Forcasting Market Trends

The market is very interesting at the moment. I could try and give you a recap of my interpretation of what’s been going on, but there is no point. I would rather give you a link to someone who, in my opinion, really knows what is going on. There is not too much I can say about Tim Knights blog. It stands on its own. I have been following his blog for the last 6mo now and have to say he is pretty spot on.

Skeptical? As you are aware (well I hope you are) the market started to take its current dive around 5/30, take the time to read is market analysis from the beginning of May 06. You will probably find yourself continuing all the way through June 06 - present and every day from tomorrow on.

As a 'Newbie", regularly reading Tim Knight’s blog has reaffirmed for me the importance of understanding the broader market as a whole, therefore I have come up with the following trading rule that I will use. It is nothing new. Those of you with experience probably live by it already.

Personal Rule for Future Trading Decision’s

1. Identify and analyze the trend of the broader market (like the Dow NASDAQ, S&P500 etc)
2. Focus on market segments that seem to align with the broader market trend
3. Find stocks that align to the above

Thanks - David