Trade of the Week Video Replay: Gold, eMini S&P, and the 30 Year Treasury Markets

Friday Day Trading: ES Chart of the Trading Week

Click on chart for more comments on the trading week in the ES (eMini S&P) market.

Good Trades,

David AKA Tiger

Wednesday Day Trading: G6E (Euro FX) Long Trade w/ British Prime Minister moving the Euro

Click on chart for comments on the Euro FX (G6E) trade. This one earned $750 for every 2 contracts traded today for those able to catch it.

Good Trades,

David AKA Tiger

Monday Day Trading: S&P 500 Testing 700

16:30 ET
S&P 500 Testing 700
Dow -299.64 at 6763.29, Nasdaq -54.99 at 1322.85, S&P -34.27 at 700.82
[BRIEFING.COM] Stocks fell for the fourth straight session as a sweeping selling effort took the S&P 500 down to levels not seen since October 1996.

The downward move slowed late in the session as the S&P 500 approached the 700 level. Though unable to forcefully break below that key level, the stock market still finished just above 700, which will likely represent a closely watched level again tomorrow.

AIG (AIG 0.42, +0.00) fed fears about the health of the financial system by posting a fourth quarter loss exceeding $60 billion, which is being reported as the largest quarterly loss in U.S. corporate history. To help prop up AIG, the government will give the insurance giant an additional $30 billion.

European financial giant HSBC (HBC 28.25, -6.55) will issue a discounted rights offering to existing shareholders, pare its U.S. consumer operation, cut jobs, and reduce its dividend. HSBC also reported lower profits.

The announcements came after Citigroup (C 1.20, -0.30) announced late last week that it has reached a deal in which the government will end up with a 36% stake in the company.

Financial stocks finished the session with a 6.8% loss, which was in-line with declines seen in the materials (-6.9%), industrials (-6.7%), and energy (-6.4%) sectors.

With 98% of the companies in the S&P 500 posting a loss, investors pursued the relative safety of Treasuries. The benchmark 10-year Note climbed roughly 38 ticks this session. That lowered its yield to roughly 2.89%.

Though also considered a safe-haven, gold prices fell 0.3% from the prior session's closing price, finishing at $940.00 per ounce.

In other commodities trading, crude oil contracts closed pit trading at $40.15 per barrel, down 11.6% from Friday's close.

Economic data continues to do little to lift investor sentiment, though January personal income and spending were better than expected. Personal income for January was up 0.4% after declining 0.2% the prior month. Economists were calling for a 0.2% decline in January. The core personal consumption expenditures (PCE) price index for January increased 0.1% month-over-month, in-line with expectations. The prior reading was flat.

The February ISM Manufacturing Index inched up to 35.8 from 35.6 in January. Economists expected a reading of 33.8 for February. Since the reading remains below 50, the slight month-to-month improvement merely indicates the rate of contraction has slowed.

The reports were largely dismissed as famed value investor Warren Buffett stated he believes the economy is in shambles, and that it will likely remain that way beyond 2009.

January pending home sales are due tomorrow morning (10:00 AM ET). Meanwhile, Fed Chairman Bernanke testifies on the U.S. economy and budget before the Senate Budget Committee tomorrow (10:00 AM ET). Treasury Secretary Geithner will testify to the House Ways and Means Committee on the federal budget later in the day (12:30 PM ET).

..Nasdaq 100 -3.6%. ..S&P Midcap 400 -6.1%. ..Russell 2000 -5.5%.

Let's have some fun and play some Blackjack! We will use Money Management techniques.

February 28th, 2009: Say No on the Traders Tax Bill

Knight Capital

Say "NO" on the Traders Tax Bill

Dear Fellow Trader,

We rarely venture into politics, unless we are analyzing the possible reactions to political events in terms of trading opportunities. We prefer to find profits for our clients through chart and sentiment analysis, then to worry about what politicians are doing.

However, a New York Congressman has proposed a Bill that is detrimental to active traders/investors such as ourselves.

Enough so that we are passing along a website link to you which will allow you to sign a petition against the passage of the Proposal and will automatically submit an email to your Senators and Congressman.

