|
Patience is a virtue right? Easier said than done too. So is not reacting BUT these are the qualities you MUST HAVE to succeed.
This morning we started the day out flat which was a good thing. Then of course we pulled back and went negative again. However when one views the micro one minute charts as shown below we’ve got what looks to be 5 micro waves down. If true then here comes three micro waves up.
Believe it or not the DOW looks the best of the bunch with a clear 5 waves down, and a double bottom with an undercut for good measure. These are positives for names like IBM and CAT. The other indexes all pretty much are sporting the same 5 waves down here too. Now its just a matter of getting back on that horse if you will. HI HO SILVER as the lone ranger would say. Thats what’s needed here.
As far as the rest of our holdings, AAPL has been up all day and ILMN is hanging in there too. SFLY though is still in "The jury is still out" mode.
Keep an eye on what COULD be a developing pattern over the next week or so, especially if we get a bounce. That developing pattern could be a head and shoulders top with the right shoulder yet to develop. We’ll see, ought to be interesting at the least.
Game plan for week of 6-6 thru 6-10
6-6 Our game plan mentioned over the weekend below still stands, now its just a matter of getting some strength.
Get to cash, preferably use strength to do so, start to lay out shorts as we see patterns we can work with not ones who have already fallen. Monday we want to get to cash so be looking for some locking in gains alerts especially if we get an up open. If the market is not up at the open? Then we let the opening dust settle, then start raising cash.
6-6 We’re still looking for the dust to settle here.
===============================================================
Short Side Coming Attractions
TPX
This issue as you can see needs some time as in chart time to develop the pattern
We talk about buy the dips and sell the rips around here right? Well in this case we get a rip we’ll consider selling that rip as in short selling it. Wait for the bounce.
MELI
6-6 For those of you who are do it yourselfers and on the ball? there WAS your trade. For the rest of us? Blink your eye you missed it and you snooze you lose as in lost opportunity all comes to mind here.
OTEX
BIDU
IRBT
SLV
Pay attention to this list as we have a fair amount setting up that we will be bringing to your attention as they show up along with more detailed education on topping patterns, change in trend patterns and short selling in general.
Those of you who are new here and have never shorted feel free to sit back, watch and aquire knowledge as one of our buzzwords around here is that of making money regardless of what the market throws at you. Short selling is just another tool YOU need to aquire for your tool chest.
As for the adage of when you sell a stock short your risk is unlimited? THATS GARBAGE. Why? simple- trade size risk management AND STOP LOSSES. It is unlimited but only if YOU allow it to be. Besides we’re in a correction.
==========================================================
LONG SIDE WATCH LIST
"Only The Best And Forget The Rest "
"We Trade What We SEE, NOT What We Think, Hear Or Fear "
Remember the name of the game is Pullback Off Highs (POH) as it’s the only pattern you’ll ever need.
NONE
=====================================================
FEATURED BUT NOT TRADE TRIGGERED BY US
This is where names that we have on our watch list that have triggered but for whatever reason we did not take them (can’t do them all) in our trade trigger alerts. This section is because a lot of our subscribers opt to use our information as they see fit from a do-it-yourselfer standpoint.
Long side
APKT
Any break of the red line and you need to walk away. Why? It’s a support level.
GLD
6-2 Approaching resistance in red
6-6 It ought to be interesting to see what happens at the red resistance line over the next day or so should it get tagged. Ahhhh Hmmmmm Notice the Negative RSI Divergence?
=====================================================
All About Options In The World According To All About Trends
NOTE: The exchanges recently started WEEKLY EXPIRATIONS of options. Going forward, make sure that you check to see which ones you are buying. Let’s stay with traditional options expirations which are the ones that expire the 3rd Saturday of every month.
Options Watch List — Nothing new at this point
6-4 Folks, we’ve got two weeks till expiration to see some sort of bounce in the indexes beit dead cat or otherwise.
