Bear Stearns, Classic Capitalism, and the Market is Always Right

Mar 17, 2008: 9:53 AM CST

Adam Hewison, INO.com President, sums up the sentiment I’m sharing in this news release which explains why “trying to catch a falling knife” can cut your account to shreds. If you were a Market Club member, you likely caught the signal on this stock 12 days ago. I liked Adam’s quote, “Markets often glide, then they slide, but they slide faster than they glide.”

Hewison recently released a fresh educational this morning video entitled “How to Avoid Market Meltdowns” where he describes this situation further, and analyzes the monthly and other charts of Bear Stearns, and explains how the Market Club’s ‘trade triangle technology’ tool signaled members 11 ahead of time of Friday’s plunge to get short or exit positions in the stock.

Granted, if you were proficient at technical analysis, you would have recognized the downtrend and increasing momentum, but their members receive simple signals that are a composite of different factors of technical analysis.

I wanted to provide some quotes from the article that’s contained in the link above, as well as a few quotes from the brief video.

“Never buy because a price looks low, and never sell because a price looks too high. It doesn’t matter what you think.”

“You can only determine the trend by using pure market action. The easiest way to do this is by using a program that tells you in plain English what the market is doing.”

“We are going to see some amazing market and trading opportunities this year. So plan now to make some big profits. It’s important to stay cool, listen to what the markets are saying and have a “Game Plan” that works.”

“Let the markets have their say รขโ‚ฌยฆ all you have to do is listen.”

Thank you to Adam for sharing this information with us and all other traders.

5 Comments

5 Responses to “Bear Stearns, Classic Capitalism, and the Market is Always Right”

  1. Bear Stearns, Classic Capitalism, and the Market is Always Right | Technology Says:

    […] Read the rest of this great post here […]

  2. Tyro Says:

    I forget my economic theory, does “Classic Capitalism” involve multi-billion dollar assistance from the government? ๐Ÿ™‚

  3. Corey Rosenbloom Says:

    Haha!

    True, the Fed’s actions defy capitalism, but I was trying to convey the notion of economic Darwinism, where the strongest survive.

    Multi-billion dollar injections for a specific dying ‘species’ really doesn’t speak to classic capitalism, does it?

    But what’s a trader to do? ๐Ÿ™‚

  4. Comprinhas Says:

    Hi corey

    im a regular reader of your blog, congrats for your work!

    I have one question; do you use MarketClub system?
    Is it worth the triangle technology?or is it marketing and another system…….

    Regards from Portugal!

  5. Corey Rosenbloom Says:

    Hey Comprinhas,

    Thank you!

    I do view the news, analysis, and commentary on MarketClub each day and use some of their tools – especially the scans – to help me in analysis or recommendations. I trade more intraday, but I also do analysis with sector trends and intermarket relationships and I find their signals as well as discussion helpful to gather the larger picture.

    The Triangles are sort of ‘hokey’ but it’s a combination of different inputs and indicator values in technical analysis which you can easily find on your own, but it’s helpful to have them jump out at you so you can apply your own analysis, or preferably scan for recent (today’s) signals.

    It is a system to help filter guidance and discipline, but of course no system (I’ve discovered yet) is perfect and I doubt there will ever be a perfect system. Until then, we put together what we can into a discernible framework and make decisions as best we know how. Systems can help that for newer and developing traders.

    I’m so honored to have you dropping in from Portugal! Thank you for reading and for the comment!