YOUR BROKER WON’T CALL
By Al Thomas
Yes, and pigs can fly.
The secular bear market has taken over again and the chance of any small investor making money in the next couple of years is close to zero.
Please don’t kill the messenger – me – as I am going to show you how to protect your capital from going down the toilet as it did in 2000. Your broker won’t help. He’s not allowed to tell you the simple method outlined here. You have to do it. And don’t rely on some financial planner as most of them won’t do it either.
Investors who followed the method I wrote about in my columns in 2001 rescued their savings from the Wall Street landslide. It is starting again. Don’t get caught this time.
Based on technical analysis there is a strong probability that Dow Jones Industrial Average can drop 2,000 points or more. Your broker doesn’t believe it and neither do any of the talking heads on CNBC-TV. Oh, I can be wrong, but I wrote back in November 2001 that the NASDAQ would drop 2,000 points and no one paid any attention then.
Right now look at every stock and fund that you own. If any one of them has fallen more than 10% from its highest closing price its time to SELL. Your broker will tell you to wait until it “comes back”. From where?
Another excellent sell signal is to plot a 200-day moving average on a chart of your stock or fund. If that line has turned down then SELL. All you need be concerned with is the direction of that line and not the price of the equity. Up is buy and hold. Down is sell and keep your money.
Go back to 2000 and draw a 200-day moving average for any fund at that time and you will see how accurate it was in giving a sell signal that protected investors’ money. Can you afford another 2000?
No one knows for sure which way the market is going, but the 200-day moving average line will have the market telling you. If you learn to listen to the voice of the market and not some “expert” you will be able to make money in the stock market and more importantly not lose your money.
Now you call your broker.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.
Copyright 2006 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!" Comments to info@mutualfundmagic.com