Below the Breakout Number: They are “playing with my number.”

They are playing with my number this morning. What do I mean by that?

I mean that the breakout of 1227.08 is being tested from BELOW this morning. By “playing with” I mean that the market is defining the number as being important, by showing in the price action that the number is being traded around. Sometimes a market will come down and play from above and sometimes, it will slip below a bit and then recover. But when a market “plays with my number,” I know I’m on to something intuitively. I know that the direction the market takes from that number that is being “respected” is going to point the way for the next few minutes, hours, days, or weeks.

You say “Great! Where does that leave us not knowing the time period?” There is a next step. Once you see that your number is “in play,” you need to look at the overall chart and see if that number has particular significance. Is it at a double top or an important breakout point? If so, once the market DOES DECIDE on where it is going, UP or DOWN, from there, it is going to move in a significant way.

“So what can I do when I know from you or from my own reading of the market that a “number is in play?”

If you are underinvested and the market breaks back up through the number, and if you want more proof then wait until it closes above it, then you add to your position in the market when it SHOWS YOU that it wants to move up. Why invest more AS a market is moving down. This is the beauty of my newsletter bv the way. I provide a check on your thinking about whether today..each market day…because I write my letter every night…whether today is a smart day to BUY, SELL or HOLD.

Why buy when the market is just starting to fall? Why not wait for the strength that shows it is moving up first? John Rothchild stated my investment philosophy exactly when he said “I never buy at the bottom and I never sell at the top.” He bought NEAR the bottom and sold NEAR the top.

If you review my webpage on Passive Shorting™ on my main site, you can learn how to do the above! You sell NEAR tops and buy NEAR bottoms. And if you are wrong, you take a small loss once in a while to prevent LARGE losses. Your large losses are the ones that matter, not the small ones. If you have no small losses, you are likely not risking enough. No risk, no gain. That is a fact.

But you REDUCE your risk by using methods like Passive Shorting™ near tops. Google “passive shorting” to read the 3 articles I’ve written on various applications of this method. I coined the term, so the 3 articles are right at the top of the search page.

And PLEASE remember to sign up for my FREE SP500Tracker™ newsletter. You can cancel at any time, but why not try out something or learn from an approach that has been working for a decade for me…for FREE! Sign up at this link:

Click Here to Subscribe to my FREE SP500Tracker™ and free “Tips”

Have a great day!


Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

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