Day Trading – The Bullz And Bearz

Protected: Member’s Only Video – Portfolio Strategy May 4th

May 4th, 2009

But How Did You Make 7% When The Market Rallied?

May 4th, 2009

Pretty big day thus far for the bullz as they are enjoying about a 1.5%+ return. Still, here is just one example of how professional traders like me are making money shorting even when the markets rally higher. CMTL is a short trade member and I just entered into last week. Just about an 8% total return in less than 1 week is not bad huh? And there is still room to run on this short!

Will We Finally Get Some Direction In This Market?

May 4th, 2009

Morning all you traders! After I got back from my weekend away I saw that we had thousands of people view the weekend Trading Video which is great! I still cannot believe how fast the community here has grown. Honestly there are some great traders out there and I get so energized by everyone here – so thank you again!

As for today’s actions, pre-market futures for the most point are stuck right around the 880 level which is pretty close to last week’s highs of 887. There still remains a lot of open air below us and good support is still far away at this point. But, the problem – as I explained it to members in a Trading Update – is that after looking over hundreds of charts this weekend, we seem to be stuck at the top of a trading range. Stocks have clearly shot up – some more than 700% – in a matter of weeks and are now just floating here before falling to test support – which WILL HAPPEN. So, as I explained to members, we are still in GREAT short positions. In fact looking at the charts, I really cannot build a solid case for the bullz in any of our positions – NONE.

Judging by the DOW below which is hitting another apex of resistance, the closest support still isn’t until the Fib retracement level around 7,500 – highlighted in green below. As such, that will remain my target for now over the next week or so. But of course I would like to see a dead fall here given how bearish I am short-term. Back later for some more comments intra-day.

Week In Summary – GDP, Bankruptcy, Earnings, Shorts

May 1st, 2009

ZZZzzz – Not Much Happening Yet, So Here’s Another Idea

May 1st, 2009

What a boring day in the markets. I think we have all been so spoiled with large daily swings that now we are getting back to the 06-07 times when everything just made slow moves up and down. Still, we have a couple more hours to go before the end of the session and week. But for now, here’s another short you can think about. A good target on this one is somewhere around $200 short term. BIDU-Farewell for now.

Goodbye April, Hello May – USD/JPY Hit Long Target

May 1st, 2009

Morning bearz! With April behind us now, let’s just take one sentence to re-cap what happened. In April, we moved SIDEWAYS! Okay, now on to May which we think will bring in some sellers and kick out these stubborn bullz for now. 875 and 885 on the S&P 500 will be the big road blocks today so watch those levels closely. Again, I want to point out this morning that the S&P intra-day targets I post every morning are very powerful for traders. Below, you can see that I was only 1 POINT off from the highs of the day – we hit 888 and the target was 889. Not bad huh folks? If you made a short trade when it hit the target resistance zone you could have made 2% in one move down.

As for morning news, RIMM is trading higher as more people are advising everyone to buy up this stock. News flash – it’s already make it’s 100%+ move from the March lows and is now coming into some major Fib resistance. Looking at the chart below, if it gets to $75 that would be prime time shorting area back down to $60 or lower in the short term. In general this is a very clean looking trade for the beginning trader out there.

Taking a quick look at the USD/JPY which has successfully bounced off of my Fib target support area. I had mentioned about a two weeks ago that a great entry target for this pair was at Fib support around 96.00. Clearly the pair bounced right off the level as expectations for a US recovery are greater than those of a Japanese recovery in the the near futures. A very conservative trading target over the next month or so for this pair would be around 105.00.