While the level of the ECRI has been bearish, it’s direction has been bullish and continues to climb.  But at this point, if you believe in levels and trends, we are at a critical point with the ECRI’s Weekly Leading Index, WLI.

Before I get into it, just a reminder that this is ‘unadjusted’ data.  The ECRI likes to modify previous releases for a few weeks, but to me, that’s just not right.  Sure, it’s what the government does with it’s data as they get revisions.  However, in this business of advising people what to do with their money, hindsight is the devil.  Make your call, and live with it.  Accordingly, I never go back and adjust the ECRI data.

Here is the ECRI WLI:

ECRI WLI

So as you can see, technically (if you believe in the potential for trends) the ECRI WLI Growth rate is at a key level and a turn lower here and we’ll be singing a different tune than we’ve sang all year so far.

So stay tuned…

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

www.stockbarometer.com

Here’s a look at some Historical Stock Market Trends for the Nasdaq 100 over the past decade plus, with the intent of looking at periodic large advances in prices over time.  We’ll have some observations at the bottom of this review.

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

historical stock market trends

For more research and free reports on market timing, click here for our free weekly newsletter.

historical stock market trends

Observations on historical stock market trends:

1)     On a day to day basis, market movement can appear random, but trends tend to persist

2)     Market movements can be symmetrical

3)     Markets periodically follow seasonal, cyclical, or other patterns

4)     Periods of consolidation will follow trending moves and vice versa

  1. The longer the period continues, the longer the potential following counter move will be
  2. This gets people used to certain market conditions and sets the stage for another type of market

5)     Strong trends tend to stay above the 9 dma.  Moderate trends will pull back to the 20 dma.

6)     Markets tend to test revisit previous highs and lows as part of their movement

For more research and free reports on market timing, click here for our free weekly newsletter.

7)     Markets tend to peak on strength, and bottom on weakness

8)     Moving averages and trend lines will periodically provide support or resistance to the markets

9)     Emotions such as over confidence, fear, greed and capitulation can be measured and should be considered

10)  Computer algorithms make up a high percentage of trading, but at the end of the day are programmed by individuals and merely magnify the aggregate reactions of the market

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

www.stockbarometer.com

For more research and free reports on market timing, click here for our free weekly newsletter.

Do you know what the #1 most-missed trading opportunity is today?

If you don’t, then you’re missing out on some of the most exciting returns available to individual traders today.

What is it? I’ll give you three hints:

Hint #1: It’s delivering some of the biggest, fastest gains anywhere. I’m talking about 280% in 14 days… 642% in 42
days… 828% in 22 days and more. Those are real gains from last year.

Hint #2: It is NOT options, or futures, currencies or anything like that. In fact, these gains are produced by
regular stocks using NO LEVERAGE whatsoever.

Hint #3: Multi-billion dollar hedge funds can’t take advantage of it because they need to trade too much money…
but if you’re putting anywhere between $200 to $100K into a single trade, then you’re perfectly situated to play this.

Can you guess what it is? Click here to get the answer.

This trading presentation is by Tim Sykes, who, when he ran his hedge fund, was rated #1 in his specialty out of ALL hedge funds by Barclays Ratings.

I can almost guarantee you won’t be able to guess what this trading opportunity is. This presentation is an eye-opener—click here to watch it now.

Take a few minutes to watch it. I think you’ll love what Tim shares.

This February, there is going to be a massive experiment in the stock promotion, pump and dump landscape and it will be led by Tim Sykes.

This is unprecidented in the markets.  If you know anything about the stock promotion field, publicly traded companies will pay people like me with masive email and mailing lists to promote their stock.  I do not do this.  But there are many that do and it’s a very lucrative field.  They put together a promotional package, and mail it around.  The campaigns can last days, or weeks and the end result is to gain buyers of it’s stock.  The “Pump” part of the pump and dump.

Stock Promotion

What happens normally is that word of these companies (and stocks) will start spearding around.  And the stocks will rally.  Some will rally several hundred percent in a relatively short period of time.  Usually, these stocks are penny stocks.  But wait, it gets better.

