Daily market Comments - January 31, 2006  11:51 AM

Daily Market Comments - 01/31/06

Well, Let’s See What’s Happening On Greenspan’s Last Day…

The market is down a little right now, expecting another rate increase from the Fed.

On Greenspan’s last day as Fed chairman, things could get interesting. While another interest rate increase is fully factored into the market, it is again the verbiage the Fed uses to hint at future activity the market will be paying attention to. Any hint that this will be the last increase for this cycle could send the market soaring.

But as usual, we don’t need a soaring market to find soaring stocks. In fact, many are gapping up out of buying range today. But here’s one that looks reasonable…

Our Stock For Review today is GILD – Gilead Sciences Inc.

GILD is a more conservative play than we usually go for, but it looks like a decent buy as it is forming a nice Bullish Harami today, on volume 240% above normal. That volume could be a clue that this stock is going higher.

GILD could very well help your investment portfolio to become “gilden” as well!  

Daily market Comments - January 30, 2006  11:55 AM

Daily Market Comments - 01/30/06

I Wouldn’t Expect Much In The Markets Today…

With the Fed about to make another interest rate increase on Tuesday, don’t expect many fireworks in the stock market today.

The market indexes are zig-zagging back and forth – with the DJIA currently down 5.45 points and the NASDAQ up 3. Both indexes will probably just do that all day long, so try not to go to sleep watching these major market indexes “do their thing” today.

But we are seeing LOTS of fireworks today in individual stocks, with some of our favorites erupting with double-digit percentage returns and more.

Here’s a volcano erupting right now…

Our Stock For Review today is VTAL – Vital Images Inc.

VTAL is blasting out of a flat basing area – a little saucer and handle base - on volume 789% above normal. This upside breakout looks very strong.

VTAL could very well add some “vitality” to your portfolio! 

Daily market Comments - January 28, 2006  6:56 PM

Weekly Market Comments - 01/28/06

If It Looks Like A Bull, Acts Like A Bull, And Snorts Like A Bull… It’s A BULL!

I think the two high-volume up days on Thursday and Friday are confirming what I’ve felt since the last market bottom on October 19, 2005 – we are in a new bull market!

There are many (supposedly expert) market commentators out there who claim it’s impossible to time the markets. To that I also say: “Bull!”

For proof, just take a look at the candlestick charts of the DJIA and the NASDAQ.

I talked a couple of weeks ago about how you could have easily spotted the bull market kickoff at the beginning of the year with very basic candlestick analysis. Let’s take a look at the NASDAQ chart to recap the year-to-date movement of that market.

Starting January 3, the market powered up with nice white candles each day, for seven days straight.

On the eighth day, a dark candle reversal, with stochastics scraping the ceiling and itching to curl back down. The next day – a Doji/Hammer, which could have ended the pullback then and there. But the next day showed a gap-down Doji, not a good sign. Another gap down the next day, but a recovery from the low of the day - a possible reversal signal. That reversal was confirmed the next day, with a “fill the gap” upmove.   But then – out of nowhere – the Friday market meltdown.

That’s when lots and lots of “experts” came out of the woodwork to proclaim we’d seen the high of the year, the market is tanking, and the sky is falling. I have to admit, I was a little scared that day, with visions of another “Black Friday” right before a market crash on Monday.

But Monday came and went, and the candlestick signal merely ended up as a wimpy little low-volume, dark candle Hammer. On Tuesday we were back to the races with a higher-volume Bullish Kicker Gap reversal, with stochastics at the 20 oversold level and angling up nicely. Practically an “all-clear” signal right there! Wednesday was a fakeout day – where the last of the Bears tried to bring the market back down, and a Dark Cloud Cover as the candlestick signal.

So Thursday was a pivotal day, since weakness would confirm the Dark Cloud Cover and indicate the Bears may be winning again. But there was no weakness on Thursday, with another higher-volume Bullish Kicker-like reversal to the upside. Friday confirmed the bull as alive and well, with the high-volume gap up move and white candle. We are now actually higher on the NASDAQ than right before the mini-market meltdown from the previous Friday.

Stochastics are powering up again from the oversold area, and indicate three to four more days of upside ahead. And I say the new bull lives!

Market timing doesn’t work? Bull!

