Thursday, October 16, 2008

Thursday Day Trading: ES Long Breakout Final $3800

Click on Chart for comments on the ES market trade.

Total on Trade was $3,800.00. This market right now is smoking hot. With that being said, I will not be trading tomorrow on Options Expiration day, and also it is Friday. This was another very good week.

It is still absolutely amazing how far the market is going back and forth on extreme wild swings. Remember to "Trade What You SEE, NOT What You THINK!"

This trade was one that I entered on a series of 3 contracts today at 903.50. The trade setup was a BREAKOUT out of a TRADING RANGE. I took 2 contracts off at my first target which was 8 points from my entry at 911.50 for $400 for each contract or $800 for 2 contracts.

At the end of that entry bar, I went in LONG once again on 2 with a LIMIT ORDER at 911.50, and I still had my original contract back at 903.50 going for me. My next target was once again 8 points from the entry of 911.50 to 919.50 for another $800 as once again I took off the 2 contracts.

At this point in time, I did not add to my trade any more, as I was sitting on $1600 worth of gains, and 1 contract running. The target I choose was based on the ADR, in this case the UPPER Daily Range of 950.50. I placed it 3 points under that target at 947.50, and this last contract was taken out of the market at target before my 4PM Deadline.

The last contract earned $2,200 plus the $1,600 from before for a total of $3,800.00 on this trade. My protective stop movement went from 919.50, to 921.50, to 937.50 on the last bar to protect unrealized profits.

All in all, a very nice trending trade.

Good Trades,

David AKA Tiger

Thursday Day Trading: ES Long Breakout Trade

Click on chart for comments on the ES Market Trade. I am looking for a Long Target of 947.50 today. We have had some wild swings and the ADR (Upper Daily Range) has it within range today so why not!

Entry 903.50 on 3 Contracts
Took 2 off at 911.50 = $800
Added 2 at 911.50 again
Took 2 off at 919.50 = $800

One Contract is currently running with a Protective stop at 919.50.

Exit is at Target of 947.50, 4PM Eastern Time Time Stop, Greenline Exit, or Stop Loss of 919.50, whichever is hit first as the trade develops.

Good Trades,

David AKA Tiger

Joe the Plumber Parody

Wednesday, October 15, 2008

New Educational Futures Blog:

S&P 500 Plunges Most Since Black Monday 1987

16:30 ET
S&P 500 Plunges Most Since Black Monday
Dow -733.08 at 8577.91, Nasdaq -150.68 at 1628.33, S&P -90.17 at 907.84
[BRIEFING.COM] The stock market plunged the most since the crash of 1987 as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9.0%, settling near session lows.

Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The decrease was larger than the expected drop of 0.7%. Sales are down 1.0% compared to last year, marking the first year-over-year decline since October 2002.

Separately, the Producer Price Index, an inflation reading, fell 0.4% in September due to a decrease in commodity prices. Excluding food and energy, PPI rose 0.4%, which was more than the expected increase of 0.2%.

Although credit markets are showing signs of improvement, there are concerns that a recovery will take longer than hoped for. Dollar Libor, which is the rate banks charge each other for short-term dollar loans, slightly declined across all terms for the second straight session, but remain at highly elevated states. This indicates banks are more willing to lend to each other, but are still showing extreme caution. In addition, there was a high demand for Treasuries as investors seek safety.

An afternoon speech from Fed Chairman Bernanke and the release of the Fed's Beige Book did not give the market any real surprises, but painted a sobering economic picture and indicated that a recovery will take time.

Economic concerns sparked broad-based selling, with 99% of the S&P 500 posting a loss and all ten of the economic sectors ending the day deep in the red.

The energy sector (-15.5%) was hit the hardest, falling in conjunction with energy commodities. Crude prices tumbled 5.9% to $74.03 per barrel on global slowdown concerns and a cut in OPEC's demand forecast. On a similar note, commodity prices as a whole fell 4.5%, resulting in a 12.1% decline in the materials sector.

Defensive oriented sectors consumer staples (-6.0%) and healthcare (-6.7%) outperformed on a relative basis, but still posted steep declines.

In earnings news, quarterly results were mostly better than expected, although several companies that posted upside results still came under selling pressure.

Some of the more notable names that topped expectations include Abbott Labs (ABT 53.40, -1.38) Coca-Cola (KO 44.19. +0.46), Intel (INTC 15.05, +0.88), JPMorgan Chase (JPM 38.34, -2.37) and Wells Fargo (WFC 32.76, -0.76).

The S&P 500 is now up only 1.0% this week after giving up the majority of Monday's massive 11.6% gain. The index is still up 8.1% from its multi-year intraday low reached last Friday.

..Nasdaq 100 -8.8%. ..S&P Midcap 400 -9.7%. ..Russell 2000 -9.5%.

Wednesday Day Trading: ES Short Trades $2250 for the Day on 2 Contracts

Click on chart for comments on the ES market trade.

Good Trades,

David AKA Tiger

Wednesday Day Trading: ES Short Trade $600 per 2 C's

Click on chart for comments on the ES Market Trade.

Good Trades,

David AKA Tiger

Wednesday Day Trading: ZB Long Trade $500 per 2 C's

Click on chart for comments on the ZB Long Trade.

Good Trades,

David AKA Tiger

Tuesday, October 14, 2008

Video of the Week: Happy Trails by Van Halen

To that special person out there, you know who you are. :-)

Good Trades and Happy Trails,

David AKA Tiger

Tuesday Day Trading: ES Spike Reversal Short Trade

Click on chart for comments on the ES Market trade.

Entry at 9:45AM, entry price 1038.25
1/2 Exit at 1032.25 = $300
2/2 Exit at 1019.50 = $937.50 (Close Gap)

Total for every 2 contracts = $1,237.50

This trade went for the GAP. The high of the market from yesterday was 1017.50. I placed a longer term target of 1019.50, which was hit quickly this morning. I am still trading 6 point profit target and a 4 point stop loss on my bracket order when I got into the market.

My thought process was to trade what the market is showing. This morning it was pretty obvious that the market wanted to try to go to the GAP. I reduced my contract size today, and only took on 2 contract size for this trade.

This turned out to be a decent trade. On a side note, my ZB market data is off today, but my ES data is not. I will not be trading any more today based on my gain this morning.

Good Trades,

David AKA Tiger

Monday, October 13, 2008

Monday Day Trading: $4675 ES SR Trendfade Long Trade on 3 Contracts

Click on chart for comments on the ES Spike Reversal Long trade.

Entry at 2:45PM at 961.25
1/3 Exit at 971.25 = $300
2/3 Exit at 1005 = $1987.50 (ADR Target)
3/3 Exit at 1013 = $2387.50 (4PM Time Stop Exit or Greenline)

Last contract did not run into the Greenline, therefore, I cleared out the last series of contracts at 4PM Eastern time at 1013.

For every 2 contracts traded today this was a gain of $2,287.50, and for every 3 contracts traded today this was a gain of $4,675.00. What a wonderful comeback in the market. I made the decision last night when the market was trading over 30 point in the S&P emini that I would skip the morning opening trades, and look for an opportunity in the afternoon.

My entry came on a spike reversal entry long. This was after the minor pullback, and I then went long the trend and took the trade to targets mentioned above. This trade alone is enough for me to call it a week.

My best advice is to pick your entries and wait for the opportunity to set itself up. If you are patient enough, and self-controlled the market will show it's hand. Today, the market gave a nice signal after 2:30. I was watching the market from 1:30PM Eastern time, and made my entry a little after 2:45PM Eastern time.

Good Trades,

David AKA Tiger