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Moving Picture Experts Group-1 Audio Layer 3 or MP3 as it is commonly known is a form of audio media compression.

Digital music uses numbers to represent an analog audio waveform, which takes up a lot of space. When we rip a CD to our computer, we are bringing in an exact replica of the CD’s contents. This means using up a lot of space on our Hard drives etc.

The purpose of the MP3 is to compress a sound file for the ease of portability or transferability. When dealing with MP3 encoding, we are dealing with low frequency or auditory “masking“. This is when the MP3 algorithm uses psychoacoustics to take away frequencies that lie outside of the human hearing range, since humans can’t hear them anyway. This is also known as lossy compression, the removal of unnecessary bits that deal with the reduction of volume [removed]Amplititude).

By stripping away the low frequencies, which is needed for a proper balance of the audio file the amount of high frequencies(loudness) increases. In a stereo audio file the MP3 algorithm also removes redundant data, since the same data is duplicated on each channel.

When performing lossy audio encoding, as in the creation of an MP3 file, the creator is allowed to set a bit rate, which specifies how many kilobits the file may use per second of audio. When a lower bit rate is used it provides a relatively lower audio quality as it produces a smaller file size. Files encoded with a lower bit rate will normally play back at a lower quality.

The increase in loudness may be evident when playing an MP3 file on a car stereo or CD Player, for example. Most often there will be distortion though it may be subtle. CD and other audio players have a maximum output level, defined by the manufacturer and CD standard. Distortion occurs when the output level of the MP3 goes beyond the maximum level of the playback device. The output level of playback devices can vary.

For most people the standard MP3 encoding would be fine, but for the ones with sensitive hearing it will affect their appreciation for the song.

For the discerning music listener, one way to get around this problem would be to:

             – Convert song to a wave file

             – Lower the master output level approx. 1 dB for headroom (this so when it is converted to MP3 format there is no peak or clipping, which could lead to distortion)

            – Re-burn the audio file

            – Convert the audio file back to MP3 (using a bit rate 196 or higher)

This extra step might very well be worth the while for a better enjoyment of the music.

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Having your mortgage refinanced have several rewards. Of course, the most valuable and noticeable benefits is the lower rate you will enjoy. When applied at the proper time and opportunity, having a mortgage refinanced can save you thousands of money in the long run. Nevertheless, given that timing holds a crucial part in refinancing, it’s imperative that you realize the factors that can shape how profitably you can take advantage of it. So how fast can a mortgage be refinanced and should you?The appropriate momentGetting a mortgage is not for sissies. This form of credit, whether you’re taking it out to buy a vehicle or a residential unit, is without doubt one of the biggest financial decisions you will ever be making in your whole existence. If you’re taking out a home mortgage loan and are planning getting it refinanced later on, you’ll be relieved to learn that you could possibly accomplish it at any moment you desire. However when you have a mortgage and interest rates start behaving in a way that is advantageous to you, you shouldn’t necessarily apply for refinancing. Initially, the difference in the fresh interest rate and the present interest rate ought to be sufficient to really give you some benefits. Secondly, nearly all lenders will probably counsel you to refinance only when your loan has matured for a minimum of a year or so. However, it’s beneficial to consider this only if interest rates have remained more or less the same. But, at any time when you have acquired a mortgage loan the market trend begins tipping to your benefit, you must consider refinancing your loan. Remember that interest rates are considerably unpredictable and if you wait for a time for them to plunge further, you may possibly miss out on a very decent chance to obtain a good deal. Think about the 2 percent ruleSimply because interest rates have fallen a little bit doesn’t automatically justify your decision to refinance. Consider refinancing only if the fresh interest rate is at least two percent lesser in relation to the rate you are presently paying. A 1 percent discrepancy in interest is not sufficient reason to make the change. Don’t forget that there are outlay connected with a fresh loan. When you deem refinancing for your mortgage, bear in mind that you’ll need to pay extra for closing fees. An interest rate as little as 1 percent will not compensate the expense.You hold no late paymentsYou could proceed and refinance a mortgage as long as you have paid your loan loyally for the past twelve months. If you have never committed a late payment throughout the previous year, you could get the shift and have your mortgage refinanced.You have already built up equityIf you plan to refinance a mortgage before long, try to examine if you have by now built up equity. You should own a least amount of more or less 5% or ten% equity (depending on the lender) before you could think about refinancing as a possible option.Therefore is refinancing an alternative for you?Of course, you can all the time think about refinancing your mortgage at any occasion you feel largely contented. The secret is to consider the time issue, alongside with the kind of chance being offered by the market. After all, refinancing is actually obtaining a new loan. Only be prepared for the procedures and overheads that you will have to undergo once more.