It’s easy when you master our simple little Japanese Candlesticks analysis system.

Daily market Comments - January 27, 2006  2:57 PM

Daily Market Comments - 01/27/06

Time To “Back Up The Truck” And Buy Again…

You know you are close to a market bottom when you start seeing stock after stock make huge gaps to the upside.

I can’t remember the last time this phenomenon occurred. But it’s going gangbusters now! And what a difference a week makes! Today’s market action, with the Dow up triple digits, looks like the mirror image of last Friday’s market meltdown.

You can almost throw a dart today and hit a stock moving up in price. But let’s see if we can find a stock to “back up the truck” and buy today…

Our Stock For Review today is NTRI – NutriSystems Inc.

NTRI is also a stock that is gapping up today, but just above the prior area of overhead resistance – so I don’t think it’s too far extended.  It’s moving up today on volume 395% above normal. This upside breakout looks very strong.

Guess people are still trying to lose weight after the holidays – I actually used the NutriSystem program a few years ago and lost 45 pounds. Now I would suggest “weighing in” on their stock! 

Daily market Comments - January 26, 2006  11:14 AM

Daily Market Comments - 01/26/06

The U.S. Stock Market, Also Known As “The Gap”…

OK, I have to rant for a minute.

It never ceases to amaze me – some of the comments in a trading chat room I frequent.

“Man, the market is sluggish today!”

“Yeah, nothing going on.”

“I can’t make a dime in this market. Can you?”

And on and on.

Meanwhile, I am seeing tons of stocks gapping up 15%, 17% and one today up over 29%. These are easy setups to catch, if you put in a tiny effort to find them.

But some people are just downright lazy, and see the market as too “sluggish” to trade. So they fill the chat room with inane attempts at humor to pass the time away.

Sigh.

Oh well, we are not like those hapless souls, are we?

I’m looking for other people like me and my TYWTW Members.

We don’t have time for inane attempts at humor, or reading other people’s whiney attempts to get agreement with their incorrect assessment of the market.

Our goal each and every day in the market is to make money. Period. Why else be in the market? Is this a hobby for you? Not me. It’s a business. And a very lucrative one at that.

All right, I feel better getting that off my chest.

Let’s go about finding stocks that will make us some money today. Here’s a great possibility now…

Our Stock For Review today is PSSI – PSS World Medical Inc.

PSSI is doing a gorgeous Bullish Kicker Gap today on enormous volume – 1,092% above normal. Looks very, very strong.

Don’t PASS up on PSSI! 

Daily market Comments - January 25, 2006  12:44 PM

Daily Market Comments - 01/25/06

How To Get Through A Choppy Market…

The stock market is still bouncing around a little today, and it looks like it may be choppy for awhile until making up its mind which way it wants to move.

How do you get through a choppy market?

One way is to just avoid it altogether, until you get a clear candlestick signal on the major market index charts – like we did on January 3. But that’s not too much fun.

Another way is to attempt lightning-fast trades on the most “slam-dunk” chart setups you can find, going for one- or two-day gains, like the 13% gain we made in RELV on Tuesday.

And during choppy markets, or during any kind of market for that matter, it’s always a good idea to create a watch list of stocks having had great moves in the recent past, are pulling back now, and that you can snag on the first “green light” candle back to the upside. Enormous short-term profits can be made that way!

Speaking of enormous short-term profits, let’s see if we can find a possible setup today…

Our Stock For Review today is RTP – Rio Tinto PLC

RTP is a gold mining play in an obvious (and very strong!) trend. Gold has been red-hot for some time, with no end in sight, at least for now. RTP is gapping up to new highs after nullifying a potential trend-ending Bearish Engulfing signal from last Friday’s one-day meltdown. Volume is 295% above normal

RTP looks “golden” to me!

Daily market Comments - January 24, 2006  11:32 AM

Daily Market Comments - 01/24/06

Market Sentiment May Be Swinging Back To The Optimists…

The stock market is bouncing around a little today, but all indexes are in the green so far.

Investor sentiment seems to be buoyed today by lower oil prices and some favorable earnings reports from United Technologies and McDonalds, weighed against earnings shortfalls from Johnson & Johnson and Texas Instruments.