Pump And Dump

The next part of the process is the dump.  In this game of buying and selling, you do not want to be the last one holding the bag, so to speak.  As the stock price rises, it will bring in more buyers, and more potential sellers.  And these aren’t people with a laptop in their living room, these are people with high speed links into the stock market, and high powered computers.  They can sell at a moments notice and drop the price of a stock in a heart beat, especially a thinly traded penny stock.

So when the music stops, it’s best you find a seat, and fast.

Tim Sykes

So how is Tim Sykes involved?  Tim Sykes is a well known penny stock trader.  In fact, he’s well known at pointing out these pump and dump schemes and being on the other end.  The short side.   In the old days, you couldn’t short stocks below $5 a share, but now there’s a process for it.  You should make sure you know how to do it with your broker.

So how would you like to know when a stock promotion is about to take place and get in on the ground floor pump of a pump and dump?

This February 22nd, we’ll be releasing the name of a stock that’s about to go through just such a promotion.  And this will get you in on the ground floor as I could almost bet that the stock will go through a substantial rise.

Starting February 19th, I’ll be releasing videos showing you how to play along with the Tim Sykes Stock Promotion Pump and Dump at home.  I too may participate, but can not do so until I release the name of the stock to everyone else.

How to participate?  Simple sign up for our newsletter here:

http://www.mailermailer.com/x?oid=20628s

And you’ll get the stock emailed to you, as soon as I’m sure about 1 million others will get the notice.  Watch the stock if you don’t want to play it.

My first question was, when I saw this promotion, is it legal.  And the answer is yes.  The stock promotion process has gone on for ages via email and snail mail.  And the fact that people will know about it, and everyone will know about it at the same time.  And the promoters technically can’t get in until after they’ve sent out the promotions.

My involvement?  I’m not technically promoting the stock.  I’m working with Tim Sykes to promote his service that periodically recommends these stocks.  And also recommends selling them.  I’ll be giving you a link to sign up when they open the service up to subscribers.

So check back soon for updates, or sign up above to get the penny stock promotion pump and dump emailed to by Tim Sykes you right at the moment you can start trading it.

As a market timer, I’m always trying to predict The Future Price Of Oil so I can set up some longer term portfolio positions, usually using the USO, or pot or call options on the USO, or some of the derivative ETFs, like UCO and DTO, which give you 2x leverage.

So while those are vehicles you can use to trade the future price of oil.  How do you determine what oil is going to do in the future?

As a contrarian, I believe how people bet their money is the ultimate tell on the future price of oil.  Meaning, when traders are too optimistic or bullish, prices tend to go lower, and when traders are too bearish, or pessimistic, prices tend to go higher.

Accordingly, I keep track of oil options activity including open interest.  This tells me how traders are positioning.  And I’m always looking for extremes.

Secondary, you have to watch the dollar, since oil is priced in US Dollars (for the most part) – the price of the dollar makes oil either cheaper or more expensive.  So a dollar bounce, makes oil more expensive, and drives demand lower.  And vice versa, the dollar dropping is bullish for oil – as it makes it cheaper.

This creates some normal fluctuation in price movement for oil.

What about oil shocks?  Briefly put, the market is both efficient and adaptive – meaning it’s random to an extent, and subject to shocks, but adaptive in that shocks may be shortlived as the market adapts to the new environment.

So speaking in terms of right now, I am bearish on oil, because so many are bullish.  I also see the dollar rallying here, and that rally will continue to weaken oil.

Timing?  Well as far as timing goes, my current call (as of 1/30/12) is for oil to head lower into later February.  I do have an indicator that I use to predict the future price of oil.  Here it is:

future price of oil

future price of oil

While I can’t share with you how I develop it (anchient chinese secret) I can say that periodically it’s right on.