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Search engine optimization organic procedures entails a lot of tasks from the person, but is a safer and, in the end, more effective technique to optimize a web site for search engines. In some aspect, Natural SEO helps to guard Internet “pollution” to a minimum, so you’re as well contributing to the virtual ecosystem! In the subsequent guidelines, you will find a few easy ways to use this kind of search engine optimization.You are for sure accustomed when it comes to the basic concepts of SEO, but are you knowledgeable with SEO natural procedures? Whilst search engine optimization is a very imperative matter to any web business’ marketing plan, it’s turn out to be more and more standardized and mechanized. Lots of Search engine optimization services and software just make use of the usual basic plan to enhance a web site’s search engine rankings. This has resulted to lots of web marketers utilizing foul search engine optimization practices to get outcome. These kinds of procedures may be great for pulling visitors, however in the end they make the Internet an uglier world. These procedures, called as “Black Hat” Search engine optimization procedures, are simply a bad idea. Not merely do they discourage potential visitors of your web site, they may not even stay in the long run.Remember that Google and other search engines are constantly looking for procedures to crush Black Hat SEO strategies. If their hard work will pay off – and certainly it’s only a bit of time before your time and investments might go useless. Why spend money on search engine optimization ways that could be ineffectual in merely a small number of months? Worse yet, search engines aren’t just knocking these kinds of websites down in position; they are absolutely banning them from search results.A number of of these Black Hat methods involves employing extremely low-priced labor or software to accomplish a number of tasks. For instance, sometimes these services will register to thousands of forums and or social networking websites and simply spam the link to a site everywhere possible. This is a explicit displeasure for many webmasters, who end up with sites muddled in worthless links.Link farms are another well known sort of Black Hat Search engine optimization. These sites are knockoffs are legit online directories, and are filled with links, many of which end up to extremely poor web sites. Several of them just link back and forth between each other and the link website, leaving users to get lost in an ocean of useless information. SEO organic techniques can be a incredible alternative to several of these Black Hat search engine optimization procedure.The foremost thing that folks associate with websites is their domain names. Domain names that feature the phrases that your website is all about are a great start to natural SEO. An additional, relevant, search engine optimization idea is to adapt your site’s heading the same manner: highlight the keywords that your site targets. Both of these aspects are factors that search engines consider to rank a site. You can see lots of more methods to optimize a website with an SEO organic strategy, but these ideas will assist you follow the right plan.

