Watch the video for details on these 10 rules to improve your trading
#1 – Have a game plan
#2 – Follow your game plan
#3 – Trade with a stop loss
#4 – Reduce risk through non-correlated market diversification
#5 – Filter your trades
#6 – Trade with the trend
#7 – Don’t listen to the news
#8 – Don’t listen to your broker
#9 – Money Management
#10 – Be disciplined

Trading In These Interesting Times

Well my friends, we do live in interesting times, very interesting times. With China holding the largest share of US debt, inflation just around the corner, and no light at the end of the tunnel for the unemployed – these are interesting times.

So what’s going to be the best plan of action for your money in the next three years? Is the value of your portfolio going to be cut in half, or is it going to double? I have my game plan in place, do you have yours?

Introducing “The Perfect Portfolio”

I’ve given a lot of thought as to what’s going to happen in the next three years. Specifically, what I am going to do with my own portfolio and my own money. I have scoped out several markets that I think are going to offer excellent opportunities, no matter what happens to the economy. Yes, you heard me right. No matter what happens to the economy, I believe that this “Perfect Portfolio” will work for you in the next 36 months whether you have 10,000 or 10,000,000 million dollars.

6% Per Month Average Profits

We back tested the portfolio using our “Trade Triangle” technology for 42 months through some of the toughest, most difficult markets the world has ever seen. I think you will be pleasantly surprised at the results.

I know you’re going to be blown away by the simplicity, diversification, and effectiveness of these technical trading strategies. Get your game plan now!

My apologies for not doing these in real time; my wife is prego with twins and we had some medical issues to deal with, but everything seems to be ok for now.

It has been an interesting couple of days in the market, and my timing for this demonstration couldn’t have come at a more volatile time:

– a 15% spike on the VIX.
– A 3% down day (S&P 500)
– A 1.5% up day (S&P 500)

The Market Correction has finally arrived?

I’ve been stating for weeks that the S&P is looking very top heavy. There is now clear divergence on the MACD, a rise the extreme lows on the VIX, and established a clear over head resistance at 1040. This is a very important level to watch for the next couple of days, as it could provide the resistance necessary to confirm this current pattern as a short to mid term top in the market.

Status on the Live Trading Example using the Profitable Stock Exit Tool

When I started the demonstration for the profitable exit tool, I balanced the portfolio between long and short positions. At this point in time, if it were my own portfolio, I’d probably change that ratio to 3 to 2 in favor of short positions.

As it turns out, the tool is starting to push us in that direction. RDN was stopped out last week at $9.25 for a total loss of $538.48.

The current net profit in the portfolio stands at -$163.43

What to look for in the stock market and our portfolio for the next couple of days

Overall, including closed positions, we’re down $701.91. Considering the volatility in the markets, being down 4.6% in our trades, and 1.4% in the overall value of the portfolio is reasonable and very manageable.

It will be interesting to see which direction the market chooses to take. A strong break above 1040 or below 1020 on the S&P will give you clear direction on where to trade.

If that direction is down, I would expect our remaining longs to be stopped out (although I hope HIG holds on), and our short positions to increase in profit. If the market can sustain a bearish mood, we can easily turn this portfolio profitable.

New Trailing Stops

HIG – 24.22
MTG – 6.19
ENER – 13.93
NVEC – 61.97
AME – 37.41

Cornelius Luca began trading foreign currencies, including major and exotic currencies since 1983. While active in the spot market, he was also involved in trading FX futures, cross-currencies, forwards and options. Currently Mr. Luca is the head of a 12 billion dollar ivnestment fund, FX Concepts, as well as a 20 year instructor at the New York Insitute of Finance.

As all prominent traders, Cornelius has been quoted by the Wall Street Journal, The New York Times, Reuters and AP-Dow Jones. Mr. Lucas is a well known expert in technical analysis of the foregin exchange markets, and his seminars and publications combine to create and accurate, realistic and up-to-date presentation on the ever-changing environment of Foreign Exchange.

