10/24/2008

Free Money

One chart of four that are posted here. Red line is 50 day moving average and the blue line is a 10 day. The moment the red line is crossed you should on the alert. When both lines were penetrated back in late June that was it. Anybody hanging on past that is looking to be broke. "Oh, look at the big rally back." So what, you can always buy something else later. The above chart is of the Janus Capitol Group Mutual Fund which has now busted everyone who stayed in. Every stock gives a sell signal long before the crash. Every stock. I look at something like this and just shake my head because if you can't get out of something like this you deserve to lose. Oh, and a huge BTW---when you check the charts at the link you will observe "Island Tops" a formation in which a stock "gaps" up and then goes south. This is the mother of all signals, one that a nursery school kid knows is the final notification to GTF out. The Island Top is on this chart too but it shows as a straight line because the high to low happened in seconds. You can't just put your money in something and turn your back, NOT EVEN IN REAL ESTATE, which up to now has been thought of as the penultimate absentee trade.

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