Day Trading – The Bullz And Bearz

S&P Falls Just As I Was Expecting, MET Now At 20%+ Profit

March 20th, 2009

First, if you haven’t already noticed I added a “Testimonials” page to the blog. I have been slowly collecting these for a while now and felt I had enough to actually put up without it looking bare. In addition, as you know I will be sending out a Member’s Only portfolio video this weekend with my new ideas for next week. Just FYI.

 

Moving on to more important stuff, have I or have I not been waiting for this correcting to begin? Granted I have been calling this pull back for nearly a week now and would have like to have it happen early, but members and I got in at great prices Wednesday on our handful of shorts – which are already in the money. Of course the standout for us has been MET. I don’t want to make this a blog all about trading MET, but I just goes to show that anyone can make money in any direction! If you remember we went long last week and made about 40% and here we are again making money on the same stock – this time shorting it to the downside (shown in green). As it stands we have had two amazing days of selling for MET and we are sitting very comfortably with a profit over 20%. Depending on what happens Monday morning, we will probably move down our stops to lock in this profit.

 

 

Turning to the markets you can see on a chart of the DOW that we continue to be fairly overbought. On the chart below you can see my two support targets as we head lower. Clearly I’m not expecting a big drop here – though the chance still exists – but rather a very smooth bounce off the 7,000 level. If we break that then 6,500 would be the next logical support level. Regardless, if the markets are going to put together a rally that lasts longer than say two weeks, they need to re-test support.

 

 

Finally, I wanted to post a chart of OIL. As you can see Oil broke out of the triangle pattern a couple weeks ago and has been on the rise ever since. Really this is what is helping the markets rise so far and steadily. As we now get into the $55/barrel level I think we are going to hit some major resistance and at least pull back to the blue area on the chart. As you can see this area is right above the FIB retracement level and the ascending trendline on the bottom. Clearly a very good area of support. I’m going to look to short some Oil stocks and ETF’s possibly next week and take advantage of this pull-back.

 

 

I’ll post a Trading Video later this weekend so be on the look out! Happy Trading!

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