


DAX

Dow Jones Transportation

DJI
SPX

NASDAQ

10 Year Interest Rate Futures
Rates keep on going up. Federal Reserve is helpless.

Gold- No SELL SIGNAL
To Buy the book click here
http://budurl.com/dyla  . You do not have to buy kindle.

Tuesday, July 23, 2013

Europe May Lead the Markets Lower


For all practical purposes, Italy, Greece, Spain, Portugal are all in a depression with unemployment above 25%.  Their markets went below 2009 lows already.  Germany, France and UK have been doing OK because they feed off the rest of Europe. It cannot continue for ever. Also we notice huge divergence between European stocks and US stocks. Whereas US stocks have gone above May highs, European stocks have not done so. However in European  major indices there is no SELL signal yet. We have a feeling that European stocks will give a SELL signal before US stocks do.
See the charts below.

FTSE  UK

DAX Germany
CAC France


Italian Market



ITALIAN Market already has Gone below 2009 lows

The interesting thing aout our market is that  in spite of Fed printing 85 Billion dollars every month 10 year rates are again above 2.5%. It is like pushing on a string. The market already knows that Federal Reserve will start  reducing their purchases of bonds starting in September 2013 and completely eliminate them by June 2014. This is why we are asking you to take profits now even though we do not have a SELL signal. When the SELL signal arrives, everybody wants to get out at the same time and you may get into trouble. Look at MSFT, GOOG, NFLX, etc.

Monday, July 22, 2013

Gold & Silver Continue to Rally

Gold & Silver continue to rally. We told you to buy Gold & Silver on June 28 when Gold hit $1190 or so.
Later we had a buy signal on GLD & SLV on July 10, when both crossed 15 day moving averages. Whether it is the beginning of a big rally that we have been expecting or we will sell off to new lows as dollar  becomes stronger cannot be predicted at this time.  Why make a prediction now? Let the market tell us.  If it sells off again , we will watch the 15 day moving averages.


We still have no SELL signal on the stock markets in USA even though we took profits last Thursday.
 Nasdaq

SPX
DJT

RUT

Thursday, July 18, 2013

Time to Take Profits

The Price earning ratios have gone above bubble levels and it is about time we should take profits in all long positions even though we do not have a SELL signal yet as per  second half of Chapter 5 of our book.

The following data from  The
Wall Street Journal
Russell 2000 PE is 46.74 and when the decline starts TNA will fall the most and TZA will rise the most
We have made a lot of profit in TNA and we should take profits right now. In fact in TNA you have a profit of 25% if you bought on June 28 when we got a buy signal in accordance with Chapter 5 of our book.
NASDAQ chart
TNA
NYA Average of all stocks has not made a new high since  May 22, 2013

Tuesday, July 16, 2013

No Sell Signal Yet

Here are the charts for IWM & TNA
If you follow  Chapter 5 of our book on strictly technical basis, we had a Buy signal on IWM & TNA on June 28 when both IWM, RUT crossed  above 15 day moving averages.That was also a signal for selling TZA. We make mistakes when we start looking at the fundamentals.

DJI & SPX & NYA & Dow Jones Transportation Averages have not gone above their May 22 intraday highs yet. Unless it happens soon we may be headed towards  SEll signal soon. FTSE, DAX and  most European stocks have not gone above their My 22 highs. In fact european stocks will lead us lower soon
DJI

SPX

NYA Above

DJT

DAX

CAC

NIKKEI

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