Jim Cramer Actually Got It Right... Only, Three Months Later?

It's no secret that we've been socked with snow this past week. During that time, I was flipping through channels and came across Jim Cramer's show Mad Money. I've said this before, Jim is a great entertainer. I am not so sure how good he is at picking stocks.

He mentioned shorting one stock, Garmin (symbol GRMN). What he said about Garmin sort of made sense to me both from a technical and fundamental viewpoint.

So here is the fundamental viewpoint... Many of the new phones that are coming to market are referred to as "smart phones" and have the same capabilities as a standalone, turn-by-turn GPS. In my own case, I have an Apple iPhone. I was looking for a navigational application in the App Store and found exactly what I needed and the good news was - it was free, that's right free. So the question is, why would anyone pay $150, $200, or even $300 to Garmin to have one of their systems? Fundamentally, I think his case is very sound.

Then, I looked at the technical picture for Garmin and noticed that we had a red monthly "Trade Triangle" sell signal some time ago (November 4th to be exact at the price point $27.06). So here we are some three to four months later having Jim Cramer tell us that Garmin may be a short.

For my money, I want to be trading the "Trade Triangles" and not listening to Jim Cramer and getting old news.

In this short video on Garmin, you will see exactly what were looking at and where the signals kick in. I also point out where one very important technical indicator is at a tipping point.

As always our videos are free to watch and there are no registration requirements.

I hope you enjoy the video and make a comment on the blog about how you feel about this market.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Jim Cramer Throws In The Towel

Last week I wrote a blog on Jim Cramer's recessionary stock picks. This blog posting showed the five stocks that he thought would be recession proof and ones that he would suggest you buy. This was on the 8th of January, 2009.

I just happened to tune into Mr. Cramer's show on Thursday night. He basically announced that he was throwing in the towel and that it would be best to get out of these positions.

So let's see how he did with his picks. All of his hypothetical stocks purchases were made on the 8th of January using the closing price.

Caterpillar: Purchased at $44.08 - Sold at $31.58
Home Depot: Purchased at $24.38 - Sold at $22.12
Johnson & Johnson: Purchased at $59.02 - Sold at $58.18
Hewlett - Packard Co.: Purchased at $37.61 - Sold at $36.13
Verizon Communications: Purchased at $32.42 - Sold at $30.45

Here's what we are going to do... we'll take the closing price last  (1/08/09), and the opening of January 30th to see just how Mr. Cramer's recessionary  stock picks worked out. The good news is that Mr. Cramer was five for five. The bad news is, those five stock positions lost money.

I have often said that I am a fan of Mr.Cramer, as he is a very entertaining man. I've also have commented that he never places a stop loss on any position that I've seen. If you have other information to the contrary, please share it with me and the readers of this blog.

Here are the results:

Caterpillar (NYSE_CAT) lost: $12.50 / 28.35%
Home Depot (NYSE_HD) lost: $2.26 / 9.26%
Johnson & Johnson (NYSE_JNJ) lost: $0.84 / 1.42%
Hewlett-Packard Co. (NYSE_HPQ) lost: $1.48 / 3.93%
Verizon Communications (NYSE_VZ) lost: $1.97 / 6.07%

I have to say this is not an impressive lineup of stock picks. By using our "Trade Triangle" Technology, you would have avoided all of these stock picks that Mr. Cramer recommended. So here's my challenge to you: if you watch Mad Money, always check with our technology to see whether you should be purchasing a stock or just standing aside. I think you'll be amazed at the improved results.

Every success in the markets,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Mad Money vs Trade Triangles ... which is better for you?

Every once in a while, I like to flip the TV channels and watch Jim Cramer on CNBC. It's not that I think that Jim Cramer is a spectacular trader, I just think he is a talented and amusing guy. The last time I tuned on the tube, CNBC's Jim Cramer was naming his top five picks to get you through these recessionary times.

So with pencil in hand, I quickly scribbled down his top five stock picks on a piece of paper and shoved it into my pocket. I actually forgot about Mr. Cramer's picks until today when I found this crumpled piece of paper with my handwriting on it. This paper listed the five stocks that Mr. Cramer picked on the close of business on January 8.

