How to surely avoid the market risk ?

How to surely avoid the market risk ?

I have always thought this question! Here is what I got so far:

• Being alert! Run away once some danger signals show up.


• Hedging.


• Diversifying.


• Make sure all your positions are free. You can realize a zero-cost portfolio through many short term tradings as well as option tradings.

May be more later.

What a great day today!!

What a great day today!! Really wonderful !

CLFD flies up more than 20%, with low volume. I spotted it here when it is ~1.10, now almost doubled. It is still in my 10 baggers list.

Another 10 baggers list TYPE up more than 18% today !

Another shining star, VRTU, broken out 8 today with more than 7% gain ! The initial post of VRTU is just several days ago.

More important, QID broken down 32 now, will head to 30 again as predicted.

Enjoy your time !

NGD - some analysis

NGD - some analysis

the initial post of NGD can be found here.

Here are some technical comments from the chart:

• 2 red lines are bull's supports


• Once 3.3 is broken out, then 6.5 is the target


• If broken out 6.5, then should be a nice climax home run ....

The bottom line: gold price should stay well in shape.

Broken out of the resistance, as predicted yesterday.

Broken out of the resistance, as predicted yesterday !

Yesterday I have mentioned the resistance, namely the green line, here. I also predicted it will be broken out last night! Here is the link to the prediction. Today my prediction is fulfilled ! That's the power of chart reading !

I also shared my view on QID and FAZ. I hope you have sold QID when it hits 35, as predicted. Don't worry that you may not be able to buy it back later at much cheaper price. Today, QID almost broken down 32. That's 3 dollars a share in just 3 days. If you short QID with options, much more profits.

I expect QID may retest 30's support again very soon, and QID will have a good chance to break down 30, if not 100% sure !

Unless the red line, which is drawn in the NASDAQ daily chart, is broken down. Being a bull is a safe play now.

Today is a beautiful day, really a very very beautiful day ! Enjoy your time !

A very very interesting chart -MGRM

Here is a very very interesting chart, MGRM's daily chart !

Look at the gap and how well it is holding, and the volume !

The reason for the huge gap is because MGRM will be buyout at $4.55 a share.

If so, who is buying at or above 4.5 ???

Very very interesting chart !

Bold forecast: the breakout of the resistance is very likely

Bold forecast: the breakout of the resistance is very likely !

The resistance for the bulls are drawn in the chart below as a green line. I predict, today, that this resistance line will be breakout very soon, if not tomorrow.

The resistance line is initially plotted here two days ago. Here is the initial post. Today's market action showed the beauty of the technical analysis again ! Guess what ? The resistance line provides the high point of the day !! Isn't it amazing ?!

How to protect the profits

Here is an example, CLFD, once the red trend line is broken down, take the profits.


When the correction target, about 1.34, is reached, then buying back again.

Always remember:

• breakout successfully, then long it
• breakdown successfully, then short it

CLFD is in our 10 bagger's list, and I will keep it there because I think the company's fundamentals are still pretty good.

What a nice day today ! FAZ ---> $2 and QID ???

I told you guys to sell QID at 35 before.

Here is the post where I said once sold QID above 35, you can buy it back at lower price for sure.

Here is the post before I predicted and increased my QID's target to be 35 for this run up, but then QID will go down.

Here is the initial post that QID will run to 34 soon.

Another crazy prediction I made before is: FAZ will head to $2, where I will buy in FAZ. I am still patiently waiting for the $2 bench mark of FAZ.

Enjoy the day !

A wonderful time !!

Bull's hope again ?

Today's bounce back leaves some hope for the bulls. See the chart below:

However, for a sustainable run up, bulls need:

• breakout the resistance, which is drew here yesterday.
• Holds well above the new support line.

For the next rally up, if it comes as planned, I expect a new high high than 1879.92.

We have pointed out before the bears target in NASDAQ is about 1770, namely, filling the gap. So far this goal is achieved.

My target of QID at 35 also becomes true today. So I took profits on QID once it is above 35. I believe I have the opportunity to buy it back at lower price later. Here is the link where I increased my target of IQD from 34 to 35.

Another breakout chart setup -SVA

Another breakout chart setup -SVA


The H1N1 flu play. Let's see if this time, SVA can successfully breakout ?

PPCO-after the successful breakout

PPCO - after the successful breakout




Other successful breakouts charts are available here.

Other failed breakouts charts are posted here.

The market correction continues

The market correction continues

Here is the guide line - down trend line- in the NASDAQ daily chart. Unless the newly formed down trend line is broken out, stay in the market as a bear is safe play for the game now. I have increased my QID target to 35 last Tuesday. Today QID almost hits 35. Isn't it wonderful ! Here is my call on QID last Tuesday. When we are looking back now at the chart, isn't it wonderful ?


Today the moving pattern of QID makes me very happy. I am also very glad last Tuesday I have spotted the beautiful chart setup of QID - A beautiful chart set up - I hope you didn't miss the post and the QID train. However, don't be greedy !

Some other noticeable information from the chart:

• RSI broken down 50
• last week's 3 day up channel is broken down with a gap

Again, the conlcusion is the pulling back may continue until the newly formed down trend line is broken out successfully. being alert. But I don't think now heavily shorting the market is wise because I still think another leg up is still very possible before we really heading down.

Anyway, keep watching the newly formed down trend line, as marked in the chart.

A failed chart set up example

A failed chart set up example
ADLR's chart pattern set up failed, it broke down. Technically, it will o down to ~1.5.

Another possible breakout play -VRTU

Here is another possible breakout play -VRTU

Below is the chart:



Will it breakout successfully this time ? Let's watch and learn !

A bearish day today

A bearish day today ! Black Monday again !

The up trend formed last week in the NASDAQ daily chart is broken today with a gap ! The bearish force seems very powerful!!

I think today is a bearish day today.

Euro trended down to ~1.38, and oil is down to ~67. Gold is down to ~ 921.

QID has a big jump this morning. It seems when QID drops below 33, it is a good buying opportunity, at least you can sell it at a higher price (above 33) with some quick profits.

As time passes, it seems our spotted top before is a good shot. Here are the words posted before :" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. "

Enjoy !

Three secret words of sound investment

Three secret words of sound investment, from the legendary investor Benjamin Graham, are:

Margin of Safety

These are wise words, if not the most wise words, for all seasons, I think.

When it comes to managing money, in practical terms, the key question is:"what is the downside ?"

If the unthinkable happens, can you weather the storm ?

These three secret words of sound investment provide a simple, but profound approach to managing risk: to maintain a margin of safety !

That's why I am always talking about diversifying, hedging, and saving. That way the consequences of being wrong on the trading decisions may be financially painful but never catastrophic.