I agree on the market tape as of late, but, who are we to try and figure it out? We just need to be able to play it the way it is dealt.

I like the beer, wings and company. As for the Monster Java, (and I may be crucified for saying this) I don’t quite get the fascination. I like the Starbucks Mocha Frappuccino better. Call me crazy... but my chemical makeup cannot take caffeine and energy drinks combined. I think my heart would explode.

As for the movies this weekend, we picked Fletch out of a hat and it was as GREAT as I remember it. My wife, Ally, who had never seen it, is a big believer! We never got to The Big Libouski... next weekend or date night.

Logan,
"You guys should give each other twenty dollars"

And as far as my fascination with the ole Monster Java, take a look at the HANS chart. That just makes it taste all the better.

Cheers,
ARTY

Looks like GES had some disappointing earnings. Trading lower after hours.

Lis,
Clean Cups means Jeff posted a new article and we need to move our comments to this new article

The phrase was coined by Doji Girl and sort of stuck with us :-)

"Nugent. Ted Nugent."

"I'm Frieda's boss."

"Poon? It’s Comanche Indian."

"John Cocktoston. It's Scotch/Romanian."

Just a few ditties.

HANS, I couldn’t agree more. Call me crazy, but, I have had a stock position since May. It is better than cash for now...

Arty & Sue-
Nice pictures! It's good to see more faces.

liz

Sorry I missed the price patterns call. Oh, well. Next time. There were so many things going on in the market today. So many great set ups. I now have way more bullish than bearish plays going on in my account. I'm going to do some research tonight to see if I can add maybe a couple more bearish positions. If I come up with anything good I will share. I only have one put going on and depending on what it decides to do tomorrow it may be thrown off the fence as well.

liz

As of this posting I have not listened to the marketcast for today so Eric may have mentioned this again but...

Was anybody looking at GLD today? On the marketcast on Aug 31st Eric talked about it getting close to screaming higher---like above 67 would be a good thing... It closed 67.44 today.

liz

Nice Work Logan, by the way, who is Frieda?

ARTY

My secretary.

Arty,

When did you have time for all those posts? In between pictures?

Jeez.

Brett,
I am just committed to the Blog's success. You don't think in the course of every day there aren't a few of the paparazzi trying to have an impromptu photo session with Arty the one man party?....come on....it's so simple.

Cheers,
ARTY

T bone just said to me while preparing her trades for tommorow, "I think I am better at chart reading after a little alcohol".

Just throwing that out there.

ARTY

Part on Art y :-)

Ooooohhh, Fletch! Can I play? I love Fletch!

"Does this proposition entail my dressing up as Little Bo Peep?" he-he-he

We also love The Big Lebowski. Classic movie. "That rug really pulled the room together." And the part where the policeman reads the Dude the riot act and he says, "What?" ROFL!

That's all. I have nothing important to say.:-)

Laney,

"Obviously you're not a golfer..."

Brett,

"I don't roll on Shabbos."

I just realized that my trading abilities are perhaps being limited by my lack of knowledge of classic film quotes. Is this is a prerequisite for good trading? I'd better start studying.

Tim,
I am full of useless information.

A good trader would not have loaded up on bullish plays with one lonely little bearish play. The futures are down 11.25 right now. Not even Fletch can help us today.:-)

OK ARTY, if T_Bone is your better 2/3 then she's gotta be 9 feet tall. Looks like God gave you the four inches he (or she) shorted me. Awesome pictures. I just hope that whenever we meet I'm not in my uniform. For some reason Air Canada frowns on me drining in uniform. Buggers.

I missed yesterday and have no clue how I made out. Sounds like I'm missing out on some good action here. I'm in Newfoundland around noon today so I'll have to catch up.

Has anyone had a look at PCU lately? Seems to me it should be a good one to keep an eye on for the next while, but I can't get into IT right now... I'm at the airport.

Golf?

