October 11, 2007 Newsletter
Hello:
Well the last few weeks in the market have been interesting to say the least. Sometimes you have to be grateful that the markets run in cycles because it would be difficult to keep up this level of excitement 52 weeks a year. This current up cycle which surprised many of us with the power of some of the momentum plays being nothing short of spectacular, especially in some of the China stocks-for example: 100%+ gains in days on RCH, KUN, CTDC, CHNR, YTEC and quite a few more.
One of the more interesting charts of the week which was mentioned in our blog (http://bottomspringers.com/blog/) was CHNR which was up over 300% in a week. Let’s take a look at this chart:
This was a powerful cup and handle breakout that caught us a little off guard with the power behind the move vaulting from $10 to near $50 in just a few weeks time. The momentum on the left side of the cup in early 2006 gave us some not so subtle clues to the potential for its breakout in future cycles. This most recent breakout completed a 21 month super-cycle which as of this writing we are not quite certain is through yet. We should know in a few weeks time but this one is pretty over-extended at this point and I’d be surprised if there is much left above the first leg high.
Some charts that remain on the radar and have the potential for powerful breakouts in the upcoming weeks and months include: SLP, CROX and CHDX. The list of good stocks right now is a long one and if you are interested in a free trial to the trading pond report which includes many of these plays, click on the adjacent link in the upper right corner of this page. – Paul Lemal
Hi, this is Daryl Thompson.
I just wanted to take a closer look at the CHNR chart because there are so many lessons there for the candlestick analyst. The chart also provides real-world proof of my Earthquakes and Aftershocks system of trading.
Let’s bring up the candlestick chart version of CHNR…
(Chart created in Telechart Platinum from The Worden Brothers)
OK, that first nice candle and volume spike in late September was a beauty of a Baffle, or Breakout From A Flatline. Notice the next four days – the price action did not retreat back into the Baffle candle much at all, showing Dojis. Then you had another nice candle off the 10ema (10-day Exponential Moving Average) on the first day of trading in October. That setup is my ARM Play (Awesome Rising Method).
You can see what happened next! Explosive gains of 74.61%, 40.93% and 12.76%. This is a graphical depiction of the Earthquake and Aftershocks system in action.
And I don’t think CHNR is done yet, by any means.
What you should do after the explosive cycle of gains is watch and analyze the pullback. What we then look for is the Holy Grail setup, which is usually formed by a Doji or Hammer on a retreat back to the 10ema. But sometimes the initial Earthquake move is so powerful that the price action is well above the 10ema, and in that case, simply look for the Doji or Hammer in the pullback. That situation is almost always a buy signal, with big profits to follow soon thereafter. Thus the name, Holy Grail.
In the case of CHNR, you can see an Inverted Hammer followed by a little Doji that took the price back to the $35.00 area. CHNR could have been rebought there. And as you can see at the time this chart was created, the stock is popping back up to the tune of 15.28%. Not too shabby a one-day return, and I think the stock still has more.
CHNR is indeed a great example of my Earthquake and Aftershocks system of trading in action!
Paul Lemal
Daryl Thompson
Bottomspringers.com
Take a Chance
Why is it so many people would like to have more out of life but aren't willing to take a chance on anything worthwhile? What is it that holds a person back from living and being what they desire?
It's funny how people will tell me, "Dr. Duckett I want to become a millionaire." I respond, "Then be courageous enough to do the things necessary to make it happen."
Others will say, "I want my business to grow and produce more income." I respond, "Then be courageous enough to do the things necessary to make it happen."
Still others will say, "I want to live my life according to what I love to do." And, you guessed it, I reply, "Then be courageous enough to do the things necessary to make it happen."
You see, people are more afraid of living than they are of dying. When a person overcomes the fear of life, the individual becomes his or her real self. There are many intelligent people who keep doing the same thing even though they know it's not going to get them to where they want to go.