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The stock market indices like the Dow30, S&P 500 and the NASDAQ Composite moved up from 2.5% to 4.1% for the NASDAQ. The upward surge is attributed to better than expected housing numbers and lower than expected PPI (Producer Price Index), which is an indicator of inflation. CPI (Consumer Price Index) comes out tomorrow and likely will be close to 0% increase.
Stocks were stronger today and most surged up after any morning losses in stock prices. The short positions taken in the financial stocks are still within a corrective cycle although JPM, JP Morgan is a little hotter than expected. JPM has had a lot more favorable news this last week but the banks are very likely to head down part way to the recent lows in the coming weeks. If the banks continue to move up sharply, stop losses could be likely hit but this is a situation where a short position is much higher probability to work than any long position.
BAC, Bank of America is the weakest of the banking stocks along with WFC, Wells Fargo.
Chasing any of these financial stocks long would not be advisable. If there is any area to look, scrounge around for tech stocks for possible long positions but nothing is obviously waving a flag. It is still likely to see selling and therefore, you wont see any new long position recommends except for holding what little stock that remains long.
We have come off a great run both long and short these last 4 weeks and my own personal tendency is to open the stop losses to be wider on these short positions in financials that were opened these last 2 days after outstanding profits in most positions we have had.
It isn’t like the whole world is going to believe everything is right with our economy and banking stocks all of sudden just because we have had some enthusiasm in the last 5 days. This is what we positioned ourselves long for last week, to get much of this countertrend rally as we have discussed several times.
Remember we aren’t going for a home run on these latest short positions we opened, we are trying to get anything the market gives us without expectation these banks go all the way back to the bottom, although it is within the realm of possibilities to get close.
Don’t be deceived that we have not been giving more “new” ideas the last two reports. This is intentional because we are already short a handful of stocks with small (and very small) short positions that shouldn’t hurt you badly if you we allow a wider stop loss to go against us on these stocks AND we shouldn’t be chasing stocks long at this point or getting overly committed to the short side. So you can consider this an “in-betweener” or a transitional period until more stocks come into a higher probability set-up.
REPEAT FROM LAST NIGHT’S REPORT: You could always sit out this current cycle of short positions if you are tired or exhausted mentally. OR a good fix for that is to have a very small position than normal so it won’t stress your nerves but keeps you alert and your head in the game. A rest is fine by having no positions at all but keep monitoring what happens so you don’t totally get stale and indifferent to what is happening in the market. Even someone as good as Tiger Woods will take some weeks or months to get back into tournament play after a 9 month layoff from golf so it is wise to be somewhat updated as to what the market is doing even though you may not have any positions.
The insurance sector, PRU and MET were strong today. Most of you are all sold out of those long positions but don’t stress that you left another 10-12% on the table today. You consistently play the odds and you will do quite well with your money. HIG, and PFG were weak today are likely to turn over first in this sector.
Oil, light sweet crude oil index moved up 3.7% to make a higher high wit $48.60 at the close. This is going to trickle down to what few oil stocks that remain as a long position on the stock list.
Intermediate Trade Positions: New ideas: none
Swing Trades: New Ideas: none. Hold existing small short positions in banks, we should see selling start this week.
Day Traders/Intraday stock ideas: Again, another outstanding intraday trading day. You are going to see big swings with the drop and pop being the best way to handle long intraday scalps. My suggestion is to let the stocks go down hard and focus on a LONG bounce. Your best odds play for intraday scalps are in the first 2 hours of the trading day with drop and pop strategy the highest probability for you. As stocks move down, you should wait longer and longer before buying the bottom for a long sclap. FSLR, HUM, UNH, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, FSLR, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. Look for short scalp set-ups in ICE tomorrow.
NOTES: We are entering a cycle where we could be substantially on the sidelines because most of the high probability trade ideas have matured and profits been realized. The odds change as stock ideas mature. Doing nothing in the business of investing or trading is just as valid as making a move going long or short. So it looks like the odds are shifting toward being in more and more cash as we just harvested many long positions.
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and I’ll talk to you this weekend.

