Ian Woodward’s Investing Blog

• Mailbag Comment:  Ian – you stated that “Time and again the stock will correct at a certain % up from the 200-dma ONCE it has established its high, higher and highest jumps.” Would you mind elaborating further on this statement?  I interpret this as meaning I should look for three successive high jumps, each succeeding one higher that its predecessor.  When I use the 200 DMA high jump I look back several years and attempt to establish an average highest value among the series values for the period.  Is this an incorrect application of the 200 DMA high jump? Mike

• Response: Hi Mike:  I’m glad you asked that question as I sense many have not fully understood the full value of the High Jump Tool or how to interpret what it tells you. POT and MOS are excellent examples when people can either make a super bundle or get caught for a big loss in profits in the fight over Fear, Hope and Greed, especially if they are asleep at the switch. 

• Let me give you the step-by-step answer of what I meant and in this case the devil is in the details on the chart, which I have since updated, to include yesterday’s Close and Low Price for both POT and MOS.  In addition, I have included a chart of POT to show that the horizontal lines for the 17-dma, 50-dma, 200-dma and Total High Jump were all screaming TAKE THE GRAVY:   

1. I have blocked the 200-dma High Jump for several time frames for both POT and MOS as shown on the spreadsheet in blue above. In the case of POT, since it was VERY obvious that it was going into a parabolic extension especially with a gap up, it could exceed 72.72% for the 200-dma High Jump and produce a brand new High Jump record overall.  It did get above 72.72% but only just at 74.65%.  However, anything above 72.72% is extra gravy.     
2. NEVER use Averages of the High, Higher and Highest, as you will invariably sell too low and miss the gravy.  That is why I call it the High Jump…it happens very seldom (remember the analogy I discuss of the Olympics?)  It gives the best feel for when you are just being too greedy.  Sure you can buy puts to safeguard yourself, but at Earnings due time coupled with an Exhaustion Gap Up and a Climax Run in the Stock, there is little point when the gravy is for sure going to get swallowed once the news is out.  Better to come back in when the coast is clear.  Buying Puts at other times is certainly a valid strategy to safeguard a move that one expects to continue.  By the same token, don’t forget to use the limbo bar which is the lows as shown on the chart when it is safe to buy back in.   
3. As mentioned above, I repeat that in addition to using the total High Jump, it pays to see the patterns for the individual components of the 200-dma High Jump in particular and the 17+50-dma Combo as additional guides. 
4. Also, I always draw an ascending tops line as I said in my note from the previous two highs to visually see that the stock is headed into a climax run.  That invariably tells me that I am in “super danger extension territory” and that I should expect that the PREVIOUS Highest Jump recorded is most likely going to be taken out.  If the new record is SUBSTANTIALLY higher it suggests that this highest jump will probably not be exceeded for a long time from now on.  That does not seem to be the case for POT right now, especially as the fertilizer story is not yet finished given the global requirements which keep growing.  However, it needs to hold at support of less than 25% to 30% from its 52 Week High Close, which it has not yet exceeded, and is another reason for my showing that information on the spreadsheet.  If it exceeds that, the stock has to regroup as did AAPL, BIDU, GOOG and RIMM have done from their recent correction, exacerbated by the Bear Market, i.e. a complete clean out.

    

   

    

   On the other hand, with regard to that last point of the new record being substantially higher, please see the reprise on Dry Ships (DRYS) below.  I also strongly advise newbies and oldies to re-read my blog of September 7, 2007 where I gave complete treatment to DRYS at the time.  For your convenience I show you the chart from that Blog note on Sept. 7 and then show what happened after that note.

    

   Note that the stock corrected two days after that date, but with the boost of the FOMC actions it then went into a major climax run and peaked at the same time as all the Market Indexes, before a deep correction as shown below:

    Best Regards, Ian.

It’s again that time of the month when everything stops for a visit from Helicopter Ben.

