Most Overreactions Lead to Opportunity

November 8, 2017 [Inside Trading] [TradeWins Publishing]( Follow Us: [VISIT OUR WEBSITE]( Other Exciting News A Special VIP Invitation Just For You Chuck Hughes invites you to join him for a special VIP webinar TODAY for free... [Wipe-Out Losses In 3 Easy Steps]( This will be the most exciting, fast-paced, content-rich training session you’ve ever attended. Everything you need to know will be fully revealed in easy-to-follow detail... Chuck leaves out nothing! Don't Miss It... [Click Here to Register]( Here are a few things you should know about today’s webinar... Thousands of men & women have paid $2,997 or more to learn the trading secrets Chuck is going to share with you in this FREE webinar... and they say it’s the best investment they ever made. In the past 17 years these strategies have earned $9.116 Million in live trading profits without a single losing year... not even in 2000 or 2008. And these strategies have earned Chuck Hughes 8 First-Place trophies in prestigious International Trading Championships... making him the winningest trader in history and proving these strategies outperform most every other strategy on the planet. Please, don’t underestimate the amazing gift you’re about to receive! You still have time... [Reserve Your Seat Now]( George Angell One-time West Coast contributing editor of Futures Magazine, George Angell is the author of eight books on the futures and options markets, including Winning in the Futures Markets, which has been translated into Chinese, and is still in print 28 years after its first publication. He was a Chicago floor trader during the Eighties and credits that experience for the success of West of Wall Street, which he co-wrote with S&P pit trader Barry Haigh during his Chicago years, and Sniper Trading, which tracks the valuable lessons he learned while on the floor. In recent years, he has turned toward trading small stocks. 'There are enormous sums of money to be made trading undervalued small stocks,' says Angell. A graduate of New York University, Angell currently resides in Key West, Florida which he considers the perfect antidote to the stress-filled years of the Chicago pit trader. Here's How to Make ALL THE MONEY YOU WANT By Making Simple… Exciting… Extremely-High- Profit Trades You'll discover this shocking secret yourself, once you open George Angell's book "Small Stocks… Big Profits" Even Better - you're also about to learn exactly Where the Next Fortune Lies I am going to reveal how you can make really big money even though you may not have much to invest. How you can discover an almost endless stream of stock market bargains that have tremendous upside potential… because they are not overbought and over-priced like the popular stocks promoted by analysts. In fact, I'm not talking about the stock market the way you think of it now. I'm not talking about a bunch of blue-chip stocks to "buy and hold" for the next 20 years. I'm talking about acquiring a fortune. What I'm talking about is completely different from "investing." I'm talking about making the kind of money that can set you free. A unique way of thinking about the market that can make your heart beat a little faster… and your wallet grow a lot fatter! Start Trading With [Small Stocks, Big Profits]( PROUD MEMBER [Better Business Bureau]( [Better Business Bureau]( Our Author Team Click on authors name to learn more [Adam Oliensis]( [Andy Chambers]( [Art Palmer]( [Brian Schad]( [Bubba Horwitz]( [Chris Borgman]( [Chris Verhaegh]( [Chuck Hughes]( [Connors & Hayward]( [Dale Brethauer]( [Dan Keen]( [Darrell Jobman]( [Dave Caplan]( [Don Fishback]( [Don Wellenreiter]( [Duane Davis]( [Ellie Taft]( [Gary Wagner]( [George Angell]( [Humphrey Lloyd]( [J. Welles Wilder]( [Jack Schwager]( [Jea Yu]( [Jeffry Dunyon]( [Jeff Horovitz]( [Joe Duffy]( [John Weston]( [Jon Najarian]( [Kathy Lien]( [Keith Cotterill]( [Kerry Given (Dr. Duke)]( [Larry Williams]( [Lawrence McMillan]( [Lee Gettess]( [Market Publications]( [Mike Batty]( [Mohan]( [Murray Ruggiero]( [Oliver Velez]( [Peter McKenna]( [Ray Frazier]( [Rob Roy]( [Russell Sands]( [Sherman & Tom McCllelan]( [Stephen Bigalow]( [Steve Swanson]( [Tom DeMark]( [Tony Catalfamo]( [Wendy Kirkland]( Dear Trader, Everyone has advice to give. But not everyone has advice worth listening to. For years, I was often told to, “Never buy a stock hitting a 52-week low.” But to be honest with you – that’s exactly when you want to buy. When everyone else is selling and becoming fearful of big named stocks, buy. As Buffett would tell you, be fearful when others are greedy, and greedy when others are fearful. In this issue, we look at several cases in which this is not only true, but can also be very profitable. Lee Gettess brings us our next segment with his weekly video newsletter analyzing the market for the upcoming week. Our featured author this week is George Angell. In his article, George talks about the momentum play. Last, Andy Chambers brings us his Weekly Market Line in the Sand Newsletter. Enjoy! Adrienne LaVigne TradeWins Publishing Most Overreactions Lead to Opportunity by TradeWins Publishing Every one has advice to give. But not every one has advice worth listening to. For years, I was often told to, “Never buy a stock hitting a 52-week low.” Or, stocks in downtrends tend to stay in downtrends. Or even that kind of trading is far too risky. It’s not safe. Or my personal favorite, “nothing is more destructive to investors than thinking a stock trading near a 52-week low is a good buy.” But to be honest with you – that’s exactly when you want to buy. When every one else is selling and becoming fearful of big named stocks, buy. As Buffett would tell you, “Be fearful when others are greedy, and greedy when others are fearful.” Or, as Baron