|
Yesterday we said:
What remains to be seen is the famous "Into The Close", thats when we’ll find out if this was just a pop and drop (fade into close)? Or here comes a working to the upside (starts getting stronger into the close) for a retest of recent highs.
Sure enough we got the strength into the close, however this morning we also got a mega mini double top and a complete gap fill from yesterday’s opening strength with a side order of a back test of the pink trendline to the upside break from the day before all shown below.
As far as the other indexes go? They all pretty much look the same and rightfully so as there are only two asset classes out there. the US dollar and everything else.
In addition to that we even got our follow thru day, albeit feebly but hey it is what it is. It also never fails, by the time that newspaper sayes follow thru day we are already way ahead of the curve, we talked about this over the weekend too- the power of alternative entry points
So what are we going to do about that? Nothing, we’ll keep on by keeping on and managing our positions. AAPL,PLCM and SFLY are the ones we want to keep a short leash on as we’ve got great gains in them in a short period of time and would prefer to not give that back. We aren’t looking to be heroes with them but we are looking to constantly ring the register and in so doing when the market happens to go thru a bad spurt we end up giving back less profits vs had we bought and held. Also in so doing any draw down in our virtual portfolio is taken from gains vs principle and THAT is a big deal.
As for CAT and IBM? Well as the DOW goes so goes those. Right now for us they just are and I know that’s hard to handle but it is what it is. I say hard to handle as folks lets not forget that all the huge gains we’ve recently had while the market has been in a correction and its easy to think or get locked into thinking its always going to be that way when its not. I think the proper choice of words is called BEING SPOILED. Don’t
===============================================================
Short Side Coming Attractions
CVX
NEW NAME
6-1 Say come to think of it doesn’t BIDU, SINA and SLV look a tad similar? Think first thrust down, now snapping back below the 50 day average? Just saying
==========================================================
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 "
"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.
APKT
NEW NAME
6-1 I guess with a follow thru day this is a candidate on the longside, one thing is for sure, relative to the moves that GLD,SLV,PLCM,SFLY,AAPL,IPGP and INFA have just made this issue looks tons better from a "We Don’t Chase Buses" perspective. Remember only the best at prime alternative entry points and not that far away from them is where you want to key in on.
=====================================================
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
BIDU
5-31 This name is starting to bother me technically.
SINA
SLV
ARBA
ABV
ACOM
GLD
6-1 Talk about "Getting There"
5-31 Gosh whats 2-4 points to a retest of highs amongst friends. Consider this issue in the zone for a completed bounce/retest of highs. I sure wouldn’t be thinking about going long here.
=====================================================
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
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 8.10
ILMN (We are now long 2 JUNE 65 call options to open at 6.30)
As we post they are currently at 7.65
SFLY (We are now long 2 JUNE 50 call options to open at 5.40)
As we post they are currently are 9.15
CAT (We are now long 2 JUNE 95 call options to open at 11.10)
As we post they are currently at 7.75
AAPL (We are now long 1 JUNE 320 call option to open at 22.30)
As we post they are currently at 29.30
=======================================================
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)
6-1 Sure likes that 50 day/ trendchannel line huh?
SFLY (We are LONG 200 shares at 54.24 as of 5-25-11)
PLCM (We are LONG 200 shares at 54.65 as of 5-17-11)
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.
|
