Market Bottoms
Are Not Supposed to Look Good
[...this qualifies]
Using, AXXel Knutson’s VTAR™
October 6th, 2008
[“Volume Trade Analysis Research”™]
“Manage the risk…the profits will take care of themselves”
“In this business, being right is not as important as making money…consistently, and one of primary tenets of the quest is the avoidance of the ‘obvious risk’”
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[“Tradingweapon.com” is the business name for AXXel Knutson, who is a Registered Principal of an independently owned office of Supervisory Jurisdiction [OSJ] with Cantella & Co., Inc. TradingWeapon.com offers all of its securities business through Cantella & Co., Inc., a correspondent of J. P Morgan Securities, Inc. Member FINRA SIPC
Bottoms are made by increasing trading volume, decreasing prices and bad news.
The market levels as of this moment qualify the current condition as a likely market bottom. Here are the numbers:
Dow Jones Industrial Average: 9,562.87 off 762.51. Here is the long-term chart –
Dow Jones Industrial Average
And for the NASDAQ Composite: 1785.00 off 165.64 and the long-term chart,
NASDAQ Composite
Charts courtesy of Clearstation.com
Of course anyone predicting a market bottom probably should be sent to the regional nut house, yet it falls on certain of us to do exactly that. If we are wrong, we take our lumps and put up with the ridicule that will surely come. Yes, in my over three decades of market watching I have found that bad news, and we have VERY bad news, increasing trading volume, I do wish it were heavier but considering the length of the decline we do not need massive downside volume and decreasing price [we surely have decreasing price] will usually lead to a major market reversal.
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Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information on any of the securities discussed within, we will give it upon your request.
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All commentary is directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions and, if you use margin, interest charges will lessen any return on investment.
TradingWeapon.com staff does trade in the same stocks as clients or those written about in his newsletters. We will disclose positions personally held in any such stocks in newsletters when published. Cantella & Co., Inc. Securities, its brokers and its officers may take and have positions although they receive no advance notice of new recommendations or changes in opinion. Those interested in additional information on any stocks discussed within may call at 908-484.7025 or email AXXel at axxel@cantella.com. We do not deal in BB stocks [with the exception of some ADR’s]. Refreshing, isn’t it?
But AXXel likely will not call YOU. YOU have to call him to initiate a discussion. You see the phone number…
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