I bet you have all long since forgotten the blog I put up on January 10th and 11^th when he made that speech that the Fed was ready to take “Substantive Additional Action” relating to the Credit Crunch, and the Market yawned and in effect said “Where’s the Beef?”  I warned you then and it is time to resurrect the slide I gave you that the Line in the Sand at Nasdaq 2440 would be critical when we got back to it.  The reason is that there was a sea change in the psyche of the Stock Market that did not get changed for the better until we had slid into a Bear Market Correction.  Here’s the picture I put together later in February when the Stock Market dipped into that correction:

I have Late Breaking News for you that on the eve of the FOMC making their latest statement that we have gradually climbed back out of the mire and would you believe it…we are sitting a hair’s breadth away from that fateful Line in the Sand. Fortunately the later actions the Fed took to stave off a deep Bear Market and a certain recession at that time, if we are not already in it, have given us a Bear Market Rally to bring us back to the Line in the Sand.  Here is the Updated Picture:

1. In my opinion, it is not a coincidence that today was a jittery day for the leading stocks fat with profits that got hammered from head to toe.  We shall see what tomorrow brings, but be rest assured that although the Fed’s action may at most produce another 25 basis points reduction in the Fed rate (and many feel they might not do anything), it will be the words that will speak louder than the actions this time.  At long last Inflation, the Price of Oil and Food and the slide of the Dollar are of more concern, in my opinion. 
2. Meanwhile, back at the ranch, the VIX has laid dormant for all of 20 trading days and for the first time poked its %B head above the Bandwidth today…a sign that could lead to the Bear’s dancing once again. What will it take for the VIX Bear followers to do cartwheels that their patience has been rewarded?  My crystal ball says an immediate bounce of the VIX from 20.24 to 21.56 will do the trick and that too will depend on what the Fed has to say tomorrow.  Otherwise anything below a reading of 20.00 will suggest more ambling sideways with a dormant VIX, and there may be hope for the Bulls to continue upwards. 
3. In summary, we have a confluence of forces at this point in time between the Line in the Sand at 2440 on the Nasdaq, the Rotation vs Correction discussion, the VIX laying quiet, the Earnings Reports, all waiting for a nudge as to which way for the Market Indexes to go.  That nudge will likely come from Helicopter Ben popping in on us tomorrow. 

Best Regards, Ian. 

A HGS Investor User is a trifle concerned that his recent stock picks are getting hit and was looking for a reason as to whether “it is shorting, profit taking, a full moon or what?”  So I felt I would continue the theme of the past two blog notes and give a more detailed response of the factors to consider at Earnings Report time on great Leading Stocks.

•  User’s Question: I’m trying to get a handle on what is going on with the stocks that I screen for and I would like some opinions from our more experienced people on this forum. Starting last Wed it seems each group is getting hit hard with selling that I assume is being brought on by short selling. On Weds. I was forced out of a gain in LNN and on Thurs. the same thing happened with CLR, JRCC, BZP and MTL. These stocks as a group have pretty much recovered the haircut they received; unfortunately, I was stopped out of all of them and was too tentative to jump back in.  Today, I bought into CF and MOS figuring that they were safe as their earnings were out and the same thing is happening to this group. I haven’t had collective bad calls like this in quite a while (thanks to HGS). I know last week there were comments on the forum how screens were red but the market was green and I just get the feeling that these strong stocks are getting hit for a reason. Is it shorting? Profit taking? Full moon or what? Seeing I’m getting lumped up, I at least would like to know why? Any opinions would be appreciated. 
• Answer:  It’s called the balance between Fear and Greed at Earnings Report time, i.e. Qeps Date.  There are four times a year when great leading stocks are the most susceptible to both Fear and Greed: The old adage of Buy the Rumor and Sell the News is always true at such times, especially when great leaders are into climax runs and pushing their luck at third and fourth stage breakouts.  Clearly, the Chemical – Specialty Group is a very recent and excellent example of this. POT and MOS are classic examples.  We can say the same about the Steels, AKS and STLD.  Let’s Review the bidding using Chemical – Specialty:

  1. Classic Examples: POT and MOS are classic examples of leading stocks moving into climax runs.

  2. Climax Run: A Climax Run is defined as a sharp move up over the prior two weeks of at least 25% Gain after it has already had a decent long run.  Invariably the shape of the chart is parabolic and the Index will always break the ascending tops line drawn from the previous two highs to the upside.

