If this is a "bull market" why am I losing money?

It was yet another quite, relatively unchanged day in the market. Consumer confidence fell a few tenths of a percentage point (big _____ deal.) Market was down a good amount in this afternoons trading, but came back to close down just a few points. Is this a sign of strength?

I'm sure you all knew that. But what are you going to do about it? Are you closing out bullish trades? Even worse, are you getting into bearish trades? In your opinion what works right now? Even more importantly, why?

Spread traders don't have all that much of an advantage right now (do they ever? :), since any volatility in the market has already left after earning announcements, and most companies that have announced have now reset the IV meter back down to relative low levels. Not to mention the VIX is also at a historical low. This means option premiums are relatively under-inflated across the broad markets. If premiums are under-inflated....shouldn't we be buying them?

I have said it more than once and I will say it again. Stay with this trend until it tells you to do otherwise. I am thinking that as long as we close above 12,000 then there is no concern about the market trading flat or even potentially becoming bearish one day. I am still looking to buy calls. They're cheap!
Who has good trade candidates out there? I added a little to NVDA today...but will be short lived since earnings are on the 6th. I almost added to AAPL today, but I chose not to. Perhaps tomorrow? If you have any trades of interest, let's take a look. Thanks for your comments in advance.

LVS-earnings are 11/1, but take a look at that pole and flag. Potential 12-15 pt move. (I always go conservative when estimating moves.) Nice volume on the move today and if hadn't been for earnings I would be in. One to keep an eye on.

COF - interesting bearish play. take a look at esrx, similar pattern before the break down. an upside down cup and handle?, if there is such a thing. Jeff is there? I have only been at this 3 months and there seems to be a reverse of most patterns...

BONT,GLDN-look for a support bounce.

Could we take a look at JWN? Earnings are 11/20/06. Maybe just a bit more volume,to signal an entry.


Happy Halloween.

MMM - Bull Flag

BBBY - Ascending Triangle

JNJ - Bull Flag

DSL - Ascending Triangle

SRZ - Ascending Triangle

I'm not sure of their earnings release dates, but I think most of them have past already. Additionally, none of these have broken out yet.

I off with the kids to go trick -n- treating. Enjoy everyone.



NVDA announces on Thursday,Nov 2, not Nov 6th, per IT this morning.


ESV - great bull flag breakout

BA - bear flag breakdown. not a true confirmation yet, but a close under $80 is a good start.

CAT - bear flag breakdown.

DO - great head and shoulders reversal still offers a great entry. Look at the large downward-sloping neckline though.

I still continue to believe SEIC is a head and shoulders top and is still holding below the neckline. Too bad my entry sucks.

Also, loved the support bounces on HOG and VIP.

All flag breakout with at least average or more than average volume (except NUE)


Is the flag pole on LVS from around 9/25 to 10/17? I am just now learning about flag formations.


Does anyone see a bull flag on BLUD?

That is the flag pole I see too. Although I am new to this, the Investools HotLine confirmed it. Earnings are at 4:30 tonight...

What searches are most of you using to identify the patterns?

The LVS breakout has no volume accompanying. It maybe not a valid one.


ASF - Double Bottom Breakout w/ huge volume.

LSS - Symm. triangle forming

AXE - pullback from Bull flag breakout

T - pullback from Asc. triangle breakout

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  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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