Market trend and trading strategies

Hi all,

Haven't updated this blog for a while, as I am busy looking for a job. Alright, let's talk about the market now. What I can see is that

1) There would be an about 10% correction at the level around 1120 (it may start already now).
2) After that, it will be still a good BUY-DIP opportunity, but increasing may become slow and not as sharp as before.
3) So, good strategies on trading at this moment is that BUY DIP and SELL COVERED CALLS. You know what I mean, right?

I personally bought DRYS and sold NOV 7 calls at 0.85, an assigned 12% return in a month, not bad.

Good luck on your trading!

Added short positions, FAZ

I added short positions FAZ around $24.7 and for a $27 target in short term. Today could be a pivot day (local high).

Happy long weekend

Market will get more interesting after labor day. Do or die, or neither? Let market tell. Be patient!

Enjoy your long weekend and good luck trading next week!

Be patient

Market could go either way from here short term.

Your patience will pay you off.

I am not expecting market could do much before labor day.

Just take a break!

SPX BUY signal

System shows a BUY signal if SPX stands above 1033.

Market refuses to go down, let alone down hard!

I am back

I was away for the last 2 days and am back now. I sold out AMD at $4.05, and still keeping MGM, and some OCT puts on market.

Signals are mixed from system. So better to have fewer positions now. I am expecting market to have a 15-20 points correction from here. But who knows ...

Manage risk!

New high stamped

Market closed with a new high last Friday, which completely taught me a lesson to me. For my short positions, DUG, ERY and SPXU shares got stopped with some loss, while keeping OCT DUG calls and OCT SPY puts. I have to admit that I didn't do good on risk control this time, too convinced with last Monday's sizable down, and underestimated bulls engery to push market to a new high. Well, wrong is wrong.

Well, I added long positions on Friday: AMD and MGM.

AMD looks that it bottoms out. MGM is lagging while LVS shows a lot of strength (breaking out) on upside. So, I am expecting MGM to catch up from here.

Good Luck on your trading next week!

Cut, cut

This was a bad trade on short side.

Bot SPY Put

SPY OCT 97 PUT.

SPX is now right at my resistance level, 1005.

Bot ERY $18.54

Bought back my stopped DUG, but this time I bot ERY.

Good opportunity for bears

Don't get fooled by the action of bulls this morning. Instead, it is a very good opportunity to open or add more short positions. I would stay away from financials, but focus on commodity related stocks or techs. Market is on the way of heading down, A MUST!

My best selections here are DUG and DTO for shorting oil-related, ZSL/DZZ for shorting silver/gold, and QID for shorting techs.

I will load some calls on DUG.

GL!

As is planned, I bought more DUG shares at $17.00 and DUG OCT calls. DUG option max pain is $17 on Friday. Let's see how that plays. Same stops.

1/2 DUG shares were stopped out at $16.75. Will revisit.

System triggered SELL

This is an intermediate sell signal on SPX, with stop at 1015.

I would give market some room of upside (better to fill Monday's gap) to finish its dead cat bounce and patiently add short positions. My first batch will start around SPX 1000, if market permits.

I decided to load DUG AH at $17.37, as upside for market is limited. Stops are $16.75 for 1/2, and $16.35 for 1/2.

Individual stocks requested by readers

Please keep in mind the following three points before I outline buy/sell/stop entries for requested individual stocks.

1) This is for education purpose only, not for any investment or trading advices.
2) The new system trades 2 hours time frame, which is designed for swinging positions ranging from 2 hours to weeks, or even months. Typically, holding periods should be around 1-2 weeks.
3) All stops should be adjusted up (on long) or down (on short) with dynamic price movement. The stops I list below are for today's closing. A closing 2 hours bar price is only considered for buy/sell/stop. Prices within a 2 hours bar could be used for your reference.

1) ANR: BUY was triggered on $33.16, stop at $33.46.
2) CLF: BUY was triggered on $ 27.91, stop at $27.29.
3) TIE: BUY was triggered on $8.18, stop at $8.01.
4) AVNR: sorry, daily average volume (over last 250 trading days) is not over 1M shares.
5) YGE: Short was triggered on 7/29 at $13.66, stop at $13.39, currently in downtrend.
6) HBAN: BUY was triggered on 7/27 at $3.54, stop at $4.36.
7) STP: Shorted was triggered on 8/6 at$18.62, stop at $18.29.
8) CENX: BUY was triggered on $11.21, stop at $10.58.
9) PMI: Short was triggered on 8/10 at $2.69, stop at $2.79.
10) DRYS: BUY was triggered on $6.47, stop at $6.09.
11) UAUA: BUY was triggered on 7/15 at $3.37, stop at $5.64. This is really a good one, I wish I had implemented this system back in June.
12) JASO: Short was triggered on $4.6, stop at $4.77.
13) KFN: BUY was just triggered at today's close $3.04, stop at $2.70. The last long trade started at $1.02 on 7/21. Will like to see how this plays.
14) MFC: Short was triggered on 8/6 at $21.92, stop at $20.92.

Opex next week

Market ended today with loss and entered into next week (opex day on Friday) with late afternoon rally. It may resume its uptrend next week, as there is no "bad" news at all that could drag down market hard. Retails? Consumer sentiment? I could not see one.

1) PTrend system suggests to go up.
2) My FAZ trade was good by locking profits in time.
3) My MGM load works well, and decided to hold into next week. System suggests a stop on $8.35. The stop will be raised if MGM goes up.
4) I am currently not intending to open new long positions AH.
5) I have implemented a system focusing time frame on 2 hours chart, which means positions could be hold for days as swing trading. The system suggests all buy, sell and stop prices for a stock. I like to simply help to take a look at stocks for you from that system, if you want to name it. The only requirement is that stock price should be over $2 with daily average volume over 1M shares.

Have a good weekend all!

Euro Stoped out @1.4210

ES short closed and long ES @995.25

For Euro, doesn't have plan now

URE $5.1 stop out, FAZ $26.69 lock profits

Loading more MGM around $8.7

Bot FAZ $25.14 AH

I can not help loading short positions. Tight stop at $24.75 on 2 hour closing bar (intra-bar doesn't count!).

Long Euro futures @1.4291

Euro is hard to trade these two months since it doesn't have clear trend. Our system for Euro ask we long Euro U9 @ 1.4291 and we did it on lindwadock account. the stop price for this trade will be 1.4211. and the first target will be break 1.4320 level and go to challenge 1.4450.

also The reverse swing system for ES lost a big one from 892.25 to 993.25. and Normally after a big loss, the system will profit in the following several trades. today, the system ask to short @1006.25 after close a long from 993.25 to 1006.25.

Set Stop on URE, $5.1

for today.

SPX short term trend pivot at 1000.48.

Sold FXP

Sold FXP with a small profit.