His technical analysis focuses heavilly upon Trend Analysis using Fibonacci and Gant, combined with indicator analysis primarily comprised primarily of MACD and FAST

Education:

M.B.A., International Business and Finance, New York University Stern Graduate School of Business
B.A., International Marketing, Bernard Baruch College

Publications:

”Trading in the Global Currencies Markets”, Prentice Hall
”Technical Analysis in the Global Currency Markets”, Prentice Hall
”Technical Analysis Applications”, McGraw Hill
Articles in Stocks & Commodities, Futures Magazine, Active Trader and The New York Times

In his introductory video, Mr. Luca covers several topics, including:

• Trading Indicators
• Proper Use of Market Fundamentals
• How To Use Time Frames
• Common Forex Trading Pitfalls

Cornelius Luca is a major player in the foreign currency markets, and brings 30 years of experience with him. I’m really suprised that Marketclub has arranged to provide his market commentary on their free tv service, rather than their paid service, INO TV Premium

This is now the second big addition of well known professional tradesr Marketclub has made in the past two months. In the end of July, it was announced that Dan Gramza would be producing Daily Market Studies for INO TV Free

I really think this service provides some amazing content and value, and that is why I’m recommending you go check it out right away. I’m confident you’ll find some lessons and commentary that will improve your trading, and prepare you for the temultuous market conditions we face in the near future. Whether you trade equities, currencies, or commodities, INO TV FREE is a resource every trader can count on.

Very bullish chart, ADX rising through 20 with bullish signs of accumulation and momentum. I would like to see a pullback to test $10 at which point I would move the entry to just above the high of the day should $10 hold.

Click here for Marketclub Trade Triangle Analysis:

Following up on a previous post and video

>> How To Find trending Trades in Any Market
>> Video: S&P 500 Forecast for February and March

here is an example of how using technology can give you a real leg up on trading in any market

In the video below, I make use of one of my favorite stock screening technologies, the Marketclub.com smart scan. What’s great about smart scan is that you can get a quick view of the trends in the markets by simply looking at the number of results returned by each custom scan.

For today’s scan, I noticed that the ratio of 52 week lows versus 52 week highs is over 7.75 to 1; this is a very bearish signal! I decided to take a look at the 52 week lows, and was amazed by what I saw

What a fantastic opportunity! I filtered out stocks below $20 and that trade under 1 million shares per day. What I got was a targeted list of stocks in which 95% where in a clear descending continuation triangle. All we have to do now is use the trade triangles to see if it’s an appropriate time to get short. For those who are strict technical traders, you’ll want wait for the stock to break below the floor of the triangle on high volume. Check out the video

Notice I said CLOSE! I know today was an 11% bounce, and everyone is feeling giddy, but listen closely…

Friday, 10-10-2008 Was Not The Market Bottom!

Today’s huge gain is a great place to get short weaker markets. Look for stocks that bounced up near resistance, and then get short!

The Trend is Always Your friend

And the trend is still down. The following is a weekly chart of the S&P 500. Notice the 50 / 200 week ma cross, and the old support line becoming resistance. I’d expect the S&P to to continue through the 1000 level tomorrow before running into heavy resistance between 1050 and 1075.

S&P 500 trend is still down - Click To Enlarge

Another Thing Barry and I Agree On

9.  S&P500 is down 47% from its peak level one year ago. Transports are down 38%. These are relatively rare degrees of loss, and suggest a near term upside move.

Interestingly enough, we both came to the same conclusion using different models… The transports are due to  bounce and lead the market back up.

Technicals

• The AROON is showing a strong uptrend is in place
• The PPO confirms the AROON and shows absolutely no divergence between the indicator and price action
• The Williams %R shows no divergence Either.
• The Williams %R on the daily chart is showing an oversold conidtion

Pattern

The chart pattern combined with the techincals is why I like this trade. A nice double bottom has formed, with a breakout occurring on strong volume. Today, support at the top of the W held up with the 13 day MA acting as further support.

Price Target and Stop

My target of 26.50 for this trade is just above it’s all time high of 26.09

Stop is $20.03, about 3% from a very strong support level.

Fundamentals

Avista is invested in renewable energy sources and provides energy to eastern Washington; an area hot during the summer, and snowy during the winter. They also grew net profits by 75% last quarter.

Today, the Institute for Supply Management will release it’s services sector index reading. This covers items such as new orders, employment, inventories, prices and exports and imports. Analysts are expecting a reading of 49. Any number below 50 signifies contraction, so any reading about 49 should be considered bullish.

Fed Meeting

Later in the the day, at 2:15 pm EST, the Fed will release its monetary policy statement. It is widely expected that the Fed will maintain rates, so the news will be any comments about future policy. Any note of angst about inflation will destroy today’s rally.