1) "PSYCLE SENSE sm":
3) Most recent Hypothetical "PSYCLE sm" transactions, to be mimicked, and referred back to:
4) Already given out in previous NL's, assumed Hypothetical "Long-side" positions:(issues moving since last time, following-up, still long, unless otherwise noted):
6) other, still-Depressed, Long Buys, near their recent Lows Only, for potential rises towards resistance, always Diversified, w/close stops, when/if their basing patterns break down:
7) other, still extended/potentially Toppy, "Puttables", near recent highs Only, L.T., in-the-money Puts Only, Diversified, w/stops if patterns abort to the upside, for potential drops towards their 200 DMA's, or lower: 8) "PSYCLE sm" Lesson for today:
My new newsletter (NL), and educational services, are a "Continuation" of previously recommended stocks/ideas, for the benefit of the people who are also coming over from it's Previous incarnation, to also provide Them with a "seamless" transition, "on the fly", so to speak....and Also, to show YOU, as NEW subcribers, all the Recently/past suggested ideas, which I shared with my L.T. followers, so that YOU can then also view their recent/past 1-year/2-year charts of, to "see" what we are trying to accomplish here, to further help you learn. Remember, all my NL's are Cumulative, and can/should be saved and reviewed, especially the "commentaries" areas, to glean the most value from my output, over time, as "lessons" and "proof". IMPORTANT: I assume all my valued subscribers have read all my past NL's....and, eventually, all my "essays".
FIRST: until further notice, the URL to get all future NL's, will be, the URL for my main web page, then add, each successive time, as a "suffix", forward slash, the date, then "letter.html", ok ?, as in, " /7998letter.html ", then, " /71398letter.html ", " 71798letter.html ", etc. got that ? every Mon. and Thu., after 11 am, PST, (2 pm, EST), for now....hope this helps....
Please appreciate, that I work very long and hard, to put ALL applicable staged stocks, long-side and put-side, which befit learnable, and actionable, "PSYCLE sm" patterns, into every NL....some times there will be fewer ideas, sometimes, more....whatever I find that best fits "PSYCLE sm" stages, which YOU can learn/take advantage of, for YOUR trading/educational benefit....
This time, note, I have added a bunch more EVB's, because that's what "the market" says for me to share with you currently, on the Long side, especially Depressed Techs/Asians/Health/Basic Ind. issues....and for you to take advantage of....I will never "apologize" for sharing "More" mostly excellent ideas, when the situation dictates I do so....So, always start First, with ideas from section (3), as usual, as "the most actionable ideas right now/here", then move, to sections (6) and (7) for learning still more patterns, as, and this may be important, I did see a ton more "S.T. bottom" formations/stocks, last weekend, and wanted to at least get that point across to you, and to people bent on only doing puts, and/or, bent on trying to "catch "the" top" somehow (which, is, as I teach, a waste of anyone's time). These new Long-side ideas, while NOT in bases (mostly/many are EVB's), DO mean, we are NOT ready for a huge drop, yet, in "the market" (and you know how I hate that term). Even though, I have still added more Puts issues.... remember, often, Longs, and Puts are UN-connected....so, please DO do "some" longs, and NOT "just puts"....my ideas will normally "do their thing", independent of "other stocks", right ? We "do" what "looks right", we NEVER "scenarioize", and we never fight the tape.
So, Second, I hope you have at least bought long "something" among the Depressed Techs/Asians/Health/Basic Ind. stocks I gave you recently (see section (3) and (6)), with close stops, diversifying a bit, at a minimum, with such recent baby/bathwater/PSY-chological EVB action....be sure to re-read my booklet on "Exhaustion V Bottoms"....Remember, this is NOT a " 'formula-izable' concept of exactitude"....Just "get close", learn the general rules, eliminate the emotions, etc. This is still a nicely "Split" market, exploitable in BOTH directions simultaneously, which is a Good thing (and/but, more Longs, than Puts, still,
dig ?). For the umpteenth time, "the market" is neither "the averages", nor an important "thing" to even be concerned with.... Important: Remember, Any "new highs" in the DJIA/OTC itself, and/or other "indexes", are going to be UN-confirmed by the internals (A/D, and H/L figures), so keep that in mind.... Also, please do Not let any "Q, S, cut losses" among Puttables (or Longs) recently , prevent you from taking advantage of present/future ideas....just a couple of bigger winners (some of which I have already given here, and will continue to give over time) will more than overcome a few very small cut losses among Puts/Longs, in the meantime....the Key, is not to quit prematurely, stay with the concept, learn the basic patterns, be patient, we have just started, and DO "something", diversified, w/close stops, which best fits your various situational accounts needs....Use this initial NL period, to LEARN as much as you can about my "PSYCLE sm", also read All my booklets/essays, and view/learn their patterns. Important: key: remember, all suggested ideas REMAIN buys near lows, or puts near highs, (only) as long as their patterns do remain intact, even if weeks or months pass.
