|February 6, 2007
Good day to everyone! First things first, your eyes are not deceiving you — this email newsletter has changed its name from Hot Stocks Update to Trade Talk Weekly. (Wouldn’t it have been cool to have a trumpet sound effect upon opening the email??) But don’t for one second think that you’re not still going to get names of the latest and greatest hot stocks from yours truly. Nope—they’ll still be the top priority on my list.
God of the Markets
Some people think technical analysis is new. It’s not—it’s at least three centuries old. But it hasn’t always been applied to stocks. In the mid-1700s, a Japanese merchant named Munehisa Homma from a city called Sakata developed candlestick charts to predict movements in the price of rice. He became a very successful trader—some say he once made 100 profitable trades in a row—wrote books on his methods, and became a financial adviser to the Japanese government. Homma’s success earned him the nickname, “god of the markets,” and the candlestick charts he prospered from are still used today.
A candlestick is a way of showing prices in a certain time frame, such as a trading day. It is made up of a vertical line showing the range in price from its highest to its lowest and a rectangle resembling a candle marking the area between the opening and closing prices. This rectangle is called the “real body.” If the closing price is higher than the opening price, the real body is clear, or empty. If the closing price is lower than the opening price, the real body is dark, or filled in.
In itself, that doesn’t sound like much. But if you look at candlestick charts, you’ll see that variations in daily price ranges generate many different types of candlesticks. For instance, if the day’s price range for a stock is small, the candlestick line will be short. If the price range is large, it will be long. And if the open and close are the same or very close, the real body may be so small that instead of looking like a rectangle, it just looks like a horizontal line. (That line is called a Doji line.) The size and position of the real body on the candlestick line can indicate various market conditions, such as a price topping or bottoming out.
It’s just that now, you can expect even more. And I don’t know about you, but I’m all about MORE — as long as it’s a good kind of more, that is. And that’s what I intend to give you. Like? Like deeper insights into technical analysis, where it came from and why it works and more lessons on how you can put it to work to beat Wall Street and boost your portfolio profits! And there’ll be a lot more…I’m not gonna skimp on what I can give you ‘cause I want to give you a complete picture of what I do and what I can do for you!
So enough babbling—let’s get right to what I wanted to share with you today. You see that the title of this issue is “The Disconnect.” Okay, well, there’s a good reason for that. As you may have heard, this past week, oil had the biggest rally since Hurricane Katrina…the biggest rally in 16 months! EVEN though the price of oil is down 10% this month. But the biggest kicker—the “disconnect”—is that oil stocks (most of ‘em anyways) are UP.
Stocks are outperforming the commodity (in this case, oil). This is great for you and me.
Why is that? And how can you profit from this absolutely fabulous bullish trend? Stop reading. Start listening. Go here now.
Wanna get pumped up about some more stocks? Check out the rest of my site here: trending123.com to learn more. HINT: The only way you get an all access pass is to subscribe, but luckily you start off with 14 days at NO COST. Pretty sweet deal, eh? Check it out here
P.S. In an ever-changing market, it’s not easy to keep up or know what to do next. That’s why my priority is you. With timely analysis, multiple daily updates, stock charts, education if you need it and most of all, profits, you will always be “in the loop” on everything that matters. Whether you’re a seasoned pro, a rank beginner or somewhere in-between, you’ll find plenty to like at Trending123. Click here to find out more.
P.P.S. Stay tuned for my next edition of Trade Talk Weekly…coming soon to an email box near you!