Please. If I am gonna hit a ball, Brett, I am gonna use my big wooden stick, not a putter.

PCU up to 108.03, Chris. Got as high as 109.47 yesterday.

Raimo,

Personal question. Do you wait until the end of the day for REE? If you get in during he day will you get out before the end of the day on a break below support?

Just questioning some of my entrys of late?

Brett and all holders of BPHX,

It'll be flying higher today!

6:32AM Blue Phoenix wins project valued at $2.5 mln to modernize legacy financial systems for leading European bank (BPHX) 16.21 : Co announces that it has won a project to convert Cool:Gen-based finance systems to COBOL/DB2 for a leading European bank. The modernization project, valued at $2.5 mln, will be implemented using BluePhoenix's LanguageMigrator conversion solution.

--Patti

Fly pro,

That is an excellent question....

This is where trading full time has an advantage over not...

I do like to wait till end of day...the last hour, to place my trades.

However, many times, a stocks price may move intra-day to get me an excellent entry, such as a stock I am bullish on, it's current price is below my actual exit price, but as the day progresses, it begins to rally back up. I'll get in sometimes on the Rally back up. Vice versa for a bearish play.

If I make an entry during last hour of the day, I rarely have to close it out within that last hour.

If I do make an entry intra-day, and by the days end it looks like it is going to close outside of my exit price, more than likely I will get out. I do not have a hard and fast rule on this..this situation I handle on an individual basis...and I look at the price action and volume for to make a decision. I do tend to use thicker lines than most people, allowing for a bit more price action.

Does this help?

if the market opne low like the futures are showing and also continue to have a down day. we might be able to find good bearish plays that have been sitting at reistance or have not broken out yet.

Also I expect that if I have some weak bullish plays i might be pruning them today as they will fall much faster then the strong ones.

That is how I am approach the day

Good explanation, Raimo. I am the same way. Even though I don't trade full time, I set alerts on the stocks I'm watching at the REE points and if I get alerted to something, I check it out and see about making the entry intraday.

One thing that I am loving about taking only the best REE trades intraday when they hit exactly the exit point is that I am better able to use "thicker lines" because I am not risking much and not watching so much money be washed away as things go against me. This has really been a great strategy and help to me during these choppy times and has kept me out of a lot of stuff yesterday that I would be regretting getting into today.

I said this once before, but on days like today where it looks like the market will open down, I'm on the hunt for some great bullish trades that may pull back right to their support levels.

Raimo,

Kind of along those same lines as Flying-Pro brought up... One of the things I continue to struggle with is entry points. For example, on a breakout trade, my rule says to wait until the end of the day for confirmation, however what I find at times is that if/when I do that, the price often times moves further away than I like from my REE which of course makes it harder to manage the risk. If that happens (the price has had a pretty large move for the day), would you make the decision as to whether you still wanted to get in based upon what the potential reward is? This all coming from my GRMN entry yesterday.....

Thanks.

Are these trades considered as day trading? If we are not sign up as day traders, are we not supposed to make trades during the day? At one of my support group meetings (which is no longer because the group fell apart) a guy came from thinkorswim and he said if we trade more than 5X during a week, they flag us.

LisaG,

On breakout trades, my rule is to wait till the end of day..get a clear confirmation of the breakout.

The ONLY time I JUMP a trade(anticipate and take the trade early..prior to the breakout) is if I am at a REE within the pattern..which is my favorite set-up by the way/Brett and I jumped ATW.

I jumped GRMN on 8/17...it was within the ascending triangle forming, but at diag and HZ REE...a perfect entry. My exit was a close below $88....now my exit is a close below the lower ascending triangle support line...which for those of you that got in yesterday is what I would be using as my stop...A CLOSE BELOW IT, NOT AN INTRA DAY MOVE BELOW IT...

Hope this helps...