As the Taoist monk, Lao Tzu said, "If you do not change direction, you may end up where you are heading."
Unfortunately, for most people, they end up where they don't want to be and complain about it. In reality, we are all able to create the life we want if we're courageous enough to step up to the necessary work to make it happen.
I'm sharing with you a very important part of life--be courageous enough to become you!
Most people hide behind their masks of what they do every day at the expense of suppressing what they are meant to be. Of course, there are a few who we all know very well, that have conjured up the courage to become their dream life. Somewhere the celebrities of today decided to go for it. Against all odds, and probably against all better judgment and sound advice from loved ones--these individuals broke loose from the mold and turned into their true selves. Now, they are rich and famous. As a matter of fact, it's impossible to succeed at anything in life without being courageous enough to get out there and do it!
The poet Robert Frost said, "Courage is the human virtue that counts most--courage to act on limited knowledge and insufficient evidence. That's all any of us have."
I remember one time approaching a person with a very sound offer to become a business partner of mine. It was a business this person did not have any experience in and so declined my generous offer.
I offered this person the opportunity to become very wealthy. The person would invest for a 50/50 partnership with me. After his declination, I proceeded with someone else. Within a short period of time we made a fortune. What kind of return do you think the original person passed up due to his fear and being overly cautious about the unknown? Successful people take chances on life and themselves.
I would like to say this happened only to a number of people that I made offers to, but that isn't the case at all. In all honesty, I too had to learn the painful lesson of being overly cautious to the point of freezing-up and losing out on numerous investment opportunities myself.
I wouldn't advocate irresponsibility but I would say, "Take a chance on you." Otherwise, your life is going to be limited to what you currently have.
What is it you want out of life? What is it you would like to become? Are you courageous enough to make it happen? Are you willing to confront the work at hand that others had to do to become successful at your desired life?
Here are three things to remember:
1. The person who confronts life gets to live it fully.
The person who is self-restricted in life to the point of refusing to move forward until he or she has figured it all out--is probably never going to figure it out and in turn, never goes very far. Face it. If you want more, you're going to have to take a chance on some things. Decide what you want and then--Do It Now!
2. Successful people make decisions quickly and change their minds slowly.
I love to do business with successful people because they are able to come to a decision quickly and then be willing to make it happen. As a matter of fact, successful people may face obstacles but no matter what they Keep Going!
3. Only if you believe it's possible will anything be possible for you.
When someone asks me, "Do you think it's possible for me to become…?" I always have the same response, "If you have to ask, then no." You see, I believe whatever you want; you can have but first know that It Can Happen For You!
What are you missing out on due to your fears, uncertainties, or lack of courage? What would your life be if you stepped up and faced whatever was necessary to become you?
I believe we only realize how short this life is when it's over. When you have passed on from this existence, I pray you have climbed every mountain you ever desired; laughed at every joke you ever heard; loved every day and person who came across your path; acquired all the worldly possessions you could experience; and above all else--lived your life to the maximum the way you wanted.
Let our lives continue to unfold into a wonderment of mystery and love for ourselves. Until next time, I am
In Loving Service,
Dr. Michael J. Duckett
www.upgradinglife.com
www.professionalincomesolutions.com
www.breakingthemoneybarriers.com
www.overcomingfearhome.com
Dr. Michael J. Duckett world renowned Social Scientist, Author, and Speaker is considered the "Master of Success" because he guides people in understanding and applying scientifically proven systems to reconnect with life and increase their rank of success to the next level. His World Acclaimed Programs have been proven by thousands of people. Dr. Duckett's various programs work to improve quality of life and help people transform into their ideal life ambitions. He facilitates a number of In-Person seminars as well as Teleseminars to a worldwide audience. Dr. Duckett has been nominated for various awards worldwide for his latest discovery, "The Mental Codes Seminar."
For more articles by Dr. Michael J. Duckett, Teleclass information or to purchase any of his books and products, visit www.upgradinglife.com or click here
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