If you would have made the purchase on the close, you would have picked up CRM for 136.56. So far, even though the markets are off about 1%, you would have made a 2% profit on CRM.

Remember the rules for trading this system. You must sell CRM tomorrow.

Happy trading,

Steve

Gold Uptrend Divergence in MACD

In the chart above, I've marked the price trend and the MACD trend in blue. Notice gold prices continue to reach new highs, but momentum is declining. That is a classic sign of trend reversal. I have also marked 1360 as a line in the sand for the uptrend. IT coincides with several Bearish Engulfing Patterns, and a very long doji candle.

Another Win For the 52 Week High Rule

IF you're not familiar with the 52 Week High on Friday Rule, check it out immediately! This strategy is a nice adjunct to my Record Price Breakout strategy, and it would have turned in a profit right at the top of the move. Remember the rules for trading the 52 week high friday rule are:

1. On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
2. Exit the long position on the opening the following Tuesday.
3. If the market opens sharply lower on Monday, exit the position immediately.

Following this rule, you would have entered gold at $1393 and exited at $1416, for a nice $1900 profit per contract.

Today I wanted to tell you about a perfect compliment to my Record Price Breakout Stock Screen and Trading Strategy, the 52 Week High Friday Rule. The setup for this trading principle is very simple, and follows similar principles to the Record Price Breakout strategy. The difference is that the 52 Week High Friday Rule has a very specific setup, which makes it very easy to trade.

The 52 Week High Friday Rule was brought to my attention by my friend Adam, and the details for this trading system are available on his website for free.

Simply click here now,  fill out the form, and you'll be forwarded to a video describing this trading technique.

"I was a former floor trader on the IMM, IOM, NYFE and LIFFE as well as a risk manager of a large, multinational corporation in Geneva, Switzerland. I also have written books on forex trading and trend following. In 1995, I founded INO.com and later co-founded MarketClub. I’ve been in the trading biz for over three decades and have seen it all. I am sharing these trading tips and techniques that are making money in today's markets. I hope you enjoy them"

As a RecordPriceBrekaout.com reader, I wanted to extend to you the chance
to watch this video for free.

Simply visit the link below to start watching:
Day Trading Made Simple – Watch The Video

Marketclub is a fantastic service comprised of several powerful trading components including:

A proprietary stock rating system designed to accommodate day traders, swing traders, trend followers, and buy and hold investors.
Trade Triangle Technology – A sophisticated yet easy to utilize trend following and market entry / exit timing system that anybody can use
A fantastic charting platform that is powerful and easy to read. It provides real-time streaming capabilities, technical indicators, fibonacci analysis, and time frames from monthly charts to 1 minute charts.
A unique scanning feature that implements the stock rating system as well as trade triangles to help identify profitable trades
Probably the most unique and high value feature of all is that all of the above systems can be applied to all of these exchanges (including futures, forex, mutal funds, etc):
1. National Association of Securities Dealers Automated Quotations (NASDAQ)
2. New York Stock Exchange (NYSE)
3. American Stock and Options Exchange (AMEX)
4. Toronto Stock Exchange (TSX)
5. Canadian Venture Exchange (CDNX)
6. New York Mercantile Exchange (NYMEX/COMEX)
7. New York Board of Trade (NYBOT/CSCE/NYCE)
8. Chicago Mercantile Exchange (CME)
9. Chicago Board of Trade (CBOT)
10. Intercontinental Exchange (ICE)
11. Kansas City Board of Trade (KCBT)
12. Minneapolis Grain Exchange (MGEX)
13. Realtime Foreign Exchange (FOREX)

Finally, a little advertised but amazing feature of Marketclub is the ability to access and download over 10 years of historical data for every market in each of the exchanges listed above. When you combine the real-time and the historical data access, the $449 yearly membership becomes an incredible value.

About Marketclub Trend Analysis

The Trend Analysis feature provides traders of all kinds insight into the trend direction and strength using a proprietary trend scoring system.

click to enlarge

Using this system is quite simple. For instance if you are a swing trader, you would check the “new three day high” triangle, and the “new three month high” triangle, you would have have a green light to trade the stock short term.

Give Trend Analysis a Free Try
Just enter any symbol into the the symbol box below and click Analyze:

About Marketclub Smart Scan Technology
The Smart Scan feature is what I like most about Marketclub. The core principle of RecordPriceBreakout.com is developing highly targeted trading methodologies around a specific stock screen. The benefits of creating your trading plan this way are so numerous that I have dedicated this blog to this topic.

There are two different types of scans that I prefer to utilize with Smart Scan Technology. The first is using the +100 / -100 score. This will find stocks that are trending very strongly.

