CORRECTION CONTINUES

Markets: I told you here right after the big dip of ten days ago that I'd never seen a market correction of only 3%. You don't dare buy stocks in a market where the indexes are going down. Because as a rising tide lifts all boats an ebbing tide leaves them all high and dry. This down leg ain't over. A really big drop would signal a trend reversal; translation: bear market. S&P down to about 1350 maybe 1340. Too much lower than that would indicate a bear market. And don't forget China, which is a walking talking bubble. That market has to really correct. Really.

Now for a fucking lesson on when to sell. PERIOD. The chart at the bottom is of New Century, the sub prime lender leading the charge. You must have sell stops and in this case it was too obvious to anyone but a moron and a pig. The institutions started bailing on this stock way back in February of '05 when the stock crossed over the 50 day moving average BAIL. That was the absolute last sell signal to ignore. The institutions are almost always right. This stock moved from $60 to $3.2. Always use chart signals to bail and never forget it.