So few people buy Longs near lows, and/or buy Puts near highs....But the patterns/sequences are most always the SAME, each time. (of course, the depressed "Techs" may provide better "bouncer" potential S.T. here, because of their implied volatility/sexiness, if you will, than some of the others suggested, but they are All similarly positioned, regardless, and deserve equal billing, if you get my drift>. As I have said recently, you gotta have Bought long, "some things" among the Depressed issues I have given out, with close stops, diversified.
So, "pick your potion(s)," long and/or short side, cash/margin, or only L.T., in-the-money options where suitable, for your different accounts/needs. If you have never done Puts, this has been the time to Learn how to do so, using my "booklet/essay" on How to Properly Exploit Puts, benefitting you for the rest of your trading/investing life, for when/the next intermediate S.T. top, which may best exist in the early Fall ?)
a)
b) Have we done it again ? Tue. 7th, Alcoa +4, RLM, up, FCX up, LTV up, and the Nikkei. Index also up from around 15,000 to over 17,000 already, as predicted here, among depr. "Basic Ind." stocks given, and CNBC reports the pops. ...but, then, the reporter says, (quote) "don't get too excited gang, as they are still near their 52-week lows." hmmmm...."PSYCLE sm" note: when/if these types of issues are way up near highs, down the road, THEN, and only then, they will report them as "looking good", get it ? One wants to buy these tyoes of stocks, w/close stops, diversified, BEFORE any Media/analysts report ANYTHING "good" about them, right ? By the time they report 'good things/action", they will already be up.
c) last follow-up from KLB...truly amazing....under 4., to over 19., parabolic, so quickly....I actually had some people asking me late Monday, 6th, if they should still stay in....can you believe that ? (which is, as I have taught you to learn, is a S.T. top sign, in and of itself, right ?) Please view the chart of Audio Book Club (KLB) anyway, as I mentioned in the last NL here....any time you see a big drop, then several "held" touches, say 3-4-5 times, in a depressed base, over time = a decent buy, especially when other stocks in that Industry Group look similarly, or strong, right ? Learn/memorize this....As I suggested, the "internet" stocks were indeed, Monday, the 6th, showing definite early stage 4, parabolic behavior....beware....S.T. top was indeed imminent.... anyway, it wasn't until Tue. 7th, that CNBC interviewed KLB's president (too late, again, as I teach to look for, in my "Media" and "scenarios" booklets), and yet, the reporter said, (quote) "KLB's shares are taking off"....huh ? see, he said "are", not "already did"....excuse me, but they "took off" 3-4 days ago....more correct, would have been reporting on KLB, 3 days ago, or, saying, their shares "recently took off"....the Media is always expressing PAST occurances, as if they are "newly/just happening", dig ? So that, people who might best be helped (in this case, by buying BEFORE the price rise, right ?), can learn how/ when to buy, but nope....The Media, and the financial services industry, express things in a way that encourages people to stay in things, even after they are way up....as if every S.T. trend will last forever, right ? Please try to learn to recognize this, because, knowing what and how and when and why the Media says certain things at certain times, can provide US, with VG, S.T. timing signals, as you are now seeing, as illustrated in my booklet on "Scenarios/Linkages"........Heck, just the plethora of "Media Mentions" and front page articles I saw Monday/Tuesday, was enough to signal the possible End.... you gotta belive me, many of the people who happened to be "in" the Internets recently, either, bought them way up there to begin with, or, will not have sold them up here, nor hedged their positions, nor lightened up, and, many will "give it back", in their emotion/greed.
d) CPU follow-up: note strength Monday, to 19, INTO "reported bad news", see ? Also, note more bounces in depr. Asians, and Techs, even as "fundamentals" remain "negative"....also, separately, note EGGS, which I had clients in, from around $ 6., when all the analysts said would go completely out of business, yet, check out it's 5-year past chart, till now....the "news/fundamentals" worsened, yet the stock rose, from a "PSYCLE sm" bottom....just FYI/learning benefit....