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The stock market took off after the 2:15pm (Eastern time) Federal Reserve announcement that they will invest $1.2 trillion (”T”) and $300 billion would be used to purchase US Treasuries starting in the next few weeks. An additional $850 billion is to be invested in mortgages, the very center of problems that brought investment and money center banks to its knees these past 5 months. This effectively lowers interest rates and mortgage rates and is a much more powerful tool that they had vs. lowering interest rates from .25% to zero.
The stocks that benefited the most were the financial stocks and especially banks, went vertical. Banking stocks that were down 3-4% in the morning closed up 8 to 22% today at the close. What was starting to be a correction that started yesterday morning now got a resurgence that could cause a little more upward movement tomorrow.
If you are disciplined with your stop losses, you should have been stopped out today (or actually yesterday) on that move up. But if you had a small position size relative to your account size and chose to manually control your stops, you are likely still short some of these banks. If that is the case, assuming your position size is small, you could ride it out this surge up against your short position.
This could possibly turn out to be a blow off top in bank stocks that most have doubled in the last 8 trading days. For aggressive traders or those with small positions relative to their total account balance with that account could “ride this out” and wait for lower prices to cover. It is still likely to profits can be made on these small short positions but those who have larger positions relative to the account balance are taking substantial risks that these bank stock short positions continue to move up for several days and erode much of the profits we have made in these the last 4 weeks.
So it is your own personal call how to handle this if you have gotten this much of a percentage loss without a stop loss of some sort activating. My own personal strategy would be to ride it out if it is a small position (less than 15% of your total account balance) and play the odds that banks cool off after this buying frenzy but these bank stocks are likely to go up first before they begin to break down. The type of trading action that is likely to happen with these banks after this type of historic action by the Federal Reserve is likely to be a slow downtrend at first followed by some fairly aggressive selling in a couple weeks of time. In other words, there will be more buoyancy in this sector for some weeks until it breaks down.
The US Government’s actions are best described as a win-win-big loss but we won’t realize the consequences until later. The analogy is that military doctors and nurses are treating war wounds of a soldier and they are trying to stop the worst bleeding first, shock , then moving on to the multiple gunshot wounds, and then blood loss. The Federal Reserve is probably working on the multiple gunshot wounds at the moment.
The insurance sector, PRU and MET were just as strong as the banking stocks today. Their concern is the same with the toxic assets of mortgage backed securities and the looming possibility that more capital reserves will be needed. MET really spiked up today 21% and gives us the best possible trade in this sector. Note the insurance, financial, and banks are in the same sector and are likely to move together and may overweight your positions in financials.
Oil is finally getting the attention now and moving up as it should have. Before the peaking driving comes prices for gasoline will likely go higher and any further reductions in output or inventory supply could move oil up further.
Intermediate Trade Positions: New ideas: SKF, Proshares UltraShort Financials ETF. The price is currently $105 and by buying this ETF, you are actually short the banks and financial stocks. It is very conceivable to see this move to $160~175 a share in the coming weeks. This is an excellent idea and is worth a small position that is purchased in several orders.
Swing Trades: New Ideas: MET, Metropolitan Life was up almost 21% today and is clearly overextended. If you aren’t short the insurance group, this would be a very good idea. Look for a little higher move at the open or let the stock drop a little then see how strong of a pop there is before opening the short position. It is often a good way to gauge the strength of the stock before opening a short.
This would be an excellent stock option play, especially if MET goes higher before opening a short position with stock or long a stock option put. Consider the June 25 puts under $4.00 per contract. Give yourself plenty of time.
Day Traders/Intraday stock ideas: The drop and pop was more like a shallow drop and huge pop occurred. We are going to see very big drop and pop opportunities in insurance and banking stocks the next 2 days. As stocks move down, you should wait longer and longer before buying the bottom for a long scalp. FSLR, HUM, UNH, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, FSLR, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. Look for short scalp set-ups in ICE tomorrow.
NOTES: REPEAT: We are entering a cycle where we could be substantially on the sidelines because most of the high probability trade ideas have matured and profits been realized. The odds change as stock ideas mature. Doing nothing in the business of investing or trading is just as valid as making a move going long or short. So it looks like the odds are shifting toward being in more and more cash as we just harvested many long positions. 
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and I’ll talk to you this weekend.

