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The Art of Upside-Down Trading

Gary B. Smith

OK, now I get it. If I just do the exact opposite of what my method says, I can make a fortune! Really, truly, what I think this market calls for is for me to operate in a parallel universe: where every long is really a short, and every short a robust long!

But, maybe it's just me. Maybe I JUST DON'T GET IT! And I guess that's good, because pretending I did get it would be a sure sign that my mental hygiene needs a bit of work. You know -- denial, living in a fantasy world, the whole nine yards of someone mentally unstable!

Anyway, I thought you should know all that before you read any further. Sort of a Surgeon General's warning that reading this column may be hazardous to one's health ... or pocketbook!

(Note: Don't mind me. I'm going through a midlife crisis right now! Just watched American Beauty, and next week I'll probably be talking about the 1970 Firebird I just bought!)

OK, back to our regularly scheduled feature...

First up, an update on those nutty Prom Queens. And I have to say that when we bought on the crash day, per our rules of buying on every decline of 10% or more, that really beefed up our portfolio. How beefy? As of Thursday morning, the Nasdaq 100 Trust (QQQ Quote) was down 10% for the year to date. The Prom Queens? Up 1%. So, I'll give a tip of the hat to those who like to bottom-fish. I guess if you buy the right stuff -- and isn't that always the case! -- buying on the panic can pay big dividends.

Now, as for charts, you will want to take a look at some of these below. I find it interesting that there are a number of very bullish charts in the crowd, and a number of heretofore bearish charts, which lately have started snorting. Take a look and see.

And so ends another week. A week that if my Venus Williams indicator is accurate, we've put in a major bottom! Recall just a short time ago, when her father said she was going to retire to work on her investments? Hmmm, seems she's back on tour, and apparently for good. Now, if only I could find out how Barbra Streisand's day trading is going...