Thursday, February 11, 2010

Who likes DD?


I am closely watching the chart of Dupont (DD).



Look how many days in a row that DD has held the $32 level. The line in the sand is cleary $32.


I am watching/waiting for a break below $32 on heavy volume. (preferably in 1st hour of trading.)

Monday, February 1, 2010

Deja Vu all over again?


Posted a simple daily SPY chart below. We have seen a similar pattern play out a few times. Sell off, rally is over, whoops rally is back on. I am not making a prediction but I am going to be ready to capitalize if I see a rally playing out.



Ned? Ned Ryerson?

Friday, January 29, 2010

Trading RM Real Time

Just a reminder for anyone interested in Trading RM Real Time or the Trading RM Audio clerk, you can email info@tradingrm.com for a free trial.


Check out our blog to see how Trading RM Real Time can benefit you. Here is a quick video describing Trading RM Real Time. See some examples of Trading RM Real Time at work here, here, here and here.


Trading RM audio clerk is another product we offer that provides a wealth of audio information to traders at home or in an office. This includes but is not limited to:

• Real Time reporting of stocks making new daily highs and lows
• Unusual stock volume
• Unusual option volume
• Key market and stock levels
• Key Futures levels
• Up coming conference calls and events
• Trading RM’s Wave Indicator


Psychic Anyone?

In light of Dr. Brett's recent post I can offer you this. We recently received the following resume/letter. I think a psychic would make a great addition to any trading office:

Sent: Thursday, January 28, 2010 2:53 PM
To: info@tradingrm.com
Subject: Talented psychic seeking trading position

(Please note – I am offering a generous finder’s fee to the person who arranges an interview for me with a trading or investment firm, should I be hired. Click xxxx
for more information.)

Greetings Trading RM,

I have an unusual gift that is perfectly suited for equities and commodities trading.

Some call it psychic, I hesitate to make this claim, but I have worked very hard to develop it the past ten years. Now it is honed into a system that generates amazingly accurate and reliable trade signals in a variety of markets.I need to find a trading or investment firm that can put my skills to work. To me there's no question - whoever hires me will be thankful they did. The profit potential here is very serious. People are skeptical about this, understandably. But if you explore my site you can see, this is a very real phenomenon, and a very real skill I have developed.As you might imagine, this field does not lend itself to a normal resume. I have included some basic information below. For a more complete picture, please refer to
xxxxxxxx

Very truly yours, xxxxxxxxxx _________________________________________________________________________

Special Skills and Training:
The special skill I possess – the reception, recall, and interpretation of forward looking dreams – is best described as shamanism. Shamans have deeply explored their minds, and are able access the realm of dreams for information, where precognitive dreaming is a common occurrence. Regarding the financial markets, these can be a source of significant abundance.I have spent most of my life devoted to inner exploration: 34 years of meditation; 4 years at Esalen Institute (Big Sur, CA) immersed in yoga, group work, bodywork, and shamanism; 3 years in India deeply immersed in meditation and tantric training; and 25 years recording and studying my dreams, including 10 years of market dreams.For the past ten years I have studied and traded the markets. I have done extensive technical analysis of both equities and most commodities, having developed a system based on a convergence setup, mainly using Elliot Wave Theory, Fibonacci retracements, and pivots. While this system generated good signals, it did not compare with the accuracy of my dreams.

Other Work Experience:
Mountaineering instructor; carpenter; roofing contractor; massage therapist; meditation instructor; cook; science teacher; trader; columnist for xxxxxxx.com



Wednesday, January 27, 2010

Wake up running

I thought I would share this quote from The Kirk Report. This morning Mr. Kirk sent this tweet:

"Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a Lion wakes up. It knows it must outrun the slowest Gazelle or it will starve to death. It doesn't matter whether you are a Lion or a Gazelle...when the sun comes up, you'd better be running."


Monday, January 25, 2010

Adjusting your game plan

Many good traders have a game plan for a particular day, week, year, etc... One thing we have discussed at Trading RM is when to deviate from your game plan. It is great to have a game plan. But if the game plan is so rigid as to prevent you from a winning trade, then it is no good.

To take a step away from trading: say a particular football team has a plan to establish the run to open up the pass. It may come to be that the opposing team is running run blitzes on 60% of the downs to start the game. This may open up an opportunity to pass to the tight end. The coach will have to adjust to this and use the pass to set up the run.

Sometimes I catch my daily game plan being too rigid in the following examples:


  • "I just got back from days off I am going to trade small." -the market does not care that you were on vacation, today may be a day to trade large
  • "I am no going to trade the open, the first 10 minutes have been unprofitable." - again the market does not care about the past. Today may present a 8 out of 10 opportunity in the first 10 minutes of the day.
  • "I am getting killed on shorts I'm only looking at longs." -It may be true that my short set ups have not paid, but today shorts may pay
  • "I am not buying highs or selling lows." - Today chasing" may pay.

The key for me is to create an open ended game plan that uses positive language. So instead of "I am not going to..." I say I will short/trade the open/up my size when I see x, y and z characteristics.

The examples are endless. Even famous TV icons sometimes develop too rigid of a game plan. Ronnie from MTV's Jersey Shore once said:

"never fall in love at the Jersey Shore."

As we see below he adjusted his game plan.

Winning Option Strategies!