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Quick Cleaner and Strategy Thoughts…
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Quick Cleaner and Strategy Thoughts…

by MoleNovember 3, 2009

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…

NDX working counts...

NDX working counts...


About The Author
Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.