The Bill H.R. 1068 basically imposes a 0.25% transaction tax on the sale and purchase of financial instruments such as stocks, options, and futures.

While this may sound minimal, it could amount to a round-trip charge of $50 on a 100 share purchase of AAPL, for example.

And that's on every trade you make.
If you go to this website, you will find more information on the Bill and how to sign the petition against its passage and to send emails/letters to Congress.

Please Do This Today
Rally Congress Website

Good Trades,

David Knight AKA Tiger
http://knightcapitalmanagement.com
KnightCapMgmt@gmail.com
TradeCraze@gmail.com

Disclaimer:
This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

Friday Day Trading: Bonus Chart on ES Market

Click on chart for comments and observations of the ES (eMini S&P) market. The long and short of this is how the market reacted to the low of 738.50, that was set on November 21st, 2008. It gapped open lower on Friday's trading.

You can see how the trendlines helped signal the overall direction of the market both to the long side, and the short side of the trading week. If you look at the YM (eMini Dow) chart, then you can see how the market struggled at 7399 level. This was the prior low of the YM back on November 21st, 2008.

YM has made a new low earlier, but it took till Friday for the S&P to show a new low that broke the 21st of November low.

Where do we go from here? Honestly, I don't know. Perhaps, we get a bounce up, or a relief rally next week, or we go down below 7000 on the DOW next week.

In closing, this is why it is so important to remember this saying, "Trade WHAT you SEE, not WHAT you THINK!"

Good Trades,

David AKA Tiger

Wednesday Day Trading: Long Gold Trade for $1000 for every 2 Contracts

Click on chart for comments on the Long Gold Market trade.

This trade came after the Red Report on Existing Home Sales. For more information on my Day Trading Method, have you received a copy of my Free PDF eBook, "Trading with the Tiger?" If not, feel free to send me an email at: tiger@rockwelltrading.com

As we come to the month end of February, I will be slowing down my trading to a crawl now. This month was a tougher month for the trend traders, but it was overall a profitable month for my Live Day Trading Chat Room.

If I can answer any questions, then please let me know.

Good Trades,

David AKA Tiger

Tuesday Day Trading: ES Long Trade inside Trading Range $400 on every 2 contracts

Click on chart for comments on the ES market trade. Today there was an opportunity to consider a short, but we decided to go flat and wait and see what would shake out of the tree.

A little after 10:45AM Eastern time, the eMini S&P showed us a nice LONG entry, that we were able to pull 4 points out of the trade in front of the Trading Range HIGH .. look at chart.

Bernanke is speaking today in front of the Senate, and we also have Obama speaking in front of the congress tonight at 9PM Eastern time. He will address both the house and the senate tonight is his "annual address."

Bernanke will be in front of the House tomorrow ... so caution still is the prevailing sentiment.

Have a great rest of your trading day.

Good Trades,

David AKA Tiger

Monday Day Trading: ES Trading Channel Holds in front of 738.50 Low of Nov 21 2008

Click on chart for comments on the ES market trade.

The low of November 21st, 2008 held today. Will it hold tomorrow?'

Will we GAP Lower tomorrow at the open of the market?

We will see ... in the end ... Trade what you SEE not what you THINK!

Good Trades,

David AKA Tiger

My 2 Cents on Trading ... YouTube Video

Friday Day Trading: Trading is like an Artist and a Blank Canvas

Please click on chart for comments and a closer picture of the ES market chart.

Trading is like an ARTist and a blank Canvas ... this more than any other thought is something I would like to talk about today. The chart above is in the eMini S&P 500, or simply said, the ES market.

What we are looking at this week is one person's interpretation of price action over the trading week, and just like economists no two trader's interpretation seem to exactly fit with each other.

So those that know me, know that I am of the belief center that a person can be taught to trade, and they can come from any, and I mean any walk of life. I believe that a homeless person has about just as much chance to make it in trading as a rich person.

So if the playing field is level why is it so tough? The obvious first answer that comes creeping in to your thought pattern is that the homeless person, or those without the resources do not have the required funds available to participate in trading.

