199 thoughts on “Friday’s Trading – 10/23/09

  1. Yes, K, no doubt. Bought at $21.60, so $22 is just the tip of the iceberg. Sorry I didn’t take a full position of 2000 shares this AM. 🙂 I would be selling 1500 of them!

  2. getting sds at 37.40 was nice deal 😀
    if i end day in profit today monday will double position.

    like my mentality? 😛

  3. Yes, pyramiding is smart vs. doubling down on loser. you guys/ladies have helped me on my timing of trades very much. I usually had to double down to get out alive before, now I’m timing much better. Thanks to all!

  4. The next 15 min candle started BELOW the real body of the hammer/hanging man in SSO/SPY. I’m not a genius, but that isn’t a good thing…

  5. It doesn’t technically fail until it takes out the hammer tail’s low, but I’m not looking to jump into it! 🙂

  6. George,

    I would use yesterday’s low to start the triangle’s lower line. Triangles are created by waves, and this one began with Wednesday afternoon’s wave down.

    Matt

  7. K, SMN looks like it is trying to make a 15 min cup….just needs a handle in the $10 range on lower volume, and then a breakout! Good call.

  8. George,

    You always have to be ready for your patterns to morph. For example, this symmetrical triangle could morph into a descending triangle if the market is weak enough.

    Matt

  9. i will wait for tick hourly to close and take a break. keep reading my psychology book (recreational reading on a new subject to me)

  10. 2thfixr,

    VWAP is an indicator; sort of like a moving average. Your trading software might have it.

    Matt

  11. 2th FIXER,,,,thanks for the TBT call….i just bought $10,000 worth of 10 year notes ..we are at a crossroads…18weeksma has curled down and $tnx is testing it from below…good support resistance marker.. my EW tell me rates go higher but if stocks crumble maybe bonds catch a bid…just toe in water buying now till i am more certain how this will all shake out…good luck to all

  12. If I jump in Matt, I’ll use a sell stop 5 cents below the triangle bottom. I’ll keep you posted. I’ll look for the VWAP.

    No problem Phil…we’ll compare notes later.

  13. Have you scalped it, or are you scared? I am very scared to jump in…it just doesn’t “feel” right when I look at the charts. And I’ve got SDS and QID on board, so it would be for a countertrend scalp.

  14. I took the plunge….full position of SSO at $35.81. I’ll sell for a loss below the triangle line, or grab a quick 10 to 20 cents if it goes up.

  15. K, it isn’t going to stay down…the 15 min chart we discussed earlier has a MACD that is ready to cross up before the end of the day, and let’s face it…the floor traders want the DOW to finish 10,000+ since they just missed last week. I predict a really into the close to make that happen. Headlines of DOW 10,000 will help pull in the last of the sheep before they get shorn. :-0

  16. If the MACD 15min trendlines don’t cross then it will fail, naturally. But the sto put in a double bottom which is good. We have everything going for us until is isn’t.

  17. George,
    Many people have told me I’m funny.
    A few even went as far as to say they would listen to me for an hr straight LOL

    well you guys are listening to me chirp every 5 minutes.

  18. I got .25c out of that SPY move with two stochastic scalps – so far.

    2thfixr, hope you got your .20c.

  19. SPY was not able to tag its VWAP, so the big funds are not interested here, probably. SPY did back-test George’s lower triangle line, and seems to have confirmed the breakdown.

    That triangle is pretty tall…

    A 100% pattern extension would be rather egregious. The October 8th gap down in the 1050s is a possibility.

  20. SRS 15min MACD, as well as SKF, have been going up all day. I’m in and out on the 1 and 5 along with URE.

  21. I didn’t maximize my SSO scalp, but I managed to make some cash.

    What do you think George on this 15-min MACD? There isn’t enough time to get a pop, is there?

    That 36 MA is putting a heck of a lid on it!

  22. matt…….we could be forming a triangle from Wed peak in spx …this wave doesnt have the power of a c wave down …..yet

  23. Yes, at this point I am scalping the 1min. Got another .10c. This next cycle of the 1min stochastic will be the story. If it hits bottom and turns around, it will make the 5min more positive and possibly turn the 15min MACD.

