Baby Bears Have No Chance Against This Stampeding Herd

The market started a baby downtrend channel last week. The top of the channel will open on Monday at 3572. Here in the premarket around 5:30 AM in New York, that trendline was being challenged as, once again, Asia and Europe have rallied. This report shows you what to look for this week as it affects the longer term outlook.

Meanwhile, the after effects of the disastrous Pfizer gap of November 9 are receding and list performance is recovering nicely. The average gain rebounded to +5.6%, with an average holding period of 11 calendar days.

I have adjusted trailing stops on all but one pick. All ten existing picks are longs. I’m adding 6 new picks this morning, including 4 shorts and two longs. Entries will only occur within the order price brackets, and, if so, are assumed to take place at 9:45 AM. With these gap openings becoming common, that has been a better entry time in the morning.

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Chart pick performance changes week to week and past performance may not indicate future results, as you know.  Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance. These reports are for informational purposes for experienced investors and traders. 

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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