FIR 10: XOM Kicked By The Monday Engine (TWICE!!!) with YOGURT

Financial Investing Radio

As temperatures rise in the summer we often find ourselves taking our children to frozen yogurt places. There was one point in their younger years when frozen yogurt places became quite the fad, very trendy. It seemed there was a new yogurt shop every few months. We decided to try them all. So we'd go test out one place, and then we'd vote on it. A few weeks later we'd pick another place and try it out. Soon there were factions in the family, one faction felt that Yogurt Place A was the best and another voted for yogurt place B.

When you go to pay for the yogurt you put your cup with the yogurt on a scale and they charge you based on the weight. One night while we were getting our yogurt weighted I noticed our two younger children's yogurt cups had every possible topping on it. "Eww...!", I said, "isn't that too sweet!?". "Nope!", they replied. And off they went with their cups. I started to watch more closely what they put on their yogurt. A pattern seemed to emerge. The pattern was multiple flavors mixed with all the toppings. Soon after they had their yogurt it would begin melting into a grey slurry...not very appealing. One night I asked them which was the best yogurt shop and they assured me they could tell.

Pick one thing to trade, get good at it; or pick one good technique and go with that; I trade with the Market Engine; it's not a potpourri of indicators; it's a direct feed of what's going on inside the market vehicle and whether or not you are aligned with it.

For example, On Monday, May 24th the Market Engine shifted gears and identified that EXXON (XOM) was changing...and you know it went down.

You need plenty of context, but an overage of indicators and lagging data only confuses me.

The market engine kicked again on June 6th, as XOM became mis-aligned with the engine...and as you know price went up...and is hanging around 82 at the moment.

When we are making trading and investing decisions...pick the amount of time you want to spend in your life managing it...and pick a strategy that will give real time information. Trading certain stocks can reduce the amount of time you spend watching the markets.

Until next time, don't mix too many yogurt flavors together, rather, use the market engine to help you stay on the right side.

This is Grant - trade safe!