News From the Web

The stock market had an average down day with the Nasdaq Composite down the most at -2.6% but it has gone up the most. The S&P-500 dropped 2% and the Dow30 down 1.87% on Friday. The market is set up to open down tomorrow with the Asian markets down over 2% so far and the financial news headlines are clearly negative.
The Obama Administration forced out Wagoner at GM, General Motors as the government control taking a clear step away from capitalism but with the government is the biggest contributor of funding to GM.
The Treasury Secretary Geither has been on the talk show circuit lately to talk up the optimism of the government’s prospects for rebuilding the economy and today’s appearance on ABC’s “This Week” debatably could be interpreted as a slight positive for the banks for Monday’s opening.
The most likely scenario is a shallow pullback that may have started Friday and if we get several down days with a couple of them starting to scare investors again, then it could be we have more than a shallow pullback.
My current thinking is that we get this shallow pullback over this week or two which would give some of those who are still short banks to cover their short positions, followed by some fairly aggressive buying to higher highs than we have seen last week.
In anticipation of a continuation of this rally that started two weeks ago, we are preparing a collection of stocks that are considerations for long-intermediate term positions that evaluated both on technical, trading action and with some fundamental considerations. These are only to be watched in anticipation of what might be another move up in the market that could start up as early as next week but these stocks are not ready to buy yet. Just start studying and watching them.
Breaking news 936pm Pacific time: About 10 minutes ago, an AP article headlined “Obama denies bailout funds for automakers” was released with the article explaining that neither GM or Chrysler has submitted an acceptable plan to receive more bailout money. The Asian markets have reacted immediately with more selling and now are down more than 4% so far. This will definitely add a more negative opening and tone for the market this week which will help our 11 short positions vs. 5 long.
The market is not likely going to react with an extreme negative reaction on this GM news like we have seen a handful of times these past 5 months because the market has heard this news before. Stocks don’t react twice to the same news with the same extreme; the second time the reaction is more muted but it should give a reason for investors to start selling.
Oil moved down 2.1% to close at $52.06 per barrel for light sweet crude. A mild correction is likely or what technicians call consolidation before higher highs could be made.
Intermediate Trade Positions: Collection of stock ideas to consider buying long after pullback is completed:
UTX, United Technologies
MA, Mastercard
IBM, International Business Machines
TNH, Terra Nitrogen
BIDU, Baidu
AMZN, Amazon.com
BMC, BMC Software
RAX, Rackspace Hosting
SY, Sybase
RIMM, Research in Motion (SWING)
CIEN, Cienna
CREE, Cree Inc
DIOD, Diodes (semiconductor)
SWKS, Skyworks (semiconductor)
UEIC, Universal Electronics
RADS, Radian Systems (SWING)
FCX, Freeport McMoran
GS, Goldman Sachs
MS, Morgan Stanley
MRVL, Marvell Technology
WFR, Memc
S, Sprint
GOLD, Rangold Resources
CMG, Chipotle Mexican Grill (MacDonalds subsidiary,SWING)
BKE, Buckle Apparel
ARO, Aeropostale
DNR, Denbury Resources (Oil & Gas)
NOV, National Oilwell Varco
PBR, Petrobras
USO, US Oil Index ETF
DBC, Commodity Index ETF
GSP, Total Return Index ETF
SMH, Semiconductor ETF
REPEAT: Let market pull back before getting too heavy in LONG positions. Stocks that have been the strongest and pull back the least amount with more of a sideways action are the ones to be watching for long intermediate trades.
Swing Trades: New Ideas: BIG, Big Lots discount stores. This is not ready yet, wait until pullback is over.
Day Traders/Intraday stock ideas: Look for a bigger drop with the negative opening and take longer with more patience before buying any pops tomorrow. Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. Note FSLR was up on renewed interest in solar stocks and a contract awarded to FSLR.
IMPORTANT NOTICE: You are currently paying $59 a month for The Daily Stock Report to be delivered to you via email and full access to all reports and videos in the Members Area at www.TradeStocksAmerica.com. Your fee will never go up as long as you remain a member but you will see that our rates for new members will go up substantially over the coming two months. Be assured that your rates as current subscribers will not change. If you know anyone that is considering subscribing to our service, please let them know to consider subscribing at the current rate.
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and I’ll talk to you this tomorrow.