If you want to follow along with all my predictions for the stock market, the future price of oil, bonds, dollar and gold, you can sign up for a trial of my Daily Stock Barometer at www.stockbarometer.com

Or if you just want to get periodic ramblings from me, sign up for my weekly market updates here:  http://www.mailermailer.com/x?oid=20628s

How can knowing the future price of oil help the average person?  Well, I like many of you use oil to heat my home.  When I get near the lows in my oil tank, within a month or so, I pay close attention to where oil is and where it is going.  You can save a significant amount of money over time just by using a little ‘market timing’ when you make your choice when to buy…

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

Here is a word of caution on the Face Book IPO, from a market timer.

I’m a technical and sentiment trader.  There are many things that influence market movement, I try to focus only on things I can verify.  Most the other things people spout are basically usless noise.  But when one of my indicators aligns with an important market event, then it’s worth paying attention to.

If you’ve perused my site, you’ve noticed several tools that I have developed to understand and predict market movement.  Here’s another one:

face book ipo

The above chart represents a popular trading cycle chart, the 35 and 105 day trading cycle.  Periodically it lines up well with the markets.  When things work, they’re worth paying attention to.  We’ll be on the look out for how it plays in with the Face Book IPO next week.

Why?  Because we have a significant reversal date coming up, it is both a 35 day and a 105 day trading cycle date.  So we are now in the window for a trading cycle top.  Just in time for the face book ipo.  There is no official facebook ipo date.  And they have not determined the facebook ipo price.

What about the facebook valuation?  I am a big believer that valuations, even the facebook valuation has very little implications with how something trades.  Think about it, all the best stocks in history had very high valuations during their biggest runs.

What’s different with Facebook, versus other IPOs is that, let’s take Microsoft for example.  When Microsoft came out, there was no real understanding of who they are and what they did.  There was no movie.  And very few people had a computer, nevertheless one that was running microsoft windows.

In addition, you couldn’t get shares in microsoft before the IPO.  Now, through new pre-IPO markets like second market facebook, you can get shares in facebook and participate in the face book IPO – unlike ever before…

That being said, here’s how I would play the face book ipo when facebook is publicly traded.

I’ve traded IPOs over the past decade and patterns imerge.  The best pattern is to let the stock trade for several weeks or months.  You’ll see a pattern were the weak hands wioll eventually get out of the stock.  Once this pattern breaks, that is your signal to jump in.

And I bet if you follow the same pattern with the facebook IPO you will be able to eventualy get in at a much better price that the face book ipo comes out with.

If you’re interested in following along, visit www.stockbarometer.com and sign up for our explosive stock alert service.  We’ll follow this as it comes out.

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

Good afternoon traders, as this monday after expiration comes to a close, there is a battle going on in the market place.  A battle that normally takes place behind price action.  As markets move higher and lower, people place bets.  And those bets give us the clues on what’s going to happen next in the stock market.  It’s time for a stock market timing update.

Stock Market Timing Update

Below is an indicator that I developed a decade ago – a formula based on 12 characteristics of stock market movement (basically way too much data to get into here).

I believe that every day is not a good day to trade.  That if you have patience, then you can find better entry and exit points that will improve your ability to trade and make decisions.  Over time, following market timing will make you a better trader.  I trade for a living – and also have this website www.stockbarometer.com where I give my daily advice on the markets.  I’ve been doing it for over a decade, so to survive in what I do, you have to be good.  Or stupid :)   I’m a little bit of both…

That being said, here’s our indicator for earlier today:

Stock Market Timing

We’ve been long for a lot longer than we would normally be, as this market could enter into a liquidity move.  These are some of the best moves in the market where significant profits will be made.  However, we’re starting to see some cracks in that move.  Key will be what happens to bonds and the dollar over the next day.

If you want to follow along with our stock market timing, you can sign up here – www.stockbarometer.com

or if you want to sign up for our free weekly Stock Market Timing Updates, then you can do so by clicking here:  http://www.mailermailer.com/x?oid=20628s

Regards,

Jay DeVincentis, President – Investment Research Group, Inc.

