Friday night is on, and Gawains has the lead off spot for his birthday present! get your requests in.
If you want the low down on the HBO series "Game of Thrones" or just want to be a cool reader, stop on over to my man David Batista's post this night to stand and be counted:
The Epic-ness of it All
Since I started trading in late January there have been more wins than losses, but more of myself getting in my own way at times. After vacation I renewed my effort to get back to basics: using the PPT screens that I favor and working just candlesticks and nothing else.
I loved the FURX find on Sunday night and after Monday's action I felt it was the time to strike while all the factors aligned; excellent PPT hybrid scenario and a volume move that was sure to make some kind of wave. Add in a classic inverted hammer and it was go time.
Here is the rundown:
-Open position in $FURX Tuesday morning at $14.18-Target is $15.35-$15.50 ( 3 days to a week time frame)
-Almost at target by end of day Tuesday (nice!)
-Blows past target price and 50 day moving average on Wednesday, also on major volume
-GYSC reviews absolute high target, sets at $16.90
-Late Thursday it close enough, trade closed at $16.82 for a 18.6% gain! Round it to 19% to make it sound better, lol!
Final chart with annotation; red arrows are entry and exit (click for larger view):
Of course this one could shoot way higher or it could collapse, but the point is the position was targeted, execution was done and then amended, and an exit was followed. All the kinds of rules that I need to follow. Worked out super well on this one.
Not a Good Sign
TraderMark of Fund My Mutual Fund had this post up today:
Market Only Down a Few % from Highs, but Market Sentiment Horrible
With the market indices only down a little bit, trader sentiment is falling fast, almost as if a total rout is going on! From the post:
Usually market sentiment is a great contrary indicator at extremes. For some reason, despite a market that has barely sold off (down less than 3% from the peak) the American Association of Individual Investors sentiment indicator is at lows not seen since August 2010. You know what happened at that point. Not sure why such a negative view - perhaps the news from Europe is weighing more on sentiment than U.S. stock performance.Unreal.
This backs up what I have been saying 100% about FED induced "new normal" markets; if sentiment is this bad down, what, 2-3% from highs, WTF would happen with a 5% move? A 10% move down? Nice little pickle we are now in.
Managing expectations are a major goal of the FED. What is 3% market moves down are enough to cause such sentiment shifts? Keep this one in mind.
Have a good night.