Newsletter-12-02-07
Tradingourway
Volume 1, Issue 12 Dec 02, 2007		Tradingourway Logo
Up-Coming events:

April 2008 Seminar at Sea cruise to Panama Canal

At TradingOurWay, we are currently planning a Seminar at Sea cruise departing out of FT. Lauderdale on April 12th, 2008. It’s an 8 day cruise to the Panama Canal with 4 sea days of classroom activities. We would love to have everyone join us! Complete details can be found on the Tradingourway website.
Note: We encourage you to Sign up now! We still have room for 9 people. So I encourage you to sign up before you miss out on the best seminar you will ever attend for this price. 
Will we see a Christmas rally?

Sorry, I don't know the answer to that one but I have an opinion. This is one of the hardest markets to figure out in years. There is so much manipulation going on. I can't recall a time when our federal government was so blatant in fueling the markets. There are very few reasons for this market to go up and a great many for why it should go down.

The fact remains that the market is rallying and in my opinion we should see a Christmas rally.
  
 
This Issue:

Looking at the DJ30 we can see the rally has already begun. How long it will last is always the unknown. The last 4 days has generated a 742 point move off the low of Monday. According to my Elliot wave software we completed an ABC down pattern which is normally followed by a rally.

We can expect some pullback over the next few days but we should see the rally continue through year-end and possibly until Mid-January..

  DJ30 Head and Shoulders maybe?? 
   
Next year is yet another question.

Looking at the above chart you can see I have implied the question - Can this be a Major Head & Shoulder forming? I am inclined to think it might be. The good news is it will take several months to form. so no need to sit and worry over it now. I know it will make a great topic of discussion during our Seminar at Sea in April 2008.


  

To take advantage of this rally I am going to provide a list of good quality companies whose stocks are have a great year. I think they will end the year in even better shape. That is until Mid-January when the market almost always correct. Base on the price points in the table below for Entry Stop-Loss, and Target #1, I considered these low risk trades assuming we get the expected Christmas rally. However, that is just my opinion. When it comes to entering a trade your opinion is the only one that matters. You have to analyze each one and make your own decision if any of them fit your style of trading.
 
Symbol Comments Long or Short Last Update Entry Price Stop Loss Price Target #1 Target #2 Target #3 Reward to Risk T#1 Reward to Risk T#2 Reward to Risk T#3
ABX May have completed the pullback but showing bearish signs L  12/1/2007 42.00 38.40 51.00 58.00 64.00 2.5 4.4 6.1
AEM Gold having a few bad days, still good stock but need to watch it L  12/1/2007 52.70 47.80 63.00 73.00 79.00 2.1 4.1 5.4
AGU May have completed the pullback, good last few days L  12/1/2007 57.90 53.05 73.00 79.00 86.00 3.1 4.4 5.8
BVN Nasty change Friday wait for close above 20 MA L  12/1/2007 57.10 51.90 74.00 88.00 88.00 3.2 5.9 5.9
CF Should have been bought already still a good trade L  12/1/2007 87.10 78.70 116.00 139.00 139.00 3.4 6.2 6.2
DNR Seems to have settled into a trading range wait for break out or down. Upside targets still valid L  12/1/2007 54.80 51.10 73.00 86.00 96.00 4.9 8.4 11.1
FMC Should have been bought already still a good trade L  12/1/2007 54.10 51.40 66.00 74.00 81.00 4.4 7.4 10.0
GD Got to hold 50 MA  L  12/1/2007 89.70 87.10 97.00 103.00 103.00 2.8 5.1 5.1
GG Gold not in favor at the moment but still a good stock L  12/1/2007 33.80 31.05 40.00 46.00 51.00 2.3 4.4 6.3
LIFC May have completed the pullback  L  12/1/2007 41.90 39.10 53.00 62.00 68.00 4.0 7.2 9.3
MFC Want it above 50MA , raised stop L  12/1/2007 42.50 40.45 47.00 52.00 56.00 2.2 4.6 6.6
MUR May have completed the pullback, getting close to a buy position L  12/1/2007 73.50 68.40 89.00 102.00 112.00 3.0 5.6 7.5
PAAS 50 ma should act as support, all metals taking hits L  12/1/2007 32.10 30.40 40.00 44.00 47.00 4.6 7.0 8.8
RIMM Will the 50 MA hold, if so it’s a buy L  12/1/2007 115.00 104.00 154.00 190.00 190.00 3.5 6.8 6.8
SOHU If not already in, Buy on positive open   L  12/1/2007 57.60 54.20 69.00 83.00 93.00 3.4 7.5 10.4
SPW Got to get above 20MA L  12/1/2007 103.20 96.40 124.00 141.00 153.00 3.1 5.6 7.3
STLD Don't like bearish engulfing on 11/30/07, don't let it fall below 50ma L  12/1/2007 50.77 48.60 60.00 64.00 69.00 4.3 6.1 8.4
VCP Should have been bought on gap above 20MA, 50ma acting as support L  12/1/2007 31.30 29.40 39.00 46.00 48.00 4.1 7.7 8.8
   
Summary:

We hope that everyone had a great Thanksgiving and will have a terrific Christmas and New Year. Take the time to enjoy your loved ones and hug the kids.

The information in these newsletters are but a small fraction of what will be covered on our "Seminar at Sea". We'll be showing you how to find stocks like the ones above and how to analyze them for your trading.  Plus, so much more.


 Wednesday is the first day of Hanukkah. So let's wish all our Jewish friends and everyone,

 Happy Hanukkah,


 Please feel free to send an email to kermitp@tradingourway.com  with your suggestions, complaints or questions. Your feedback is important to us.

Also, Please feel free to forward to your friends by clicking on the "Forward to a Friend" below. 
 
Thank You and good trading,
 
           Kermit Prather