The Tycoon Report

There's Always a Bull Market Somewhere

Tuesday, March 25, 2008 | Chris Rowe

Pessimism has been at a multi-year high. That typically means we are at or near a bottom (at least in the short-term).

But I've been hearing from a lot of individual investors lately; they're saying that it's getting harder and harder to look at their computer screen, the newspaper or the television when it comes to the topic of the stock market. 

Sometimes, there's even a misconception that the best possible thing to do is not look at your brokerage account at all!

I assure you - this is the WRONG thing to do.  It's okay to tune out the media.  And if you feel the need to trade any time you power your computer on, then you definitely need to calm down. However, it's not okay to tune out reality (which is often not what the media harps on).

The fact is, ladies and gentlemen, that there is always a bull market somewhere.  The Tycoon Report will continue to point you in the right direction, showing you where to find the bull markets and how to take advantage of them.

For example, below is a chart of the S&P500 and a chart of the NASDAQ composite.  They don't look too hot right now do they?



Well, first let me state what might be the obvious, and then I'll show you some bull markets you may have forgotten about.

You should know by now that you can easily place bets against the major indices by way of inverse ETFs.  These are simply ETFs that do the opposite of what the tracked index does.  Many people know about the Short S&P500 (Symbol: SH) the Short Dow Jones Industrial Average (Symbol: DOG) and the Short NASDAQ 100 (PSQ).  If the underlying index moves down 10%, the ETF moves up 10%, and it trades just like a stock.  It's that easy.

I'm not saying that it's time to be bearish on the market; I'm just listing the most obvious bull markets of late.

Let's consider a few other bull markets.  One of the most common questions I hear from people who want to sit in cash is, "How do I avoid losing money?  Even when I sit in cash, the dollar is weakening and Warren Buffett said there is no bottom in sight."

Ladies and gents, I give you the "PowerShares DB US Dollar Index Down" (Symbol: UDN).  This ETF has an inverse relationship to the US Dollar.  If the greenback moves down 5%, this ETF moves up 5%. 


The greenback has lost nearly half of its value over the last 5 years.  This ETF can be used to either speculate on the value of the US Dollar, or for those of you who want to sit in cash without actually being in cash, this may be the right place to park your funds until you see the next golden opportunity.

And that brings me to the next ETF: Gold!  Teeka has been telling you to buy gold repeatedly for the last couple of years.  Most of you have agreed.  So let's take a second to check out another recent bull market (which has recently started to correct).  The popular ETF that tracks the price of gold is the "StreetTRACKS Gold Trust" (Symbol: GLD).  As you can see, there is always a bull market somewhere.


Let's jump back to currencies for a second here.  There have been tremendous bull markets in currencies vs the US dollar. If you don't want to play the UDN (inverse dollar index), then consider the bull markets that we have witnessed from the following currency based ETFs.

CurrencyShares Euro Trust (Symbol: FXE)


CurrencyShares Swis Franc Trust (Symbol: FXF)


CurrencyShares Swedish Krona Trust (Symbol: FXS)


CurrencyShares Austrailian Trust (Symbol: FXA)


CurrencyShares Japanese Yen Trust (Symbol: FXY)


Since ETFs trade like stocks, they give you the ability to trade currency without having to open a separate specialized account. If you are concerned that you don't understand enough about the global economy to trade currency - don't sweat it.  The majority of professional currency traders trade based purely on technical analysis.  You can learn all about how to trade pretty much anything based on technical analysis by taking the CRISS course.

If you don't want to play the market right now, then invest in education.  Invest in yourself.  Learn how to use technical analysis, or how to trade the right ETFs.  The list goes on and on, but, quite frankly, Teeka is our "ETF Master Trader".

Finally, don't ignore what's happening to the market (whatever that may be).  Always remember: There's always a bull market somewhere.


“Profit from the Trend”

Chris Rowe
Chief Investment Officer
The Trend Rider