e) besides the PSYCLE "Internet" toppy comments I gave, in my Monday NL (note, Tuesday/Wednesday/Thursday, AMZN, LCOS, XCIT, KLB, having their initial corrections off their "PSYCLE sm" tops already), I also heard on CNBC, all day Monday, more and more analysts recommending the "Retailers" anew as supremely bullish....all stocks which are Already way up, yes ? hmmmmm.... certainly symptomatic of late stage 3/early stage 4 behavior, yes ? we will be watching for that down the road....and, note, Thursady 9th, JCP -7, and NOBE -3....and, don't kid youself....many extended Financial, Interest-sensitives, and Utilities, are also, still more toppy than neutral here....look beyond the recent past....
f) Lesson: Another normal "PSYCLE sm" approach, and the one I did when I first began helping people, in the late 1970's, was buying only longer-term 2-3-year-long, depressed bases, as I illuminate at length in my materials....that approach requires more patience, LESS "daily antsiness", and often, good also for Pension accounts....Eventually, because people REALLY wanted shorter-term than that, I shortened-up my approach somewhat, eventually, to the 2-5-month periods I have been exploiting so well for years now....issues like, OXHP, QNTM, SHVA, OLGC, SMSC, CYMI., CCC, JBL, LTV, TLK, SGI., CS, still have such longer-type bases, now. ....multiple-month flat depressed formations, see them ? Actually, on CCC, and LTV, for instance, their 5-10-year chart shows a depr. base, see it ? Again,. you can't always have S.T., and L.T., simultaneously, as often as choosing one need... Twice each year, I have always veiwed every issue's Longer-term chart also, in addition to it's one-year-past chart....these offer a different investing experience, obviously, than with the "EVB" stocks...."Techs" and "cyclicals" tend to swing more off EVB's, while, occasionally, individual issues form longer depr. bases on their own....just another good item to know/learn/recognize....Years ago, under DJIA 1,000, there were tons of long bases....recently, at DJIA 9,000, much fewer....BTW, my clients "said" they wanted longer-term/fewer trades, and bigger L.T. gains, but, in perfect "PSYCLE sm" emotional juxtaposition, they REALLY wanted "overnite, action, excitement, something for nothing, with no risk ever", dig ? Hence, I began to adjust my concepts to fit their needs, compromising in the middle: 2-5-month holding periods, using I.G.R., which, generally, has made people very happy over time....occasionally, we get real big %, quick gains, while cutting Q, small losses along the way, eliminating the emotions/needs, etc.
and, while we still continue to give you a bunch of large % Puts Gains, even into a non-bearish market, our bunch of Puts losses have been each VERY small, as usual, by actually Viewing all past-year chart patterns on "Hypothetical completed" trades, you will hopefully "see" what we are looking for, to exploit, for probable declines....Remember, we "PSYCLE sm" traders have NO emotions, especially where cutting Q, Small losses are concerned....I hope you appreciate that these very quick, very small losses we have taken are of no consequence, in the big picture....financially nor psychologically....You can always also go back and view "completed" trades from previous NL's, to "see/learn" more, and this also illustrates why one must Diversify, buying at least a Few suggested ideas, at all times, right ? we are in this for the long haul....this keeps you in the game, for when those big gainers occur for us...."just get close", as I teach.
New Longs: QNTM @ 19 1/8, KMAG @ 5 9/16, SFT @ 1 11/16, KMET @ 13+,
RFP @ 2 11/16, IIR @ 11-, CCH @ 5/16, TOX @ 5/16, VVUS @ 6-, RYO @ 13/16,
BLM @ 3.06, UBS @ 8, EX @ 17, SMSC @ 8 7/16, PTEK @ 7+, OLGC @ 4 11/16,
SHVA @ 8 1/8, BDE @ 2 5/16, LQ @ 9-....note, more depr. Techs/Foreigns....