  24. I’m still in skf which made a 9/36/15 today. So unless it does a humpty, we’re still down in the financials.

    SPY about to break that lower trendline.

  25. Weekly candles are shaping up in bearish fashion. The Q’s have the best candle, but it could be a gravestone.

  26. I just posted a chart of George’s triangle. The blue line would be the 100% projection if there is not another wave up.

  27. George, I need a primer in scalping well. You obviously are a master at it. We need to talk some time. Thanks.

    I managed to NOT lose anything and making a small profit on one scalp.

    You are the master!

  28. K:

    Excellent. Red card players left in this game are more ninja now after months of kicking bamboo with their shins. Have fun all I’ll be away for a bit.

  29. 2thfixr,

    Counter-trend trading on a day like this is extremely difficult. If you made a profit on a long-side trade today, you did very well.

    Matt

  30. how about “The Freak Is Back” as a headline?

    K Says:
    October 23rd, 2009 at 10:34 am
    if i were to guess extra bearish today is 1067 on SPX.

    1079 if i were neutral.

    ad if i were bullish 1105

  31. Homework assignment: Will there be another wave up to the top line of George’s triangle, and if so, should shorts be put on there?

  32. UNBELIEVABLE MATT….i was just going to post that i have HOMEWORK to do this weekend but i kept it short…..lol

  33. Matt,
    I have SDS on the swing trade for days or months waiting for correction. I made three round trips today:
    QID 20 cents
    SSO break even (covered commissions)
    SSO 10 cents after commission

    I could have made 20 round trips or more given the action. I would love to chat about how you manage everything George. I’m guessing that you made at LEAST than many scalps today.

    My biggest issue is the proper TIMING of getting in so that the stock Im’ scalping is moving in the right direction. You seem to have that down pretty well. Luckily, I’m relatively patient, but that can come back to bite me hard if the market moves hard against me.

  34. Three Amigos Signals:

    (The following description is in its “raw” form as there are several variations and nuances that can enhance both the number of signals and the length of the trade.
    Buy when these three conditions are met:

    1) Stochastic has bottomed near or below the 20 line and has turned up
    2) The 3MA or price has crossed the 9MA
    3) MACD histogram is 1 tick above the zero line OR the MACD crosses.

    The objective is to align or sync these three together: Get them at their simultaneous turning points for not only a good risk/reward entry but also for better moves and gains.

    Trade Management and Exit:

    (Note: “3MA” can be substituted for “price”.)

    Once a trade has been entered, and if price is below the 36MA, exit if price falls to or below the 9MA AND the MACD histogram tick goes below zero OR the MACD trendlines cross (basically the same thing but chart screens are different and one may work better than the other).

    If price goes above the 36MA, the 36MA can then be used for the exit if price falls to or below the 36MA and the MACD histogram is 1 tick below zero OR the MACD trendlines cross. Another option is to switch to the next-higher time frame to manage the trade by using the 9MA exit rules described above.

    These are “scalp” trades, therefore various methods may be used to gain quick profits and stay in the trade with a remaining portion. These are quick-exit tools:
    – Stochastic kiss or cross
    – Stochastic goes above then below the 80 line
    – If below the 36MA, use a bump up against the 36MA resistance

    My favorite is to sell most shares at or above the 36MA and hold the remaining and follow the steps listed above to exit.

    Here’s my last trade for the day:

    http://www.freestockcharts.com?emailChartID=5a4bd6f1-a496-4edb-94c7-859eb20376ae

  35. 2th, enjoy your conciseness.

    Phil, I would have not seen that triangle had you not pointed it out.

    K, I liked that 3d Acer.

    Matt, thanks for hosting such an excellent forum.

    George, you rock!

    Twins, wow.

    Larry/Yerk, not bad for a pair of furners.

    The rest of you, thanks and I hope I have not been too much trouble. I’ll check in but duty calls.

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