Let's take the NASDAQ composite. It is made up of a basket of shares, the largest and most well traded stocks and an average of these stocks figures go into making the NASDAQ composite. Remember that word "average."
As with ANY average you will always have shares outperforming and under performing the average. Do a research . Now with all the doom and gloom about how low these markets are heading.
How it is impossible to make money as a bull in this market would you be surprised by these numbers?
26 stocks in the markets have made over a 200% return this year! 7 of these stocks have gone on to make over a 500% return this year! 3 of these stocks have gone on to make over a 1000% return this year!I have had some huge success with stocks such as:
MOVI +84%
ALLY +67%
THQ +59%
So it's not all doom and gloom.
When the market averages turn sour - You now have to trade the small cap momentum stocks!
Didn't CNN say this is a bear market and there was no money to be made by the bulls? Well seems like someone is wrong.
Bottom line: Market conditions are tough. The big cap stocks are falling far and hard. Mutual funds are losing buckets full of public money. The public are switching off the stock market in their droves as those market darlings they held last year are sinking lower and lower.
But you are doing the wrong thing. Completely the wrong thing!
In a run away bull market you want to be INVESTING in the
BIG CAP Momentum stocks. There simply is no better or easier
way to make a lot of money.
But when the market averages turn sour you have to change your strategy. You now have to trade the small cap momentum stocks! his is where the money is being made now. The last thing you want to do now is leave your hard earned money invested in Yahoo, SUNW, QComm in the hope they'll bounce back.
It won't happen in our lifetime. Yahoo and a host of other high flying stocks in the 2000 bull market have had their day in the sun. It will not be repeated! Their bubble burst a long time ago. If you can't stomach the stock market any-more then get out!
If you are willing to give it another shot with a slightly different
approach then order MSTS now and start trading in those small cap momentum stocks. This is where the money is!
How long can the market keep heading lower? Well I hate to
keep repeating myself but the fact is noone knows. Some bear
markets in the past have lasted over five years. Does it look as if the markets can head higher from here? Do general conditions warrant a new bull market cycle? I see absolutely no sign of that.
Keep your ears closed and trade what you see. Right now I see lower markets ahead. Keep out of the large cap stocks.
About the author:
Mark Crisp
The Momentum Stock Trader
http://www.stressfreetrading.com