News From the Web

Fear has returned to the markets so the few weeks up the uptrend is decisively broken in all indices. The Dow30 was down -3.27%, NASDAQ Composite -2.81% and S&P-500 down 3.5% for the day. These types of sharp down (or up) days are usually signals that a downtrend is beginning and can be reliably used as a sign that more selling is to come in the coming weeks.
Asian markets opened up slightly and have sold off in the last 5 hours to negative territory. It may be that Asian stocks get de-coupled from our markets with the news on North Korean having a missile on the launch pad and using the US journalists as bargaining chips. Japan, US and South Korea have sent warships to the region.
Now the focus for us is to watch how far down this pullback is and since the news has primarily been the sentiment indicator to watch, we will continue to watch for a change. Try to remember this– that in a steady uptrend in a good bull market (or a bull run within a bear market), the environment is one of a complacent, comfortable and stable environment with up days that are small and sustainable.
Toward the end of a bull run, investors and money managers are almost lulled into thinking that there is nothing that could go wrong and the sentiment shifts that 65% of investors, advisors and managers believe the bull market will continue. That is the ideal time to start selling your long positions when an extended bullish sentiment actually causes an overbought situation.
The opposite is true that the “peak time of fear or despair” is the time to start buying. We are not near either one of these extremes but we are still currently looking for this correction to turn into a shallow pullback that stocks could rebound and possibly catapult off of to higher highs made last week.
We continue to add to the “dream team” stock list of candidates to buy long. Mostly they are made up of intermediate term trades with some swing trades and in sectors that were strong these past months.
The most likely scenario is a shallow pullback that may have started Friday and if we get several down days with a couple of them starting to scare investors again, then it could be we have more than a shallow pullback.
The housing stocks started turning down and the SRS, Proshares Ultrashort Real Estate ETF spiked today by 9.4%. We are likely to see more declines in the housing stocks with LEN, Lennar reporting below expectation earnings after the market.
Oil moved down sharply with a 6.7% drop to close at $48.55 per barrel for light sweet crude. A little more attention on oil prices but this is likely a good opportunity to consider long positions on this bottom.
Intermediate Trade Positions: No new positions; holding short positions in banks and insurance companies. We will be adding to the collection of stock ideas below to consider buying long after pullback is completed: Keep studying these stocks, charts and fundamentals.
UTX, United Technologies (Swing)
MA, Mastercard
IBM, International Business Machines
TNH, Terra Nitrogen
BIDU, Baidu
AMZN, Amazon.com
BMC, BMC Software
RAX, Rackspace Hosting
SY, Sybase
RIMM, Research in Motion (SWING)
CIEN, Cienna
CREE, Cree Inc
DIOD, Diodes (semiconductor)
SWKS, Skyworks (semiconductor)
UEIC, Universal Electronics
RADS, Radiant Systems (SWING)
SWHC, Smith & Wesson
FCX, Freeport McMoran
GS, Goldman Sachs
MS, Morgan Stanley
MRVL, Marvell Technology
WFR, Memc
S, Sprint
GOLD, Rangold Resources
CMG, Chipotle Mexican Grill (MacDonalds subsidiary,SWING)
BKE, Buckle Apparel
ARO, Aeropostale
DNR, Denbury Resources (Oil & Gas)
NOV, National Oilwell Varco
PBR, Petrobras
USO, US Oil Index ETF
DBC, Commodity Index ETF
GSP, Total Return Index ETF
SMH, Semiconductor ETF
REPEAT: Let market pull back before getting too heavy in LONG positions. Stocks that have been the strongest and pull back the least amount with more of a sideways action are the ones to be watching for long intermediate trades.
Swing Trades: New Ideas: Keep waiting longer: BIG, Big Lots discount stores. This is not ready yet, wait until pullback is over.
Day Traders/Intraday stock ideas: Look for a bigger drop with the negative opening and take longer with more patience before buying any pops tomorrow. Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. Note FSLR was up on renewed interest in solar stocks and a contract awarded to FSLR.
IMPORTANT NOTICE: You are currently paying $59 a month for The Daily Stock Report to be delivered to you via email and full access to all reports and videos in the Members Area at www.TradeStocksAmerica.com. Your fee will never go up as long as you remain a member but you will see that our rates for new members will go up substantially over the coming two months. Be assured that your rates as current subscribers will not change. If you know anyone that is considering subscribing to our service, please let them know to consider subscribing at the current rate.
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and I’ll talk to you this tomorrow.