Shares of Google, Inc. continue to rebound strongly today after the mega-Bullish Harami from Monday. That in and of itself has to be a big positive for the market.

I’m seeing lots of very strong charts today, and most are big gaps to the upside.

Here’s a big gap setup to show you what I’m talking about…

Our Stock For Review today is MCRS – Micros Systems Inc.

MCRS is doing a high-volume gap above prior overhead on volume 588% above normal.

MCRS made just make “Macro” gains for your investment portfolio!

Daily market Comments - January 23, 2006  1:07 PM

Daily Market Comments - 01/23/06

After Another Major Air Pocket, The Stock Market May Be Back To Its Winning Ways Today…

The stock market suffered a one-day “market meltdown” Friday as concerns over corporate earnings, GOOG’s adventure with the Justice Dept., etc. weighed on investors’ minds.  Most of the major indexes suffered the worst one-day drop in many months.

But buyers seem to be back today, at least so far. And with last week’s market breakdown, there are now lots and lots of charts showing oversold stochastics, including the major Internet and Tech stocks like GOOG and AAPL.

Speaking of GOOG, it’s redounding today – up almost 24 points on fairly good volume and showing a monster Bullish Harami. AAPL is looking good too – with a Bullish Harami that could turn into a Bullish Engulfing before the day is done.

Obviously, this strength in the market today must hold up to convince us it’s safe to go back into the water. But lots of candlestick buy possibilities are setting up today.

Here’s a great setup now…

Our Stock For Review today is PETS – PetMed Express Inc.

PETS is doing a monster gap out of a little double bottom basing area on volume 632% above normal.

I’d advise taking this PETS stock out for a walk!

Daily market Comments - January 19, 2006  10:42 AM

Daily Market Comments - 01/19/06

After An Air Pocket, The Stock Market May Be Back To Its Winning Ways Today…

The stock market hit a little “air pocket” on Wednesday as concerns over some of the major tech company future earnings spooked lots of traders, who decided it was time to take some (very nice) short term profits off the table.

But buyers are right back today, at least so far. The reason seems to be better-than-expected results from Pfizer Inc., upbeat earnings from chipmaker Advanced Micro Devices and a rebound in the Tokyo stock market.

What we now need to see is a positive close on most, if not all, indexes today. As far as candlestick analysis goes, both the DJIA and the NASDAQ charts displayed possible bottoming signals Wednesday, so a positive close today would confirm those candlestick patterns.

Lots of stocks are gapping up on the open today, but let’s see if we can find one that’s more “buyable”…

Our Stock For Review today is KOMG – Komag Inc.

The disk drive stocks are on fire today! KOMG is the best choice based on the chart not gapping up to outer space. It is gapping up a little out of a high basing area, on volume 308% above normal.

I’d advise taking this disk drive manufacturer for a spin!

Daily market Comments - January 17, 2006  3:47 PM

Daily Market Comments - 01/17/06

Not A Good Start For Stock Market This Week…

The stock market took a tumble today as concerns over higher inflation and spiking oil prices weighed on investors’ minds. The DJIA ended the day down 60 points and the NASDAQ down a little over 15.

The Federal Reserve said industrial production increased 0.6% in December, topping analysts' views of a 0.5% gain. That raised investor concerns about inflation.

Meanwhile, U.S. crude rose above $66 per barrel for the first time since October. The price hike was driven largely by rebel attacks against Nigeria's oil industry.

Still, even on a down day there is lots of strength in individual stocks. Here’s one of our favorites of the day…

Our Stock For Review today is BRNC – Bronco Drilling Co. Inc.

BRNC is doing a very nice little cup and handle breakout on volume 276% above normal.

I’d try to ride this bronco for fast and “kicking” gains!

Daily market Comments - January 14, 2006  8:55 PM

Weekly Market Comments - 01/14/06

The Pause That Refreshes, And Why It’s Just A Brief Respite Before Further Massive Stock Market Gains…

The stock market is currently taking a well-deserved rest after its torrid pace so far in this new year. But I think that may be about to change next Tuesday.

Take a look at the candlestick charts of the DJIA and the NASDAQ.

After seven white candle days, the DJIA is showing a one-day pullback, followed by a long-legged Doji. The pullback is occurring on lower volume, exactly what you want to see in a bull market. Stochastics are curling back down towards the mid-range from overbought areas. And the two-month chart is showing a nice little “W” double-bottom base breakout.

