ClusterGains

As of the end of 2011, there is no sign of any quick improvement of the economy.  Sure, we are advancing gradually, but the only way you will make a significant amount of money in the stock market is by trading rather than holding your investments.  I have listed five stocks below that are worth trading.  On the right side of the page, you can click on the stock links to look at their charts.

Since we will certainly have continuing market volatility throughout 2012 due to politics, it is a good idea to put TVIX on your watch list for holding during short amounts of time.  This ETF attempts to double whatever VIX is doing.  I have a friend at work who made 200% on his money by owning TVIX for a few months during 2011.  Where else can you get giant returns like that?  Of course, since the financial surprises of 2011 are now past, you may only get 50% by holding TVIX during a volatile period, but that will be great compared to other investments.  I recommend buying TVIX when it is less than $15 per share and sell it at $22 or higher.

A second stock that works for trading is ERX, the triple energy bull ETF.  If oil goes up 1%, ERX goes up 3%.  I recommend buying it at $40 per share and sell it at 50 dollars.  You will make 25% for your money each time you can do this.  This situation happened several times in the summer and fall of 2011.

A third stock for trading is ATPG, ATP Oil and Gas.  They have operations in the Gulf of Mexico and other places.  You may be able to buy this stock around $6 and sell it above $7.  You will make 16% on each move.

A fourth stock is BZH, Beazer Homes.  The homebuilding sector is still volatile.  You could probably buy Beazer around three dollars per share and sell it at 3.75 until the homebuilders really take off.  You will gain 25% on each trade.

A fifth trading stock is UDOW, the ultra Dow 3X ETF.  If the Dow goes up 1%, UDOW goes up 3%.  I recommend buying it around $120 and selling it at $150.  You will make 25% on each trip, and it will probably be repeatable in 2012.

Before I mention the next two stocks, I need to make some clarifications.  Since I have a full-time job in addition to website maintenance, I will only be updating the price targets above intermittently.  As of January 2012, it appears that we are in a bull market.  So, the lower and upper price targets of the above five stocks will be changing.  TVIX, which goes against the stock market, will have a lower trading range while ERX, BZH, ATPG, and UDOW will have a price trading band that will be rising.  Just look at lows and highs for the past one to three months to determine where the new trading range prices are located.

The last two stocks should be traded by strict chart timing.  The prices will vary, but the buying and selling principles will be the same.  You should buy these stocks when the slow stochastic signal line is crossing over from the bottom, and you should sell them when the MACD signal line crosses downward at the top.  The first stock is SSO, a leveraged ETF based on the S&P 500.  The second stock is AGQ, which is leveraged to the price of silver.