TTT Update

The most recent TTT was sent to readers on June 15th.

Days prior to the market top in April, as nearly lone voices in the industry, we warned subscribers that despite the maddening bleating of cheerleader shysters in the mass media we were not in a bull market and that bearish divergences were mounting.  We noted that the 200-week moving average of the Dow Jones Industrial Average would prove difficult to cross, and indeed that is exactly where the rally ended and the downtrend resumed in this multi-year bear market. 

In early May, with the DJIA just below 11000, we were extremely strident in our warnings, stating that the enormous bounce begun in March 2009 was very likely over, that markets were grossly overvalued and overbought, and that it was no time to attempt buying on dips.  In the longer term, this is still true.

Since then we're been fortunate to book profits on both long and short suggestions, making money while the masses lose and beating the general market performance on the way up and the way down.  Thus TTT proves itself as an unbeatable source of macro forecasting, as well as a valuable source of easily-actioned hedges and speculations for any truly diversified protfolio.

In late May we booked profits of 21% on Goldman Sachs after being short less than 2 months. In June we warned that sentiment was turning too bearish so we offered countertrend long entries.  A bounce began the next morning and we were stopped out very profitably on shorts in RIMM and effective shorts via SH. 

This is exactly how it'll need to be done for months and maybe even years to come. 

The next TREND Technical Trader will be published when markets warrant it.  Until then, our warnings and predictions remain fully in effect and increasingly accurate by the day, and our open positions and planned entry levels on new positions are prudent.  Readers know our stop levels when we enter a trade, so there need be no guessing depending on what the markets do.  We sleep peacefully while the masses panic. 

In the near term we expect a bounce and we'll offer fresh short ideas to readers at that time.  The last bounce didn't extend quite as high as we'd feared it would, which is good as we prefer to err on the side of caution, so the entry levels on current suggested shorts may need to be revised lower.  We'll let you know in plenty of time to take appropriate action. 

In the meantime our countertrend long entries offered in June have proven resilient despite the markets being much lower than when we entered long.  On average those entries are up on average just under 5% in less than a month (including a 2.5% loss on one which was stopped out). 

Those who do not feel comfortable in the markets should not be in the markets at all.  It will be a very bumpy ride for some time to come, and if you're nervous now you will be feeling much worse in the coming weeks, months, and years.  Those who desire further reading and trading ideas will please review our blog on this site and consider our Custom Charting Service (see tab above).