XJO CashYearly lows reached @ 4538 and expectation that the next Quarter will rise upwards in monthly step formation to close the year higher, and then the expectation is that price will continue lower in 2009.
My job is to find the highest probability entry for myself and my readers to take 15% on stock positions the last quarter.
Add that to the reversal off March lows in the first Quarter, April's higher lows in the 2nd Quarter and then the move upward into MAY's highs. The double low pattern in July and September in the 3rd Quarter, and you soon begin to see that over the course of the year trading LONGS in a bear market can be very profitable.
SPI Weekly and DailyAs mentioned before, the Yearly lows and reversal upwards is dependant on October 50% level in the next few days.
I also mentioned that the up move next Quarter is dependant on resource stocks, it still wouldn't surprise me to see the October 50% level push the market back down in double lows.
Even if there is a double low in October my view still remains a higher close in the last Quarter.
"In ‘bull’ market stocks normally compound 12% per year, however the potential to make money could even be greater in a bear market than in a bull market, even though the trader is buying stocks in a down trend.
How is this possible?
In a Bull market stocks rise upwards, but don’t necessarily reverse back down into double monthly lows more than once a year. If banking stocks remain in a consolidating trading pattern in the current year, price will come back down far more often, which increases the frequency of trading. Whilst the exit strategies are based on exiting around the higher timeframe 50% levels, or even using the Weekly channel highs.
Depending on the entry level this will give the trader the potential to take between 10-15% on stocks in each 3-month period. The expectation is that, in every Quarter price could move back down into the lows. If the trader can use this strategy every Quarter, then there is a potential to make around 40-50% on stocks using swing trading patterns and channel lows in Bear Markets, as they consolidate for the rest of the current Year."
BOOK:- The Trader Trading ….. principles of successful trading….
BUT those 40-50% returns were achieved in the 3rd Quarter alone depending on which banking stock was traded, therefore the 4th Quarter might throw in a few more pleasant surprises.
