DOW JONES:

The Dow closed up 176.72 points to 12383.89

Weekly Trend:

The MACD is trending up = Wait

Exp Moving Averages are trending down = Wait

Volume was light

A good start to the trading week for the markets. The weekly MACD indicator is trending up on the DJIA and NASDAQ for the first time in 5 weeks.

We need to stay focused and wait for the weekly Exp Moving Averages to turn up, then we can start to look at the weekly trend for the leading stocks in the leading industry. (POT and CF).

16 / 20 stocks are trending down with the markets.

PCLN, CMG, SMTS, TNE are the stocks trending up but because we only trade with the market trend, these stock are not to be traded.

Chemicals and Fertilizers are still the leading industry group with POT and CF the leading stocks from within the group. Both POT and CF weekly trend is down. We need to wait for both the weekly trend in the markets and these two stocks to turn up before making a trade.

POT has moved back into the weekly watch list.

When the market’s start to turn up, the leading stocks from the leading industries will be the best stocks to trade.

The markets are just too volatile to trade on the short side. All we can do is site back and watch.

DOW JONES:

The Dow had a very ugly day, down 174.44 point, to 12207.17 ending the week up 0.94%.

Weekly Trend:

The MACD and the 13, 26 week Exp Moving Averages are trending down. = Stand Aside.


NASDAQ:

The Nasdaq closed down 34.72 points to 2326.20 and ending the week down -0.54%.

Weekly Trend:

The MACD and the 13, 26 week Exp Moving Averages are trending down. = Stand Aside.

This has been a very volatile week for the markets. The best and only option is to stand aside again next week. 16 out of 20 stocks from my weekly watch list are trending down.

It is just too hard to figure out what the markets are going to do next.

Look at the height of the weekly bars. They just keep getting bigger. The bulls and bears are in one hell of a fight. The government keeps feeding the bulls and that can only go on for so long.

No government or persons can stop a market from going up or down because markets follow the lines of least resistance and this resistance is down.

That is the beauty of following THE MARKET TREND indicators, they can’t lie.

This is one fight I don’t mind sitting on the fence and watching. There can only be one winner.

Let the bulls and bears fight. Our job is to pick the trend at the end of this fight and profit.

Try not to be a Bear or a Bull; be a Trend Trader.

When the market trend turns up we will trade on the long side. At the moment it’s not worth adding any stock charts because it will only confuse us.

Be in cash and please be patient.

18 out of 20 stock are in trend with the markets. There are no buy signals on the long side.

The Dow Jones closed at 12099.30 down 59.91 points ending the week 678.85 points 4.04% down.

Volume is on the rise and the bars are getting longer.

The weekly Exp Moving Average and MACD are trending down.

Prices are below the daily Exp Moving Average and trending down.

The daily MACD is trending down.

Look at the 2 Day Force Index. You can see that the last three bottoms are trending down; this shows us that the Bears are in control.

The Slow Stochastic is moving along the bottom of the chart. It is in oversold territory and could stay their for some time. The last spike hit the 50 mark and then fell, this indicates the Bulls are weak.

Comments: Stay away from the markets at the moment there is no money to be had, unless you are willing to trade on the short side.

The Dow ended the day in the red @ 12159.05 down 307.11 points and volume was up.

There isn’t any good news on the horizon. Usually in a bear market the markets will shrug of any good news and still trend down. The same thing happens in a Bull market, the market will shrug off any bad news and trend up. We will get the odd up day, but it is starting to look like the downtrend is gaining momentum.

I stated just over two weeks ago that the market where heading down. If you haven’t done so yet, move into cash.

This is a good place to learn about the markets because these types of markets don’t come around very often.

Read some books and study. Learn all you can about indicators, stochastic, money management and your trading psychology. Purchase books written by Alexander Elder, they are fantastic. Go to stockcharts.com, it’s a free website which will teach you everything about charts. Sign up to investors.com and learn all about the Fundamentals of stocks and Industry group leaders. Go to optionsxpress.com and set up your trading account. Get busy.

We are doing battle with some of the smartest minds in the world. You need to learn and study hard if you want to make it in the markets. There are no short cuts and there is no room for cheats. It’s not for the mentally lazy or the get rich quick.

Stay focused on your goals and ambitions. If I can do it, so can you.

People have commented about why I started my account with only $5000. I tell them I could have started with more, but if I did then I would be making larger mistakes. With such a small stake I can’t afford to make many mistakes, so I have to be patient and time my purchases. Now is not the time for me to short stocks or buys Puts because there will be plenty of time for that later, when I have a bigger stake.

The main reason I started with such a small stake was to show you that with patience, money management, and a method, I can turn my $5000 into millions. That will give you the confidence and will power to go out and do it for yourself.

It’s not going to be easy, but hey who wants an easy life.

You can’t win all the time, that is impossible, but with money management the losses will be small.

It was a very volatile day for the Dow closing at 12466.16 down 34.95 points

With the weekly MACD and the 13, 26 week Exp moving Average the trend is down.

The force index did not penetrate the previous lows so that might be good news.

The length of the bars for the day’s highs and lows are still long, indicating the downtrend still has the wind in its sails.

The 13 day Exp Moving Average is trending down on the daily and weekly charts. No good news here.

The daily MACD has leveled off and the Slow Stochastic is moving down again.

These indicators show us that the trend in the Dow Jones is still very much down.

My mother in-law gave me a tip last night (never take tips) she said I should buy GOLD; it is going through the roof.

When your mother in-law gives you a tip in stocks or commodities or markets, you know everyone is purchasing it. If everyone is purchasing it, there can’t be much more room for it to rise, so the time is close for selling.

You will here the same story again when everyone is talking about a recession, the markets are finished, where all doomed and so on and so on. That is the time when we should be studying the markets and looking for the bottom.

Nobody knows how long this correction or down trending market will last, it might be a week, month, a year or longer. But that’s ok because we will be here waiting and waiting and waiting for this market to turn and when it does, we will be ready.

The market took a hammering today, down 277.04 points to 12501.11.

The markets are never wrong, opinions usually are. Don't get to involved in what people say about the markets, Indicators tell the real story. The indicators are trending down.

Have a look on the daily chart, keep an eye on the force index, I have market it. if the force index continues to go lower than those 3 spikes to the left. The BEARS will be gaining strength.

If on the other hand it turns from this point, then BEARS are getting weaker.