I am feeling a sense of remorse for shoveling piles of meaningless posts for the past several days. My contributions have been fairly underwhelming and it is time to step my game up. In all honesty, life has been busy recently and the time hasn't been there. Anyway, enough with the excuses, I am ready to blog!

The videos are out and the market is up. New home sales fell again by an average of 2.7% and the homebuilders are getting hammered (XHB). Consumer confidence reported a bigger than expected drop and the street is still expecting the Fed to hold rates at 5.25%. I think the biggest thing to watch for is their opinion of inflation, which could translate into a rate hike sometime later this year.

On a lighter note I attended a "Restless Heart" concert last night.

Exactly, I have no further comments either.

Take a trip down memory road with this timeless classic. It will ease the tension, trust me.

Recommendation: "I'll still be lovin...I'll still be loving you..."

Long: Doin the Bull Dance!


Are you crazy?

You give us the blog, education, fellow addicts, great stock analysis, and Brett....

Oh, gosh. I love Restless Heart.
And being from TX, that photo was priceless. Thanks everybody for the encouragement. I suppose it doesn't help that my two-year-old was up half the night, as were the parents, and he has been screaming and fussing half the day because he is tired today.
Yeah, I am position sized correctly. I have been tiptoeing in trades. Don't have large stock positions or more than one contract on any trades, am diversified, but the last few weeks have pounded the crap out of my account.
What would I do without you guys?
I think I am going to go hold my two-year-old and watch my five and three-year-olds play cars and read "Who Moved My Cheese."


AHHH...sweet harmony!!!! One of my favorite songs!! Thanks Jeff for your continued input!

I'm speechless.

Who is Restless Heart?

I have a feeling that I'm glad I don't know.

I tried to listen. I'm sorry, I couldn't.


don't be speechless. You are a valuable asset here. Now, do us all a favor, WM's, Buritto, whatever magic you got, go do it. Please, for the love of the addicts...

The burritos and white mochas have stopped working. That is a sure sign the market is changing. No more hocus pocus superstitious garbage is going to get things moving. It's going to require a lot of hard work and discipline now. Darnit.

Brett, don't forget lots of Restless Heart.

So Brett, does that mean when I get to civilization, that the CMG burritos won't help...even my own trading? I'm so disappointed!!! >:-)


I've definitely been there and to some extent still am. I'm rebuilding one account and it's not going back up very fast. Everytime I look like I'm making progress, we get a downturn in the market, which makes those 'unrealized profits' evaporate.

What buoys my thought process is what I'd heard many times from Eric and Jeff, and then was crystalized by Chris (C&C), which was that this is a market of stocks, not a stock market going bonkers every day.

Treat each stock as its own entity as you are evaluating, forget about every other trade and the market, focus on that one trade and determine, do I: hold, sell, buy, etc, based on what the chart shows and what you have determined as your lines, rules, etc. I know I'm not telling you anything you haven't heard, but sometimes when it's phrased differently, it can hit you, as Chris' comments did for me.

If nothing else, it will help to remove the emotion. I don't have a huge account either, at least not anymore and don't want to lose the rest, although if I did...I would start over when I get more money to throw in. I don't think that will happen though as I've learned a lot overall and mostly to not be 'as' emotional as I originally was! Hope that helps.

Ladd, I figured you were being funny regarding the after-market prices, although replied as others may have wondered the same as I had in the past.

jaw dropping....does Pearl Jam do a cover of that song ?



I second Raimo's comments. You do plenty.

I've been agreeing a lot with him today. Not sure what that means.


Thoughts on WYNN? It looks to be cracking a significant support level with a long way down to 72.5ish.


Great lists with lots to choose from. THANK YOU!

PCU is pushing my limit today. I think it has to do with the strike which I didn't know about when I entered the trade. Wondering if I should bail. Anybody else in this one?

Jeff we love you, no worries

guys take a look at ORBC just broke out 7%

Jeff how about a case study on the SPX good time to short?

What do you guys think any indication or indecisiveness from Bernake would make the markets tumble.

