My Huge Mistake

Here are the charts for yesterday.




I was myopic and watching FAZ and did not paid much attention to SRS.

SRS was a nice buy and the signals were clear (look at the hands)

Please help me out here because I am at work most of the day.

Send me a tweet @fortune8 with SRS cross above 5d5m or 10d60.

Hindsight is beautiful isn't it?

WTFaz

Even after doing my homework last night, I still did not know WTFaz I was doing this morning. I didn't want it to get away and figured 50.50 would hold - WRONG! Fastest point lost in history. Compounding the mistakes, I dump SRS at 69. I need a good ass whooping.

Thankfully, not all was loss. I ended buying FAZ higher than what I sold and it tanked again - a really shitty way to start the day. But you know what, "Scared money doesn't win." No stops this time and ended up dumping FAZ for 10%.

Still have 100 shares left because of the mar50 covered call sold as insurance. With $9.70 in premium, I am not too woried about it.

Luck

Luck favors the prepared.



I just saw the chart after coming home. However, I was also waiting for 66-67 for the longest time. Trust me, it was very hard not to chase as I see the sucker gap up every day.

Saying Is Not Playing

Did anyone catch the trade? If you did, then you are a better trader than I.

Now, I am not going to thump my chest just because I was calling the market play by play. Some people will and they are the ones to watch out for.

Not only did I give you the analysis for SRS, I also played the trade.

The difference is clear. No?

State of Mind

Most often I am asked if I am bullish or bearish.
Most often my answer is I don't know and it doesn't matter.
Bears make money, bulls make money, pigs get slaughtered.

Things I always consider and keep in mind.

For every action, there is an equal and opposite reaction - Newton's 3rd law.

An object in motion will stay in motion and an object at rest will stay at rest unless acted on by an unbalanced force - Newton's 1st law.

A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be - Wayne Gretzky.

Apply the quotes to stock investing.
Both bullish and bearish move depending on time frame.



See the double top?









CandleGlance IYR,URE,SRS,SPG,NLY,PSA,VNO,EQR,PCL,HCP)

Conclusion: SRS first support (66-67), next suport (62-63)

On a tangent. The day after I sold the covered calls (feb100c) on GS (bought at 98 due to FUBAR event at the brokerage), I knew it was a mistake. The trade was on my mobile phone while I was raging mad and without good analysis. I thought to myself, "What an idiot!". I wanted to dump the stock but did not wanted to take an instant loss because the stock was trading around 94. The right move was to sell feb90c, more premium.

P^3

This will may be a long last post because I don't know if there is anything left you can learn from me. I have honestly have shown you everything I know regarding the trading system 4-8-21 and everything else is just reiteration. There's nothing you can learn from me about double bottom, double top or P&F chart since the information is already all over the internet. What I show you would not be any different.

P^3 means be your very own Profit Protecting Police.





Do you see the support?



When you manage risk, you can hold the position longer. Do you think I would hold SRS at 66 for 6 days had I purchased 1000 shares? Look at the trade. Yesterday I sold the stock for 14+ pts and today I can buy it back for 7+ pts cheaper from where I sold, why wouldn't I buy it back? I would have not bought back the stock if it was sagging. Instead I saw what looked like a beautiful support and pounce on the bounce.



Towards the end of the day, I saw the huge move and started to protect profit.

Lastly, not all my trades were as profitable as SRS.

Here are a bad trade and a major f*ck up.





I am still kicking myself because I cannot be allowed to make mistakes like that.

You must be sick and tired of reading and hearing about SRS every day.

Are there any questions? If not, then class is dismissed.

GL

Charting 105

I was so distracted by tweeting that I let SRS get away.



Did you see the double bottom, followed by break above resistance, then a cross over?

Just in case you didn't, here is a mental image of what a double bottom looks like.



Here is what the entire day look like.


I traded FAS today for 10 pennies. Somehow that does not seem to excite me. Here is a little math. 5000 shares @ 10 pennies yield $500 profit while risking 25k+.

The same potential existed in SRS while risking only 7.5k.

I just don't get it, do you?

Charting 104

No one will show you how things work and everyone has a secret formula!!!

Do you know what the secret is?

Early in the morning, use tick charts.
Did you know you can download the charting software for FREE?




Once the order has executed, I watch it and don't let profit erode.

Get On the Same Page

I have just directed traffic away from the blog and why would I do a thing like that? I am not here for monetary reasons, although, I have received a few latte from those I helped. You know who you are and thank you.

I am here to provide the other side - always two sides to a coin. For the google reader, I try to share both bulls and bears. If I get one sided, IM me a WTF!

