Webinar brought to you by TDAmeritrade, July 23, 2008

Dr. Charles B. Schaap is the author of ADXcellence—Power Trend

Strategies, and Invest with Success: Big Profits for Small Investors.
All rights reserved © Dr. Charles B Schaap. Our articles, columns, stock lists and other
features should not be construed as investment advice, nor does their appearance imply
an endorsement of any specific security or trading strategy. An investor's best course of
action must be based on individual circumstances.

Thank you for attending!

Email us at StockMarketStore@yahoo.com or Traderdoc5050@yahoo.com.

We have three free sites for learning

www.stockmarketstore.com over view of the market
www.5050Strategy.com the 5050 Strategy
www.ADXcellence.com ADX lessons

Lessons come free in the Journal for Excellence in Trading, published by

Candy Schaap. In the July 18 Journal letter, Dr. Schaap covers systemic risk.
Email if you would like a copy.

There are no magic picks or formulas. One needs a list of possible candidates
and then watch for a set up and an opportunity. Look to some different sectors.
When one is rotating into favor, another is rotating out of favor. Dr. Schaap says,
"It's not how many times you trade right; its how many trades you
time right." So have a small list of opportunity and learn strategies and entries.
Practice will make you a more consistently profitable trader.

For anyone having trouble with the concept of pivots, you might want to review
the March 22 webinar, archived at TDAmeritrade.

Sector ETFs are a way to get the big picture.

The iShare ETFs, or exchange traded funds, trade like stocks and are based on
indexes. Currently, the majority of the sector ETFs are below the 50-week MA
which represents the long-term trend. Only energy (IYE), basic materials (IYM)
and natural resources (IGE) are above the 50-week MA. Energy and precious
metals are late bull market sectors. In the early bear market, consumer non-
cyclical and healthcare are good performers, and they are both defensive for
your portfolio. The following 12 iShare sector ETFs can be used to track the
overall business cycle, simply apply the 50-50 Trading Plan to the chart, then you
will know when to be in and when to be out.
Diagram of Stock Market Cycle posted at www.StockMarketStore.com Learn wealth strategies
with Dr. Charles B Schaap – his new book Invest with Success.

Basic Materials IYM

Consumer Services IYC
Consumer Goods IYK
Energy IYE
Financial IYF
Healthcare IYH
Industrial IYJ
Natural Resources IGE
Technology IYW
Telecommunications IYZ
Transportation IYT
Utilities IDU

The iShare family has over 150 ETFs to break down the above sectors into
industries and to cover all aspects of the US and foreign economies. Learn more
at ishares.com. Once you target a bullish sector, drill down and find a stock within
the sector that meets your criteria.

Here is an example of time frame dynamics:

Gold has been up trending. There was a period of consolidation early 2007, and
this weekly chart of gold shows that since late 2007, gold has been in an uptrend.
This is a 60 minute chart of gold. Prices fluctuate up AND down and it takes
understanding sector rotation and trend hierarchy to time your trading for the best
profits. Momentum precedes price, learn more from the book ADXcellence.
Chapter 6 is entirely on momentum.

The previous two charts show price with ADX/ DMI - you can learn more about
this indicator at www.ADXcellence.com. Price looks the same whether you use
ADX or the 50 week moving average. Don’t confuse indicators with price. Price is
what matters.

More Advanced:
Momentum is a great set up for options trading. Review the archived options
webinar at TDAmeritrade, the date was June 27. The hand out is at the link
mentioned below.
Time frame analysis was the basis of the AMSC trade featured at
www.StockMarketStore.com. While I used options as a strategy, PRICE gave me
the trade.

Keeping it simple:

The 50-50 Trading Strategy is a way to understand market direction. You can
apply the strategy to any chart and tell immediately what price is doing. No ifs,
ands or buts – now you know. www.5050Strategy.com is the site; Invest with
Success is the book.

Now let’s look at some charts:

Energy and commodities are still up trending, but it is a mature trend. Notice that
price has not made a new high since last year.

This chart of XOM, a leader in the energy sector, is not up OR down, price is
sideways. Would you be ‘surprised’ if price goes back to the recent highs? The
professional trader is prepared, never surprised.

Sectors rotate over periods of years and months. FLO is part of consumer non-
cyclical sector, or consumer staples.
Here is a daily chart of XBI – the SPDR ETF for biotech. Biotech and health care
are part of the ‘defensive’ sector of the economic cycle. Compare what you now
know and what you see on this chart with daily charts of MYGN, BIIB, DNA,
OSIP, CELG, and AMGN – all stocks from that are part of this ETF.
Price fluctuates. The 50 EMA is not a magic point on the chart, it is a guide, and
it represents a time frame to use as a plan for managing risk and reward. In his
new book, Invest with Success, Dr. Schaap explains exactly how to do that.

Profits are a choice. You can do what you want, or learn to do what makes
cents. Now you have the right stuff!
2008 © All Rights Reserved Candy and Charles Schaap