Doji Girl-

PCU is pushing my limits as well. I think it was Chris that said that they go on strike all the time. I'm just going to wait and see what happens by the end of the day.


Don't know how the market will respond to Bernake. I am trying to clean up my account even more. Trying to cut some of my losers. I almost laughed when Bob talked about taking profits. I only have a few trades that are in the green and no way to take profits (one contract on GOOG).


The picture of your son making the devil horns at the Restless Heart concert is an instant classic. No doubt the first time that has ever been attempted during Ill Still Be Lovin' You. I just wonder if he was imitating his father.

That's not devil horns. That's hookem horns. Devil horns is pointing finger and middle finger.



Just pay attention to your trades no matter what the market does. Don't let the market take you out of trades, let the trade itself,it's chart and your rules, govern your actions.

Doji Girl:
the news on the strike for PCU is old. I took my profits on the puts I sold due to the fact that every time it went up a bit someone sold and pushed it back. Also I feel a lot of people are taking profits right before the meeting, not wanting to wonder what will happen.

Tough time to trade right now as one day its up and the next day down. That is why I sold the puts as long it stays in the support area you make money. Not to say that the market makers are having a great day as they take from both sides.

Karen, I am in PCU I am going to sell half position today. My line in the sand is at 90. I don't think it is the strike. Commodities are getting killed today.

Andrew, I had a short term Desc Tri break at 91 on 6/20. Once it broke support at 89-90 my next target is 80 where the gap is on 11/13/06. I'll re-evaluate there.


Hi MIchelle,

I just wanted to tell you that I know you will get through whatever problems you are having now - you seem really dedicated and have a genuine desire to get this.

I know just because something has worked for me that it may not work for you, but heres 1 idea that really really helped me:

-Focus on one trading strategy at a time and papertrade the heck out of it. Once you have done it enough times to realize youve got it then move on to another and build your arsenal from there. For me, I just focused on Bull/Bear Flags and feel completely comfortable taking a trade when I see one that meets my rules. During my papertrading it, I would not even bother looking for other price patterns. It helped me focus.

Maybe you would find it helpful to post a couple of your trades - where you entered/exited and why - and then let the pros of the group disect them. Raimo always seems to have some sound advice he doesnt mind dishing out.

Talk to you soon:)

VIX just made a new high. I could see it running up to 20 from here. Very bearish sign.

OK....not to bring KOMG back again....but I have finally gotten a chance to read through all of the posts and I am glad to see that I am not the only ony who held out beyond the line in the sand. Wish I had gotten out earlier....but alas I wanted to prove I could be patient.

One thing I did learn on this and my other recently busted trades is that price and volume rarely...if ever....lie. A closer look will show that KOMG price was increasing at the same time that volume was increasing. It was there in plain site and I should have built that into my rules more firmly. If I had....I would have been out last Wednesday or Thursday.

Anyway....here's the deal. I got out this morning when it was at a lower point....I took my salvaged loss and bought a Call option. I figure something is going on with this stock. Something behind the scenes. There is no definite news...but it is going up on big volume. Price and volume...price and volume...build it into my rules...

Chuck from Orlando

At the risk of jinxing myself, i'm going to offer up WTI as a beautiful picture of a symmetrical triangle breakdown. PLUS, it's a continuation pattern here and not a reversal, which i also like. And the target is very nice (high five).

PCU is showing a fugly bearish engulfing candle now. If it doesn't improve at all within the next hour, I'm bailing. It has crossed my line.

WTI- break below 27ish?


Wow! That was sure a blast from the past.... Don't feel guilty for meaningless posts - we can look after ourselves sometimes too... guilt is such a useless emotion :o)

Thanks Brett!

Had to break out the ruler and pen so that I could 'see' the breakdown better on WTI, without the Prophet Charts.

There's something rustic about drawing your lines by hand...the rustle of the paper, the straight-edge, the ink stains...

Yeah well, I'll take electronic charts any day!

Here's some:
I bought 40 shares of NOV on 6/18.
It was overextended, and I think I should have waited for more of a pull-back. I see support at 100.

I bought some shares of MLM on 5/22, 6/19 and 6/21.