Who moved my cheese?

There has been so much whining about the market, I thought some cheese would go good with that. If you listen carefully, you will hear it.

Which stocks would you like to trade?




Here are my orders for SRS on Friday with my tweets.
Notice the time when the trade was executed and posted.




I need to pay more attention to my posts. My lowball was way off. I had the right idea at 63. Do you see the double bottom?

Go Buy A Car

If I ask you to go buy a car, would you buy a Toyota Camry or a Porsche 911? Hopefully, you buy what you can afford.

In my previous post, I showed you my SRS trades without any quantity. I did this because I did not want you to think a large position implies a strong buy and a small position a weak buy. Privacy is an issue as well. Plus, I don't want you to laugh at me for how little money I have.

I started a 5% position in SRS and thought that I should have gone all in. At the end of the day, I was glad that it was only a 5% position.



I missed out on a nice run in FAZ. However, it was nice having profit versus break even or loss.

I saw a few traders making some nice trade shorting FAZ, especially trader_mom.







The system works for me and I hope it works for you as well.

Hindsight is 20/20 and tomorrow is another day.

Master of Disaster

I told my manager that I wanted to be the master of disaster.
I am referring to disaster recovery for the data center.
My life and career experience overlap my trading style.

I am not the one who likes to boast; however, I wanted to show you how I have been trading SRS for several accounts, IRA and cash.

I tweet a lot about the teeter totter and this shows how it has been working.







I have been very lucky and successful trading SRS and I plan to stick to what is working. If it's not broken, then don't fix it.

V,MA by zstock7 investment site--guest writer

I posted a long time ago watch out for APOL it's going to reach 89-90, back when everyone was trying to short at 81-82--They got their whomps kicked, and APOL failed twice at 89-90 for double my pleasure.
I posted Don't short AMZN until it reaches $66, even then set stop losses--
I posted NFLX short at $35 use a $35.5 stop loss. If you get stop lossed wait for $38--That worked out ( twice) for double my pleasure.
Well, I don't know how much of an audience there is for V and MA, but I'm not shorting until I see some significantly higher prices.
Here's what I think can happen. ( probably does happen, knowing these two.)

Here's some more of my winning trades --CLICK here

Blind Sighted

Today was a disaster, but not a total loss.
All my worse predictions came to fruition.

Stuck on AAPL@94.42.
Any good trader would not have shorted the stock.
Going again my own system.
Only saving grace is 100ema=103.24.
Need a little help and luck.


Stuck on AMZN@62.82.
Did not have the patience and overpaid by 3 points.


Started the day being nice. Nice guys finish last?


Took out the stop on FAZ.
Saving grace was the 5.9 for selling covered calls.
Did you see that FAZ hit 40, just like I said - dam I wish I was wrong.


Support did not hold for SRS and look at where it ended up.
Dam - I wish I was wrong again here, too.
Did not avoid the train wreck like I had planned.


GS@96.20, another tape fighter.


Hope you learned something from my mistakes.

Pennies Not Accepted !!!

For all the new followers, please read the Jan 2009 archived posts on Charting. That is the system I learned from a blogger which works very well, provided to you in details without any monetary cost. Let me know if you have any questions, but make sure you read the comments to make sure it has not already been answered.

First, English is my Second Language (ESL); therefore, you will not find any five paragraph essays here. I love using that excuse! This might just be the one exception.

I do not take profits on pennies; hence, I won't sell a position for 10 cents or 50 cents profit. Think about it. By the time I post, the stock may have already moved by that amount and is useless to you. The mininum profit is $1.

I may have a higher risk tolerance than you. Once you have a least $2 profit in a position, I would suggest putting in stops to protect your profit.

Here's what my order entry looks like.


This is how I know I had a $5 profit in FAZ today from the buy at 49.4.

My timing is not always perfect, e.g. ESI short, but profitable as of today.

Lastly, I never want to be a sheep. Any portal will have good and bad, pump and dump and there are no exceptions. Face it and deal with it so you won't become the sheep.

Lastly, I am always curious as to who reads all this crap. So drop a comment if you haven't already.

GL

Sending an SRS

5d5m - cross below is not good. But look at where the hand is at.


10d60m - MACD cross below is not good. But look at the hand again.


daily - not quite buy signal. But look at the hand one more time.


P&F Chart - What do you see?


A common theme among all charts is support around 55-56.

WARNING: The last time I bought at 55, I ended up averaging down to 49.50 !!! Nevertheless, it was a profitable trade selling at 57.50, 60 and 62.

WATCH THE BOUNCE BEFORE THE POUNCE !!!