Over the past 7 months or so, DJIMstocks.com has been relentless in buying and discovering new momentum stocks without taking a negative stance on the market more than maybe once for a 24hr period.   Well..that all changed this week starting Monday and then Tuesday before the open.   DJIM Alerts are for stocks and we have had a big crop of winners in '06 and so far in '07, yet this is the first time in months we issued a MARKET alert headline, not once but twice.   In DJIM land this was not just an overnight anomaly,  we have been cutting positions left right and center the previous week into a strong market and kept away from any serious buying as the market felt exhausted and could not push higher.  Below are some excerpts from DJIMstocks.com, starting with selling into the previous weeks strength shown in DJIM stocks and cutting anything lagging before the corrective activity. What follows is our methodology during the week that kept us and our readers from any further risk or loss as the market indexes finished the week at its lows. 

Thursday, March 1, 2007 at 08:35PM - NIGHTLY JOURNAL-.......   we do maintain a very cautious attitude and refrain ourselves from tip toeing back into the this market other than maybe a quick trade here or there.   Frankly, it's very easy to go back in and start buying and it's just as easy to start losing.   The question is... do we see any opportunities to buy right now given a lot of the "opportunities are abound talk by many of the gurus out there"?    One thing we need to have is trading opportunities WE are most comfortable with and are familiar with.  We just haven't seen it yet!....  Opportunities will come sooner or later and when it comes, your capital better be there to make it good.    Regardless how big your portfolio size is, we just don't believe in buying anything now for better days ahead.    We just don't know how much worse this correction can get and we are definitely not putting our own money in to find out an individual stock we loved a week ago has another 10 or 5% downside left ......Also, when the markets do bounce back meaningfully and resumes its uptrend, how do we ensure that the stocks we buy today are even going to participate in the rally?   At this point, we don't know and we can only wait and see.     Strong EPS plays are only good when the market is in a favourable condition and there is money chasing them.......If there is no momentum shown, what use is it hold and risk downside at this point or just sit in a flat stock.   Perhaps by next week, we may all be in a buying and holding overnight mood but just not today and probably not tomorrow, a Friday...... We are simply looking forward to the weekend.

Wednesday, February 28, 2007 at 08:49PM - NIGHTLY JOURNAL- AFTERMATH-   ...   Bounces are nothing more than bounces and we are certainly seeing some bounces today. Today had to happen, if it didn't we'd be in BIG trouble if the market didn't bounce after such a exaggerated move to the downside.   It doesn't mean, however, that we are right back into a frenzy buying mode and in fact we should be the opposite and be distrustful of any upside movement......Do remember, the fear mongers will try their best to exploit the anxiety most will feel after yesterday...so expect volatility.  Chances are those that didn't bail fast enough yesterday, will be the first out next time if any sign of further downside correction activity is felt".  

Tuesday, February 27, 2007 at 08:24PM - NIGHTLY JOURNAL- What's safe out there?  Cash!   What's not safe out there?  Everything Else!.........Don't be fooled by all of the recent strong eps plays. In this sort of market, nothing is really safe.    Human emotion always works in an unpredictable way and it is in our opinion best not to predict, but to react.    Market was down big time today and that's the way it is.   At this point, there's no point even thinking about playing a bounce because you are more than likely being setup to be "sold into" by others. ...............For now, we hide in our bunker to watch the fireworks. Bottom line, protect the capital and don't be a hero!...Nobody imagined a 1 day scenario like this, but the prospect of a big move up or down has been repeated here over and over again.  Yesterdays market alert...all the recent Journals in cutting them laggards, dwindling positions..little buying were enough of a hint on where we stood....  Clearly, we are starting with a clean slate until the dust settles.   In a lot of respects it might be a good thing as there have been so many plays materialize over the past 6  months.  Hopefully,  we recently prepared you to some extent for an unfortunate day like today.  Nobody saw a bit of history coming in such a large one day swoop....At this point, we do not have any need to play reversals, bounces etc.   We have capitalized on these stocks when it mattered and have no need to gamble now.   We have made our money on them and will look to explore new stocks. 

Tuesday, February 27, 2007 at 09:23AM- MARKET Alert- Women and children first.....and then your book of stocks....unfortunately, it will be the other way around today.  The year of the Pig has had it's speculative bubble on its butt popped even if this was already talked about a month ago.  If you've followed the tone of the DJIM journal, your book of stocks should be quite light and minimal damage will be sustained today.  The morning will be the exhaustion day we feared in this weekends DJIM #9 as the selling hits hard....

Monday, February 26, 2007 at 12:55PM -MARKET Alert- We always get an automatic cautionary flag up when Naz is down 20 or so.    We are not chasing anything now and are reducing some exposure in laggards...

Sunday, February 25, 2007 at 12:11AM- DJIM #9. Weekend Journal updates for week ahead.    "What was a 4 day shortened week felt anything but as trading seemed to have come to a stall by weeks close.  The week definitely got started on a bang but by weeks end the buyers seemed exhausted and/or just not interested.   So what do you do?.   Well, if you can't buy anything with potential it gives you time to evaluate your holds and maybe sell some into the 'Green'.  It is not the time to get nutty and turn away from what has been working by chasing something just to make a trade.  It is always better to draw down you positions into the green then having to hastily sell if this lacklustre tone continues and we really have an exhaustion day when the selling hits hard.   What the week provided was for some orderly profit taking by looking at performance of some DJIM's closely followed in the past 5 trading days"......28%  13%  12.1   8.7  7.3   6.5   5.9   4.0   4.2  3.4  3.1%..and ???? at its highs was up 15% since alert buy in.            "The problem is the techs just don't want to lead this NASD to higher ground."....."One look at the DJIA explains how we felt the last few days and that is no enthusiasm to buy.  We only did 2-3 buys late in the week and the chart clearly shows the buyers were not there.  We did clear the psych level of 2500 on the NASD, but it is clear we need participation the bellweathers to kick this higher......"

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