Stock Trading Secrets Pt1

Daily Stock Report for Monday Morning, February 8

, 2010 pt1

The stock market followed through on the downside Friday morning all the way until 2pm ET and the rebound we were looking for started and turned Fridays market from a 1.7% at the worst point of a 0.74% profit on the Nasdaq Composite.

The market dropped more than we anticipated on Friday with the Dow being down as much as 2% at about 2pm ET followed by a strong rally to close on the positive side for all three major indices.

The rebound we expected to occur on Friday did start later and after a deeper correction. On the short-term trading action, it looks like we could have a couple more up days followed by some selling and this volatility is going to cause difficulties for anyone who is not a nimble trader.

On a little longer term horizon, we could easily see more selling ahead and my best guess is it looks like we are starting a downtrend that is more than just a pullback within an uptrend. It may be just a smart strategy to have smaller than normal positions and less money in the market.

This is the time where the intraday scalpers will make the most money on a consistent basis with stocks making good moves up and down. On the steady uptrend runs (a new term?) as we saw for two months from early November to mid January 2010, scalping was still profitable but much less fruitful. The current environment for scalping is much like fishing in a fish hatchery and the run is in.

Mitch King

www.TradeStocksAmerica.com

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Mitch King is the founder of TradeStocksAmerica.com. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Mitch King. Investment recommendations may change without notice and readers are urged to check with their investment counselors before making any investment decisions. Opinions expressed in these reports may change without prior notice. Mitch King and/or the staff at TradeStocksAmerica.com may or may not have investments in any stocks cited above before or after this newsletter is prepared. Use the stock table above as a model portfolio of ideas that look attractive at the time of the writing. Comments can be hypothetical in nature. Opinions expressed in these reports may change without prior notice. Disclaimer - Stock investing or stock trading has large potential rewards, but also large potential risk. There is risk of loss as well as the opportunity for gain when buying or selling stocks, bonds, option contracts or engaging in any strategy listed in the Daily Stock Report, The Wizard Training Course, The Trading Room and our seminar or workshops. You must be aware of the risks and be willing to accept the risks when investing or trading in any financial markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell stocks. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

by: Mitch King

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