Tuesday, August 31, 2010

8/31/2010 More To Come...

I am starting a new job tomorrow. This means I should have more time to devote to trading and the blog. Here's hoping !


Tuesday, August 24, 2010

8/24/2010 COVER SHORTS

Good morning traders.

just wanted to make note that the target area for shorts 1050's has been reached. look to get a good price and cover shorts today. you can always re-apply any positions if the market breaks support. Have a nice day!


Thursday, August 12, 2010

08/12/2010 Sellers now in control

Good evening traders,

Lets start this post by stating the obvious, sellers are now in control. Looking at the charts you can see the clear double top where I drew the red line. In previous posts I pointed out the 1128-1131 level for an upside target. Bernanke and our friends at the Federal Reserve had nothing good to say yesterday and now we find price reversing. And rather strongly. If I had a "trading magic 8 ball" it would say "all signs point to bears"!

We have a heavy economic calender ahead, which means more choppy waters for the markets. Tomorrow we have Michigan Sentiment, CPI, and the all important Retail Sales. Each one is a potential landmine. We also know that GDP is going to be revised lower due to the massive trade imbalance. Those are the fundamental reasons for the markets to continue to sell off, now lets look at the technical...

Tonight's chart is marked with horizontal support and resistance lines. Shorting rallies is the play now. Price has closed below the 20 and 50 day moving averages, lower Bollinger bands have expanded, RSI is now below 50, and the MACD has crossed it's signal line. Also note the MACD histogram is negative and volume has picked up confirming the move has a good push behind it. I would like to initiate shorts in the 1099-1105 resistance area which should coincide with 20 day moving average. My initial target is 1056, then if prices punch through that level I'll look for 1040.

I want to add some comments on the structural deficiencies with the economy but I procrastinated in doing this post and its late now. Maybe tomorrow! Keep an eye on the key levels I noted above and follow along with my game plan. Maybe we can make some $MONEY$ together! Good Luck


Monday, August 9, 2010

08/06/2010 We are Screwed

Sorry to bring the pain but..

Tomorrow is Fed day and I honestly think that whatever they say at this point doesn't matter anymore. We are screwed. The whole thing just feels like its coming unraveled.

I have gotten a better grip on reality working for the non profit CareerLink in Pittsburgh. I see it every day. People my age got duped into a degree in business management, communications, sociology, or dance. They are in over their heads in unmanageable debt, live at home, and work as barristas at Starbucks or waiters at some Darden restaurant. Just waiting for that C level executive position they were promised to come along... Constantly deferring that Sallie Mae loan until it does

Meanwhile the family guy who had a cushy job as midwest director of human resources found that he was no longer needed to push paperwork in circles and invent make work "projects" for his department. His 401k is toast. His kids college expenses are bankrupting him and he has HELOC'ed himself up to his bloodshot eyeballs. He lacks the will to get re-trained and re-enter the most competitive job market in History. Oh, and he is in his 60's with NO retirement money saved.

As a country, unions have bankrupted us, corrupt politicians have sold us down the river in 8 year cycles, and there is a dog and pony show going on over there in the corner to distract us from the 100's of trillions in unfunded liabilities.

They can only keep the charade going for so much longer. I can't help but feeling it's gonna be sooner than later. Remember this though, They will never run out of money but what They will run out of is confidence. They have certainly lost mine.


Monday, August 2, 2010

8/2/2010 Just Stay Long

Good Evening Traders,

Something is wrong with my Ninja Trader and it won't display my charts. Zen fire had some kind of screw up last night and my platform hasn't worked well since. I have been busy with my day job and unable to focus much attention on the matter. My job is scheduled to last for 12 weeks and this is only the second. I wish I had more time to make a longer post tonight but I don't. And my charts are screwed.

Basically, just stay long, or take longs only. I was looking for 1128.00, The June high, and it looks like we might get that test tomorrow. Don't expect it to break through easily. Although most indicators are pointing higher this is going to be a closely watched price point for many traders and I wouldn't be surprised to see big market participants try to fade these levels. A close above 1131.23 on the $SPX would be a monumental success for the buyers in my opinion.

Thanks for tuning in and sorry for the brevity, hopefully I'll be back in force tomorrow