Rothschild would tell you, “Buy the blood in the streets.” Or, as Sir John Templeton would tell you, “Buy excessive pessimism.” Look at solar stocks for example. In late March 2017, many were left for dead, ignored because of lower gas prices, concerns about phasing out government subsidies, and far too much debt. But as it turned out, most of the fear was already priced in. In fact, we could clearly see that with technical analysis. Look at First Solar (FSLR) for example. In late March 2017-early April 2017, the stock just fell to $26 a share from a high of $37. As it fell, relative strength (RSI), MACD and Williams’ %R became aggressively oversold. It was a clear indication momentum was too bearish. Any one that bought at that point watched as FSLR doubled from its low. Canadian Solar (CSIQ) saw the same technical setups, running from $11 to $18. [Most Overreactions Lead to Opportunity]( Lee Gettess' Market Sense by Lee Gettess Lee Gettess is a top trader who is excited to bring you his video newsletter. Each week, Lee will share his predictions on what he anticipates from the bond and S&P markets. [Watch Video]( The Momentum Play by George Angell The following is an excerpt from George Angell's [Small Stocks, Big Profits]( This strategy is not for the faint of heart – but, the truth is, this is what often wins the game. This is an aggressive strategy that requires the investor to spend a lot of time on the sidelines waiting to strike when the iron is hot. Too often you will find that you are fully invested in stock A when the real opportunity exists in stock B. Your problem: your money is all tied up in stock A. So if you want to be properly prepared, keep your powder dry. There are two keys to capturing a powerful momentum play: price and volume. Since most moves are good for at least three days (remember the rule of three applies to a number of situations in the market), you must be willing to move quickly. A larger percentage gain is typically the first sign of a good momentum play. Moreover, this will often manifest itself as a breakout. This, by the way, is why this strategy is so difficult to implement. Do you really want to be a buyer of a stock at a new high? A lot of investors find this psychologically hard to do. Second, you want high volume, far in excess of normal volume. The price percentage move and volume reading are relatively easy to identify. The hard part is pulling the trigger. One way to capitalize on this strategy is to be prepared to take the position before a signal is given. You might track a given stock in anticipation of the momentum signal. Once the stock is in play, you must then, without hesitation, jump aboard the move. The time to spot a momentum trade is when the stock is coming down and the rate of descent begins to slow. At first, the price will begin to consolidate; this is the phase where the momentum is clearly changing from down to up. Next, the stock will experience accumulation by those investors in search of an undervalued opportunity. Within the consolidation, look for a saucer pattern to form as prices begin to move sideways above the support. At this stage, the stock is poised to breakout and move up on higher volume. Ironically, a classic sign of a stock getting ready to move significantly higher is when prices drop to new lows. This is the point where all hope for higher prices is lost. The last sell-stop has been hit and the selling palpable. Here you want to track the stock’s behavior carefully. If indeed all hope is lost, you should have even lower prices. You may have just registered a low in the stock’s price. But if there is a quick move up, with the stock perhaps closing at the top of its day’s range, you have a classic reversal trade – a truly strong reversal that will attract momentum players. The point here is: a move that doesn’t behave as anticipated signals a reversal. For example, in the case of Pelican Financial, Inc (PFI), as shown on the chart below, the stock made a sustained move from the 52-weeks highs at $7.40 all the way down to the $5 area – which proved to be the bottom of the move. [The Momentum Play]( Weekly Market Line in the Sand by Andy Chambers The following is an excerpt from Andy Chambers' [Weekly Market Line in the Sand]( Every week Andy publishes his “Weekly Market Line in the Sand” newsletter. The following are trade updates from his most recent issue. S&P E-Mini Futures Weekly: The trend is up and the bulls have the momentum. The next targets are 2600 and 2650. A weekly close below last week’s low of 2541.50 could result in a further decline. The next support beyond that is seen at 2520. DIA Weekly: The trend is up and the bulls have the momentum. The next targets are 240 and 250. Initial support is seen at 224. The initial hurdle for the bears is seen at 215.73. On 8/13 we said: We want to buy the DIA January 19, 2018 220 Put at the market. 8/14-Bought to Open at 7.55. SPY Weekly: The trend is up. The next targets are 260 and 270. A weekly close below last week’s low of 254.00 could result in a further decline. The initial hurdle for the bears is seen at 241.83. On 8/13 we said: We want to buy the SPY January 19, 2018 240 Put at the market. 8/14-Bought to Open at 6.46. To Learn More [Click Here]( PLEASE READ. Past results are not necessarily indicative of future results. There is a substantial risk of loss trading commodities, stocks, bonds and options with or without this or any other advertised product, service or system. Also hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. If you wish to stop receiving our emails or change your subscription options, please [Manage Your Subscription]( TradeWins Publishing, 528 North Country Rd., St. James, NY 11780 If you'd like to unsubscribe and stop receiving these emails [click here](.