Important: note, I try to give "something for every type of objective",
i.e., including real cheapies, and $ 5-10. stocks, and "names"/blue chips,
straight cash stocks, marginables, optionables, etc., so all my valued
subscribers have choices, and for proper Diversification ---all still having
similar exploitable patterns, in each NL.
be sure to read the "BDG/EVB essay" I offer....inexpensive, yet extremely valuable for learning timing/pattern....oh, also, note, besides a bunch of Depr. Techs, the recent potential long Buys list, while growing, is a real mish-mosh, with few other real clear "industry Group Rotation" signals, yet....except, maybe, as some Prec. Metals, Basic Inds., Cyclicals, Alums., Copper, Fert., Steels, Papers, Oil Service, issues hold their recent EVB lows down here (see below) ? Remember, part of the "PSYCLE sm" has always, been, that, when I am correct,
I will often be among the very few, or first, to "see" potentially emerging/ deteriorating issues/groups....and No One Else is even remotely mentioning these depr. stocks I.G.'s yet, dig ? Usually, I find several I.G.R. issues to exploit, like the "Basic industries" and "depr. techs" and "healths"....regardless, we'll still also buy individual issues Long, even if not in I.G.'s where others look the same (and some Puts, yes ?)....read my booklet on "I.G.R." again.
as I teach in my "essay/booklet" on I.G.R., we don't "have" to have clear I.G.'s in bases, nor even basers themselves, when so many individual depr. issues have seemed to have completed short-term EVB's anyway, etc. But, learn this: often, one or two issues in a depr. I.G. will set up, first, then, others in that I.G. will follow, over time, so I DO watch for that, ahead....it's just, that, obviously, when several in one I.G. set up, we have more "power"....Important: at times, like may be occuring Now, when a whole connected "group of groups" (read details in my IGR "essay/booklet") sets up as EVB's, even without the desired "bases", we can be quite confident they will very likely bottom just ahead, because so many related industry groups look similarly, yes ? But, you must buy at least a few, among these new groups here, with close stops, diversified, etc. Last, also Important, when/if suitable for you for Calls Options, because they are not "gorgeous bases" yet, again, ONLY buy, their long-term, in-the-money calls, diversfying among at least a few at a MINIMUM ! I just do not want you looking back, 3-5 months from now, wishing you had had the emotional/PSY-chological strength to buy some of these EVB's Long, diversifying, w/close stops anyway, for protection.
New Puts: TEF @ 146, RCOT @ 35+, USTC @ 76+, GPSI. @ 39+, THQI. @ 31+,
CNWK @ 69, AFC @ 66+, MYL @ 32+, STB @ 63+, SPLN @ 38+, TMC @ 63+, ED @ 46-,
PSQL @ 24+, SBL @ 38+, REP @ 57+, BK @ 64+, CCE @ 40, BJ @ 41,
important: and/but, took, ERICY, MAIR, CTXS, CDRD, BOOL, NTAP, AAPL, NCBC, NLCS, CPWR, JCOR, SEBL, CIEN, FRED, FISV, JAII., AFL, MCY, BBK, TRB, DME, UW, off pot. Puts list, before "put", as they aborted their patterns immediately. Important: sometimes, in the few hours after I send this NL to the web site, a suggested "put" stock will break its S.T. umbrella top pattern....I am assuming, if you View it's recent chart/action, before you consider buying any/those issues' Puts, you will see/know this, and therefore NOT buy that company's puts....this takes 10 seconds to check/do, and will keep you from buying Puts/Calls on issues which abort patterns....just trying to help....
....and/but, just Missed, LHSPF, BBBY, NSOL, CMS, ILN, as puts, near recent highs, and, RMDY, MANU, CYMI., CUM, TTT, SRM, SKM, CCC, AMD, VOX, MBK, MWY, AA, as longs, near recent "EVB" lows, among recently given out stocks....check their patterns also, if you'd like, to learn, for the next time....I will always tell you here, also when we "miss" actually catching suggested ideas, so you can "see" their patterns, for your benefit/education....obviously, recent "SOLDS/completed trades/results/ actions" have been skewed towards the Puts side....the idea is to learn the patterns of previously done ideas, for the future....as I said, many "Techs", and Asians, and Metals, and "Basic Ind." stocks WILL bottom ahead, and we will be there when they form better bases/"EVB's"....some already S.T. bottoms, others just Not formed/ ready yet....As I said, it may still continue semi-rough for a while yet, in some long-siders, but we ARE seeing many bounces as predicted herein, in the depr. issues I have given you....Again, while the Media "worries" about "earnings" impacts of various crises, the STOCKS of the companies involved will likely BOTTOM, even as "lower financials" are announced, right ? So, we'll also be watching for this ahead....small, cut losses will not hurt us, regardless. And, by buying "some "PSYCLE sm" long-side stocks" down here, we should make some money regardless, yes ? This is already happening for you.