News From the Web

Even though the markets were up today over 1%, the odds are still in favor of a pullback that started last Friday. Markets don’t go straight down to our target price without what is known as backing and filling and today is exactly that, a partial “filling” of the sizeable drop we had yesterday. If the market triggers lower tomorrow and accelerates on Thursday we could get some aggressive selling that may scare the public, again.
If you are position trading, like we have done with the short positions of the banks and life insurance companies, we are partially making assumptions that the down trend or bear market trend is still intact and the recent tradable rally we saw start 2-3 weeks ago was only a countertrend rally. We look for evidence that conflicts with that assumption and try to be flexible enough to change opinions according to what the evidence presents us. As any good trader or investor, I try not to “hope or wish” for anything specific except for making good decisions and following procedures. My hope and desire is that I can teach you this.
There isn’t any specific news to drive the markets one way or another except to say the Japanese market is up on prospects that GM and Chrysler will be forced into bankruptcy.
We are in a holding pattern with the current short positions. There aren’t any moves we should be making except for intraday trades (in and out the same day) so don’t get impatient at this point and do something dumb. Let’s keep adding to the “wish list” below of stocks that we want to be long in that may last for more weeks than what we just saw.
The housing stocks accelerated its decline today with LEN, Lennar leading the way down and yet the SRS, Proshares Ultrashort Real Estate ETF dropped today by 13.3%, go figure.
Oil had no change today and will likely follow the market as it has been for the last 6 months.
Intermediate Trade Positions: No new positions; holding short positions in banks and insurance companies. Just keep looking for high quality stocks that have been acting well and this will be our “go to list” when stocks go on sale. It is kind of like looking for better and better sales on merchandise we have been wanting to buy in a store. We can see them putting the merchandise on the tables and writing signs about deeper discounts but haven’t posted them yet. So keep building your own wish list and have them standing by ready to buy if or when the markets get blood ugly and ready to buy. Keep studying these stocks, charts and fundamentals.
UTX, United Technologies (Swing)
MA, Mastercard
IBM, International Business Machines
TNH, Terra Nitrogen
BIDU, Baidu
AAPL, Apple Computer (SWING)
AMZN, Amazon.com
BMC, BMC Software
RAX, Rackspace Hosting
STEC, Stec (SWING)
SY, Sybase
RIMM, Research in Motion (SWING)
CIEN, Cienna
CREE, Cree Inc
DIOD, Diodes (semiconductor)
SWKS, Skyworks (semiconductor)
UEIC, Universal Electronics
RADS, Radiant Systems (SWING)
SWHC, Smith & Wesson
FCX, Freeport McMoran
BR, Broadridge
GS, Goldman Sachs
MS, Morgan Stanley
MRVL, Marvell Technology
WFR, Memc
S, Sprint
GOLD, Rangold Resources
RS, Reliance Steel & Alum.
CMG, Chipotle Mexican Grill (MacDonalds subsidiary,SWING)
BKE, Buckle Apparel
ARO, Aeropostale
DNR, Denbury Resources (Oil & Gas)
VQ, Venoco (low priced oil & gas)
TLM, Talisman Energy (Oil & Gas)
NOV, National Oilwell Varco
PBR, Petrobras
USO, US Oil Index ETF
DBC, Commodity Index ETF
GSP, Total Return Index ETF
SMH, Semiconductor ETF
REPEAT: Let market pull back before getting too heavy in LONG positions. It could take several weeks before this bottom is well established. Stocks that have been the strongest and pull back the least amount with more of a sideways action are the ones to be watching for long intermediate trades.
Swing Trades: New Ideas: Keep waiting longer: BIG, Big Lots discount stores. This is not ready yet, wait until pullback is over.
Day Traders/Intraday stock ideas: Look for a bigger drop with the negative opening and take longer with more patience before buying any pops tomorrow. Look for good intraday trades in FSLR, ICE, BLK, CME, POT, MON, MOS, AMZN, AAPL, BIDU, USB, WFC, JPM and any high volume, high volatility stocks. Note FSLR was up on renewed interest in solar stocks and a contract awarded to FSLR.
IMPORTANT NOTICE: You are currently paying $59 a month for The Daily Stock Report to be delivered to you via email and full access to all reports and videos in the Members Area at www.TradeStocksAmerica.com. Your fee will never go up as long as you remain a member but you will see that our rates for new members will go up substantially over the coming two months. Be assured that your rates as current subscribers will not change. If you know anyone that is considering subscribing to our service, please let them know to consider subscribing at the current rate.
REPEAT: Many of you have emailed me with questions about not having the $25,000 to do intraday trading. You can have 3 intraday trades in a 5 business day rolling period without having $25,000 in your account. Above $25,000 you can do unlimited intraday trades as long as your account equity is above $25k. You can have swing trades like we have been having the last 2 weeks and make a smaller amount of money, let’s say $10,000, to build up with swing trades.
Thoughts: Keep steady, calm, decisive, aggressive. Have no fear and no greed. Keep looking at what to be doing next in a calm manner. Don’t focus on the past or beat yourself up what you did or didn’t do or what you should have done. Just keep playing the next shot, which in this business your next shot could be just sitting on the sideline.
I am still expecting some sort of substantial rally in the stock market sometime this year mostly driven by the massive stimulus that has already been poured into the system plus the planned stimulus package being proposed now. Longer term though, in a couple years down the road, no doubt the taxpayer is going to have to pay for such the high debt amounts that the US government (and other countries) have taken on. So tax rates probably will rise in coming years, interest rates will very likely have to rise as inflation surfaces and likely the bear market resumes sometime down the road. But we don’t have to be stuck in a miserable cycle like most investors. With the techniques and approach to the market, we will still thrive.
If you have been uncomfortable shorting stocks, which most people are, try to learn this technique, it will be a useful tool in the coming years.
When I list several stocks from the same sector, like the housing industry for example, don’t short all of them unless you are well diversified and it represents a small percentage of your total stock account (in that same account).
Thoughts: Best odds only, be decisive, aggressive, mentally flexible, stay in position size, don’t overtrade and wait a little longer to buy and wait a little longer to sell. You will find that will make you more money on your trades. Trade what you see, not what you hope for. Intermediate and swing trades are really important to have trailing stop losses set.
Don’t trade unless the setup is there for you, then use the charts to tell you when the odds are heavily in your favor. Don’t force anything to work for you, let the setups develop and then take advantage of that. Be patient. Stay in position sizes without letting any intraday trade represent no more than 10-15% of your total account value. As you build your account, your position size percentage should get smaller and smaller to lower your risk.
Have a great day and I’ll talk to you this tomorrow.

