Watchlist Saturday

Dow: IT Bearish and ST Bearish to Neutral. The Dow dropped into a support zone between 12,200 - 12,300, but it's possible that the index may punch through that area and test the 12,000 - 12,100 area. ST resistance is in the 12,340 area.

SPX: IT Bearish and ST Bearish to Neutral. The SPX broke through ST support around 1,370 - 1,373 and dropped to a minor support at 1,360. The 1,350 area is a stronger support zone, and could be where the SPX is headed. 1,370 - 1,373 is now resistance.

Naz: IT Neutral and ST Bearish. That was a pretty nasty Kicking Pattern (candlestick pattern) on the Naz Friday. It looks like the Naz has a pretty good probability of heading towards support at 2,429 - 2,430

In my estimation, the easiest play by far tomorrow is going to be puts on the SPY if the market wiggles up a little out of the gate. We might get someone yapping something about "oversold" or "upgrade this or that" and get the wiggle. I would look at puts on the DIA as well, and I would target the 1,350 area on the SPX as my exit point.

I'm going to do a concentrated Watchlist, mainly because I'm only going to focus on a few Bullish stocks in a small area. As for puts, I'm mostly focused on the SPY and DIA because a lot of the selling is coming from either overcooked areas, or bullish stocks seeing profit-taking. However, there are a few interesting puts that could still have 1-2 days of selling in them. I'm only putting the most interesting stocks on the list for tomorrow. After tomorrow, I will re-assess, and add to the watchlist.

BULLISH SECTORS/GROUPS AND STOCKS:

Short Index ETF's: SKF, SDS, DXD
Energy: USO, KWK, CHK, CNQ, ECA, XTO, OXY, SU, HES, ESV
Gold: GG, AEM, ABX, NEM
Coal: ACI, BTU
Steel: AKS, STLD, GGB
Note: ABT

BEARISH SECTORS/GROUPS AND STOCKS:

Drugs: JNJ
Transports: UPS, FDX
Defense: LMT, NOC
Financials: GS, PRU, STT, MET, ICE, COF, MS
Retail: JCP, KSS
Leisure/Discretionary Spending: HOT, WYNN
Note: HRS, PH, CMI, RIG, SUN, VLO, CELG (pure Evening Star), KLAC, AMX, ERTS

I answered the rest of your questions from Friday. Sorry it took so long, but I can't always predict how busy I will be on the phones. In fact, the random nature of my work probably keeps me at about 1/3 the trading capacity that I'm really capable of, so I am going to make a comment about that in a moment. For now, all of you should check the last comment to Keith about how you might read Stocks & Commodities, the magazine, if you do. By the way, I do have a subscription, but for a long time I would just go down to the bookstore and flip through it to see if there was any useful info. So don't think that you have to go get a subscription to this or that magazine. Over the years however, I have found the Investor's Business Daily to be, by far, the most useful newspaper. And I have found Technical Analysis of Stocks & Commodities to be the most useful magazine for interviews and technical analysis info. There are many other periodicals or internet sites that can also be useful, but make sure you keep it under control. Remember that all of these "educational" or "informational" resources are selling a product, and it's not always designed to make you a better trader. However, if you manage the inflow of information to your brain so that you don't blow a fuse, then you can always learn a thing or two, here or there, as you do a little research.

For the next little while I am working on the first video for the other site. I am going to get to the Watchlist and Posture later on. I want to get the video tutorials rolling today. I am also going to give you a heads up on how it's going to work. The site will be free, the education will be free. But I am going to password protect it. The way for you to get in to the site is through a referral program, and I'm going to make it very easy for you. Anyone that refers the Dwight Anderson Family Trading Page to either 3 fellow traders, or 5 other people can get in. I have set up a special (temporary) email address to handle your emails (which I will reveal later). I'm going on the honor system, so if you tell me you did it, then I believe you, and I will email you the password. As far as you emailing me, I really don't have an interest in collecting email addresses, that's NOT what this is all about. So I don't care if you set up a temporary email address just to send or receive an email to me or from me, and then you delete that temporary email service when you're done. I really don't want a bunch of email addresses. I also don't care if you use your full name (for that matter, I suppose you could even use a fake name). You can use just your first name and last initial when you email me, if you choose. In addition, if you have already referred the site to 3 fellow traders, or 5 other people previously, that's fine, I can make this retroactive.

The spirit of the concept is this: what I want to do is to get an idea how many of you out there are still interested in getting more education from me, and I want to expand how many people are following this site. I don't want to do any of this through my own marketing. I don't want any issues with any other organizations. Remember, any of you who found this site, found it on your own, because I have never given out the URL publicly. I want to get an idea of how many people want to continue following along with me, and perhaps expand that a little. I want to get in to a position where I can trade with maximum focus, and I can get you information on trading with maximum efficiency.

Update: I was really overwhelmed by the number of you who gave me such positive comments from the post above, thank-you. Therefore, I decided that I'm going to release the first (practice) video on this site for everyone to check out and give me technical feedback on, rather than on the new site. I was just going to do a simple practice video to test this out, but because of the positive responses, I'm going to put together a nice tutorial on using the TRIN (some of you have been asking about it anyway). Thank-you again for all that you said, and for referring the site to your friends.