Quick Cleaner and Strategy Thoughts…
Quick Cleaner and Strategy Thoughts…
Berk here:
Quick little view of the working (not anymore) trendlines in $INDU. The reason I am showing $INDU is because if it does not fall of the plate shortly, it will likely push up on last time. The reason I say this is due to the massive amount of overlap that allows the only working bearish count to be I-II, i-ii. That said, keep an eye on the $INDU, if it fails to break lower, we may likely see one last high.
Enough about that though. It’s all mental masturbation right now with the Fed meeting coming, and a lack of clear resolution. We will know shortly which of us is correct. In the meantime, notice the lower highs and lower lows in the markets… 😛
Next, I am sure some of you have noticed my little bags of tricks I let leak occasionally. Right now I have reverted back to my TREND TRADING system. Why? Because we are about to be trending (nice fast current) and I am going to position myself in equities that are preceding the trend. I am looking to purchase far OTM options mostly in Jan and Apr to capitalize on both price move and volatility, and also minimize theta burn. That said, I am not looking to wiggle in and out of these stocks, you will see more on that when MA, FSLR, and BIDU, all convincingly drop lower. I am not using stops either, just a pyramiding entry system based on long term BBs. I cover more on the system I am trading later, but for now, here is a sneak peak of one that I got on board of yesterday….
I purchased a single unit of GNK Jan ’10 15 puts for .70 and am up 20% right now. Should we get a decent move lower, I will be adding to my position (TT vs. Swing trade). This set up still looks pretty good…
That’s it for now… I will be back with an update in a little bit.
The two working counts on NDX…