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Thomas H. Kee Jr., is President and CEO of Stock Traders Daily. The Stock of the Week Strategy offered by Stock Traders Daily may be the best performing strategy on the market since December, 2007 (before the credit crisis), and "The Investment Rate" is arguably the best measure of the... More
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  • Making sure we get what we want. Lesson 1


    This is the first entry to a multi-phase lesson aimed at helping every control their emotions, control their risk, and remain in tune with their goals and beliefs over time.  This first phase will be followed by additional lessons, and the conclusion will offer an action plan to get us where we want to go.

    Lesson 1:

    I will start the lesson with an important question. 

    What do you really want?

    On a sheet of paper, list your goals.  At the end, we will come back and satisfy them.

    The question above asks us all to reach inside ourselves, and come up with an answer.  Reasonably, none of us will really be that much happier in the end if we catch a good run in a stock next week.  However, with structure, we could find happiness with sustained results over time, without looking for home runs.  I am trying to pull that truth out this week.  I received a response that I wanted to share with you.  The response was quite lengthy, but here is the answer that was provided to me:

    "...So to get to your point, what do I really want, it’s to be in control of my finances and to make a reasonable to great return on my time and money, still being in the game, but with a disciplined plan of attack that allows me to free myself for other activities. To be able to walk away from the screen and know that I am protected."

    Ultimately, I think that is why we are all here.  The reasons may be to fund our retirement, to put our children through school, or to maintain the life we have worked so hard for.  Those are the important things, and I think we all realize, a fast buck will not get us there.  So, how do we get there?

    The only way we can achieve our goal is to limit our actions until such time as our actions are aligned with our beliefs.  When our actions are in line with our beliefs (also known as our goals) a harmony will exist, and the result will be what you intend.  However, if there is no harmony between your goals and your actions, if you think one thing but are doing another, the consequences will eventually be severe.  For example, if your goal is stability, and a reliable return, but you are swinging for the fences and trying to pick the next big winner, your actions are not in harmony with your goal.

    That presents a serious set of questions, all pertaining to the goal.  Before I move ahead with this lesson, I want you to think about what you want again.  Ask yourself, and then add a second question.  After you determine what you really want, ask yourself if your current actions are in line with your goals.

    The Second Question:  Are my actions in harmony with my goals?

    Then, please send me your response, if you wish.

    I will continue this lesson tomorrow.  The objective is allowing us to get what we want.

     

    Tags: risk control
    Sep 02 9:25 AM | Link | Comment!
  • An Update identifies Support levels: FSLR
     On July 29th, we issued a report for First Solar pinpointing its test of resistance at that time.  This was a bearish signal, a reason to secure gains, and a short signal all built into one.  Since then, the stock has fallen dramatically.  Our report suggested that FSLR would oscillate from a test of intra channel resistance towards longer term support again.  Down has been its direction since that report.  Now, an update is warranted, because FSLR is getting close to that support level.

    Today's news is positive, but it may not mark a turning point for shares of FSLR quite yet.  Today, FSLR announced a contract to provide 550 Megawatts of Solar Electricity to Southern California Edison, a subsidiary of Edison International (NYSE: EIX).  This is a positive event, but more downside seems to lie ahead before FSLR begins to recover.  This, according to our real time trading report for FSLR.

    An Update identifies Support levels

    The data in our current report has been updated, but the general observations are the same.  FSLR is still in the process of declining towards longer term support, but now it is getting close to an official test.  If it tests support, and if support holds, our report will offer bullish trading signals, it will provide buy signals, and it will be a reason to cover short positions.  By rule, we buy near support, and sell near resistance.  This is basic trading 101.

    According to our updated report, FSLR has support at longer term parameter #1.  This is a dynamic report, and it updates over time, but you can review it for free.  If FSLR holds support, if it holds above longer term parameter#1, it is likely to increase all the way back to longer term parameter #3, or longer term resistance, offered in that same report.  The difference from support to resistance is 65%. 

    History tells us that FSLR moves fast when it gains traction, so all investors or potential investors should pay close attention.  Support is near.

    Updated FSLR Report

    Author has no position in FSLR.

    Tags: FSLR
    Aug 18 10:01 AM | Link | Comment!
  • Longer Term Update

    Our combined longer term analysis has changed.  The current charts paint a very clear picture.  They show us how far the recent recover has come, and they offer insight to how long it still has to go.  Pay very close attention to the longer term down channel resistance lines.  These are important.  Our combined longer term analysis tells us that the Market is in the process of oscillating from support to resistance.  However, most of the cycle is already realized.  Only about 25% of the cycle is left, according to our combined analysis.  In addition, because the longer term charts slope down, resistance lines will also decline over time.  This should be recognized.  As of 8.15.09 there was relative parity, but that can change.  With the neutral trend lines offering catalysts for the strategic plan, our boundaries have been clearly identified by the downward sloping support and resistance lines integral to our longer term charts.  Based on this combined analysis, we should expect the Market to trend higher from current levels, test longer term resistance, and then turn lower again.  Once more, because the slope is down, the decline from resistance to support is likely to be more aggressive than the increase from support to resistance.  This is true because the frequency of the oscillation period is longer as we transition down within a down channel.  IE, over time support gets lower, so it takes longer for support be tested, on average.  In any case, our combined longer term analysis paints a very clear picture.  Institutional investors and buy and hold investors should use this to gauge their future cash positions.  Our combined longer term analysis tells us that the forthcoming test of down channel resistance will be a major inflection point.  If the Market turns lower, it will also be a major sell signal.

    Aug 15 1:55 PM | Link | Comment!
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