 

From my article today:

Closing In On Our Key Reversal Date
1/12 is in focus

Good morning traders.  Hope you all had a nice weekend.  To traders, it’s a time to relax and refresh and get ready for the new week ahead.  Sometimes, the weekends are crazy and you need the next week to recover.  The same happens with the markets.  Not much happened over the weekend, so I expect our view to continue.

I know everyone is looking for a top, but that has me expecting a bit more upside before the market gives it up.  The good news is that if we get weakness this week (or a sideways consolidation) then we could be settting up another leg higher.  That’s scenario two.  But not what I expect just yet.  I’d rather see this advance play out, and maybe a hang up into expirations (next week).  Not there yet, so let’s not get too excited…

If you’re not a member of our free weekly mailing list, feel free to sign up by clicking here.

3 reasons to be bullish

stock barometer charts

stock barometer charts

stock barometer charts

Daily Stock Market Outlook

We remain in Buy Mode, looking for the markets to move higher into January 12th. The next dates after that take us into expiration.

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

Click here to learn more.

We’re all very excited about the upcoming launch of Wealth Insider Alliance’s – Dr. Adrian Manz’s The Daily Momentum Trader.  We will post our review here.

Click here to see Adrian Manz’s track record.

This is a consistently very successful day trading advisory.   Methodology: Skim pennies off Nyse Stocks vertually every single trading day, regardless of market direction.

The service will be launched at noon on January 16th, 2012.

In the interim, I’ll be publishing some educational content showing what this service is all about.  Check back this Monday as we feature the first video.

Background – Adrian is a baseball guy, calling his system an ‘around the horn’ system and framing everything in baseball terms.  Not one to go for hhomeruns, he’s a singles hitter, because singles are easier and they add up rather dramatically.

Click here to see Adrian Manz’s track record.

It’s an end of day system that targets 5% per month – consistently. In fact, in 6 years, Adrian hasn’t had a losing month!  With that type of certainty, you can utilize leverage and significantly grow your gains.  At 5% per month, that’s about 60% a year.  Throw in leverage, and you can easily double that amount.  You’ll need a day trading account, since you’ll be making trades every day.

A former musician (like me) and an MBA/PhD in organized psychology who worked with Peter Drucker at Claremont Graduate Institute, his background is quite unique as far as day traders go.  But as an expert in behavior of large groups (an area of my studies as well) he has developed a system that takes this and price patterns into account for certain set ups.

These patterns have baseball driven names, such as the Fast Ball, Infield Fly, Line Drive, 3-2 pitch, Backdoor Slider, Switch Hitter, Double Header and so on.

What you get?  A fixed trading plan for every day the market is open.  All positions are cashed out at the end of the day.  The system is very risk averse and he never risks more than one half of one percent of his trading capital on any one trade.  And he never holds a position overnight.  That aids in your sleep.

Wealth Insider Alliance (WIA) only releases 250 spots when they launch a product.  And they go fast, so make sure you’re ready to sign up when the service is launched.

I look forward to posting more content (videos).  So stay tuned for the launch of the Daily Momentum Trader (DMT)!!!

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.

Click here to see Adrian Manz’s track record.

If you followed Adrian’s published trade recommendations in 2011, you could’ve posted 389 trades – roughly one per day, on average. Of these 389 trades, 216 were winners, 56 were losers and the others hit break-even.

Unlike most technical or purely mathematical approaches to trading, Adrian’s system is based on his work as a Ph.D. student in group psychology. Specifically, how groups respond to certain conditions in the stock market.

You could’ve potentially grossed $53.22 per share over the course of the year, which works out to a 53.2% return on a $30K account trading 300 shares, not including fees

Good morning traders, I’ve had my Trader, Jeff Neal, comb through IBD’s top 50 list and narrow it down to his top 5 stock plays for 2012.

Click this link to learn more.

Top 5 Stock Plays for 2012

Regards,

Jay DeVincentis, President

Investment Research Group, Inc.