The NAS is showing a lot of the same signs as the DJIA, but the chart seems to have lots more latent strength than the DJIA. With the little Hammer / Doji formed on Friday, this stock exchange may have already bottomed and could be headed higher starting next Tuesday.

Also, after analyzing dozens and dozens of charts this evening, I am seeing lots of highly positive price action after hours. There is a consistent pattern here, and that bodes well for a resumption to the upside next week in this new bull market.

Monday is a stock market holiday. We’ll see you back here next Tuesday, and we are setting up to have a bullish day! Stay tuned.

Daily market Comments - January 13, 2006  10:41 AM

Daily Market Comments - 01/13/06

It’s Friday the 13th! And The Market Is Reacting To Good News… And Bad News Today…

The stock market opened very strong today due to good news on wholesale inflation data, but as (bad) luck would have it, then careened back down into negative territory as a profit warnings from Tyco, a formal probe for IBM, and a lower revenue forecast from Lucent Technologies weighed on the market.

The market indexes are currently see-sawing back and forth from positive to negative areas, so who knows where it will end up at the close of trading.

Let’s see if we can find a chart of a stock that just might give us some “good luck” today…

And since it’s a weird kind of day, we might as well pick a stock with a weird name.

Our Stock For Review today is UEPS – Net 1 UEPS Technologies, Inc.

I’m not sure who came up with that strange name, but the stock sure is acting well today! UEPS is breaking out of a nice 6-day Rising Method candlestick pattern today on volume 395% above normal.

Let’s see if we can ‘net one” great stock today by snagging UEPS!

Daily market Comments - January 12, 2006  10:53 AM

Daily Market Comments - 01/12/06

The Market May Be Pulling Back Here – We Need It…

The market is currently in correction mode – and we need a short-term pullback to cool things off a bit.

I think we are about to see that happen. Lots of charts are forming “cup” bases, and the pullback will allow those “handles” to form. Then we can pounce on the cup and handle breakouts for even more fast and furious gains.

Let’s see if we can find a chart of a stock that may give us some of those “fast and furious” gains…

Our Stock For Review today is VLCM – Volcom Inc.

VLCM is breaking out of a cup base on volume 455% above normal.

The company markets men’s and women’s casual apparel and accessories inspired by skateboarding, snowboarding and surfing.

The surf’s up – along with the stock price – on this one!

Daily market Comments - January 10, 2006  11:46 AM

Daily Market Comments - 01/10/06

We May Be A “Tad” Overbought Here…

With the phenomenal strength the market has shown over the past five trading days, we may be due for a rest here.

Just take a look at the candlestick charts for both the DJIA and the NASDAQ. The reversal to the upside starting last Tuesday was obvious, and should have easily been spotted on that day. The strength over the next four days should have been no surprise.

The stochastics have rocketed from extremely oversold conditions to extremely overbought conditions in just those five days. That also indicates how fast things can change in the market, and why you must take a look at market charts each and every day (unless you are on vacation, can’t get to the market since you have no T.V., Internet, etc. – say on a tropical island or something!). ;0)

And I am seeing chart after chart of overextended stocks – some of which are great long-term holdings – but are subject to short-term pullbacks. Having said that, I do think we are in a new bull market, and any pullbacks are buying opportunities.

Let’s see if we can find a chart of a strong stock that’s not overextended too far…

Our Stock For Review today is NTRI – NutriSystems Inc.

NTRI is coming back strong from a recent little spell of selling, on volume 231% above normal.

With all the New Year’s resolutions related to losing weight, NTRI looks like one to “overweight” in your investment portfolio!

Daily market Comments - January 09, 2006  2:16 PM

Daily Market Comments - 01/09/06

The Bull Market Is Alive And Well!

Well, the markets are off to a fine start in this New Year’s rally. The Dow is over 11,000 – for the first time since 2001. Small caps are racing ahead as well.

I’m seeing chart after chart sporting textbook breakouts, and stocks making new highs on great volume. I’m hoping everyone now sees why I have been extremely bullish since the market bottomed out in mid-October.

Here’s one of those textbook breakouts now…

Our Stock For Review today is RVSN – Radvision Ltd.