I bought the Aug 195 put on FFH at 12.50, stock at 192.58.

Those are some. I didn't put the profitable ones, GOOG and KIM put, etc., because I made the right call on those.

Thanks for any input,

Jeff or gang is time to cover NYX?

I bought a CME call on 6/14 at 555.66 (35.50) That one is eating my lunch, and am embarassed that I haven't pulled the trigger. It has been down, but so has the rest of the market. It is a September. Don't know whether to cut losses or hold on. I am down 1200 dollars. Ouch. I am thinking the market will turn up for a few days and I can take less of a loss. The market wizards suggest that when you have a position go against you, instead of panicking and getting out immediately, wait a bit and see if you can recoup some of your cost.


Michelle and others, I really really do not want to be negative here and am trying to push emotions out but I am frustrated! Just like Michelle I am at the lowest point in my account and I two am in mostly one or too contracts or stock. I keep hearing Eric say just trade stock and even heard Jeff recommend waiting for a green arrow on the MACD before taking a trade. The world is shifting and I am getting killed. X and NOV stopped out both for losses more than I planned as I was gone and it was that emergency stop that did it. PCU is at the same loss now. This patience thing has so far not worked out for us as I just seem to get bigger losses. Stephen may be on to something getting in for the quick move and limit exposure in the market. I have to do something different as I just crossed my line in the sand (again and worse this time) on my account loss. Down 22% and dropping. Just as I am about to gain we get a day like this or two and not only does it wipe out my profits but takes good trades like NOV from good gains to bad losses.
Sorry, for the venting but I need to right now.

ATI looks like a triple top, breaking support today. Volume isn't shaping up to be anything spectacular. Of course all of the metal commodities are down X, FCX, NUE, PCU, ATI, etc.

Joel R.

Karen (DG), others,

PCU seems to be making its way back up. I have horiz support at 93.3, it holds in that support 'area' as my buddy Raimo has beaten into me, I'll hold and wait to see what tomorrow brings, if it drops back down much below I'll bail too. At the moment, it's right at 93.3...

Bob, Michelle, and others:

I'm not a genius but I would recommend not trading or trading substantially less due to the fact that the market is no longer trending. I've lost some money as well, many with the same trades you've described. Don't worry.

The market is becoming flat and erratic, therefore, predicting direction is difficult. I suggest waiting for things to settle and let the market "speak". When its ready, it will tell us. Until then, stay on the sidelines.

Sometimes patience is applied to waiting on the sidelines and watching, not just holding a position. Conditions will get better and our money is better spent on better trends.

Just some thoughts. Let me know what you guys think.


Hi Michelle,

I looked at your trades and I noticed something on MLM inparticular - it seems as though you are buying at the top of the flag pole as opposed to a breakout of the flag itself. This is immediately showing you a loss soon thereafter. In my opinion, I think MLM looks like it is shaping up to be one great looking flag - but I would never consider anticipating the break by entering too soon. I think some of the others would agree. Do your rules tell you to enter at a certain spot that I may not be noticing?

It's okay to vent. I think this is all just a learning experience.
As it is now, I am almost 10k down for the year. We are not independently wealthy, for those that think that is not a big deal for us. And we have one income, as I stay home with three small children. I am trying to keep trading. Yes, I have learned a lot and am getting better. Maybe I should just paper trade again.


It was a small stock trade. Those were adding points. I just kept watching it go up and up. I only added 20 shares 2 times after the initial purchase. That's why the add at not particularly good times.

I think that's good advice. I have been paring back my trades the last few weeks. I have only about 1/4 of our account engaged.


Michelle, Bob & Pam and others .....

I share your misery .. but I really LIKE ... what Chip said today earlier .... my blog comment of this day: He wrote:

"Treat each stock as its own entity as you are evaluating, forget about every other trade and the market, focus on that one trade and determine, do I: hold, sell, buy, etc, based on what the chart shows and what you have determined as your lines, rules, etc. I know I'm not telling you anything you haven't heard, but sometimes when it's phrased differently, it can hit you, as Chris' comments did for me."

