Mid-Day Update

Courtesy of David of All About Trends

 

NEWS FLASH: Noon time EST we issued a trade trigger alert to lock our gains in BIDU at $120.60 today. That amounts to a $1268.00 gain in a few days. Keep in mind this comes on back of our $795.00 gain in FMCN earlier in the week. It all adds up to a great week for those who operate in the realm of whatever it takes to reach one’s goals regardless of what the market throws at you. It all comes down to just how serious YOU are about you’re goals. How serious are you? And that is you’re question to yourself this weekend.

 

 

Yesterday we said:

 

 

And sure enough they have already scheduled another summit for later in the week next week. Like I said- EXTEND AND PRETEND

 

I always have to laugh when I see headlines like: 

 

Today Investors bid Up Stocks blah blah blah.  I laugh because its not true. Investors did NOT bid up stocks. The Market Makers and Specialists GAPPED UP stocks and POPPED STOPS. 

 

 

 

 

When I see a market gap up like it did this morning the first thing I do is NOT REACT- That’s what losers do. The next thing I do is look at just WHAT EXACTLY ARE MY STOCKS DOING (and the leaders). In so doing I notice AMZN, BIDU,AAPL and numerous others really weren’t doing much that concerned me.  The point is never react and always let your stocks tell you what to do by the action they are exhibiting.

 

 

 

We’ll keep it short today as its the weekend and we’ll have more to say then.  

 

 

Something to think about here may be that of devising a trading plan for between now and year end. One may to look at  between now and year end from a hit and run get in get out standpoint and be a trader. 

 

After all $200 a day is $1,000 a week is $4,000 a month and over the next three months between now and year end that’s $12,000 added to the bottom line in a perfect world.  All things considered given the way the year has been turning out? There is nothing wrong with that if you ask us.  Heck on a $100,000 portfolio that’s a 12% return from here.  How’s that for a game plan should one be on the hunt for one. Just a thought.

 

LONG SIDE WATCH LIST

 

"We Trade What We SEE, NOT What We Think, Hear Or Fear "

 

 

FEATURED BUT NOT TRADE TRIGGERED BY US LIST

SDS

 

 

 

 

GLD

 

 

 

OIH

 

  

 

10-21 Soooo we’ll find out if today’s new highs out of the last five days range ends up being a popped stops type of day. This index is super overbought still too.

 

 

 

Let Your Stocks Tell You What To Do By The Action They Exhibit"

 

LONG SIDE POSITIONS

 

TZA        (We are now long 200 shares of this at 37.46 as of 10-14-11) 

 

 

 

 

 

 

SHORT SIDE POSITIONS

 

BIDU     (We WERE now short 100 shares of this at 133.28 as of 10-19-11)

 

We covered this issue around noon EST at 120.60 per the email and text alert. 

 

AMZN  (We are now short 50 shares of this at 242.48 as of 10-14-11)

 

 

 

  

 

 

 

10-19 EARNINGS ARE DUE THE 25TH OF OCTOBER. Keep in mind this issue is falling and if it continues to fall into earnings we do not want to be short into earnings.  hmmm maybe we’d consider buying it into earnings. Its something to think about , we’ve got till Tuesday before the close to make that decision.

 

Also Keep in mind the EU said they will have a plan by this weekend (supposedly), if you believe that anyway. Gosh this extend and pretend and keep dragging us along is getting pretty old. Why don’t they just except reality and bite the bullet so we can all get it out of the way and start the healing process.

 

LULU (We are now short 150 shares of this at 51.41 as of 10-6-11)

 

 

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 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 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 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 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.