LisaG,

Just to share, I would suggest sticking to your rules. I use to struggle w/that alot ffearing that I would miss the trade,but it also becomes chasing the the trade and that is much worse. there is always another stock to find. If it has moved too far for the risk wait for the retest. It was when I stopped chasing the trade that things turned around in my account and focused on looking for the lowest risk entry and going from there.

Another way to play a breakout trade is to watch for a retest. Once something has broken out, set an alert to let you know if the price moves back to the breakout point (support point). If it does, take it and you have a lot better entry point. If it doesn't, you missed it, but that's ok because there will always be a ton more trades to take.

Back when the markets were trending, I would take more risk and enter further away from support, but in these conditions, I only take those absolutely compelling, REE trades and it is saving me from being whipsawed. This, of course, means that I am trading much less, which is probably good right now.

Another breakout strategy to consider: Using GRMN as an example of breakout entries, I too wait until the end of the day to enter UNLESS the price action goes above the highest price before 11 AM. So, if the intraday action would have gone higher than 107.24 before 3 PM on high volume, I would have entered the trade.

Also, a couple of days ago I posted the "rules" for day trading if you have <$25,000 in your account.

Karen F.

Raimo,

Thank you for sharing. I also took the GRMN trade intra day. I learn so much by reworking a trade with new insight.

Thanks
Diana

Karen F.
Under what title of blog would I find the rules. I'm having trouble navigating to find things.
Thanks

Raimo and Tim, great wisdom so much so I had to copy it and add to my files. Yes, I know it and have seen it before but a refresher is always welcome. Well said, again!

Karen F. I did not see your rules for day trading and would like to, which post was it in or would you mind reposting here?

AMGN just popped up. Looks like they had a little good news but to me it just looks like its getting close to REE within a long term downtrend. May need a day or two more to really play out the top before heading down.

Thoughts anyone?

Everyone who jumped GRMN yesterday feel okay today?

There's a couple of ways to look at this:

1) You got lucky and were bailed out. Pretend the stock dropped $6 today and in the future wait for full confirmation, or

2) Continue taking breakouts early in the day, knowing you will be wrong more, but will catch some huge moves earlier than other people.

Either way is acceptable. Just pick the way you're comfortable with, know the risks and don't complain when you're wrong. Have a plan before the trade, and expect all outcomes.

$120 here we come.

KSS breaking down this morning.

Joel R.

GRMN..

Have no fear, I am confident that the bears are dead and my bulls are in tact and ready to run...

Brett,
Excellent! I am with you little brother.

Hey on the same note I have been looking at the Bear flag on AKAM but it just simply doesn't seem to confirm.

Your thoughts?

Cheers,
ARTY

Arty,

A very kind and generous trader shared AKAM with me yesterday. I like it.

Anyone take BMRN before the breakout and retest? It's a nice little stock along the lines of BPHX and ELON (if you're into that sort of thing).

I'm in GRMN, too. Isn't it interesting how on a day when everything else is down it's like the little engine that could and when the market is up, it just sits.

DAY TRADING RULES FOR ACCOUNTS WITH <$25,000

1. You can have up to 3 day trades in 5 business days. This means you can do 3 on Monday or do one on Mon, one on Tuesday, and one on Wednesday. You can't day trade until the next Monday.

2. You can day trade the same stock 3 times in 5 business days.

3. Buying today and selling tomorrow is not a day trade.

Karen F.

Raimo,

Thanks for the explanation/response. It was helpful.

And thanks to all others that commented as well.

The learning continues...

Laney,

I like to call it the 'sneak attack'. There are lots of stocks who use this type of maneuver. It worked in the '80's when the Iron Sheik and Nikolai Volcov were gunning for Hulk Hogan and Paul Orendorff, however it still seems to work today.

Guys,
check out SHLD also for Bearish play.

Brett,
It is a small world isn't it. A very kind and generous trader, whom I consider a friend, mentioned BMRN to me a few weeks back. Not only did I jump in to it back then I went ahead added to BPHX at the time for shitz and giggles.

