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The Bear Jumps Out The Window!

Bear market making its way into town. Try to
avoid long term trades. Bear market means drop
in trading bias. Look out for Rita. Watch the
volume and oscillators. Get the latest at
TradingTrainer.com.

Hey trading team,

This is A.J. on Wednesday, September 21st with
your Trading Trainer web log. We are your
home of market insights for the serious option
trader. This web log will cover the events in the
market from today as well as prepare you for
watching the market tomorrow.

I’m going to recite a quote that I learned from
Robert Kiyosaki a while back. “The bull climbs
up the stairs while the bear jumps out the
window.” What that is referring to is that a bull
market, an appreciating / ascending market
typically gains slowly – it climbs up the stairs if
you will. A bear market, a depreciating /
descending market typically crashes – it jumps
out the window if you will. We’re seeing the
bear jump out the window. Those key reversal
downs that I’ve been talking about all week, that
we identified on the weekly charts just this past
weekend, were spot on. And why should we
question them? They’re price patterns for gosh
sake.

So here is a test of a real trader, when a market
reverses like this… what do you do? I’m sure
many of you team, despite my warnings over the
last three weeks are in long positions. Now,
mind you, if were talking energy stocks, you’re
probably okay. Any others, especially retail or
housing… well we’re at the moment of truth.
These transitions are where I see even the most
experienced traders lose it. No one is ready to
cut their loses. So they wait it out. Team, nine
times out of ten, the ones that wait it out, go
broke. Think about it.

Anyway, with the 7 days crossing below the 30
days and just about every other indicator we use
signaling bear, I’ve done something I don’t
usually do, I’ve dropped our trading bias again.
We’re sitting at neutral / bearish now on two
out of the three major indexes we watch. I had
to. We’ve dropped almost to pre rally levels.
We’ve had distribution days left and right.
Signals are that this bear run will be short. But
it will be a decline none the less, and even you
folks that are out in January with your long
positions will be hard pressed to break even by
expiration. Think about it.

Tomorrow, again, we’re looking for direction.
We probably will not find it. There could be
some bargain hunters out there driving prices
up, at least when the session opens. There could
also be more profit takers that didn’t get out
today, driving prices down. If your playing the
Hurricane Rita ticket, you’ll be listening to
updates and ready to go long on stocks like
Fording Coal, Western Gas and Alcon. That’s a
little more speculative. On the grander scheme
of things, retail has come to a standstill and so
has builders… if you’re playing that ticket, than
you’ll be ready to go short on stocks like
Hovnanian, JCPenny and others like that. If this
is to overwhelming for you, open up your paper
trading log or use the free program I’ve made
available to members and trade both direction as
paper trades. Whatever you do, don’t do
nothing. Do something. Take some sort of
action.

Okay, team. I’m done.

Till tomorrow, happy market watching, trading
and money making. Trading Trainer is here
helping you create your dream lifestyle.

Best regards always,
A.J.

Click on the below play button to hear
the blog as an audio from A.J. himself!


About the Author
A.J. Brown is a full time options trader, author,
speaker and consultant. Watch him review stock
charts on video each day, listen to his audio
newsletter where he leads you by the hand
through the end-to-end process of successful
options traders and get tips and tested strategies
proven to boost your return on your invested
capital by massive amounts in his membership
site at TradingTrainer.com today.

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TradingTrainer.com Web Log

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