Day Trading – The Bullz And Bearz

Let’s Ride Some Bullz, I’m Starting To Go Long

March 9th, 2009

Let’s face it. We are not going to be able to always make money shorting this market. Even though I have made a ton of money doing just that, I recognize that money can be made on both sides of the track – or trade. As such, I have started to slowly unzip my ultra-bear coat for now in favor of a hopefully more profitable bullish coat. Granted we closed the day down, but volume was very good – not great but better than before. I think we are seriously headed for a very nice – and probably very slow – bull rally here in the near future. I can’t help but look at stocks like MET and GE and think about the amazing profit potential on the long side. So, while members and I still have some great shorts - that are no way in the money – we took on a bunch of little long positions today.

The only question is: How many HOME RUNS can we hit in less than a month? I’m guessing at least 5!

Weekend Commentary, S&P Targets, FOREX Trades

March 8th, 2009

Here is the weekend wrap-up commentary on the markets and some great FOREX trades coming up next week. I suggest that everyone watch this video before the markets open tomorrow! Also, there is a NEW MEMBER’S ONLY TRADING VIDEO which is goes over my complete portfolio as well as OVER 30 LONG & SHORT TRADING IDEAS!

Protected: Member’s Only Video – March 8th

March 7th, 2009

More High Wave Candles As Jobless Rate Rises To 8.1%

March 6th, 2009

Looked like we were headedfor another 2% drop today until literally the last 10 Min’s of the trading day when the bullz seemed to rally very big into the close on consumer credit news. Still, we have managed to form yet another mysterious high wave candle pattern on the daily chart. Even taking a look at today’s intra-day movement you can see that nobody really knows what’s happening in the markets. We opened up nearly 100+ then gave it all back throughout the day just to rally back at then end and close with marginal gains. Frankly, this market could go anywhere. We all know that things don’t move straight up or down, so maybe this is just a breather for stocks before another plunge.

I was looking to go long again today but again cannot bring my self to pick up things yet until I get a bullish confirmation. My own emotions are serving as a great example of greed – as I don’t want to miss profits next week. Still, I continue to remind myself to stick to my trading plan and wait for bullish confirmation before entering anything long. As such, members and I did close out an amazing 25% profit on our NTRS short today. I’ll talk about all this and much more tonight in the trading video!

When Will The Markets Stop Bleeding? DOW Falls Another 4.0%

March 5th, 2009

DOW Gets Needed 2.0%+ Pop, GE Looks Very Bullish

March 4th, 2009

I have to admit, the bullz put together a very good rally today. I was a little worried that they might let it all slip away at the end of the day, but they held fairly tight. I think from here we should see some sort of pull back tomorrow as natural profit taking levels were reached today. Given that, I have gone over a tons of stuff in tonight’s Trading Video – from Gold to FOREX trades and Charting patterns. Check it out and let me know what you think about Mr. X’s email to me about being crazy…

DOW Holding 1.5% Gain Through Lunch

March 4th, 2009

Seems like the markets are holding their 1.5%+ gains thus far through the trading day. I have been watching oil these last few days take off pretty strongly. I’m still skeptical that this little burst will die out and give us all time to get back into some great ETF’s. As I have mentioned to many people, whenever we do see a sustained rally in the markets, it will be lead by oil – no doubt about it.

For those of you chewing your hands off because I didn’t post a trading video last night, I applogize. I was out of town on Monday and Tuesday but am back into the swing again and I will have one tonight – promise. On a portfolio note that I forgot to mention last night – members and I closed out our FPL short yesterday at nearly a 20% return. Again, we are curbing our shorts somewhat and starting to go selectively long.

US Futures, Oil Gain After Yesterday’s Whip-saw

March 4th, 2009

Good morning all! US futures are much higher this morning – almost 2% higher on the S&P as of this writing – given all of the movement and talk in the financial sector of course. Yesterday’s high wave candle and eventual close lower wasn’t that great for market direction, but if we close today higher and on strong volume, that would make a very good argument to go long short term. I have a lot to do today and tons of charts to look through to find the best trades for our members! As always, here are the S&P support and resistance targets.

