A Trade A Day

Well, the Dow Jones Industrial average was down almost 3% same with the NASDAQ. As a result, most of the longs I initiated over the past couple of weeks have been stopped or are close to being stopped out.

The AMTD trade is approaching the 50 SMA. Stops are set at my initial entry of 17.99.

The TNH and CSCO trades have been stopped at breakeven.

The AGU trade is sitting at about 1R.

The GT trade is no longer valid as the pattern has been broken.

The KGC trade is still open.

The SINA trade is sitting at breakeven.

The SFD trade has been stopped.

The GSOL trade is close to breakeven. The day trade worked out well, but the position trade is close to being stopped.

No more new longs for me. We’ve broken through what was the third move up in the DOW, and the NASDAQ is at the 2724 area of support. I’ve got some shorts on my scans. Will share tomorrow morning.

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These guys deserve to get the crap kicked out of them for putting gloves on this animal.

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Blain at stocktradingtogo.com give us 13 great ways to invest in oil without buying barrels.

Alex at mytradersjournal.com points out 5 reasons naked put selling beats covered call selling. I really like this blog. I’m adding it to my blogroll.

Chris Perruna at chrisperruna.com teaches us how to make money selling short. Adding this one to my blogroll too.

Trader Gav pointed me in the direction of a very cool trader tool. Especially for forex traders.

That’s it for now. See you tomorrow!

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Yesterday I wrote about stocks rolling over. I think there’s still a question mark as to whether this uptrend will continue, but for the time being we’re still in an uptrend and that means I’m trading longs.

GSOL present a typical momentum play. The stock has moved up very fast, very quickly. Now we’re seeing consolidation which gives a lower risk setup. We’re looking at the third consolidation in this move. In my experience, the more consolidation and moves beyond three, without correction to the low of the previous low, the less reliable the move becomes. So, the fourth and fifth move would be less likely to continue. How’s that for a trading rule!

Let’s take a look:

Don’t know what GSOL does. Don’t really care. I like them over 30.00. Stops will be tight so I like the risk/return.

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Interesting development in the world of investing. Looks like the NASDAQ and DOW are starting to roll over. Is this just a regular correction or the beginning of the end of this bull market? I have no idea, but let’s look at how to profit from this move.

It all starts with an extreme move. Like the marubozu. I want to see a black marubozu(red on my charts). This begins to crack the confidence of investing public. After I have identified a handful of uptrending stocks with a black marubozu, I wait.

What I want to see after the strong down day is a consolidation. Typically this will take the form of a base or a bear flag. The investing public is starting to feel a little better about their buys and the financial media continues to cheer stocks on. But then there’s another down day which is my setup. My setup occurs when another strong down day breaks the support of the bear flag/base on heavy volume. Now the down days come faster and the investing public beings to dump shares en masse which drives the price down farther and increases the value of my shorts.

Let’s take a look at some stocks that are currently displaying potential short setups based on this strategy.

All these stock are beginning to role over. IFN has the best wide range down day. Now my strategy is to wait and see. There are many other stocks forming this pattern right now. It’s worth your time to seek out and add stocks like these to your watch list.

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