Milk The Market Investment Blog

Just a update… this system is done and live on Milk The Market Investment Tools. It took a lot longer trying to stand up a whole site while working on a lucrative contract that has been taking up my time and still trying to keep a pulse on this crazy market for my own investments.

I need beta testers who are good with manual R1 calcs to verify the data and spot anomalies. After porting this into a custom module from a personal tool, things looks good, but I haven’t personally verified enough data to say everything is tip top. If you are interested, PM me, I will send you a free account code.

As you know, my R1 is slightly modified, and will still put you on the right track if you are a R1 purist, but more importantly will not let you miss some important opportunities that strict R1 will exempt. It uses 6 - 8 years data (assuming the company has been reporting that long, then only as far back as reporting), as opposed to 10.

Some things to consider in this market, especially since Tuesday looks like it will be hammered down…

We are not at the bottom, we are going down from here as a market, IMO.

You should be looking at playing shorts for inverse MoS if you are trader and/or aggressive investor.

There are huge opportunities opening for serious MoS discounts all over the place for entries. The key is to isolating the babies getting thrown out with the bathwater… and I’m not talking about financials. I don’t own any, I am still short on the S&P. I have started looking into sectors whom traditionally do well, or at least hold their head above water during recession or general economic slowing, and have a been discounted to the realm of accepted MoS. I am also looking at places that deal with the government, since we know those presses will never slow down (hmmm… gold..).

On your charts, take all your MoS candidates, overlayed against the S&P, and see how they did on the market down days we’ve had. Sometimes it can be telling where the smart money is flowing once you have a smaller “target” to help confirm decisions.

You will need to adjust stop losses (particularly if you do trailing SL) or the volatility of this market will buck you out of positions before you get a chance to take a good ride on them. On my double inverse S&P I finally bumped it back to 14% after missing out on 3% here and there on failed rallies that were causing positions to close.

Good luck! It’s crazy out there, but the crazier it is, the more opportunities arise, along with treacheries. Be careful!

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