  3. % Price Gain from 52 Wk Low: POT is 250% up from its 52 Week Low and MOS as much as 355%, hence they are badly extended and fat with profits. They are story book stocks with all the fertilizer mumbo jumbo, hence they have had halo as far as Wall Street is concerned, i.e. are darling hot stocks in hot Wolf Packs.

  4. Vulnerability at Earnings Report Time: Such stocks will invariably go into climax runs just before Earnings Due Time, and it is usually better to take the gravy of a 25% added Price Gain than to sit through the Earnings Report, no matter how good it is on such stocks.  Of course one can always buy Puts, but the risk of loss far exceeds that of a certain gain under these conditions.  No matter how good the earnings reports, the stocks are invariably downgraded or targets for concern at such times. After all we went through this same scenario for the five horsemen of the previous top leaders…AAPL, BIDU, GOOG, GRMN and RIMM.  GRMN is dead for now, GOOG is recovering and AAPL, BIDU and RIMM have recovered and on their way again.  All had deep corrections, though exacerbated by the Bear Market Correction.  

  5. Analyst Downgrades after Earnings Report: On that last point, POT was cut from a Strong Buy to a Buy, and Barron’s had an article on MOS being impacted by a rising Dollar!

  6. The High Jump Tool: Leading stocks like these two give a strong feel for their personality as they leave their footprints in the snow.  Those are round words, but what I mean is that the High Jump and more specifically the High Jump from the 200-dma gives one a great clue as to when the stock is likely to correct.  Time and again the stock will correct at a certain % up from the 200-dma ONCE it has established its high, higher and highest jumps.  For POT that ranges from 66% to 75%, and true to form, it corrected this time at 65.87%.  For MOS the range is 97% to 120%   and it corrected at a High of 92%.  In other words, the higher the Price Gain, the more difficult it is for such stocks to beat those footprints after they are ESTABLISHED stocks with a known pedigree and behavior.

  7. Stage Breakouts: A further clue for caution comes from the # of Stage Breakouts from their low usually measured within the past year.  A stage breakout is defined as one where the stock rises to give a minimum of a 25% Price Gain and then bases sideways in a tight pattern before it takes off again.  The time of greatest danger is invariably at a 3^rd and particularly 4^th stage breakouts where somewhere along the line the stock will correct a minimum of 15% to 20% and then go again.  If the stock has had a 25% correction or more, then the stage count can start again, but I like to keep the original count as well until the stock gives up the ghost.

  8. Rotation or a Normal Correction: The $64 question invariably at such times is whether this is a normal correction or is it the start of a rotation out of these favorite Industry Groups? The short answer is that when such great leading stocks break their 50-dma to the downside they are likely to seek their 200-dma and stay dormant for a long time. It then depends on whether the “story” which got them recognition in the first place continues or is over. So far the story is still valid, the earnings reports are excellent and the worst of the Bear Market Correction is behind us for now.

  9. For Posterity Sake, I felt I would give full treatment to the numbers so that those who are new to the Principles of High Growth Stock Investing and specifically the value of the High Jump Tool will have a feel for what to look for in the future as to whether to Buy, Sell or Hold.  If you examine the spreadsheet, I show you both the upside opportunity and the downside risk…without spoon-feeding you.

        Best Regards, Ian.

   

Based on Friday’s performance, it seems that the old Wolf Packs were merely giving way to Profit taking earlier in the week, and they were buying back feverishly into the old Wolf Packs on Friday.  There is no question that many other Industry Groups are also rising rapidly and I have shown you the Groups that had the best advance during last week as well as the past three and five weeks.  In essence these are the best movers since the March 17th low.  The following spreadsheet is self explanatory, so enjoy:

Best Regards, Ian.

