There has been around the world, for the past year at least, a very nasty bear market where the main objective for many actors, beyond "survival", is to "keep cash". The rally attempt of last Monday failed, which now exacerbates the negative feeling for the public.

As with all Bear markets; this one will end when confidence is widely seen to have returned. The cycle bottoming process might take longer than impatient traders would like, but as always in difficult market conditions, we need to plan for the changes that are coming.

My associate in Belgium, Pascal Willain, has prepared a list of 90 companies that he named “the survivors”. These companies produce(d) strong earnings, have little or no debt and enjoy a large pool of cash. We believe that they will profit from a negative operating environment by strengthening their market position.

This list can be found here (Please save it under the name: "Survivors.xls", open it and accept to run Macros).

Here you can find the Cara 100 list.

The two lists include "long-term value" companies. The Cara 100 list is the one I consider relatively highest quality.

Should you buy them now? That’s for you to say because only you know your personal circumstances. But, if you do, it is not just because the market is "oversold" that you need to rush and buy. In a stock market crash, all the equities move down regardless of the fundamentals. There are other factors. You need to do your homework.

As you will notice, these two lists are organized into:

1. Sector strength (++, +, - or --)
2. Long term money flow (using the Effective Volume method)
3. Short term accumulation strength (using the Effective Ratio method)

Here is a guide on how to use these tables.

To view the graphs, you need to visit Pascal Willain’s web site.

The above information will be made accessible in a few weeks through the new website for clients of Cara Trading Advisors (Bahamas) Limited. Since this web site cannot be released until approved by the SEC, the following access codes will allow the public to get a period of free access via the Willain site:

Login: Bill
Password: Cara

These codes will stay operational until the new website for clients of Cara Trading Advisors is ready, which we believe will be early November.

Here is a guide on how to use the Effective Volume web site.

Successful traders are always open to and looking for both long and short positions. Effective Volume is a great help to see what large players are doing. We believe it is unwise to buy against big selling waves or to short against big buying waves.

Until an Effective Volume discussion group is operational on the soon-to-come BillCara.com Drupal-based web site, you may contact Pascal Willain for answers regarding the EV methodology.

Good luck with your trading.

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