RVSN is breaking out of a basing area on volume 373% above normal.

RVSN is rad, man! And looks like a great buy here.

Daily market Comments - January 08, 2006  6:53 PM

Weekly Market Comments - 01/08/06

Happy New Year! Read On To See Why 2006 Will Be One Of The Most Prosperous Years In A Long While For Stock Market Investors…

Welcome everyone, to a brand new year and to the very first blog post of 2006 for Trade Your Way To Wealth!

I am back from a week in Panama, totally relaxed and refreshed  - with a January tan to boot! We stayed at our villa on the beautiful island of
Contadora, about 45 miles off the coast from Panama City.

Contadora is the home base for the production crew of the Survivor T.V. series while filming in the Pearl Islands. They have filmed several
episodes in the Pearl Islands, and plan to continue doing so as far as I know. The island is becoming more popular and well-known, and a
certain movie star (whose name I can’t mention) recently bought a villa on the island.

New Year’s is a big deal on the island. Parties (fiestas) abound! We ended up going to a fantastic fiesta held at a palacial villa on the other
side of the island from us. It’s called the “White Party” since everyone is expected to wear something white to the party. Many of the “Beautiful
People” from Panama were there, including the Vice President of the country. (Unfortunately, we missed him).

I am convinced there is something about the island that is therapeutic. I’m not sure if it’s the fresh, unpolluted salt air coming off the Gulf of
Panama, the crystal clear salt water itself, the tropical heat that keeps you perspiring most of the time (getting rid of toxins, or maybe just the
rum and cokes?), the stress-free lifestyle, or is it just simply laughing and having a great time being with friends you haven’t seen in awhile. But I
always feel fantastic health-wise on Contadora. And I get the best sleep of my life down there.

What I have not told most people is that our beautiful villa was bought and paid for with one stock investment. This is what’s possible in the
stock market, and what I want to get across to people. You can use the stock market to drastically improve your lifestyle, not just earn a few
percentage points a year. That’s something I want to focus on in 2006.

Lots of the “pieces of the puzzle” are falling into place to indicate 2006 will be a banner year for the stock market. I’ve already gone over most of
those reasons in previous blog posts (see the archives). But the biggest piece by far is that the Fed is indicating a halt in interest rate
increases.

The last time that happened was 1995, just before the market went into a gigantic climax run, making many millionaires along the way. Can
history repeat itself? Absolutely! Will there be other stocks you can buy to pay for a tropical island paradise of your own? You bet! And I am
going to show as many people as possible how to do that this year. All you need is the belief you can do it, and the willingness to learn a simple
system how to do it. We can help with the system, but you have to supply the belief (although I am about to market a product to help with that
too!).

Also, many things are going on “behind the scenes” here at TYWTW. For example, we are about to test a pilot project designed to transition
certain classes of people who hate what they are doing now to be able to fully “retire” and go into stock trading full time, while maintaining (and
even vastly improving!) their current lifestyle. Plus we have many new products on the drawing board, including joint ventures with other trading
experts, new original products and services, improvements to existing services, etc.

One of our main purposes here at TYWTW is to provide investing and trading systems that really WORK – and actually provide the profits as
advertised! We will continue to market our own systems, and we are discovering highly interesting and profitable systems by (for now) unknown
traders and investors.

We are also very aware of systems that absolutely DO NOT WORK, or are comprised of just basic information you can get from any library, or
for free on the Internet. While we can’t mention those systems by name due to legal issues, we will do whatever we can to keep you from
spending your hard-earned money on anything except the best investing and trading systems available.

OK, it’s the new year, the holidays are over, and it’s time to get to work on making 2006 your most prosperous year ever!

Why not make your New Year’s resolution to learn simple systems that actually work to score you big gains in the stock market? And just
imagine this - what could be better than typing a few instructions into your laptop computer each day, while sprawled on the deck of your tropical
island paradise, feeling the warm sun and cool ocean breezes brush across your face, occasionally glancing up at flocks of pelicans floating
lazily overhead, and just knowing you’ll hit at least one or two trades a day that will pay for your whole trip, or perhaps, just perhaps, let you own
your tropical paradise free and clear?

I am going to teach someone exactly how to do that this year. Why can’t that someone be you?