Billy's News

Dear friends,

I am still in the middle of a long surgery program involving my feet, legs, arteris, heart, kidneys and eyes. I have already stayed 33 days and nights in the hospital since late November and, after some respite time spent at home with nursing assistance, I am preparing to reenter the hospital today for a new round of surgical operations starting on Monday.

I wish to thank everyone of you who sent me kind supportive messages either in the forum or by email. I am still behind over 2,900 unread emails and am sorry if I’ve been unable to reply personally to each one of you. I am surrounded by wonderful doctors, friends and family. Pascal has been particularly present and helpful, proving once more how great a human being he is. I keep high spirits and am confident to come back to normal life and trading in a few months time.

Clearly you didn’t need much of my help to participate in the strong uptrend witnessed over the last few weeks. I could seize my share of the cake but went back into cash last Thursday in anticipation of being away from my screen next week. After very quiet positive (and QE +JPY carry trade induced) Intraday action for most of January, intraday turbulences were present again on Thursday and Friday, pointing to a potential market inflection point in the making. Like many of you, my feeling at the present time is to expect some consolidation and a minor pullback to calm down and shake out latecomers to the party. From all my perspectives, It is way too early to call any significant bearish turn for Mr. Market.

I couldn’t do deep research and analysis work but have updated my favorite proprietary indicator of correlation between IWM and IBD’s accumulation/distribution ratings. As you can see in the following chart, the indicator is at a new extreme high which has always preceded precipituous distribution activity in the past. However, long setups can still be favored over short setups as long as the indicator holds above the 20 dma, just as witnessed during the December fiscal cliff bottom.

[ATTACH=CONFIG]17094[/ATTACH]

Remember that in trading patience is king and that the best traders make their money waiting for rational setups and for rational exit signals, regardless of their personal gut feelings, fears or opinions. A good example is discussed today by our CANSLIM forum Manager Mike Scott in today’s IBD radio show. His interview starts around the 8th minute. Also, don’t miss his chapter in Amy Smith’s book.
[url]http://ibdtv.investors.com/ibd-weekly-radio-show/642135-how-to-make-money-in-stocks-radio-show-january-26-2013.aspx?nav=IBDTVRecentAudios[/url]

Please refrain from sending me private messages as I will be unable to read them for quite a while. I know how supportive you are and am very grateful to all of you.

Best regards,
Billy

Get well soon Billy - we are all looking forward to your recovery and return!

All the best on your surgery and for your health, Billy.

Looking forward to hearing from you when you're back.

best wishes and take care, Billy.

pete