Daily Stock Picks Report Archive

November 9, 2008  Sunday Evening                                                                                                                               www.TradeStocksAmerica.com

The market did what we expected and that is to give us excellent intraday trades in many stocks.   Usually if we get 1-3% intraday scalps but Friday we saw 3-10% potential profits on stock positions that lasted less than an hour.  Don’t expect as much of a profit tomorrow on this same technique but it still should be an effective technique to use.

The market appears to be going in a "no man’s land" where it is hard to predict on a short term what the market will do.  It kind of spoils us after two great days that were obvious to me which way the market was going on Wednesday and Thursday.

The VIX, Volatility Index moved down Friday and dropped 11.7% to close a $56.10.  We should see some continued dropping in the VIX as the stock markets tries to move upward this week.

Intermediate Trade Positions:  If you still have stocks long and did not sell in this latest rally, be prepared to hold for a couple of months to move to higher highs.  It is a little too late to be selling now.

Swing Trades:  Let’s wait until we get a clear signal to hold stocks over longer time periods.

Day Traders/Intraday stock ideas:   The drop and pop pattern that we have been using on the intraday trades should worked very well Friday morning and I am looking for a similar move tomorrow but not as strong.    These same stocks plus many more should be good candidates of the drop and pop technique for intraday trades with      AMZN, CNX, BAC, WFC, AAPL, RIMM, FCL, ACI, GOOG, FSLR, MT, X, SNP, and WLT.

Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor.  I recommend wide stop losses when using this technique otherwise you get stopped out frequently which is expensive, frustrating and distracts you from the bigger picture of making a successful trade.  Don’t force anything to work for you tomorrow, let the setups develop and then take advantage of that.  Be patient the next couple of days.

Last Note:  We are still in a bear market with a strong downtrend.  This recent rally we just had in stocks was just a counter rally within a bear market.  They are powerful and can be very profitable, as you just have witnessed (and hopefully experienced).  We use whatever stock trading technique the market requires from day trades to swing trades (2- days), intermediate trades for months, short selling and long positions.  We can buy stocks, stock options, ETFs or occasionally bonds.

Have a great day and I’ll talk to you this weekend.

Mitch King

www.TradeStocksAmerica.com

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