note: ("sos") means "Sell On Strength"....("S") means Sell it (t)here....
and/or are sales on strength ("ms/sos") :
5) Already given out in previous NL's, assumed Hypothetically long "Puts" positions :
(issues moving since last time, following-up, still in Puts, unless otherwise noted):
(note: ("sow") means, "Sell long puts On next Weakness, towards support")
* but, then, these, are acting too Strong, and/or are Bouncing, and/or must weaken anew, and/or are sales on pullbacks/weakness (sow): SLOT -8 1/2, DNB -3 1/2, CTAS -2, +3, -3, SPOT -2, TEF -2, GPSI. -1, MHK -1, AGI. -1, LHSG, STRL, TCAT, CCSC, COFI., AWA, DSL, REP, CCB, STB, HMA, LCI., IHS, HB, Utils....of course, if you did not buy any Puts in these, in this section, near their recent highs, when I gave them out, you can choose not to view these/their charts, unless you want to see/learn their patterns....also, note, PFT, given here at 41, hit 44, then Monday, fell to 36 anyway....the power of the "PSYCLE sm" formation. And, I had previously given THRX and AFCI., as nice Puts, before I began this NL....check how they did from their "PSYCLE sm" highs...
....remember, we either buy our puts right up near each stock's high, or not at all....and, some of the issues listed herein, are from previously suggested newsletters, as I said....but you can still view their charts, to "see" previously formed/aborted "PSYCLE sm" patterns, to hopefully learn from. Also, see, FON, MLG, still fell, recently, after aborted, S.T. breakouts, to the upside....just goes to show you, the power of these patterns overall.... ERICY, MAIR, CDRD, NTAP, CTXS, BOOL, NCBC, NLCS, CPWR, CTXS, CIEN, AAPL, FRED, SEBL, JCOR, JAII., FISV, TRB, BBK, AFL, DME, MCY, UW, (also see recent past NL's here) took Off potential Put list, before "put". (view their patterns to see what aborted Put patterns look like).
(again, I give you those, so you can view "puts patterns aborted before positions were Hypothetically established" as well, for your learning/benefit)
bases, "techs": QNTM, SMSC, SHVA, SIII., JBL, SWW, BDE, SGI., IIR, CS,
bases, "health": OXHP, LIPO, OLGC, TOX, NVX, VTR, MKG, MDM, VC,
note, MDM, was a perfect BDG/EVB, with Insider buying right at the low, which I did give out in Jan. 1998, then it bounced big, as usual, then rec'd. sold, and now is a recent double-bottom in an extended base ? we shall see....just for your education.
"in other industry groups": no great bases here, just EVB"s: among more depr. Prec. Metals (RYO, CCH), Oil. Service (MAVK, MDCO, LSS, EVI, FLC, SDC, GOU, TDW, BHI, HLX ? but, Not if they go to new lows here), Cyclicals (CUM, EX), Papers (WLM, UCC, WY, IP), Steels (LTV, NUE), Coppers (FCX, CYM, PD), Fertilizer (BCU, PLP), as "Basic Inds.", are improving technically....a potentially important occurance, given internal market history. (and also, LQ, SWW, ROC, GTR, KMAG, BMC, TLK, VTO, as "depr. Asians/Foreigns"....saw a chart of the "Korea Composite Stock Index" Wed., and it had a nice EVB itself, dig ?)
....and, I am also "watching" these, as potential buys, at some point ?: SMOD, WKGP, ICST, DGN, DEN, RFP, CPU, RYO (as potential basers, or double-bottoms).... again, most are very depr. Techs. (please also see EVB's, below), but, as I intimated, it is just Not a "super great" long-side list, here, but, there are still plenty more EVB-type bounces still likely.
....while some depr. Techs ARE good for a shot here, w/close stops as usual, do NOT expect as large rises this time, as when I gave them out late '97/early '98 (nor, from late '95 to early '96), because they do NOT have bases here, just good EVB's, as with the "Asians"....and, am I, again, the first to "see" EVB's in some depr. "Basic Industry" and "Health" issues recently ?
and/but, also, took these Off the pot. long Buy list, Before they might have been Hypothetically "bt.": SYQT, CHK, SFT, CAU, PHV, --- also see 2nd section of "EVB's", below)....These/they just need more work, technically, first, and/or are still making new lows....as I have been saying, a difficult time for the "long" side, so we hold more cash, and/or Puts....but we do NOT "Guess" at bottoms.... we want only the EVB's, which set up properly....we MUST also see the cathartic/ high volume in "PSYCLE sm" stage 7".