Man that helped me to re-focus and I have read it from others on this blog and elsewhere ...

My calls are sucking wind .. my puts are doing quite well ... Sold a call for a loss today to put the money to better use ... I'm slow (and older than many of you so habits are hard to break) but I am getting it ... NO EMOTION ... TRADE STOCKS NOT THE MARKET ... and don't be AFRAID TO SAY YOU FAILED or when you PULLED THE TRIGGER ON A LOSER! It works .. If it hits your exit point ... SAY GOODBYE and MOVE ON ....

I know .. we've all heard it .. but I haven't been listening enough .. My TOTAL portfolio is up 42% as of today ... it could have been higher had I heeded my above words ... There are better plays and Jeff's second video this AM .. Did you see those resistance bounces .. on UPTRENDING stocks - for you bullish folks .. and did you see those GLARING 5 to 8 point downers that are in that list ... THERE ARE OTHERS OUT THERE!

Let's go get them ... and keep your head up ... (I know easier to write than do...)

Hope this helps!

They will always need fertilizer (POT). And we will always need nice clothing (RL) Stay Long !

Bob and Michelle-

If I may ask, what percentage of your account are you using for trading options? Perhaps focusing on a more conservative method would be good for your psyche like the ol' IT 3 green arrow approach until things turn around a little. It's so easy to back test, the swings aren't so emotional, and you don't have to feel like a deer in the headlights when looking at the computer.

Are those bull horns the boy in the picture is holding up? Man, kid's are getting smarter and smarter these days.

Bought Aug 75s on CLF yesterday, and it's planted itself a hair under what I see as horizontal support today. Didn't close it, but it's a close call. Anybody else in this one?

Peter V

Anyone else enjoy that massive reversal on PAAS today?

Yes, Benton, that helped.
I am cutting my losers and hanging onto the ones that still look good.

I will hold CME until in the a.m. I watch this stock a lot and it seems to jump up in the mornings. Maybe I can get 200 bucks out of it before I bail. I needed to hear that again. Thanks.


Not in PAAS but NYX is doing a fine job.

Thanks. All of my plays are stock plays except three. And on those, I only have one contract.


DECK looks great for a re-entry or to added to the position, I guess know it's to late but there is always tomorrow.


"Now" I'm starting to write like my huband

MLM is headed to the trend line ... you might put it on your radar for bounce possibilities.... COL is at support

NYX has been a good PUT

Just a couple of ideas....

I did close my CLF today. It was a close call for me but I'm trying to reduce my exposure overall and I heard Jeff last week on the marketcast say that he really hated the setup on CLF, so those two things for me pushed it over the edge on the "close" call.

I agree with whoever said that it's good to wait for the market to present a clear direction. I'm trying to gradually get some back in to cash first to reduce exposure to whatever might happen in the next couple of days and second to give myself cash to buy in once I see what's going to happen.

But it's tough because at the same time I'm trying not to go crazy and sell everything when things might go up on the fed announcement tomorrow. So, all this really means for me is that if things are "close" I'm leaning more toward the selling side than I might otherwise.

Had to sell STR today too which made me so sad but I had to because of the way I entered. probably wasn't the best entry as I tried to anticipate and in this environment, should have probably waited to see the bounce. I'm almost sure it will bounce tomorrow but I have no problem reentering if things start to turn around.

Fearful for the losers, hopeful for the winners...

I bought a put on LCC (finally) and sold a vertical on ATI.

MLM is definitely in the "drool zone". I am hoping to catch that one on the next bounce.


When I get some time later, I will look at the CME trade you took and give you my thoughts on where I think you made a mistake if no one else does first. Have to run out to a baseball game with my son now...

Keep your chin up...you'll get there...


I bailed on PCU, took a loss as I entered recently as an anticipatory move...win some, lose some more.

Michelle, Bob,

I really do feel your pain. Over the last 8 - 9 months I've lost more than you. I too am not wealthy and am learning as you and still am, although have taken heart to what the others are teaching here. My losses are not 'as' large as they used to be and when I have had large gains, on some occasions the market tanked and lost them all. In the market over the last several weeks I'm continuing down, although not at the rate I had been, which I'm proud of. I'm really starting to 'get' what I'm doing. I'm being as patient as possible to watch my rules help me do what they're supposed to do.