1. I had a few days R&R visiting my Son and his family in Oregon, and with the cobwebs cleared I am back to give you the pulse of the market as I see it.  In reading my backlog of e-mail, I saw headings such as the above, and many are shaking their heads when the market was up and their portfolios are down!  One thing is for sure…we cannot be asleep at the switch and as you will soon see I have figured out what the cross-currents are using the Group Performance Analysis Tool in the HGSI Software.   
2. The beauty of the software is that we can smoke out where the money is flowing in and out NOW, but more importantly to have a set of User Groups of past leading Wolf Packs and emerging Wolf Packs.  This is particularly powerful at Earnings Report Time or as I say “We must keep a Beady Eye on Qeps Date, i.e. whether the Earnings are out or not.” 
3. Let me give you a few pointers before I give the results of my work, which has taken a bit of delving, and I hope will be the basis for us deciding whether there is serious rotation in effect or not, or whether we have profit taking coupled with new Emerging Wolf Packs. 
4. It is no news to you that in the last couple of days, two of the three favorite Wolf Packs that have given us good money have been hit hard the last two days, i.e. Chemical – Specialty and Energy Alternatives including Solar and Coal.  The Transportation – Shipping got hit hard earlier but they are dribbling back, so you need to watch those.  In passing you can add the Materials – Steels to the former, aka STLD and AKS as examples, which have also just announced stellar earnings but are also under recent pressure.   
5. It goes without saying that if you were in Potash (POT), MOS, TNH, and CF you would surely have seen that most of these were hitting NEW HIGH JUMP records, particularly POT which got most people’s attention as it was decidedly moving into a climax run.  That is not to say that it won’t go higher after the correction is completed.  What people always forget is that great stocks like POT will move in anticipation of the earnings report for a final burst of Price Gain, and of course Greed and Fear play their part at such times. Enough said on that score.  But we should also balance that with the fact that the Earnings Report is stellar and with all the story lines on this Industry Group, there will be rotation of players and the stock will come roaring back given time.  Just look at the five favorite horsemen to see that they are starting on their way to recovery…AAPL, BIDU, GOOG, GRMN, and RIMM. Eventually the story gets stale and the buying dries up and they fade away, but for now keep an eye on whether these groups are just giving up profits or their turn in the sun is behind them. 
6. The bottom line is that the Jury is out at this point in time whether we are just experiencing Profit Taking in these leading Industry Groups or whether this is the start of Rotation on these groups that have carried the market for ages and we as HGS Investors have enjoyed to our heart’s content.  Don’t be asleep at the switch and I have provided you with the stock lists to watch below, so there is no excuse for being caught with no swim suit on as the tide runs out. 
7. In my last few blogs I have concentrated in giving you the yardsticks for establishing if this Bear Market Rally is coming to a top or it was just pausing to refresh before it moves again.  Of course, the Technical Analysts are drawing lines of resistance to suggest we are due for a correction, but the counterpoint is that the earnings reports so far in the Companies that matter most have been stellar and as such this market has shown a good deal of resilience to trotting down at this stage.  I note that Microsoft reported today with “soft” earnings performance (pardon the pun which I couldn’t resist), so tomorrow may be another story. 
8. Now to the point of new Emerging Industry Groups; this would seem to be essential if this rally is to continue to get us into a “safe zone” which implies getting the Indexes up at least 15% from their lows.  I won’t belabor the point, but I have ferreted out two Groups right under our noses that are on the trot…or maybe I should say are starting to gallop.  Of course Technology is one and the other is of all things Fin – Equity Reits, many of which pay good dividends and are appearing out of the ashes.  Just look at the results for just four days trhis week compared to the S&P 500.
9. I hope with all the snapshots I give you below that I do not have to do more than tell you that the stocks selected all had both Bongo Daily and Bongo Weekly signals “Yes” and that Earnings are already out for starters.  You figure how to go from there, but I think the evidence is pretty convincing as to why it seems we have a Schizophrenic Market, A Strange Day, and Rotation, all rolled into one!  As a winky-winky, you know you have to start with a Stake in the Ground and although I am giving you four different pictures to chew on, I STRONGLY suggest you put these same Stocks into User Groups and then start your Group Performance Analysis (GPA) on my Wife’s Birthday, i.e. March 17, 2008!  You will be amazed at the results. 
10. On second thoughts, for the benefit of the doubting Thomas’s I will do just one snapshot at the end that shows how we have made good money in our Portfolios following Hot Wolf Packs, using March 17^th as the Stake in the Ground, which is just five weeks ago…up  31.45%.