But--- others previous, like, ALSC, SAMC, SYQT, LFB, CDE, SFT, CDG, CHK, PHV, GRO, AHG, CAU, WTT, GSR, MAN, VTA, BDT, BGO, CTU, SRA, CY, VC, are No longer listed here, even as "EVB's", and were Removed from list, before "bt." Why ? Important: some are still hitting new lows, and/or many of these EVB's need to form Longer depressed BASES, chart-wise, from dead-cat bounces, and/or show the "huge, cathartic volume needed"....makes sense, yes ? As always, be sure to properly diversify.
(and also watching -- and this list is also growing, dig ? --- DANKY, MANU, FPAM, PAIR, RMDY, RDRT, ADPT, VIAS, SHG, ONC, MPP, PRG, PPH, CTC, BDT, PKX, GML, AXC, GLW, CLN, WCS, ACE, TTX, SEW, IRF, IOM, IO., and, soon, some bigger-name Golds ? (eh), as "EVB's", but Not just yet, Not yet, as they need more work, technically) (also note, still more depr. Techs, and Asian-orienteds, and, as I said elsewhere, more "Basic Industries" issues) We shall see, and/but Only "if and when" these "set up" properly, technically, as buys, at some point (with the required high-volume catharsis, etc.)....but I am watching these all....but some are Not ready quite yet.... especially those still hitting New Lows, as I said above !
Also, see, how SNRZ, BROD, PHYC, REGI., CLCX, PSSI., GEN, are already UP a bit, off their recent-past-given EVB's, as I predicted in my "essay" "How to take advantage of Big Down Gaps and EVB's, on the Long Side" (read it again to learn the valuable pattern), and in my recent past NL's here, which teaches you how to do this, and shows examples of such chart patterns....this concept of mine really has worked well, very often, in recent years past. So, DO note the growing list of potential EVB's....This is logical, and expected, after market drops like we just had, yes ? Please realize, that, as good as I and my "PSYCLE sm" have been at these EVB's, we never purport to be able to catch "THE" bottom on anything/everything....as I teach, we just try to "get close", always diversify, with close stops, not overpaying for options in portfolios, where suitable, L.T., in-the-money only, etc. Remember, these EVB's are still likely to be 2-3-4-month trades....
note: (and, are these also double-topping, S.T.: LHSPF, CBTSY, DELL, PSQL, CTAS, XYLN, SEEK, ELNK, LHSG, SAPE, ICIX, ?)....but not if they make new highs, right ? One difficult extended pattern, is the "S.T. rolling top, then a decline, then a lonely rally back to the top area"....often, they do form double-tops.
and/But, just Not yet, in, (also see names of "removed" stocks, in recent past NL's): ERICY, BOOL, NTAP, CDRD, AAPL, MAIR, NCBC, JCOR, FISV, CTXS, FRED, NLCS, CPWR, SEBL, JAII., CIEN, SEBL, BBK, TRB, MCY, AFL, DME, GNE, UW, all taken Off potential puts list, before "put"....remember, we do NOT buy puts, when/if issue is still making new highs....yes, we will miss "some" right near their tops, but by waiting for double-tops and/or umbrella tops to form better, we will have fewer small cut losses, and we will still catch plenty of Puts over time, with less stress....The best Puttable Ind. Groups continue to be among extended Financials, Big-name, high-PE, Techs, Retails, Housing, Communications, Media, Consumer, Utility, Drug, Airlines, and, on a rally, the parabolic Internet stocks. ...Again, issues are quickly removed, when/if they break above their potential rolling top formations (as above)....If one properly diversifies, and only does L.T., in-the-money puts, this is rarely a problem....as you can see, I do "pull" stocks off lists quickly, when they break their patterns, and you should, too....we will catch plenty more VG puts in the months ahead for you (we already have, yes ?)
My having removed many, and/or cut some Q, S losses, from the pot. puts list, means something, yes ? It means "the market" (and you know how much I hate that term) might be bit stronger S.T., before forming another top (probably similar to that in the Spring) not too far down the road....Read my "essay" on "How to exploit the Downside in Puts" for deeper coverage of this phenomenon, and info. on which Options to buy, the Patterns, etc. (as with calls, and all options, min. L.T., in-the-money, diversified, ONLY).
