MightyMO : Rob The Stock Markets Blind: Right back up in June

"You’re riding high in April,
Shot down in May.
But I know I’m gonna change that tune,
When I’m right back on top in June."

—	Frank Sinatra “That’s Life”

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The stock market is simply the result of many people trying to make money on their investments.

You're not in a contest to see how many picks you got right. Your goal and objective is to have a winning overall profit.

(Note: Live stock portfolio listed in this blog)

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The daily log

07:20am Will be in and out today...heading out to check out an estate sale and some nearby garage sales today. I see that George Soros, who sold Japan holdings in May is back buying japanese stocks again.

9:20am Puckered up for another 200 shares of XONE. Really starting to like this stock, however, that said, will sell in a heart beat if the direction changes.

9:48am Bought a 14K 9gram gold necklace at the estate sale, got a great deal, better deals now in the stock market. Bought 200 shares CAR (Budget auto). As stated, close out XONE, might buy it back later. Took the profit and ran.

Time to get a CAR

10:20am Will consider more CAR on the next dip.

10:40am Unfortunately, I need to be away for the rest of the day. Will update the blog tonight. Take care. Sold CAR for a daytrade profit.

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...In case you would like to follow our stock trades up to the very minute. I try to 'print' the trade within a minute or seconds on 'Stock Twits' (STOCKTWITS.COM) before I update them on here. You can follow me on stock twits by going to stocktwits.com and signing in (it's free). Then follow ROBMARKETBLIND.

PICTURES OF THE DAY

Quebec

I just love this picture, might kept it here forever

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Most beautiful towns series

Portofino, Italy

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**New Feature**
Painter/Painting of the Day

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LADIES OF THE DAY

Claudia Cardinale - a favorite

Emmanuelle Chrique

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MOVIE SPOTLIGHT - coming

WORLD WAR Z

GUY for the Week - The King

Classic Auto of the Day

Invest in a classic car that is certain to appreciate in value

Aston - Martin

If the right car does turn out to be an appreciating asset, any later sale is not subject to capital gains tax.

Thought for the Day

VINTAGE LADIES OF THE DAY

Gloria Swanson

1940

Liv Tyler - usually this photo has her bloated out and just showing James Dean

News

THE STOCK MARKET INDICATOR

"What seems too high in price and risky to the majority usually goes higher eventually, and what seems low and cheap usually goes lower." This famous statement is from William O'Neil in his best selling book, How to Make Money in the Stock Market.

There are numerous indicators measuring everything from sentiment to fundamental ratios to technical chart patterns. Every one of them is subject to interpretations which can result in incorrect decisions.

Even if some of these indicators had predictive value, on any given day there are so many potential news events that could change market direction that it is impossible to keep track of them all.

But there is one indicator, one core piece of information, that is always up to date and always correct. That piece of information, is price. And particularly the closing price at the end of every trading day. All the news, inside information, economic and fundamental data available, is reflected in that closing price. Price is the ultimate stock market indicator.

The buying high price strategy works whenever the market is accommodating and the market is certainly in an accommodating mode.

THE FEDERAL RESERVE SYSTEM AND MARKET DIRECTION

My approach has always been to ignore the predictions and forecasting from the market media and tune in to the music from the Federal Reserve and stay with the trend. I have found out after a very long experience in the stock market, is to never fight the FED. As you all know, the FED implemented a process to rescue the US economy from the brink of a depression starting in 2008. It consisted of buying bonds and risky assets to pump money into the economy. It has been known as QE. Even with all the criticism , the economy has managed a recovery with unemployment declining, with the economic numbers pointing to further expansion and the housing market has definitely improved. ------------------------------------------------------- My MAJOR stock market axioms.

1. If the stock you purchased is going the wrong way, YOUR BEST AND SMALLEST LOSS IS YOUR FIRST LOSS (cut your losses short)

2. As best as you can, the market can be very volatile, NEVER LET A PROFIT BECOME A LOSS (sell before it drops below your cost basis)

3. Be on the lookout for stocks hitting their first 52 week high or all time high. The chances are excellent it will continue to hit new highs. BUY WHEN A STOCK HITS IT'S FIRST HIGH. A STOCK'S FIRST HIGH IS USUALLY IT'S LOWEST HIGH

4. Don't hesitate selling a stock if the trend has changed or market direction has changed. DO IT FAST.

5. When you have a winning stock, buy more of it and add to position. LET YOUR PROFITS RIDE.

6. IF you are in a position where you can't watch the market, sell your positions. One can always buy back the stocks.

7. Do take advantage of market irrationability. There are excellent opportunities when this happens. I will be relating these opportunities in future postings. It is the basis for the ROB the Markets Blind portion of my strategy.

8. Avoid people who are overly negative on the market. They don't make money consistently and you won't either. (Joe Granville was negative on the market for ten years (1990-1999) during one of the best 10 year bull stretches in history).

9. You're not in a contest to see how many picks you got right. Remember you goal is to make an overall profit.

10. NEVER, DON'T EVER, FIGHT THE FED

Right back up in June

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