Read more here and stay on the blog:

So here are Mr Cramer's top 5 picks and where they closed on 1/08/09:

Adam Hewison

President, INO.com
Co-creator, MarketClub

Fire your broker and make money!!

Fire your broker and take control of your own money ... and stop listening to Jim Cramer unless you want to lose more money.


We are serious. According to BARRON'S magazine Cramer has been consistent in one thing and that is underperforming the markets. This is the same guy who recommended buying Wachovia and we all know how that turned out!!

Check out this new FOX TV ad. FOX did not pay us a penny to run this YouTube ad on our blog, we just thought that it really said what a lot of us already know. The king (Cramer) has no clothes.

There is a simple antidote to market chaos and bad advice from your broker or Jim Cramer's putrid picks and that is MarketClub.com. Try it out and check out our track record. If a positive road map and positive returns in turbulent times makes sense to you then try out a 30 day risk free trial to MarketClub.

I am betting you will be glad you did.

Adam Hewison
Co-Creator, MarketClub

8 Great Ways to Fight Stock Market Stress

Good Wednesday to everyone! Today's guest article comes from Blain Reinkensmeyer of StockTradingToGo.com, a site that provides free investment tips for online stock trading. You can read over 100 free stock education articles and share investment ideas on his stock forum with over 5,000 other investors. Yesterday I had the chance to chat with Blain about the market's current state and his words really conveyed an air of confidence. His post below covers 8 keys...that we all fall short on. So read and apply!

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We all know that stress is bad. As an investor, it is very important to stay balanced while trading because Monday - Friday you are in the game whether you like it or not. So how do you fight stress?

The key is to stay calm and be disciplined with your investing. Market induced stress can be caused by you being too involved in your daily routine and the second by second moves versus staying focused on the bigger picture.

How do you fight stress from the stock market? Here are 8 ways:

1. Use stop loss orders. Stop loss orders are like insurance, they are stock orders that will automatically sell your position at a pre-determined price if that price is hit anytime during the trading day. They remove the “do I sell now? Should I hold instead?” drama of investing and replace it with a disciplined strategy. They are also perfect for maintaining a strong profit vs loss ratio.

2. Don't watch your streamer live all day every day. The real time ups and downs of the market can really cause some temporary stress. If you are like me you have your real-time streamer streaming live quotes from your favorite stocks and the market all day. If you know you aren’t in the right mind frame it sometimes is better to just close the streamer for a few hours or the day and bring it back on tomorrow.

3. Refresh your portfolio balance only once a day. Are your stocks losing ground fast? Instead of refreshing your portfolio every 5 seconds and seeing fresh losses, wait till after the market is closed and then refresh your portfolio balance. Remember, your stop loss orders will minimize your losses for you so you don’t have to.

4. Have a investment strategy. Not having an investment strategy is like trying to play a sport blindfolded. Don’t be disorganized, trade with a plan. Every buy and sell should be part of that plan and as a result will greatly reduce any stress you may have. In fact, a well assembled investment strategy can mean the difference between daily stress and no stress at all.

5. Eat healthy foods. Eating healthy can help keep your body well balanced. I personally enjoy an Apple almost every day while watching the stock market. Eating junk food doesn’t help stress because if your body isn’t happy your mind typically won’t be happy.

6. Get enough sleep each night. Adults should sleep on average 6 - 8 hours a night. If you are getting 5 hours or less of sleep and are wondering why you are more sensitive when your stocks open down take a look at your alarm clock. Getting that extra hour or two of sleep will make a big difference in how you react and respond to different situations throughout the trading day.

7. Don’t surround yourself with stressed individuals. You act like those who you spend the most time with. Take a look at your colleagues, and if they are investors themselves assess how they handle their own stress. If they are emotional investing evangelists screaming at the computer screen and breaking keyboards like Jim Cramer you may want to take a step back and reconsider how much time you spend with that person.

8. Stay calm in intense situations: stop, think, then act. Perhaps the most affect way to fight stress is to take those stressful times head on with a calm mindset. Remember always to stop, think, then act. This applies with everything from making a tough call with a unknown earnings report coming up to finding your portfolio down several percent on the day.

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Take some time and visit StockTradingToGo.com, read over 100 free stock education articles and share investment ideas on his stock forum with over 5,000 other investors.