Besides all the lessons you hopefully have gleaned from all my past commentaries above, and from my (six) "essays/booklets", the next Lesson to learn, today, is, that, most often, even when I am wrong with a depressed baser, Long, as with AMD and APM, for instance, recently, the vast majority of those that "break below the base formation", still, bounce back up to where they broke down from, notice ? Because we never have emotions, and know this in advance, this gives us often, a Second chance to get out at a reasonable, cut smaller loss....unless we sold "on" the breakdown, which is sometimes difficult, but we do try to do so, we must realize, that many issues break the right side of the depressed base, especially when on real high volume, then bounce back up towards the base, even if they then fall back down even further....I hope this is clear, because it is a valuable thing to know, historically, for your trading future....also, I originally gave out Vivus at 10., and it broke down big, but then still rallied to 13., where one could have actually made money....then, when it formed a S.T. "base below the base", as I teach in my materials, it still rallied back up to 10. again, allowing people, again, to get out, after not a very long time, dig ? Think of floors, later becoming ceilings, and vice versa, when issues break down, or up, get it ? Simple....and, similarly, though CS, initially broke down a bit, to below 11-12 a little while ago, it remains/remained in a long flat base, and recently, is trying to get above resistance around 13+, yes ? A trader, even in L.T. 10s calls options, could have held it, feeling very confident it would at least get back up, to where it broke down from, right ? right. Also, see, VTO revalidated, after slight break of its EVB, shows what patience can yield.... Again, NO emotional ovvereactions, on any move in any stock....this is one reason why so many EVB/BDG stocks do come back, yes ? Hope this Lesson helps.... Additional "PSYCLE sm" benefit: we alwqys/only sell Long, into STRENGTH, never selling into weakness, dig ? This runs counter to what "the 95 %" have historically done, and even "Wall St. pros" tend to do, which is, again, why you want to learn to fade them, as we do....
Therefore, it is also still better to buy some stage 1 "PSYCLE sm" stocks, in depressed/EVB chart patterns, when their "news seems so bad" but their patterns show EVB's, and have occasional, small, cut losses, than to never do that at all.. Because, historically, any small, cut losses, will be more than overcome by larger % Gains, over time, off those EVB lows, if one properly Diversifies.... Similarly, it is better to TRY some "puts/options" the opposite way, near their Highs only, when suitable, than to never do any....remember, "PSYCLE sm" stocks tend to move much more INDEPENDENTLY of any/all "external" stuff, than "the 95 %" incorrectly believe....one does Not "need" "events" to happen, in order to exploit normal, probable price moves....this is a Good thing....Also, try to learn about "baby-with-bathwater" selling action, like we had recently with the Techs/Asians. The Key is to have the strength to Buy, when there is a "scary story".... Connectedly, realize, by nature, there is no "sexiness" in stocks/groups near their lows, in bases, nor EVB's....they only become "sexy", after they rise a bunch, right ? and, by then, it is too late....
*** So, if you are "new" to my NL, and need ideas to buy long, or put, stocks "now", as long as their current prices are right near those given in Section (3), that is where you find "do-able Now" ideas....and, Sections (6) and (7) are also longer useable lists, when/if those issues might set up properly as longs/puts....you can also always refer back to your "Guide" to my NL, which will have been sent to you soon after you subscribed....obviously, this NL is a "work in process", a true lifetime learning tool for you, and not an "overnite junk NL", and I want to do my best for you....we are just beginning, and you will be receiving a ton of useable, learnable, specific information from here, and in my "essays/booklets", and in future special reports....thanks again, and spread the word.
*** (Note: I share "so many" ideas herein, for two reasons: 1) to give you a more "Complete" picture of what is happening, worth knowing, and what might be done, and, 2) because some stocks/options given may be more "illiquid" than others, I share so many more, similarly positioned issues, so that more of my valued subscribers will be able to properly diversify, in various portfolios, for various objectives, etc. i.e., If I just gave out only a few stocks, some people would not be able to create Options Portfolios as easily, nor diversify properly, right ? Plus, by viewing many issues' patterns, you will learn that much more quickly, yes ? I share ALL applicable stocks ideas which befit different "PSYCLE sm" stages. But Only, maybe 5-10-15-20, maximum, stocks are "worth acting on" at any given time, as per section (3) above, and, in sections (6) and (7) if those issues are also properly set up, near their lows, right ?)