The Inverse Barron's Front Page Pic Rule

On the Saturday before the Stock Market Crash of 1986 was the picture of a HUGH BULL... Right before the Market began the Bull Market, there was a picture of a huge BEAR...Market pros know and plan accordingly. On April 20, 2013, the picture on the front of Barrons said "Dow 16000".. On CNBC one of the commentators correctly said, "Market traders down here consider that bearish"----This Inverse Barron's front Page Rule has gone on for a long time. Make a note of it.

Gold: :Point and Counterpoint: Bear Trader Writes

"Bear Trader Writes: SPX has held at support so far, both the 50 Day EMA and the Charles Dow style rising trend line, at 1541. Slow Stochastic reads "sell". Momentum indicators are very weak. Myself, I would wait until Halloween. Turbulence ahead, the options boys will do well. I mean, you and I hold overnight which makes us "buy and hold" people nowadays. Trends are hard to spot. NEM and ABX are up yesterday and today on considerably lower volume after being down on much higher volume. Two days does not make a trend. More like five. NEM - my best guess is sell at 36 stop at 32 until technicals become clearer. My guess is 75% you wouldn't lose money (not including commissions). Currently very oversold. ABX - my guess is sell at 22 stop at 17 until technicals become clearer. 75% confidence as above. Very, very oversold. Wall Street Journal recent article said stay away from miners. There is recent bad press about Barrick. I think this is bullish. On Fri, Apr 19, 2013 at 11:56 AM, Richard Woulfe wrote: Bear Trader--- All the reasons I have heard why gold has plunged are looney...at these levels, such as NEM, and ABX it seems like a little bit would be ok... what do you think? We are in a little SPX bounce today---if holds above 1541, then there could be the argument that it still is in the "up" channel. However, from years of summer trading on Wall Street, I have a bent to be away....and stay away till the weather cools, ----how do you see it? wolfman

If there is not "Fear" in the markets--it is NOT a time to buy

Recenly as the S&P approached new highs, and there was a feeling of euphoria in the markets, at one options trading site, the host opened the program by saying that because there was not a speck of fear in the market for the opening---he was planning nothing...I was stunned....I just wished I had known him earlier.

Transports are the early warning signal

The direction and strength of the transports index is an early indicator of where the S&P could be headed....and at the end of March 2013, the transports seemed going off the roof...like as in UAL going to the moon, and even BA, Boeing, with all its new planes on the tarmac because of the battery problem....this optimism in the face of adversity was...just a little overdone,,and the airlines turned down, and the S and P followed and now the big debate is whether and how much the market will fall....

"Genius Stays Small"

Heard this bit on a stock traders show today---that the major downfall of stocktraders in times of volatility, is that they trade in too much size in their trades....With high volatility you can make plenty of money by avoiding being wiped out in the first place, and then by ordering smaller size of stock, and holding rather than folding. So...it seems that small is ridiculed by some folks in the street, but not by those who are making money..Make a note of it.