I made many mistakes, buying too many contracts, now I'm down to a small number; getting in at the wrong times and still do periodically. I'm able to do evaluate my mistakes by marking my charts with little circles on my entry (green) and exit (pink), I've done this for 8 months, so am able go back and see where I've made my mistakes and learn from them. In addition, I have a journal (spreadsheet) which I write down everything about the trade, specific trade details, notes/comments, etc. All of this is time consuming, although in the long run, it is helping me understand what I'm doing.

If I wasn't so blasted determined to make this work, I would have given up because of the money I've lost. No I don't like losing and yet, I know I can get this and am changing my behavior and it's working, slowly but surely. I will say, that I started with my IRA and a regular account and am down in both and I look at them as money I can 'afford' to lose. If I do lose everything I wouldn't be happy and it wouldn't help me, but it's not money for food, gas, home, etc. I haven't supplemented either account since I started and am working to keep their original money in them.

I can only encourage you to look at how you are trading, evaluate, implement changes to reduce your risk on each trade.

It sounds like you are both as hard-headed as I, and if so, I know you will get it with the right amount of time and dedication to what your goals are with this "addiction".

My immediate goal is to stop losing so much, which will allow me to trade again. As that happens, I think that the winners will naturally happen. The market isn't helping right now, although that is something we have to manage as well. Hang in there and there is this community, this "family" that is here to listen and help where we all can.

Benton, Glad I was able to contribute.

Thanks. That was encouraging.

Bob and Pam,
Pick up "Who Moved My Cheese." It is a cheap book, and can be read in about half an hour. I think our cheese has moved and we need to, too. Sometimes just looking at how far I have come and that I will NEVER give up, no matter what, helps.


P.S. Gonna make some spaghetti, garlic bread and open a bottle of wine for the Mr. and I. Don't drink often, but gonna have some with my dinner tonight.

When Randall looks at our account balance he is gonna not be too happy.



In my experience, a little 'liquid pain killer' (wine in this case) always helps in the right situations.

Keep up your determination, you, (Bob and others) WILL get it!!!

Thanks, everyone mainly for just letting me vent or I have to do so in less productive ways. I am not a real emotional guy so that is kinda new. I remember asking Jeff if some of us are just not cut out to be option traders and need to focus on stocks. I do not want to be that person as I love options but I think I am going to move my account to more stocks. The thing is I have used $30,000+ on education, $12,000+ in losses without any return so far. To make it more fun I am starting my own business so have NO income coming in as Pam and I were hoping this could be an income source until the business goes. We have a larger account (that 401k) that is still managed by others and took some of our much needed cash to get the education and fund our trading account. Enough about me and my problems...
Liz if we are judging our typing skills I am toast!
Michelle, I have read Who moved my Cheese some years back. I think wine will be on our menu tonight as well.

Yeah, I had read it a couple of years ago, but it helped me today.

P.S. Enjoy your dinner and your wine. I'm sure tomorrow will be a better day for us all.

Hi Michelle,

Sorry to hear of your losses. I haven't gotten ahead either, though losses are just 2% of my account at the moment.

I like the advice everyone has given so far but what I immediately saw was that you are playing big stocks. Yes, you win bigger but you also lose bigger. I am sticking to a risk of 1/2% of account value on any one trade til I get my style of trading figured out so, of course, I don't play those stocks yet. Maybe see if backing off and just focusing on good smaller, liquid, stocks, above $20 for awhile helps you get your confidence level up.

Also, last summer's great run-up is most likely not going to happen this summer. Many stocks may just churn while the 'big boys' are on vacation. Time will tell.

I've only been a PHD student one year and realize I have a long way to go but wanted to give you my take on stock price.