I would argue that the rich person is just as likely as the homeless, or down on their luck person, to lose money in the market, perhaps even more than their account balance when they have to face a margin call.

Why is this? I believe that the source of this problem when it relates to trading is how we are conditioned as students in a school atmosphere. We are taught that if we achieve good grades, then we can get into a good college, and then we can get a good job to pay us what we are WORTH.

Does this sound familiar to you? If so, you are not in the minority that share this kind of view about how life should work. But life is not a dress rehearsal, some people do get lucky breaks, and do WIN the lottery leaving other people behind scratching their heads, and asking why not me?

Bad things happen to good people, and the SUN shines on both the good and the bad alike. I do believe that our environment can influence the way we think, if we let it to do so. For example, if you are told over and over again, how much of a loser you are and you can't accomplish anything, then our tendency is to believe that in our innermost core of our being. That is when we are truthful with ourselves and strip ourselves down.

So what kind of person can succeed at trading? First of all, there has to be a passion. This passion can be about living, or family, or God, or you name it, but there has to be a reason for the person to get up each day. Some people will call this their, "WHY?"

What is your WHY?

Why do you want to be successful in trading? Why is it so important to succeed where so many other people have failed? If you believe the statistics, then being a trader you have a 90% chance of failure.

Why is that?

Once again, I believe that you can place your finger on the "I am always right," philosophy of how to be a success in life syndrome. We are rewarded for being right, not wrong. For instance, if we get straight A's on this report card, then you can have a steak dinner at your favorite restaurant. This behavior is rewarded much like Pavlov's dogs when they hear the dinner bell they start salivating.

I would argue, when it comes to trading, you better get used to the idea that LOSING is going to happen. And more importantly, the quicker that you allow yourself to grasp this concept, then the faster you will be able to allow yourself to become a WINNER in trading.

There are proven systems that are profitable with only a 30% win rate ... such as ... the Turtle Traders led by Richard Dennis, for example. If you don't know who Richard Dennis is, then I would like to suggest you watch a movie called, "Trading Places." This movie incorporates the thought process like one of the Moritmer brothers thought they could take a bum off the street and teach them how to trade.

Mr. Dennis did exactly the same type of thing, although, they were not bums off the street. But he did take people into his program from different walks of life. Even in his program, their were failures and success stories. Some of these people you can read about, if you do some research and your due diligence.

So I believe that one of the key components in success as a trader is to as much as you can take your emotions out of your trading. Allow yourself to have winning and losing streaks. Recognize that you are not a trading god, and move on with your trading goals.

It has been said, that you have to GIVE to RECEIVE. Many of you have given a lot, and some of you have given a little, but in the end, the prize comes to those that perservere. That is the person that finishes the race. The race does not always go to the fastest, are the bravest, but it goes to the person willing to put in the time and effort to make it work.

It goes to the person that can take their emotions, as best as they are able, out of their trading decisions. That is not to revenge trade, and not to want it all your losses back now. People have heard me say, if you get to the point that you are praying that this trade will work out, then you need to push the FLATTEN button on your platform right then and there, and stop trading.

Why? Because, if you are praying that things will work out for you, then I can guarantee you that their is another person praying for the exact opposite of what you want. Who is to say which of you is the more righteous? As in the prayers of the righteous are powerful and effective saying. If the other person is more righteous than you, then their prayer is answered not yours. And more importantly, when you start praying about a trade, more times than not, it will be a LOSS.

You can take that to the BANK!!

In the end, I do believe trading is more of an art, than a science. We each have a blank canvass to work with, and what we do with that canvas, proper training, and guidance can eventually lead you to the promise land of being a success as a trader, if trading is your true passion.


Good Trades,

David AKA Tiger

Tuesday Day Trading: ZB Long 1st Bar Trade $656.25 per 2 contracts

Click on chart for comments on the ZB market trade.

Good Trades,

David AKA Tiger

Babe Ruth quote

"Don't let the fear of striking out hold you back."

- Babe Ruth

$800 Day Trading Gold for every 2 Contracts Video