Monday, March 26, 2007

User Stocks Analysis Request

Market Overview for Monday March 26, 2007


The markets are at a critical juncture here. They are poised right at the 50 days moving average.
If they are able to move above it this week, then it will be bullish.

If the market goes back below the 50 days moving average, we go back to the bear land.

Let us wait and see what happens.

Monday, March 19, 2007

Member Question: CMGI

Hi Prasan,

CMGI is bullish with a high power ranking.

But the current markets are bearish. Look at QQQQ, SPY and DIA charts.

So, if you want to risk and buy it, please buy fewer shares than the normal market condition. Eg: If DreamTai recommends buying say 200 shares, buy just 50 shares when the stock kisses the 20 day moving average..

IRegarding the slow downloads, I will work on increasing the speed in the future releases.

Monday, March 12, 2007

Member Question: GSS and HAXS

Question: What is your opinion on GSS and HAXS ?

Let us look at the 2 stocks.


Both stocks are having Power Ranking above 3 and so are strong in buying volume.

GSS has had a stock kiss once before.


The overall market is bearish. Usually, we have to look at the complete picture to make a judgement.
If the markets had been bullish then these stocks would definitely be on my buy watch list.
I would have then waited till they made a stock kiss to buy them and place stop loss slightly below the 50 days moving average.

Unfortunately, the markets are bearish, so it reduces the odds of winning.

So, if you want to still take risk and purchase the stocks, please reduce the risk by reducing the quantity you are planning to purchase.
If you were planning to buy 200 stocks, just buy 50 shares.

Does this answer your question ? Unfortunately there is no right answer..It depends on your risk taking abilities. I am a I prefer to take trades only when all things line up perfectly and are in my favor. Even then, I get stopped out from some of these stocks, but I do not mind because I make large gains from the remaining.

Currently, I just look for stock kisses on the short side because the markets are bearish. if the markets turn and become bullish, i will look to buy.


Market Watch for Monday, March 12, 2007

The markets are still bearish.
At present, they are trying to go up.
It may result in a stock kiss if the markets are not strong enough to cross the 50 days moving average.

At present, it is safer not to buy any stocks. Rather, it is time to look at new shorts and check if stock kisses take place on the short side.

Have a look at Google. It has again made a stock kiss for shorting. This is the second stock kiss it made after crossing below the 50 days moving average.
If you want, you can go short on Google, but place the stop loss buy order to cover slightly above the 50 days moving average, in case the market and Google jump up suddenly.

If you decide to short Google, please ensure that your maximum risk on this trade is just 2 percent of your capital.

Sunday, March 04, 2007

Market watch for Monday March 5 , 2007

The market crashed like crazy and went down. You should have been stopped out of some of your long positions by the stop loss sell orders.
You do not have to pull your hair. Stuff happens but you were prepared for it.

Again, these type of days are what stop loss orders are for. These orders are to protect and safeguard your holdings if the market drops suddenly.

Now, on TV you will watch many market analysts advising people to buy and telling them that this drop is just a correction.

What do you think ? Look at the stock charts below for QQQQ, SPY and DIA which represent the stock indices.

All the three are below the 50 days moving average. I would not be comfortable buying at these point. Rather i would short if the stock does a Stock Kiss and tries to move up and kiss the indices. Ofcourse, i would place a stop loss order if my short positions were not succesful and the market zooms higher than the 50 days moving average.