Just look at the whopping Gains in this Portfolio of Hot Wolf Packs in just five weeks, and that is after they have been drubbed for two days!  These stocks have been there on this blog for all to see going back over six months or more.  That is the Power of the HGS Investing Principles and of the Software.  Good Luck.

Best Regards, Ian

1. I am grateful to my Finnish friends from kestustela.kauppalehti that have pounced on an earlier blog of my musings on the “Long Road Back for the S&P500 written on March 23^rd under Happy Easter Wishes.  Unfortunately there is no English translation on their site, so I am not sure what excited them to take a peak at my blog, but many thanks to all of them. 
2. Here is a mailbag question from one of our Newbies at the March High Growth Stock Seminar, “It appears that the VIX has rebounded and not broken down thru the resistance. What do you think that means for market direction? Has it rebounded enough to continue the decline? the Newbie-Pete 
3. Well done, you are learning fast and have now cast off your “Newbie” handle and fresh from the March Seminar, I dub thee “Oldie Pistol Pete”…you are one sharp dude, as my sons would say! 
4. Everyone on this earth should be asking the same question, but you have come to the right place to find the answer.  Friday was a major set back for the Bulls, but the game is not over for them yet.  The GE earnings disappointment really took its toll, and any more of that scenario this week will certainly cause the rally to fizzle when it was looking so promising.   
5. Now then, to answer you directly, it is close to rebounding enough to continue the market decline, but it is too close to call.  The VIX is currently still below the Bandwidth and it needs to break above.  Where do you find that you will surely ask?  It is all in the High Growth Stock Investor Software as the only place to find the answer, and we have made it easy for you if only you can remember to go to the right place.  Go to my trusty Chart View which is the standard I always use along with 9/10^th of the people out there and that is the “4 Ready, Set, Go New, Ian’s BullsEye” Chart.  It used to be the 4b chart, but is now the first one in the series of 4 charts.  You will need to bring up “Major Market Indexes” in the Chart View along with selecting the Market Volatility Index and there before your beady eyes you will see that in the Ian’s Bullseye Window the second one down, the green line is BELOW the Red.  If you bring up your Data Window you will see that BB %B is 0.3444 and BB Bandwidth is 0.4576, so still below, as shown in the chart below:

 …

• And now the $64 question is “Ian, I want to be ready to go short or go long on Monday morning and I am in the process of getting my candidate list together right now…can you Help me? 
• I won’t let you down but nobody knows for sure.  However, I will give you the conditions for the VIX for tomorrow and the week ahead that will guide you as to whether the direction is sideways, up or down and then all you have to do is sit back and enjoy! 

Conditions for the VIX for tomorrow and this week: 

1. The minimum requirement for the VIX is a reading of 24.10 from its current reading of 23.46 for the %B to just be equal to the Bandwidth, i.e., green line touching the red line.  That will spell hope for the Bears and further concern for the Bulls. 
2. The ideal requirement for the VIX from the Bears standpoint is a “Little Kahuna” of +0.25 up on the %B which would require the VIX to jump to 25.95, which would be tantamount to a major down market tomorrow and would be pretty obvious.   
3. The ideal requirement for the VIX from the Bulls standpoint would be a “Little Kahuna” of -0.25 down on %B which would require the VIX to fall to less than 20.20, or essentially very close to the lower Bollinger Band to continue to give major hope for the rally to continue. 
4. So the answer is that anything up big between 23.46 and 25.95 for the VIX, the Bears win.  On the other hand, if the VIX goes down big between 23.46 and 20.20, the Bulls smile with the bull rally continuing.  Anything minor in between, we go sideways.