All the best, Patti

Thanks, Patti. Don't want to turn this into the "let's help poor Michelle, show." You guys continue on with your stock picks and suggestions as usual. I don't want to bring everyone down. Sorry for the whining.


is anyone else having a problem getting onto investools site,,,none of their pages will load,,says server error,,,only pages i am having problems with


Hey Michelle, don't feel bad that you are sharing your bad times along with the good. We are community. We're all in this together. We don't have a 'live' support group anywhere near where we live in Southeastern Oklahoma. This blog helps me know that I have the same challenges as everyone else and the advise given is always great.


Sue, All is well with the Investools site on my end. I just went there after I saw your post and everything loaded fine. --Patti


I also bailed on PCU. Three good reasons though any of would have been enough: 1) it hit my max $ loss 2) It broke what I perceive as support 3) That nasty bearish engulfing candle with the higher volume. So....next!

I also think I made a mistake in CLF and I'm not sure how to fix it. Yesterday I sold a put, at the height of the day when the stock was trading at 79.80. Sin I was bullish and this was headed up, I sold the $80 put. Within minutes it started to fall, closing on it's ass and taking a royal poop today. Any ideas how to fix this one or should I give it a while longer?

Michelle, I have to agree with Patty about the choice of stocks you've chosen to play. Those are some hefty numbers! I only recently started trading stocks in the $90 range and would not be comfortable at all with either CME or GOOG at this stage of my career. Baby steps! Also, I looked at your entries on NOV and MLM and while they are great stocks, I question what your trigger was at those levels. I think if you concentrate on entering trades as close to support as possible, your losses will be far smaller and more manageable. This is a lesson I have learned myself from experience. Some of my losses were uncomfortably large. Now they are...annoying, but tolerable.

Thanks, Doji girl. These are things I know. I suppose I got complacent in a bullish market. It is forgiving if the market is going up, doesn't matter if you make bad entries. When the market is down or all over the board, you had better make sure you enter at the right time. It helps to see what I'm doing wrong. The only way to change the results are to change. Next time, I will be better prepared and stick to my plans and enter a trade at the right time instead of jumping in everything that is heading up at the time (laughter.) Yeah, my husband says the same thing, and now I'm ready to listen. I think CME is too rich for my blood right now and also my experience. Why do we have to learn this stuff the hard way?


I have been reading for some time and I have gone back and read all of the archives at one time or another.

And my take...you are solid. You know your rules and you are human too. Just like the rest of us.

You have given me advice when I have been emotional and I took it. And it was hard, but it was right. You are one of the reasons I am still in what may be my most profitable trade of all time GRMN (and i cried on Jeff's shoulder about this trade over the past few months too.)

None of us can control our emotions completely, that is why they are emotions.

The best example I can find is in Fooled by randomness where Taleb rants (gross paraphrase as usual) I know I can't control my emotions so I don't even listen; if I need the information bad enough it will find my ears. (or something like that).

My .02 is that if you keep finding better ways to do what you are doing, and you stay away from situations that are going to make you change your rules on the fly, you will be awesome! Now go make some money and keep encouraging the option addicts.


If you need a liquid pain killer and it really is that bad try absinthe.

Please enjoy that bottle of wine. Take your mind off of the markets and your account....You and your husband will enjoy that I am sure
Hang in there

Hello normally inspiring fellow options addicts,

Can we all take a moment and realize that we should never "loose more than we were expecting".

Don't we all manage risk first, and upside second? Is it not true that we know what we could conceivably loose before we get in? What is going on here? I was down in "every" position in my portfolios today but none more than I was expecting.

Our gains should still kill our losses. I am flabbergasted by the muligrubbing in the family today.

If I haven't mentioned it I get down just like the rest of you, but we have to lead the charge positively. Can I paraphrase again? No matter how hard the challenge we are faced with, Nature gives us the means to over come it.

Please forgive the gross paraphrases but I am not at my desk where my books are in reach.

Buck up all and if you are in a down streak reduce your activity, and gain clarity in thought, position size, and risk management. Do not do anything stupid like I normally do.

Head and chin up, onward and upward.

