Intra-Day Update: Ready to Roll!

UPDATE 10:01am EST: Morning my evil rats & leeches – as you can see I have been keeping myself busy during Turkey Day – no tryptophan poisoning for me. Alright, first order of business are the retracement levels. No, the widget has not been removed or broken – it’s smart enought to figure out that 2sweeties didn’t post an update as he’s on vacation. So, I guess I’ll have to jump in here. Remember, we didn’t have a down day for 4 days, which means the short RLs remains the same. I have added the new long RLs – just in case we actually get a drop today.

Here are the calculations – feel free to double check (as if anyone ever does – lazy butts!!).

To go long:

To go short:

There you have it. I will follow up soon with some additional info about our brand new zero indicator. If you haven’t seen it in action yet, take a peek to your right – I have added a new widget. Let me know what you guys think – but be gentle, it’s just a start of us spearheading an extension of our trading system.

UPDATE 10:48am EST: Crude just tanked by $2.-. Berk and I love C and JPM, but are too chicken to grab it on a day like this – I know we’ll live to regret that.

Otherwise, sluggish day…

But be careful, sluggish days can turn into rockers 😉

UPDATE 11:21am EST: I have to admit I’m a bit disappointed right now. The TNX has been tanking in the past few days while equities were rallying. But none of your damn leeches have been asking the key question which is why ?

Well, just so happens that Bernanke and pals over the last two days clandestinely rolled out some $1.3 trillion in new so-called alphabet soup ‘facilities’, including buying agencies and consumer debt. BTW, is that even legal? AFAIK, they can lend against it but not purchase it. Red – if you’re around – can you clear that up? Anyway, the smashing of the TNX along with agency spreads came of this as there are massive amounts of new treasury being issues. Nothing like selling the future of your children and grandchildren during Thanksgiving – how appropriate!

Well, just another example of why you need to understand the reasons for these types of correlations. When they break there usually is a reason why.

UPDATE 11:35am EST: Wow, crude now down 3 bucks today. Guess all correlations are off the table now – LOL 🙂 Yen moving with market now, crude now dropping while we rally, and TNX completely shot to hell. Ladies and leeches – be careful out there – don’t think the market cannot continue rallying here.

UPDATE 12:45pm EST: Real quick before the close – I’m thinking of playing a 60-day short turtle soup on DLTR. Here are the rules:

LONG

1. The contract must make a new 20-day high (we also use the 60 day for a 2nd signal if we missed the 20).
2. The previous 20-day high must have occurred at least four trading sessions earlier.
3. After the market raises above the previous 20-day high, place an entry buy stop 5-10 ticks below the prior 20-day high. This buy stop will be good for today only.
4. If the trade is triggered, place an initial good-until-cancelled sell stop one tick aove today’s high.

SHORT

1. The contract must make a new 20-day low (we also use the 60 day for a 2nd signal if we missed the 20).
2. The previous 20-day low must have occurred at least four trading sessions earlier.
3. After the market falls below the previous 20-day low, place an entry buy stop 5-10 ticks above the prior 20-day low. This buy stop will be good for today only.
4. If the trade is triggered, place an initial good-until-cancelled sell stop one tick under today’s low.

Berk and I will post in more depth about trend trading in the months to come. This is an example of a ‘failed’ trend trade – which means we expect the trend signal to fail.