Stay tuned Pete, as I must now feverishly turn my attention to the newsletter where I will focus on the value of the Kahuna in these difficult times.  But the most important priority for this afternoon is the Masters Golf Tournament at Augusta  Best regards, Ian

 Late Breaking News!  I have had a few comments from viewers and I refer you to the response I made to Dave in the Comments Section below to see my latest thoughts since posting this blog.  Net-net, the VIX %B has not even broken through the Bandwidth which was the first target I set, so we sit and wait!  Meanwhile enjoy the Hot Wolf Packs.  Best regards, Ian.

Don’t get too excited, but the HGS Investor Seminars invariably lead to a bull run, and it seems that this one just finished last weekend is no exception.  One week does not a Bull Run make, but there are distinct signs that the Market sloughed off the bad news of the rotten jobs report and for the time being we seem to have all Market Indexes flashing “Green”.

1. At this stage of events it has to be wishful thinking, but at least there is some encouragement if we are to judge this past week’s progress in the JIRM Index which we developed last weekend for Stocks above $35 which we are using as a yardstick to measure the health of the market.  I featured this in my last blog and you will be pleased to know that it has delivered 6.17% vs the S&P 500 of 4.15% based on equal dollar weighting.  More importantly every single one of the 18 stocks selected is positive.  That suggests that the types of stocks we favor are in the sweet spot.

2. Please understand that a flood of Earnings Reports will be out in another three weeks and that will set the tone for whether we slouch back into a bear condition or that we see some renewed enthusiasm on that front.  As I discussed at length at the seminar, the Earnings are falling from under us at every month’s new surprises such as GM and Sears both taking hits to take the S&P 500 earnings estimates down.  I showed you chapter and verse as to why the S&P 500 touched 1270 and why it could quickly drop to 1150 if we do not quickly see a repair on this front. 

3. But enough of that, and although Type 1 and 2 traders are already making hay while the sun shines, Type 3 Intermediate term swing traders are wondering if they dare put their toes in the water.  Type 4 Investors are still waiting for more signs of confidence that things are firming and so they should.  A winky-winky is not to neglect those HGS Boxes stocks greater than 0 (and especially Box 7) that timhiggit gave you last week.  Just take an EPS Rank and Grp Rank of 80:80, a A/D greater than or equal to C, Bongo Daily signals that have fired in the last 15 days, and above all a %E/P TTM of >3, and a % Dem/Sup of 0.9 and you have the cream of the crop.  You see newbies…it is not difficult to concoct a potentially winning scenario on the fly using HGSI software.

4. Now let’s move on to a more important matter.  How does one get a handle as to whether this past week was just a flash in the pan or that there is indeed a fresh Bull Run in a Bear Market or whether the ride will fizzle out in a matter of days? In which case we will be back to the same old scenario of three steps forward and two steps back or worse yet the other way around as it has been for several weeks.   I offer you two weapons and three charts for this immediate week to come and they should tell us the story of whether the Bulls or the Bears have the upper hand.  One is the 40 period Bollinger Band Weekly Chart I showed in an earlier blog and also covered with a five point plan in the Newsletter and the Seminar…the famous Mark Pharr Chart.  The other is the jolly old VIX, which has worked well for the short term traders switching from long to short routinely for the last eight months, and has been a dead give away until NOW! 

5. Given that we had yet another Eureka last week which almost went un-noticed, that Bongos have fired on all Major Indexes, that Industry groups are perking up, and that the New Highs are improving but not very strong as yet…you get the idea, we might have a changing of the guard from the grip of the past several months.  That grip is better seen in the second chart, but more on that in a moment.

