Friday, March 25, 2011

  • AAII below 30 during minor market weakness will be enough for a rebound
  • AAII below 25 during major market weakness will be enough for a rebound
  • Volume MA (5 to 7) look for capitulation. Volume will increase exponentially. Recently volume has been declining steadily and then will increase for a couple days (>> than MA for that day), indicating a reversal. Use daily chart.
  • For big gains, look for GOOD products of companies who make real things whose MC < 8B
  • Don't buy when fear is greatest. Buy when your uncertainty is greatest. ie: when you believe there is a 50 / 50 chance of it going up or down.

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