The second method is searching for specific entry and exit signals and trend reversals by using trade triangles. One example would be to search for a new monthly trade triangle which signals a major trend reversal. You can then add the list of stocks to the alert system which will get you into the trade at the most opportune time.

Check out this video on Marketclub Smart Scan Technology

About Marketclub Streaming Charts
Marketclub’s streaming charts are the easiest charts to read of any I have ever tried. The color scheme, font sizes, grid lines, and data points are all designed for ease of reading.

click to enlarge

I highlighted some of the important features of the charting package. Marketclub makes it very easy to change every aspect of the chart without having to sift through embedded menus (thinkorswim comes to mind). The primary time frames, symbol, chart type (line,candlestick,ohlc), studies, and trading tools are available with a single click.

All of the pertinent data about the current market is displayed at the top of the chart. The date of the selected bar, symbol, current price, change, percent change, open, high, low, and on chart indicator values are all on prominent display.

Other cool features include a small instruction box in the upper left hand corner that tells you how to use the currently select tool. The trade triangle box can be moved any where on the screen to avoid covering up any part of the chart. Of course, there are also the trade triangles which can be added to chart using the M,W,and D buttons.

Here is a full run down of all of the features of Marketclub Streaming Charts. It’s very educational, you should check it out!

About Marketclub Trade Triangles

Marketclub Trade Triangle technology provides a proprietary trend following indicator based on a weighted formula comprised of price, time, volume, highs, and lows. It is by far the fastest and easiest method I know of to determine the direction and strength of the current trend.

Many trading system depend on the adage “the trend is your friend,” or, “befriend the trend.” There are several methods traders use to determine the direction of the trend. Use of long term, or a combination of long term and shorter term moving averages, and the indicators such as the DMI just to name a few. Then there are the trend strength indicators such as the DMI, Aroon, and several uses of moving averages for example.

The problem with all of these methods is that they are a) subject to interpretation, b) time consuming, and c) many expert traders disagree on how to use each of these tools.

Such is not the case with Trade Triangles. For determine the direction and strength of the trend, all you have to do is look at the daily, weekly, and monthly trade triangles.

Strong Bullish Trend: Monthly, weekly, daily triangle are green
Moderate Bullish Trend: Monthly, weekly are green, daily is red
Week Bullish Trend / Sideways: Monthly is green, weekly and daily triangles are red

Week Bearish Trend / Sideways: Monthly is red, weekly and daily triangles are green
Moderate Bearish Trend: Monthly and weekly are red, daily triangle is green
Strong Bearish Trend: Monthly, Weekly, and Daily triangles are red.

You can see clearly from the examples above the direction and strength of the current trend. You may have also deduced that you can spot trend reversals quite easily as well. Any signal that goes from moderate in one direction to moderate in the opposite direction signals an important trend change, and marks quality entries in the new trend direction.

You might be asking yourself if Trade Triangles are this simple, how can the truly be effective? I recommend taking a look at this 13 minute video that shows you how trading the triangles in 6 different markets (can you say diversification?) over 6 quarters ending in Q4 2008 lead to an incredible 624% profit; this includes the incredible market crash the started in late 2007!

About Marketclub Trade School

Trade School is your own personal trading university where you set the curriculum with some of the most well known professional traders in the world. These audio (MP3) seminars and PDF workbooks will have you following along with trading greats like Linda Raschke, Mark Cook, and Chuck LeBeau. These seminars cover various trading techniques and information on foreign exchange, futures, day trading, money management, stocks, psychology, indexes, options and more.

About the Marketclub Trade Triangle Alerts System

The primary value of this system is the ability to receive an instant alert as soon as a new trade triangle appears. I like to add an alert for a market that I am tracking, waiting for a significant trend change. As soon as the necessary things happen to trigger the triangle I’m looking to see, an alert is sent to my email letting me know to take a look at the chart.

Checkout this video on the Alerts System

My Overall Impression

Marketclub is an incredible value, even without any of the tools and services mentioned above. The Traders Blog provides so free trading advice and content that I’m amazed they don’t include it in the membership premium.

In my own trading, I use the trade triangle technology along with the stock portfolio to track the trends in the major indicies as well as several sector following ETFS. This allows me to quickly and easily adjust my trading style to bullish or bearish, and to find stocks that are moving in specific sectors.

When combined with the historical data, streaming charts, and educational content, Marketclub will assuredly increase your trading profits. As a final note I highly recommend checking out their latest educational videos, and then taking a look at everything you get with your membership to Marketclub.

To Profitable Trades,

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!

An Live and Unrehearsed Demonstration Using the Simplest Entry Strategy Possible

As I said in the exit strategy video, it has been said that a systematic exit strategy will lead to better and more consistent profit margins than an entry strategy. I personally don’t exactly agree with that premise, as I like to use high quailty entry AND exit strategies, but I’d like to prove that exit strategies work.For this demonstration, I picked 3 long and 3 short stocks using the simplest method I that could possibly work (or at least that I could think of).