  If you look on the left hand side of the chart, you can see that one can have a decent bull rally in a Bear Market, which gets turned back at the “orange line of 40 periods.  In the 2000-03 bear market we had 21.8% and 23.8% up legs as shown…so the hope is that we might be on one of those legs.  We will know if it gets turned back if %B gets no higher than about 0.5 say.  In which case, after a decent move we fall back into a bear market mode again as show heading down.  The other scenario is that we are already at the bottom and the momentum picks up to drive %B up to over 0.7 or more in which case we are at the bottom of the Bear market and on a new Bull Run…the wishful thinking scenario.  All of that is shown by the green dotted ovals for you to compare and hopefully agree with my scenario. The message from this chart is that the first item of the five point plan I gave you is already behind us and we have to see if the %B coming up through the bandwidth continues upwards. This next chart shows how you can time your moves to either go long or go short and has worked well for short tern traders for the past eight months.  It has worked like clockwork.

The words on the chart says it all, but if the VIX breaks down badly and heads for the second white line, this may well be a change in sentiment and we could look forward to a decent rally.  Watch for either a bounce in which case the bears are in control again or for a drop in which case there may be a good rally.  Now the way to get a better handle on whether it is one or the other is to look at the VIX compared to the Bollinger Bands, %B and Bandwidth as shown below:

 The bottom line is to keep a beady eye on the right hand side of the chart and see if what I say on the chart occurs.  Now you have a watertight plan! Best regards, Ian.

1. A great time was had by all at the HGS Investor March Seminar, and hot off the press, I am posting the fruits of our labors.  The newbies at the show now understand the language and the repartee Ron and I have with each other and with the attendees, and as the caption implies we might be spreading our “JIRM’s” by this early heads-up for all our supporters. The title was made up by the initials of first names of four of us, including our good friend and biggest fan…Manu.  So, if this Index goes sour on us you can blame him, since without his help the acronym would have made no sense on the intended pun! 
2. In case you get the impression that these three days are all fun and no substance, just think again.  Besides learning about the HGSI Suite of Indicators, we had an intense review and understanding of the pulse of the market, all the files, filters, combo ranks and chart views which Ron has developed, where do we go from here and what to look for with targets set for the Game Plan ahead.  The newbies will now understand the jargon I am prone to use including winky-winky, flicky-flicky and other Good Stuff!  
3. But enough of that except to say that the next seminar will be from October 25 to 27, 2008, so put it on your calendar and we hope to see you then.  As you well know for the past 15 years I have offered what was originally called the Iandex and since 1999 became the RonIandex.  This is usually a list of 20 Leaders in the market that are selected to give an EARLY WARNING that the Market is over-extended and when all get hit the Index will plunge for a heads-up to take heed. An excellent example of this was the 10142007 Gorilla RonIandex which has been shown and mentioned several times on this blog and in the newsletter.  In that case back in October, it gave an excellent signal that all was not well, though as faithful readers of this blog know only too well, when the market is on a strong up day, the herd comes screaming back to buy these very beaten down stocks.  The Index is up 3.95% today at 11.50am PST, so go do your homework in past blogs to find the RonIandex. 
4. However, on this occasion, we felt we would try something different and I am showing you below the JIRM Index which was a Case Study the attendees did led by our good friend Jeffrey Scott to find potentially strong candidates that were showing some signs of life in this rotten market.  Take it at face value for what it is and don’t blame us if you get germs from it.  Here is a snapshot of the Index components which on a 100 share lot per stock basis is currently up 2.03% on a strong up day in the market as I write this blog at 11.39am PST.  Ron and my usual disclaimer is that we do not tout stocks, but try to show examples of the fruits of our labors through his weekly movies, the newsletter and this blog.

The HGSI Team sends many thanks to all our strong supporters for keeping us young at heart and fresh in spirit as we move us all forward to higher goals in the future. Best Regards, Ian.