Closing Out SSRI Short At 35%+ Profit

March 3rd, 2009

At one point I thought that this trade would never roll over and show a profit. Little did I know that over the last week alone, it’s lost nearly 1/4 of it’s value very quickly. Though I think there is much more room for this to fall, I felt comfortable covering our short at a very nice 35%+ profit given I think there is a good chance that SSRI will retrace back to its Fib level at $15.50 and I wanted to keep all that we have gained.

As I mentioned last night in a post, these are the types of trades where we let our winner run and run! For members, there are many more trades like this shaping up. We already locked in a 9% return on another short this morning! Great day thus far for trading!

Futures And Oil Rise, Gold Falls

March 3rd, 2009

Good Morning! As you probably already saw the futures are pointing slight higher this morning. I had mentioned yesterday that I thought this would happen given that typically the day after huge sell offs – especially like the one we had yesterday that came after 4 consecutive down days – we see a nice rally take shape. Now, of course this is not the interim bottom for the market, just a correction. We would need to see support hold strong for at least 2-3 days before a nice rally forms. Still, I am extremely happy that our mining shorts are doing great pre-market this morning!

On another note, we heard today that Toyota is asking Japan for money in anticipation of it’s first loss in nearly 60 years. So, we are not the only country having problems obviously. I’ve heard a lot of people bash GM and Ford – rightfully so of course – and say that Toyota is the strongest automaker. Well, I guess the simple fact is that “a falling tide carries all ships down with it.”

Above are the S&P support and resistance levels. Again, yesterday my target support was nearly dead on – only 5 points off the close! So, I suggest everyone put these on their charts each day and use them as trading targets. Happy Trading!

Seeing Blood In The Streets, DOW Falls Over 4%

March 2nd, 2009

Talk about a straight nose dive pretty much all day for the markets. Just glancing over my portfolio I had some longs from Friday that were stopped out a small losses and practically all of my shorts were down 1%+. Granted I would have like to see some of my longs make it through the day, but here is just one example of why I always have – and never ever move – stop loss orders. APA was a long from Friday which members and I had a stop loss order at $5.00 today – which is the red line just below the recent lows of Nov. During the day I had someone email me and say that they were cancelling their stop loss order because they were “hoping for APA to rebound at the end of the day.” Well as you can see from the graph, because that person let emotions control their trading, they got a very nice 11% haircut today!

I can’t say it enough – stops protect your money and your portfolio! I would always rather take a 2-5% loss on a trade and make 20-30% on the next trade then to hope, pray and move stops just to be “right” about the direction of a stock. Not one single trader has ever not lost money trading – not one. The difference between those who trade as a hobby and those who trade for a living is that professionals are disciplined enough to take small losses because they know there are other opportunities to make money out there. They survive because they always have a trading strategy and plan.

I’ll be back later tonight with some more market commentary.

AIG Gets More Funny Money As Futures Crash

March 2nd, 2009

Good Morning Traders! Well, I can’t say that we didn’t see that coming. Of course Obama and the government are going to try and throw money at this financial situation. The only problem is that absolutely none of the money is sticking to the wall – i.e. fixing the problem. After a mini blood bath in Asia, the US futures are down hard this morning signalling a very big gap in our open this morning.

I want to point out one very important piece of trading information. By and large, the days that signal a new intermediate trend change – or bear market rally for us – are those days that start off horrible. Even looking back to Oct 10th and Nov 20th, both days were absolutely horrible for the markets and it looked as if there was no end in sight. Still, the day after we saw huge gains and fairly short but sustained rallies. So, my point is this, when there is blood running in the street, most institutional buyers are going to be coming back into the markets. And when they do, they will come in with guns blazing and money flowing.

Here is the updated S&P support and resistance levels for today. Again if we get down to the first support level, you can place a small bet for a one day reversal – then larger bets as we get to the lower levels below that. Let’s all be calm and realistic with regard to our trading today! Do not make quick decisions without thinking about them first. These are the times when the markets shake out the weak and leave to strong to reap the profits!