How I Picked The Long Positions

I went to the Prophet.net Sector Rankings, and chose the long stocks from a sector that has a high, positive Rank Change, as was in the top 10 Sector rankings. In this case, I chose Property and Casualty Insurance:

I then went to ClearStation, and looked up that sector, and ordered the stocks by RSI. I filtered out stocks under $5 and that trade (on average) less than 250,000 shares per day:

Based on those criteria, the long positions I chose are

• RDN
• HIG
• MTG

How I Chose The Short Positions

• ener
• nvec
• ame

Position Size, Profit Targets, and Trading Strategy

For this example, I’m setting a position cost limit of $2500 per trade. The number of shares purchased will be $2500 / current price.

Profit targets have been set using chat patterns, fibonacci, and is some cases, P/E ratios. If you want to see my technical anlsysis of the charts, please email me, and I’ll put together the snapshots.

The trading strategy is very simple.

• I will set trailing stops using the Chandelier Stop approach
• The trade will be kept open until the profit target is reached, or it gets stopped out
• If the trade is not profitable within 10 trading days, it will be closed
• As the trades become profitable, I will adjust the Chandlier Stop to a more appropriate multiplier of ATR. Which multiplier is used is up to my discretion
• Once the profit target is reached, I will sell 1/2 of the position. The other 1/2 will be left open, with a stop placed at a 1.1 ATR Chandlier Stop. The trade will remain open until stopped out

Position Particulars

RDN
Type – long
Entry Price – 11.79
No. Shares – 212
Profit Target – 17.63
Initial Trailing Stop – 9.25

HIG
Type – long
Entry Price – 28.62
No. Shares – 85
Profit Target – 38.2
Initial Trailing Stop – 24.22

MTG
Type – long
Entry Price – 7.99
No. Shares – 313
Profit Target – 14.14
Initial Trailing Stop – 6.19

ENER
Type – Short
Entry Price – 11.92
No. Shares – 210
Profit Target – 10.06
Initial Trailing Stop – 13.93 (Channel Stop)

NVEC
Type – Short
Entry Price – 54.26
No. Shares – 99
Profit Target – 45.52
Initial Trailing Stop – 61.97 (3 atr)

AME
Type – Short
Entry Price – 35
No. Shares – 71
Profit Target – 31.68
Initial Trailing Stop – 37.41

There are myriad skills a trader must learn, apply, and hone while developing their trading plan. From fundamental analysis to technical trading tools, and charting software to screening algorithms, the traders education is a continuous pursuit.

Then there is the process of building the traders mindset, the psychology necessary to endure the wild and unknown swings that occur because of the human emotion that drives the markets. But, even that is not the secret to becoming a profitable trader over the long haul.

In the following interview, Brad Stafford sits down with former CME floor trader Adam Hewison and discusses the key ability every trade must learn. Can you guess what it is? Watch this free interview now!

Footlocker (FL)

Hanging on at these levels. I’m certain the markets are going to be headed sharply lower over the next couple of days. That said, Footlocker has been bucking the trend, and headed higher since late December. With a strong break out of a 3 month trading range, or slim-jim.

The weekly chart still looks very strong. We are very close to getting a buy signal on the Aroon, the MFI is holding up in the high 70′s, and the MACD is rising withe a fairly fresh cross over buy signal. I would like to see the signal line pass above 0. Volume on the breakout above resistance was also very high. This could be a cooling off week for the stock, where it might retest the $8.40 area. Look for this to be a strong area of support, and a strong bounce from there.

New Short on the SPY

Today I added 1/2 – short position, 65 shares of SPY @ 77.14.

The technicals really turned negative, with signs starting around 11:00 AM EST. A divergence in the Price Oscillator / MACD began to form. At 2:15, the indicators started flashing sell signals across the board. As soon as we broke below the support around 77.20, I put a new short order at 77.10, which got filled at 77.14.

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I still have target on the S&P 500 of 575, which is a 24% decline. The SPY should easily our target around $64 based on this kind of move.

New Watch List

I’m working on a new shorts watch list, it’ll be out tonight.

click to enlgarge

FL has all kinds of good things going on. Trade triangles are showing a buy on the monthly and weekly charts. A break above resistance on high volume, the resistance is arising trianble or slim jim formation, the MACD / PPO are showing buy signals, and the MFI is spiking. I expect a solid rally in the markets tomorrow, so with luck we’ll be able to get in and out of this one quickly.

Look to ride this trade from $9.07 to the 50% fibonacci retracement at $10.97

Found using Marketclub Smart Scan and Trade Triangle technology