There is going to be a new addition to the blog and it will be a completely automatic trading program based on Pivot Points.
Everything will be completely Black and White and will leave no room for second guessing.
The program will be based on aggressive trading principles, so please utilize only trading resources allocated for this purpose.
If you have any particular stocks that you might like put into the program just drop me a line and I will see what I can do. The candidates for the program must be stocks of an active nature and sell above $5.
Friday, August 31, 2007
Thursday, August 30, 2007
Equity Market Comment - 08/30/2007
I continue to look for the market to move lower in the process of a re-test of the lows.
There does remain upside potential to 1484-1486 before the decline gathers steam.
If the S&P 500 gets to these levels, it will be a low risk shorting opportunity.
The Downside target of 1414 to 1412 has come up through numerous calculations so there is some confluence amongst targets.
There does remain upside potential to 1484-1486 before the decline gathers steam.
If the S&P 500 gets to these levels, it will be a low risk shorting opportunity.
The Downside target of 1414 to 1412 has come up through numerous calculations so there is some confluence amongst targets.
New Commodity Recommendations
New Commodity Recommendations Are Listed On The Sidebar Today.
There Are Some Great Opportunities.
There Are Some Great Opportunities.
Wednesday, August 29, 2007
SHORT OCT Crude
Crude Oil is in an area that a low risk short can be put in place.
Keep the stop tight.
Keep the stop tight.
Corus Bankshares - Incredible Value Long Term
CORS is also on the buy list for new purchases once the re-test is complete and the all clear is given.
Take a look at how well run this bank is and the extreme undervalued nature of the stock price.
While the sector has had its share of challenges recently, the stock should give an incredible return over the long term. This is all without even mentioning the almost 7% yield on the dividend.
Take a look at how well run this bank is and the extreme undervalued nature of the stock price.
While the sector has had its share of challenges recently, the stock should give an incredible return over the long term. This is all without even mentioning the almost 7% yield on the dividend.
Dean Foods - Buy Candadite
Since the sell signal that we got on Dean Foods the stock has been in an ongoing decline.
It is starting to look attractive in this area and has also made the cut in our fundamental screening as well.
With this in mind Dean Foods is going on the buy list once the dust settles on this re-test.
It is starting to look attractive in this area and has also made the cut in our fundamental screening as well.
With this in mind Dean Foods is going on the buy list once the dust settles on this re-test.
08/29/07 Equity Comment
The markets certainly seem to be coming together as anticipated, although at a faster clip then I had expected.
In one day the S&P 500 reached its upside target, a feat that I had thought would take 2 or 3 days at the minimum.
The scenario now calls for one more push lower to complete the re-test of the S&P 500 lows at 1370. I am looking for 1412 on the S&P 500 for the final re-test target level. It will be at this point that all of my hedges will be covered and more equity purchases will be on the fore.
These market movements have occurred so quickly that I have yet to post the buy list, but I will try and get around to it over the next couple of days if not the holiday weekend.
In one day the S&P 500 reached its upside target, a feat that I had thought would take 2 or 3 days at the minimum.
The scenario now calls for one more push lower to complete the re-test of the S&P 500 lows at 1370. I am looking for 1412 on the S&P 500 for the final re-test target level. It will be at this point that all of my hedges will be covered and more equity purchases will be on the fore.
These market movements have occurred so quickly that I have yet to post the buy list, but I will try and get around to it over the next couple of days if not the holiday weekend.
Tuesday, August 28, 2007
Add To Short Position In Corn
It has been a very busy day in the commodity markets with all kinds of set ups and near set ups approaching.
Sitting on a substantial profit from our long term sell signal in corn, it looks like it is time to add short contracts to the position as corn looks very vulnerable in here. Add to the December contract at your discretion.
Soybeans offer a short sale opportunity as well, but corn has the stronger sell signal.
Sitting on a substantial profit from our long term sell signal in corn, it looks like it is time to add short contracts to the position as corn looks very vulnerable in here. Add to the December contract at your discretion.
Soybeans offer a short sale opportunity as well, but corn has the stronger sell signal.
Very Aggressive Cotton Trade
Very Aggressive traders can purchase another December Cotton contract as it looks as if the first leg down has been completed.
While I had originally anticipated that Cotton would wage one more rally to new highs before the downside action would begin, it appears now that the most recent high at 68.80 is in fact the top and we have just completed the first leg down.
A rally back to 62.75 looks like a logical move from here.
Please understand that this is a very aggressive trade and is not for every commodity trader.
Set the Sell Stop at 56.60 for a total risk of $450 per contract.
While I had originally anticipated that Cotton would wage one more rally to new highs before the downside action would begin, it appears now that the most recent high at 68.80 is in fact the top and we have just completed the first leg down.
A rally back to 62.75 looks like a logical move from here.
Please understand that this is a very aggressive trade and is not for every commodity trader.
