DJIM #10 2007

...19 DJIM weekend hold/ hit lists to close '06, 9 more to start '07 and we can finally say we don't have a hit/hold list this weekend after 28 straight weeks.  Its' been a helluva run in those 28 weeks with 4 weekday Journals thrown in each week without missing a beat!.  That's a lot of stocks, lots of profits and a lot of lessons in trading and investing.   Unfortunately,  last week provided what we all feared to hit one day and that is corrective activity where it does not matter what your stock does or did in the months, weeks, days leading up to the inevitable.  Was it inevitable?, of course it was and we've been hearing about it for months but without pausing once in buying!.   Many have missed months of buying because of the stance they took months ago, we know who they are and so do you!.  The funny thing is they are going to tell you over and over again.."I told you so"... You know what you say?..."What about the months sitting on your hands and not buying a lick as the market and DJIM stocks continued to new highs!... Look...we've had a beauty of a run, now we've had bloodletting hit the markets and hopefully most kept from getting any mess on their shirts and books.   We truly hope our cautious stance before the meltdown and our views during the week made a difference in saving you money and now what you saved is there to use to make money!.   Look...most of us have been through this before and guess what??...We are all still here and again we are ready to go!.  Most of us went through this in May '06 and guess what?...We were up soon and even DJIM was up and running at full speed come August.  Is it going to take a month or two?..We don't know when we will be going at full speed, but we do know is there will be trading opportunities before you know it and we are ready to capitalize.   In a lot of respects, nothing could be better than starting fresh with cash to use as some of the plays have been for around for months.  Will they lead again?...The EDU'S HMIN's GLDN's..we don't know but actually hope new leaders will emerge.   Money likes new names when it comes to momentum.  The only difference in strategy is maybe we will use a little more cash on a starter position as there might be fewer plays to start, but our holding period is shorter and probably will not extend to overnight initially.   Still,  you should not get away from what you did before if it was a successful strategy.  A starter position is best now in anything that is not an obvious runner catching momo.   We will look for short term trading opportunities.. a point here and there until we see a definite market direction change.   If we alert a buy in and the stocks moves another $1-2,  we will probably be taking profits that day.   This is not as before when we had earnings coming out of our noses with the USAP's that you could add and add and add to and then hold for days.  It's different now, it's as simple as that!.  Last week we saw money was not chasing new earning plays in stocks like GEF, even ATNI had a good Q but was pushed down another 10+% just because the giant Guyana gets some competition, slowing organic growth...it's a tough crowd last week.   Maybe a good sign will be if we get a new EPS stock to play and see money chase it,  if we see this we might have a green light of sorts that money is ready to jump in and chase all around.  Patience will make your money go further now.   Do not throw anything we said last week out the window at the first taste of a change in the trend...we won't.  Stay cool...