DONT FIGHT THE TAPE

Every time we find the stock market in an unexpected run to the up or downside and the pundits are wetting themselves with glee; Eventually some old relic from the crash of 1929 gets on the air and reminds us of the only important information a trader needs. Hence the old stand by quote for times of so called irrational market behavior... "DON'T FIGHT THE TAPE!!!"



The market is what it is! Standing by in unbelief never made a trader a dime. The market is not Mr. Spock. It doesn't have to act logically. Moreover it doesn't have a mind, let alone "a mind of its own." Prices on a ticker tape. You as a fortune teller have one of two methods for calling the market direction ( you can use history or you can guess at it) if you use the past, or "the tape"- go with the trend and make a profit we call it a win. Some traders use the latter method and still call it skill when they win. The day you let the tape tell you where stocks are headed, AND trade accordingly; you will finally start to get in on the right side for consistent returns.

New Watchlist Stock

In recessionary conditions many traders and investors will look to companies like Kellogg. Why? The first reason is that traditional sector rotation used by many money managers dictates that they should. Secondly, there are companies that produce goods that we the consumer wont give up. I.e. Food. Lets face reality, we all need it and you will give up the dream of a brand new car if it means the difference between feeding your kids and letting them starve.

I want to highlight (K) Kellogg for some additional reasons. First they pay a steady dividend, moreover the earnings per share are actually coming in higher than expectations. and perhaps most important The stock price has begun to establish new highs. As always the trade has to be right for you, so let your own rules dictate the actions you take.

Trading/Farming Update

I am down to 3 active stock trades and I can only say I am really all that happy with 2 of them. I will say that if you have been watching ticker symbol STAR one of my holdings, you can see what a good "scale in opportunity" might look like as price movement continues to set new highs...



A special photo comes from my farm in carbon county... This is a close up picture of a Peregrine Falcon that became dehydrated and decided to hide in the shade of the old John Deere. My Dad found her just trying to find shade. she was not in good shape. she needed water bad. My dad did what he could and took a few pics. The Animal rescue folks came the next morning and took her to the sanctuary. She should be just fine in a week or so. I think she is like most investors right now- cant run cant hide and certainly cant find much air up there. Please enjoy and if you have any questions about my trading and really want to learn something; ask a question or 2- I am always in the mood to talk stocks.

DD

My dad having fun

Tic Tac Toe, or Big Track-hoe? check out CAT and tell me what you see.

DBA is draging its feet

my hedge is going well so far.

I went long DBA last week

I am also diversifying into food I can sell and eat as well.