News From the Web

Even flyer printing could not be separated from sway of seven deadly sins. Though lust, gluttony, greed, sloth, wrath, envy and pride â?? those traditional seven sins are meant here. Flyer designing and printing has its own seven vices or seven â??donâ??tsâ??. When the initial magnetic pull is strong to linger longer upon peopleâ??s mind for several weeks, it is easy for them to recollect flyer components and content. Business owners more often succumb to seven avoidable mistakes or â??sinsâ?? that lay ill effects on their flyers, lessening traffic pulling potential. The only way to avert is to be aware of those and degree to which there can affect your flyer printing endeavour.

Now that you are aware of most common and fatal mistakes of flyer printing, make sure you do not omit these points to create an erroneous flyer that simply turns people off.

News From the Web

You’ve heard the buzz about the government handing out grants for debt relief, but is it really legitimate? Would Uncle Sam actually give you money that doesn’t have to be repaid, just because you are in debt? The answer to that is, “Yes”. Believe it or not, if you are suffering with debt that you can’t repay due to current economic conditions, then you may qualify for a grant.

These grants are available, however due to lack of awareness citizens do not realize they can get them. Every year the government earmarks billions of dollars for the use of grants. Many people do not realize that these grants are available for individuals, so they never pursue applying for them. The truth is if you are in debt and can prove that you are unable to repay your debt with your current financial status, you may qualify for a small business grant. With this grant, which you do not have to repay, you can start a business and potentially have the ability to not only repay your old debt, but put yourself back into the green.

Not only are there small business grants, but there are also grants that help you repay hospitalization cost if you have suffered from an unexpected illness, car wreck, etc. Many people in the US today have outstanding medical expensed. The rising cost of healthcare has taken a toll on the average citizen’s wallet.

Don’t delay in taking the next step toward the application process of a government grant if you are in a situation that could use help. There is an allotted amount of money and it is first come, first serve.