did you see how IBD answered their own question?

I rest my case.

Listen, you can get upset that I answer harshly but everyone keeps "assuming" things on the charts that are not there. I have to call EVERYONE out including Market Speculator when they see things that are not there. If you stop worrying about the way I respond and take the message like a good trader is supposed to do you will be making the kind of money that is only dreamt about.

If you don't need me that is fine. But I remain true to my style. If I get asked questions about stocks I am going to respond to them in the full harsh truth.

Truth is MFA is a nice chart but it is no HANS.

Also if readers are scared to ask questions and get a REAL response then they will have to go learn on there own. If that is the case then I succeed.

THIS IS HOW ALL PROS WHO TRADE STOCKS LIKE I DO FOR A LIVING RESPOND TO QUESTIONS ABOUT CHARTS. They are going to come in floods eventually. I am one of the most patient traders you are ever going to meet. I am doing this for another 70 yrs. I have a lot of time on my side.

Notice how my blog sounds a lot different than my responses to questions?

Has anyone ever read RevShark's responses to readers questions and statements? SAME THING. THE EXACT SAME THING. You can either read it and say..."sheesh what a jerk." Or you can read it and say "hey maybe this guy knows something and if i just keep it as simple as he does maybe it could work."

Nothing about the MFA statements that I have typed do I find offensive or aggressive. I have noticed people become defensive once they are proven their analysis was wrong. Get over it, like I do.

No topic that ever gets started is ever thought to become a HUGE topic. They all have a way of becoming their own entity.

Also do you guys ever read the Columnist Conversations on realmoney.com? SAME THING. Amongst pros!

I love this. I love charts. I love dialogue. I love this site.

I think this market is making some people a little antsy.

Just remember patience and cash is king right now.

Josh,

How about CFK?  The last couple of days on daily chart it pulled back on lower volume.

ugly chart. very sloppy and choppy and doesnt have enough green in it for me to be interested. This base is horrible and full of flaws.

NOW....saying that it very well could right itself and tighten up and become a very nice base. The starting point is this recent base. The volume is quiet in the base. That is a positive along with the lower low in July. This has an appearance of a double bottom base. The only problem is all the red in the chart. It is still too ugly for me, for now.

However, anything could happen and this could fix itself.

For now it is a SCREAMING AVOID. Just compare this stock to a stock like CXW. Do you see the difference in the color of the charts. This is what CXW and FORR looked like before the buy.

I just read Perter's book, he mentioned that his boss asked him to only invested in less than 20 stocks.  But he ended up with buy 120 stocks in the portfolios. This remind of Josh, O'Neil stated in the book, concentrated on a dozen of stocks, Josh take more than 100.  Both works !

Josh, do you use time stop, Jess usually give 2-3 for a stock to work out, if it doesn't move,. he cut and move to the captial to somewhere works

Josh, would like to take Dltr before it moves TWO days ago.  I do like this NOT too tight down slope channel, this shake out a lot of weak hand.  Then it start to make a series low-high.  The reason I asked is that it is not cup and hand, it is not double bottom, however, ...

I use time stops in relation to the moving averages. If the stock doesn't move, eventually the moving averages will catch up and the stock will violate this average effectively taking me out of my stock based on a "time" stop.

There are simply too many stocks that sometimes take a while to work out. TYL is one I am thnking of for me recently.

DLTR's long term daily chart is too wild and choppy and full of red on my tcnet chart. I would avoid and if it runs on me I will be glad I missed it.

About number of stocks to hold. Like I said before just look at top 5% of growth mutual funds every year. Some have 20 stocks some have 2000. They both used it to their method however and it worked. I don't recommend newbies who don't feel comfy with stocks yet to stay under 5. I can handle, by myself, up to 350-400. After that I would need to hire someone.

Are you talking about the Peter Lynch book. "one up on wall street?"

Here is what my DLTR looks like.

Yes, it is "One Up on Wall St".  

Just went through Richard Wyckoff's How I trade stock and bond, 1922, looks a little bit disappoint.  He was the very first New Letter writer on the market and start Wall Street Maganize.  In the book he did metion average down, he said you have to know what the reason for the drop, ..  He said something "he is not interested in 10$, he want growth".  Also Bernach's auto biography, there are many photos of him with war time world leaders.  It is interesting that he become a politician finally.  This reminds me of Larry William, he wants to be a senator, recently he was charged tax envasion...  

I have the Wyckoff book "Charting the Stock Market." I found it to be a good read. It wasn't a Livermore classic but still a great book. I think this book would have been great to have back in the 1940-50s.

I will check it out.  I have his Studies in tape reading by Wyckoff.  I went through once.  Need a lot of concentration.

Here is a passage.  ... I then throw a blot of ink on a paper and put the blotter into contact.  The ink fairly jumped up into the blotter, leaving the paper comparatively dry.  This is exactly how the market acts on the tape when its absorptive powers are greater tahn the supply - large quantities are taken at the offer prices and at the higher levels.  Price leap forward.  The demand seems insatiable.  After two or three blots had thus been aborbed, the blotter would taken no more.  It was throughly saturated... market comes to standstill, Then I fill my pen with ink, and let the fluid run off the point and onto the blotter ( this illustrated the distribution of makret ).. Byond certain point, the blotter would take no more, ... The more I put the fast fell the drops....

What a vivid decsription of distribtuion day

The chart used in the book is Figure chart ( it is kind of point figure charts ).  The problem with point figure chart to me is that there is no volumn information there.  That is why I never start to study it.  May in old day, they read vol from tape rather from chart

LOL. What a vivid description of a distribution day. No mess! LOL. That is too funny, huajian. You took the words right out of my mouth. Before I finished reading the paragraph I was already saying to myself "Golly!"

Point and Figure worked much better back in the day before computer graphing. To me point and figure seems completely outdated now. However, this type of analysis proves to still work. It is just an outdated way of trading, imo. I still think everyone should learn how point and figure charts work. They were a pretty darn great idea, back in the day.

Back in the day, with much fewer stocks I am sure it was much easier to pickup strange activity threw market publications like Barron's. Thus using that data along with a point and figure chart would work fine.

One thing I notice in point figure graph ( stockcharts.com), it is able to pick up the price objective, this is pretty amazing to me, because of this, I would like to study more some day

The price target is MFA AVNC ZILG in point figure graph

MFA berish 0.5
AVNC bulish 9.0
zilg   7.5

These are pretty amazing ? You cannot get these target via a regular chart reading using measured move,

Isn't that cool.