Set the Sell Stop at 56.60 for a total risk of $450 per contract.
New Commodity Alert
Risk is very limited in here and I did receive numerous buy signals today on the Dollar.
We are long the Leveraged Powershares Dollar fund and have the stop basis the cash dollar index at 80.50 on a close only.
We are long the Leveraged Powershares Dollar fund and have the stop basis the cash dollar index at 80.50 on a close only.
USEC Corp - Getting Close to the Buy Zone
Keep and eye on USU as the market continues the re-test of the lows.
It is one of the stocks that we are going to re-purchase once this short term decline is out of the way.
The lows just below $13 should be strong enough to hold any further selling in the stock.
It is one of the stocks that we are going to re-purchase once this short term decline is out of the way.
The lows just below $13 should be strong enough to hold any further selling in the stock.
Equity Market Comment
The short term decline continued today with quite an impressive show I must say.
I continue to believe that this is merely a re-test of the lows, but it should also serve to get the few bullish stragglers into the bear camp. Just in time for a sustainable rally to ensue.
I continue to believe that this is merely a re-test of the lows, but it should also serve to get the few bullish stragglers into the bear camp. Just in time for a sustainable rally to ensue.
Get ready to unwind the majority of your hedge on this re-test!
Short Term Long Stopped Out
Appears we were a little early, but the close stop once again kept our loss very limited.
Look to buy back in on if a rally ensues in the last 20 minutes of trading.
Look to buy back in on if a rally ensues in the last 20 minutes of trading.
Short Term Trade Opportunity
The market has sold off and looks to have completed the first short term leg down.
Aggressive traders can go long in here and buy call options with a stop just about a point below the most recent lows of today.
Aggressive traders can go long in here and buy call options with a stop just about a point below the most recent lows of today.
Monday, August 27, 2007
Equity Market Comment
The stock market appears to have begun the process of testing the lows established in mid August.
While some of the models have yet to give sell signals, there seems to be enough evidence that we are entering into a short term decline.
The model continues to call for Sept 5Th as the date for the low to occur. So from here to now it would be prudent to get all our hedges covered as the market declines and to begin a process to add to existing quality equity positions.
I will be positing my buy candidates in the next few days.
While some of the models have yet to give sell signals, there seems to be enough evidence that we are entering into a short term decline.
The model continues to call for Sept 5Th as the date for the low to occur. So from here to now it would be prudent to get all our hedges covered as the market declines and to begin a process to add to existing quality equity positions.
I will be positing my buy candidates in the next few days.
Sunday, August 26, 2007
New Addition To The Blog - Commodity Outlook
In an effort to make my blog more useful and also to save time, I have added a new feature that will be located over on the right hand sidebar.
It will list all of the commodities that I see as potential trades and the condition of these markets.
It will also give instructions such as Buying Weakness or Selling Strength as a guideline to the health of each individual market. There also may be a reference to a specific trade that was put into place and the net result or ongoing status of such trade.
Each entry will also have a date that will indicate when the last update of that particular commodity was. The list will also be put in order of importance, with current trades at or near the top and upcoming opportunities just below that.
This should really help to save time in the assessment of each market, although from time to time there will be posts on specific commodities with charts as needed.
If you have any suggestions on how to make this blog better in any way shape or form, please feel free to drop me a line. I have gotten some great feedback and this new feature is in answer to quite a few reader suggestions.
It will list all of the commodities that I see as potential trades and the condition of these markets.
It will also give instructions such as Buying Weakness or Selling Strength as a guideline to the health of each individual market. There also may be a reference to a specific trade that was put into place and the net result or ongoing status of such trade.
Each entry will also have a date that will indicate when the last update of that particular commodity was. The list will also be put in order of importance, with current trades at or near the top and upcoming opportunities just below that.
This should really help to save time in the assessment of each market, although from time to time there will be posts on specific commodities with charts as needed.
If you have any suggestions on how to make this blog better in any way shape or form, please feel free to drop me a line. I have gotten some great feedback and this new feature is in answer to quite a few reader suggestions.
Dow Jone Transports & 10 Year T-Note Yields
I have talked about this in the past, but I thought a re-post would be a good idea considering the correlation continues.
THE LONG TERM PERSPECTIVE ON INTEREST RATES
The monthly chart of the 10 year notes yield has some very bullish implications for interest rates.
According to this long term chart, we should see rates work lower and dramatically so over the next 12- 18 months.
Take a look at the chart and see for yourself.
According to this long term chart, we should see rates work lower and dramatically so over the next 12- 18 months.
Take a look at the chart and see for yourself.
TNH Update
Terra Nitrogen offers some excellent value and the most recent pullback followed by the 8 day rally has confirmed the bullish posture I currently have taken on the stock.
Look to purchase the shares on a pullback.
Look to purchase the shares on a pullback.
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