Arty, Ladd,
Thanks for the encouragement. I have had dinner and 1 1/2 glasses of wine and the kids are playing. I also realize that I have been overtrading. I am going to scale back and take compelling trades and just watch the market the next couple of weeks. I feel change in the air, and I am glad that I am taking some notice. One of the market wizards talked about when even some of your good stocks start struggling, watch out. Not trying to predict a bear market or anything, but just pull back and catch my breath. Thanks again for all the encouragement. I plan on sucking it up and being there for you guys now. I think we need to give and take, but especially give back. I am glad something I said helped somebody.

Michelle (and Randall the cautious conservative one)


This blog is not only a learning blog but I also think of it as a way to unload when we need to. We're on this blog because we not only want to learn from the masters but we also need a sense of community. Trading can be lonely without input from other people and support.

Okay, now onto my two cents (just my opinions)(and I'm going to type as fast as I can as I'm on borrowed time-children are being good for the moment but that could change at any moment)...

I looked at the stocks that you mentioned and you are taking on huge high priced stocks. They're all great looking but I question some of the timing you have in entering them.

For example: NOV-I understand why you entered it here-I'm sure you figured that it had consolidated for awhile and was going to move up. I think for a stock like this and the movements it makes you have to take into consideration that there's a good possibility that this will pull back (just like it did) so you have to decide whether you are ready to take that pullback or not. Can you handle that risk with the belief that it will once again bounce back up? You have to give more leeway with higher priced stocks.

MLM-I believe you said that the dates you mentioned were adding dates, right? I think Jeff mentioned how when you add to a position you have to look at that like another trade. If you look at these as 3 separate trades, it looks like you are picking the tops. Once again, with a stock like this you have to give it room to move and pullback before it moves up again. And you're going to feel it more with a higher priced stock.

CME-it looks like the start of a very big descending triangle (top at 590) that's been forming since about January. And there's long term resistance at around 550/551 which is right around where you bought it. Overall, to me, it looks like a down trending stock.

I find CME kind of hard to trade. I got very lucky at the beginning of my trading and I vowed that I would never trade it again until I became a better trader and my account warranted that big of a trade. I made money off of it but I sweated the whole time. It wasn't worth it. But I think Raimo is going to give you some input as well on CME.

We all have our stories and different account sizes. We only have one income as well (and we live in southern California). I stay home with my children and trade with the hopes (which I mention all the time-probably ad nauseum) that my goal is to bring my husband home. And I can tell from the volume of trades you take that we have a much smaller account. But all these things don't matter. Our stories are all different but in the end they aren't all that different because everybody has them. I almost wiped out our account but I've managed to get it back just shy of what it was before. When that happened I re-evaluated everything and what I was doing and stayed out of the market for a bit. I was very frustrated and I wanted to quit. I decided I needed to approach this again and I started with a clean slate and a much much lower account. I get frustrated and I'm still learning too. I want things to move much faster then they are and then I have to remember where I was and where I am now. I'm thankful I have this blog to dump my emotions onto and for people to give me their opinions of the stock and for Brett and Raimo to tell me that I probably need to re-draw my lines differently or people to remind me to look at my rules again. You'll get there. I'll get there. And Bob will get there too!

I hope this helps some.

Okay, my youngest has climbed on the kitchen table. Gotta go for now.


Okay, sorry option addicts. I dictated a book!


Thanks, Liz. That helped a lot. I should have listened to Jeff and with what the chart said instead of gambling on CME.
Sounds like you have your hands full with three small children, too. I appreciate all the suggestions and advice. And, yes, I see it. My husband had pointed out my adding points were not that good. I was hoping the market would be forgiving and let me off the hook, but as Eric and Jeff say, "There is no free lunch in the market." Thanks for taking the time to look at my trades and give me input. I love constructive criticism. It helps me to learn. I don't know what I'd do without this blog. I hope to be a Bob or Brett someday and be the one pointing out stuff and giving advice and helping others. Who knows, in a year or two (if I don't wipe out our account) that may be me.


Did I mention I love reading books (laughter.)



