Monday, May 4, 2009


First of all, I racked in a solid 12% MTD May gain so far. You should be around there, unless you went short. Don't forget this quote from Keynes: "The market can stay irrational longer than you can stay solvent. My only two critera to short is either on a huge exhaustion gap up via a black filled bearish gap up -or- a major breakdown greater than -3%, intraday or pre-market. Both must be executed on massive volume. Keep that in mind.

Second, I totally expect a pullback, most likely a doji day. This is necessary after a major move. I want to push these $1-3 stocks to the limit, therefore I will not be selling (as of now). If you don't like pullbacks, then you better mentally prepare for one. I recommend that you go out and watch Wolverine sometime during the day. I heard it's a great movie. The important thing is to not get freaked out and ask me all sorts of questions that will waste my time. Stick to your plan and let the charts make the decisions for you.

Congratulations to everyone that scored huge today. And also congrats to my special group of peons who followed me into PQ, XTXI, and XTEX for the day. If you noticed, these stocks (along with CPE and WRES - swing trades) do not move in tandem. They move in a particular sequence. PQ moves first, then XTXI, then XTEX, then CPE and WRES. Likewise, PQ was the first to pullback, and those stocks listed above pulled back exactly in the same order. This anomaly started on Friday and I caught it during the last half hour that day. Don't believe me? Ask RC. He was trading with me live Friday and today. These inefficiencies are rare, but the profits are totally sick and very easy to obtain, as you can see.

Don't forget - expect a pullback. If any of my stocks actually gap up and spike, I will sell them. This dollar stock circus cannot last forever.


brunomasson said...

Hi John,
Great job you do on your site, but where do you put your transactions during the day?

John C. Lee said...

bruno -