Current Holdings
IBM (We are now long 2 JUNE 160 call options to open at 7.30)
As we post they are currently trading at 5.30
ILMN (We are now long 2 JUNE 65 call options to open at 6.30)
As we post they are currently at 7.20
SFLY (We are now long 2 JUNE 50 call options to open at 5.40)
As we post they are currently are 5.60
CAT (We are now long 2 JUNE 95 call options to open at 11.10)
As we post they are currently at 6.40
AAPL (We are now long 1 JUNE 320 call option to open at 22.30)
As we post they are currently at 25.10
=======================================================
Let Your Stocks Tell You What To Do By The Action They Exhibit"
LONG SIDE POSITIONS
ILMN (We are LONG 200 shares at 70.59 as of 5-25-11)
6-5 Sure likes that 50 day/ trendchannel line huh? we will say this, should this issue break then it’s a short sell. Why? Trendline break and a break of the 50 day average too.
SFLY (We are LONG 200 shares at 54.24 as of 5-25-11)
.
AAPL (We are LONG 50 shares at 338.15 as of 5-5-11)
CAT (We are LONG 150 shares at 105.15 as of 5-5-11)
=============================================================
To our NEW SUBSCRIBERS
What we’ve tried to do is break our watch list down into chart pattern recognition structure from a visual standpoint. Learn the patterns and the components of patterns and you’ll blow those Wall Street MBAs away. You don’t need a $3,000 software program either. All you need is a BURNING DESIRE to be the best that you can be and we’re here to help.
We have a lot of new folks here and we thank you! We want you to take it easy, get to know how the routine works around here for awhile and to feel comfortable.
We hope you all aren’t here because you are chasing performance. For us it’s more about educating and making you the best you that you can be first (that’s what we focus upon!). Like many of our long time subscribers they have all found out that they have no use for traditional Wall Street (and we don’t blame them) and it’s our hope that over time you’ll have acquired enough knowledge from us to say the same with conviction.
One of the most important things we want to stress is that of RISK MANAGEMENT via POSITION SIZING. You don’t need to stack your account with just a few big positions as we’ve seen it time and time again that those who get into trouble are the ones who take large positions and do not employ any risk management system IE shoot for the fences. Those are the people who live on the fringes of extremes and yes ultimately get burned.
As a guideline a good initial system is that of the following example.
Let’s say you have a $100,000 virtual portfolio and let’s say that as a guide you never place more than 10% ($10,000) into any one position. Now let’s say that one day a news driven event hits (over which you have no control over anyway) and one of the positions tanks 20%. On its own that position is sporting a $2,000 loss, while that may seem devastating on its own its really no big deal overall.
Why? Simple its all about risk management being properly employed. What is the impact of a $2,000 loss to the TOTAL VALUE of the virtual portfolio in this example.
Answer: A whopping 2% LOSS. Now you know why we say no big deal.
We can also tell you new people here that you will get stopped out of names and you will take hits. There is nobody on the planet living that has ever hit 18 holes in one and there never will be. We’d rather get you grounded in reality right away vs talking about pie in the sky all the time like a lot of other sites. In so doing your head is screwed on straight from the start and when those days happen (and they will) mentally it won’t mean a thing to you. To us that’s what’s most important is YOUR state of mind as it’s your most important asset. We hope you appreciate our honesty.
We have a very good retention rate here at All About Trends and a lot of great outstanding people here. We like to think that a part of that is being upfront about what can happen (in both directions). Verses those up 500%, I turned $50,000 into $3 million or some other absurd number to get you to bite. That’s not who we are.
WELCOME ABOARD!
================================================
Lastly with regards to taking any trade:
Remember the moment you take a trade you are at the mercy of the market and have no control except when to sell. If you are not willing to take the risk and are not willing to pay that price do not take the trade. We are willing to take that risk knowing full well the end result could be a loss. That said make sure that virtual portfolio management trade size is used accordingly. With any position you may take make sure that should something go awry the amount of total impact to your account does not devastate your acct. Try to stick to a 5% position That’s the key to virtual portfolio management, not biting off more than you can chew.
Remember the mechanics of reality with regards to the stock market states a stock can only do one of three things: Up, Down, Nowhere. The moment you hit the enter button you are at the mercy of the market therefore the only control you have is when to sell/cover. You can’t manage your gains as you have none to manage initially. Knowing this in advance it allows you to stay in outcome, that being you will either:
1. Make a gain
2. Wash
3. Get stopped out at a loss
Remember the market IS the boss. IT is going to do what IT wants to do.
============================================================
SUBSCRIBER ONLY WEB SITE
Don’t forget you can view updates in the middle and the end of each trading day complete with current charts, along with our current performance at our subscriber only web site.
|