Glad you love reading books! I love writing them! My husband thinks I'm a dork, well, he always thinks I'm a dork but anyway, I always say that I don't want to be like Mike, I want to be like Jeff. I've added Brett and Raimo on my list as well. Besides writing, this is the only other thing that has become a passion of mine (or obsession). I haven't wanted or cared to be great like I want to be in trading. If that makes sense?

Well, dinner is almost ready.


Did you see SLV today?



Even the wife blew some chow on the Restless Heart, WTH?


"As long as I'm in control of the situation-that is, as long as I can cover my positions-there's no reason to be nervous."

-Stanley Druckenmiller

Wow, just finally read through all the blog (while listening to Jeff's musical post) and even got the watch list videos. I had to run out and get my car as I truck kindly deposited a rock on the windshield yesterday. That price tag was bigger than my hit in the market today so I guess that changes my view (expensive windshield!)
After reading all the comments I feel like giving someone a hug. Liz and others your comments were great and while addressed to Michelle I have been reading with my mistakes in mind. I have journal of every trade and entries and exits marked on the charts so will evaluate it all again. I need to review everything with a clean viewpoint.
Looks like no wine and maybe limited dinner as I got back too late and Pam is off with the kids one at band and the other at art class. Not one for eating alone I guess.
I did not come to this blog to find a community but to find the magic of trading. As I have become part of the blog I have found that the magic is the community. Thanks so much people and a BIG HUGE thanks for allowing a safe place to vent.

What do you folks think about entering puts on BNI and SKV in the morning?

I am sorry I meant SKX.

Found a red wine and some pasta and all is again good with the world!
Just listened to the Cast and I should have listened to you on PCU so will take care of that in the morning.
BSC re-entry?


In my opinion, I wouldn't take SKX. It seems a little overextended from it's area of support. I have trendline support, the bottom of it being around 31 or so. I also have a horizontal line of support around 30. And it seems like it's going to have to break through another support at around 28 and the stock is almost right there.

BNI-Even though it's aways from its 87.50 support its almost touching another line of support. If it breaks below 84.50 or so with volume that might be another good re-entry. Not as sure with this one. But as far as in the morning, that's up to your trading rules. And you may be seeing both charts differently than I am and are reading different signals.


Great post! You said exactly what I wanted to say to Michele but you said it way better than I ever could have.

As I was driving home from dancing tonight I was thinking how lucky we are to have this space where we learn so much from each other.

Jeff has built an amazing community here and I am so grateful to everyone who contributes to it.


BSC-I see support between 141 and 138.


BSC - I think that support is minor and a teensy bit more news will send this stock down at least another 10 points. That's not to say it can't retest to 144ish but I say 130 before 150.

Just my 'pinion.

Good evening, I just got home from a baseball game and read all the wonderful posts. I am also a stay at home mom with 5 kids and one income. We saw trading as a possible added income so I can continue to stay at home. The markets have been rough, but with all the great help from you all, I am able to "hang in there!" Many times I wonder if I am wasting my time and our $ trying to make this work. I can see it is not just me and I am thankful for all the support, not to me personally as I am only a LURKER, but I read each post as if you were talking directly to me. Our account was down almost 50% only 2 months ago. I have recovered 25% and am hoping to continue to raise the account to the origin, and beyond. I found for me one of the things that helped me was when I moved from Options Xpress to TOS. I was paying very high 15$ rates to get in and out of trades, therefore, I would hold on bad trades far to long. The psylogolical thing is I can now get in and out of trades for $1.50 and I feel the freedom to stay or close positions daily if needed. I don't but it must free me to know that I can without the guilt of spending another $15 in and $15 out of a bad trade.
Anyway that was my $15 worth. Back to the darkness!Ha.

Kid-Kohler is too cute....

Davids....i think you and i are the only ones holding onto ORBC....funny thing.... on a few of these big downer days it has been the only bullish play to stay green.....now i wish i had a bigger position....oh well, too late to get more now...

Michelle and Bob....big group hug...you are not alone.....my bearish plays went well today, but my bullish plays went "more bad"....i think by the end of the week we will have a better idea on the direction of things...this choppy market is shinanagans !!!

New 'late' post from you know who...

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About me

  • 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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