Our First Red Flag

Wow,
I didn’t know the first signal (red flag) would come only one day after making this general market update.

022707_red_flag.jpg

“…we must be on the lookout for a signal or a combination of signals and red flags that could lead to a correction or downtrend. I am long the market but I am always aware of market cycles and I will be watching for signals so I am not telling anyone to sell at this time but I am warning all investors to be smart and listen to history.”

Look at the two charts provided, both of Chinese companies. MR is a great example of why I don’t set hard sell stops into opening bells.

022707_mr_daily.png

PTR is also an example of how I can take advantage of a possible market overreaction for a stock I still like long term. The risk to reward is great so I am grabbing shares. If it doesn’t work out – I will sell for a small loss.

022707_ptr_daily.png

Red flag number 1 has arrived!

022707_red_flag_days.jpg

Comments

  1. on the bright side, my buy order for MR at 24 got triggered 🙂

    Nice blog you have here.

    cheers

  2. Hi Chris — Is there an email address I can reach you at?

    Thanks.

  3. Melanie,
    I sent you an e-mail with my contact info.

  4. Chris,

    Since you mentioned yesterday that you were seeing weaker screens, what were the NH-NL numbers for 2/26? Did this indicator give a red-flag on a certain % drop that something was going to happen?

    Thanks.

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