Trading is a lot of fun yet extremely challenging. You are competing with professionals with the exact same goal at this zero sum game. You need to think fast yet stay disciplined. You need to think outside the box yet keep trading simple. You need to realize trading is not about being right or predicting the future, it is about making money yet to make money you need to take losses. The irony of it all. You need understand that trading is an art. - Stewie

Trade Setup: Long /NQH4

Symbol Market Price Entry Stop Position Size Exit Gain
Long NDX 0 87.50 3503 100% Open Open
Trade Entry: 

Buying strength.

Trade Setup: SPY at the close

Symbol Market Price Entry Stop Position Size Exit Gain
Short SPY 187.76 177.88 NA 100% 181.50 2.04%
Stock Close Date: 
12/20/2013
Trade Entry: 

First signal on market weakness.

Trade Exit: 

Stopped out, evaluate over the weekend and fight another day. Happy holidays.

December Rally. Lets go

In December, on average, the S&P gains 1.5%! Great edge! The effect is called the Santa Clause rally. It happened last year and even during the 2008 downturn. Take a look at these statistics.

average of S&P 500

Trade Setup: Long BRCM @ december rally

Symbol Market Price Entry Stop Position Size Exit Gain
Long BRCM 30.27 32.30 31.3 50% 33.8 2.32%
Stock Close Date: 
01-25-13
Trade Entry: 

Long BRCM at 32.30.

1. Its a pretty good buy because it is about to break out of an top trendline.

2. It bounced off a strong support on the 5 year chart and has been in a short term bull market.

3. The month of december and christmas rally is historically bullish. The return is about 1.4% and about 75% chance.

BRCM december buy

BRCM december buy zoomed

Trader's report, market summary for 4-2-2012: Trend is up, bullish, new high ahead SPX XLF

From last week's analysis on the S&P, I said statistically, the S&P is likely to test previous highs or make new highs. Well we did both today. We closed around the high of the previous high. As long as the price is above the black arrow at support at around 1411, trend is up. AAPL today almost made new highs, so that needs confirmation.

bullish_spy_above_support.png

Market laggers for the 2011 is now market leader. The financial industry have been doing very well lately. The XLF is very strong. It is so far consolidating in a bull flag . A breakout above this flag is very bullish. Notice the volume when the market is going up. Its very high.

xlf_bull_flag.png

The bottom line is that if SPX consolidate around here or simply make new highs, we are very bullish. Confirmation on the XLF, appl and DOW30, will be very important to watch. Keep in mind that April is the most bullish month of the year. Don't kid yourself shorting this market at this level. Wait for failure to retest highs and confirmation.