This is why diversification is the only free lunch the market will ever give
you. Sure I'm in commodity based stocks, but I also own a retail based, VFC,
and I own and trade around a core position in GS. GS almost single handedly
kept my portfolio on the plus side for the year, thanks to the love/hate
relationship with the financials.

Diversification is key. Diversify across sectors and even across high and low
beta stocks. Have dividend payers and mo-mo high fliers. This type of
diversification will preserve capital in times like these and let you ride the
crazy train when the bull is off and running.

well, thats of course assuming the market is turning (which i dont not at this
moment). it does pay to know cycles and trends. first bonds peak, then stocks,
then commodities.

that doesnt mean a larger cycle in higher commodities is over, just that you
need to know how to rotate. anyone who tried to get into commodities in the past
3 months cant (and really shouldnt have) try to handle the pain. losing 25% just
isnt a position of strength, no matter what your "conviction" is.

pros limit losses, amatures are limited by their losses

Faith. That's what it takes. And the ability to walk away from it because it's
about things and inciting incidents that we can't factor in fast enough.
Knowing something is really fruitless. So when something you believe in, like
BIDU when it falls apart - I knew I could bring it up once today - and drops
precipitously sometimes to frightening levels - you have to either be there to
hit sell and buy it back (I just don't see how in this market with the pre and
after market carnage trailing stops of any kind can really be counted on to stop
the drama losses we have all seen).

On alternate Tuesdays (this is not true) commodities are out of favor and we are
moved to financials and retail (oh great).

On occasional Fridays it's aapl and rimm.

Is a couple of billion dollar loss good? Sometimes. I'm not quite sure who
decided WHEE - it's good today.

Stepping through the media blitz and getting real with what we know - the price
of eggs at 5.00 is not good and not being able to refinance despite lowering
rates is not good.

It's excessively sentiment driven and probably by hapless loser hedgies that
have margin calls or redemptions - again nothing we can do.

And so our sweet stocks that make sense in the world (demand, decent margins)
periodically get tossed like a salad - which is also is green - and that's all I
know to do. Hit the sale rack and have faith that JEwald's outlook of 3-6-9
months still works - although lately it's all like a rubber ball and you can
trade back out within a week or two if you can stand looking at a sea of red
because your great big good deal is probably going down some more before it pops
back up ... faith.

Not hope.
I think.
I'm probably wrong.

fundamentals and t/a went out the window along time ago. this market is so
emotional it isn't funny any more. so now that the locomotive,"CHINA", put on
the brakes for the olympics wouldn't you think that all the other cars it is
pulling, wouldn't also stop. i guess when they sneeze, we all catch cold..chris

It's a free site, I use it everyday to see what the market trends are. Its got
alot of info, it's great for traders.you could spend hours researching on that
site.

Vett, that is a very interesting site! Do you subscribe to it, or use just use
the stuff on that link?
Runnin'

Big Dog...It has been little over a year that I started this crazy stock journey
thing and I am finding out that you have to be VERY strong in your Fundies BUT
you also need to have a healthy knowledge of the Evil Dark Arts known as
Technical Analysis...which at it's root is the knowledge of Supply and Demand.
There are so many factors that move a great or bad stock in addition to it's
Fundies....the magical trick to the game is to be able to put all these things
together to see what crazy Mr. Market will do next...he does leave hints all
around...problem is some are red herrings... Yet, the more we play here, the
more of his total insanity is making way too much sense....

Yes I agree if we are in a rotation then the in-play become the out-of play. I
have been looking at the drugs , banks and bio-tech. All seem pretty cheap and
will eventually have to catch up like the commodities did.

http://www2.barchart.com/sectors.asp?base=industry