Stock Trading Techniques Pt1

Daily Stock Report for Tuesday Morning, February 9

, 2010 pt1

Stocks initially moved up on Monday and went into the positive on all indices in the first 2 hours and spend the rest of the day selling off with losses of 0.7% in the Nasdaq Composite to as high as 1.0% loss in the Dow30.

The trading action is clearly negative with todays selling not attributed to any specific news except from the latest lingering debt concerns of European countries Greece, Portugal, Spain and Ireland. (Forgot about Iceland).

Todays trading action supports the idea that we are probably starting a longer term downtrend more than just what has been a typical pullback within the uptrend we have been in since March 10th last year.

What is very common in a selling type of environment is selling causes more selling which usually ends in a panicky type climactic fashion with high volume and often with one more piece of bad news that scares the last suckers out of their long positions.

This exhaustion in selling is the ideal place to build long positions but few people can recognize or have the courage to buy when it feels like the sky is falling (you should learn, the great investors and traders understand this). If this scenario is what we are starting, at least on some scale, it appears as though we are far from that climactic point.

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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