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Looking good thus far. Lets make it real simple and keep it short today.
NOTE: You MAY want to write the following phrase down and post it to your monitor and more importantly ingrain it in your subsciouncious
WE buy the dips in issues that are in clearly defined uptrends above the 50 day
Its all you need to know.
On to the indexes.
Drilling down to the one minute of the S&P 500 we have one issue of concern but only minor if you ask us.
Is it an ABC down? If so we are done going down. Or is it going to trace out an ABCDE (Same thing as 5 waves down) Not a big deal as if we do retest the recent lows one more time then its all about watching for positive RS divergence and what what the leaders do. If it were to occur? Who knows maybe we’d be able to pick off some SFLY and OXY, both of which by the way triggered and took off today as well out of Pullbacks Off Highs (POH’s)
Remember- Buy the dips and sell the rips of issues in clearly defined uptrends above the 50 day.
Those of you who have stuck to your guns and managed your emotions vs playing with nervous Nellie and stayed centered and focused thus far thru this market pullback don’t forget to give yourself a huge pat on the back! YOU DESERVE IT!
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INDEX ACTION AND GAME PLAN FOR THE WEEK Of 5-16 through 5-20
Our game plan for the week is to take those names that technically are still intact or are big components of the indexes to go long on (OXY, SFLY) (Which is what we’ve done with CAT, AAPL, LULU,PLCM,IPGP) and we’ll also use that strength (assuming we get it) to watch and hone in on our short side watch list so as to (when the time is right) lay out and start to build positions on the short side."
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Short Side Coming Attractions
Yesterday we said:
5-17 There is a good possibility that the bulk of this list disappears in the next day or so. Why? NONE for the most part are anywhere near any sort of low risk entry point for shorting that we feel confident with. THAT ought to tell you something about the market too here.
And that is exactly why you see no short side issues currently on the watch list.
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LONG SIDE WATCH LIST If I were to put money to work here. Where do I put it?
Only The Best And Forget The Rest
SFLY
NEW NAME
5-18 Wasnt exactly a POH crossover as it was more of a grand slam to the 50 day average and pow!
OXY
NEW NAME
5-18 Repeat after me- Pullbacks Off highs are the only pattern I ever need to know.
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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
GLD
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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
ALL JUNE Expiration from here on out folks
Current Holdings
CAT (We are now long 2 JUNE 95 call options to open at 11.10)
As we post they are currently at 9.85
AAPL (We are now long 1 JUNE 320 call option to open at 22.30)
As we post they are currently at 22.30
DANG (We are now long 3 May 21 call options to open at 3.10)
As we post they are currently at 40 cents
These expire Friday folks.
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"Let Your Stocks Tell You What To Do By The Action They Exhibit"
LONG SIDE POSITIONS
LULU (We are LONG 150 shares at 94.29 as of 5-17-11)
5-18 Repeat after me- Pullback Off Highs (POH’s) are the only pattern I ever need to know
Hey, 94 to almost 98 in a day or so is nothing to sneeze at. About the only thing one could have done better was to buy some calls- DOH!
IPGP (We are LONG 200 shares at 63.94 as of 5-17-11)
5-18 Repeat after me- Pullback Off Highs (POH’s) are the only pattern I ever need to know
PLCM (We are LONG 200 shares at 54.65 as of 5-17-11)
5-18 Hit trend channel support just like SINA the last few days and getting a nice lift off of it.
AAPL (We are LONG 50 shares at 338.15 as of 5-5-11)
5-18 How about that, right to the support zone and POW!
5-16 Just an observation, look at all the lows on this stock the last 4-5 months, notice something? They all happened to be of the spike low variety. We made our bed now we have to sleep in it. Not a problem when you use trade size position risk management.
CAT (We are LONG 150 shares at 105.15 as of 5-5-11)
5-18 Nice, bouncing and stabilizing exactly where its supposed to.
5-17 As we talked about yesterday, this is a zone. We are down a whopping 2.5% in this issue so at this point seeing as how the indexes are saying what they are saying we will leave it alone just like the last time when we bought at 107, and it went to 103 on us then shot right up to 115 and we walked away. Consider this a zone.
IRBT (We are LONG 300 shares at 32.15 as of 5-5-11)
5-18 Bouncing off the lows with the markets, lets see if we can go from the 3rd best outcome of a small loss to a wash. Then if we get to wash mode we’ll make a decision as to whether we want to hold for a gain outcome.
5-17 Make sure you read the notes on this name in the chart.
INFA (We are LONG 200 shares at 51.44 as of 5-5-11)
5-18 Nice list off here, who knows we might just get to a retest of the recent highs before we know it.
5-17 Any break of the blue line and we stop out of this issue non the worse for wear.
DANG (We are LONG 300 shares at 23.51 as of 4-28-11)
5-17 Any break below the double bottom lows and we stop out of this issue.
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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!
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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.
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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.
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