John L. Person - Mastering the Stock Market: High Probability Market Timing and Stock Selection Tools

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Copyright 2013 by John L. Person. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Person, John L.
The master stock trader : timing techniques to profit from seasonal & sector analysis / John L. Person.
p. cm.
Includes index.
ISBN 978-1-118-34348-7 (cloth); ISBN 978-1-118-41659-4 (ebk);
ISBN 978-1-118-43417-8 (ebk); ISBN 978-1-118-42054-6 (ebk)
1. StocksCharts, diagrams, etc. 2. Investment analysis. I. Title.
HG4638.P474 2013
332.63'2042dc23

2012026739

To my loving wife Mary, my best friend and supporter.

Foreword

John Person has probably forgotten more about trading than most traders will ever learn. He has done it all in the industryfloor trader, broker, analyst, book author, and educator. Along the way, he has tested virtually every trading approach known to man. He knows what works, what doesn't, and what it takes to succeed as a trader.

I've known John for over 20 years. I've seen him after a good run in the market and seen him after he took a big hit. What I admire is his resiliency, tenacity, and his commitment to continuous learning. He is always increasing his knowledge and seeking to improve as a trader.

I think Mastering the Stock Market is John's best book yet. It brings together his extensive knowledge of sectors and seasonals with his deep understanding of technical analysis. It is the work of a market veteran who understands that your best bet to make money in the market is to have both technicals and fundamentals on your side.

Like John, I am optimistic that the financial and commodity markets will provide tremendous opportunities for investors in the years ahead. Technology, globalization, and entrepreneurship will drive economic growth and propel the U.S. stock market to new heights.

Many investors were chastened by the big stock market drop in 20082009. Four years later, a lot of these investors are still not back in the market. Instead, they may be earning just a few percentage points in bonds or CDs. That's not a recipe for growing a nest egg that will provide for a comfortable retirement or fund your children's education.

By studying the methods in Mastering the Stock Market , you will gain the knowledge to approach the markets with a high degree of confidence. You'll be able to identify opportunities and fine tune your entries and exits using technical analysis. You'll gain the discipline to cut your losses when a trade doesn't work and to maximize profits when everything works as planned. In short, Mastering the Stock Market will help you to make sound trades and build your wealth.

Jake Bernstein
Santa Cruz, California
October 2012

P.S.I must also add that in my more than 44 years as a trader, investor, and market analyst, I have met and known many of the top people in the business. John is a Person who ranks at the top, top of my list in credibility, commitment, and a deep love for his work.When John talks, I LISTEN!

Introduction

I firmly believe the second decade of the new millennium will bring another wave of prosperity and a new level of educated traders and investors. I am longer-term bullish on stocks and have had that bullish outlook since the market bottomed in March of 2009.

The divergence between technology indexes such as the QQQ or the Nasdaq 100's posting a double bottom in March 2009 versus the prior low from November 2008 was one clue, and sentiment indicators such as the CFTC COT reports, volume studies, and the longer-term Person's Pivot support levels all helped me form that conclusion. Even into 2011, at PA Stock Alerts, we held steadfast to our bullish bias, and as we enter the 2012 presidential elections, I continue to remain on the longer-term buy side of the market. I will continue to do so, of course, expecting the normal corrections, or shakeouts or fadeouts, but I am more optimistic on investing in the stock market now than ever. That opinion could change if the conditions and indicators I use change as well. But let me add that the reasons why I am bullish is the advancement of technology, the globalization of markets, and, of course, the need for prosperity still thrives. With those factors in play, I am not betting against the obvious that almost every generation has seen an increase in the wealth effect.

The one concern I have is that when we start to see market performance improve, the vast majority of investors will either not participate in the market because they are disbelievers, or because they don't trust the markets due to past experience, such as the tech wreck from 2000 or the flash crash in 2010.