If only Natalie Merchant could read this....

Cheers,
ARTY

Karen- Thanks for the rules! I always thought if I bought during the day, it counted as once, but now I understand buying and selling in one day counts as once.
Thanks a million.

I'm such a true OA...here I am at a home inspection where I had to be at 9 ayem. So I've got my laptop fired up, babysitting my positions and reading the blog. Life is Good!

BOB-O,
If your bulls could run GRMN up to 120 today I promise I will take profits.

ARTY

anyone else take OII per jeff's list..... Love those 52 week highs, when the dow is down 144pts. :)

DG-

If you were a true Option Addict you wouldn't have scheduled a home inspection at 9 am. You would have scheduled it at 4:00 pm.

Then again, Raimo wouldn't be going hunting in the wilderness on options expiration fridays with no internet connection. But hey, at least he puts down the rifle and calls me from the mountaintops for updates.

Arty, I quote Woody and Buzz: "You've got a friend in me. You've got a friend in me."

That might make more sense if/when you and T-Bone have kids.

Arty,

GRMN....

My GRMN bulls are in full running mode...and i am the lead bull.

Lead, follow, or get out of the f#@$#ing way...

Anybody still in GMCR? I sold half my position yesterday and have a stop at 32.50. Just isn't moving like I thought so I think I'll look elsewhere to put some cash.

Michelle

CVD looks like REE. Great stock in this up and down market.

Michelle

Brett,
I don't usually get to choose when an inspection will take place. But as a rule I do try to schedule my appointments for after 4 PM.

Today is one of those rare days when all my positions (except for TSL) are going the right way. But as they say, the day's in diapers.

Brett,

Uh, well, umm, I am going up again tomorrow thru sunday.

I hope you will be on call again..and hey, the bear hunting IS WORKING....

I do believe our bullish plays together are CRUSHING our bear plays...

Michelle,

CVD is not at REE...REE on this would be around $72....remember, take the trade at the exit...on this stock, i'd be exiting on a close below the diag trendkline, around maybe 71.50ish.

Hoever, it did break out yesterday form a triangle, so if you took the trade today, you would exit on a close below the upper triangle trendline, at about 73ish....

Do you see the difference??

Brett,
The Bone and I have a plethora of nieces, nephews, brothers, sisters, and friends to take care of....so no kids for us. However we throw toy story and monster inc. ocassionaly for purposes of parody.

Since we are loving on each other today can I call you and Raimo when I am out in the wilderness?

Cheers,
ARTY

Brett, surprising how many understand that because of Toy Story. My kids do not watch it much anymore but having seen it everyday for months years ago I think it will never leave my mind.

Also thanks for the GRMN outline as it expresses where I am at perfectly - watching for that breakout confirm with volume at close today. I really like Raimo's entry too but did not get in then.

TNB, broke out of triangle yesterday, a little lackluster on volume. It is re-testing today.

Should there be more volume on this to take the trade????

Am I trying to find a trade to take that's not really there?

Uh, Arty?

Did i read that right, you and Brett loving each other...??

Please explain..

Michelle,
I'm still in GMCR. I think it is setting up pretty good today for a bounce off it's 30 day MA.
I'm currently down in it but own the stock rather then options so can wait it out.

Look at RZ. Got in at $13.5. It's down today but may be another good entry @ 14.

Rd

Here is a good REE..

BEAV...

Bear flag, price currently at resistance ($39ish)..I would exit on a close above $39.25.....BUT, keep an eye on that suport at 38 ish...

Trade at your own risk...

That looks like pretty stout support on the BEAV at 38.

Arty

Arty,

U funny...

Here's a good example of an intraday REE trade I wish I would have taken. GRP traded down to just above 54 this morning and I almost went long.

That is right around the middle of the symmetrical triangle and an intermediate term horizontal support level. But, didn't pull the trigger and quickly thereafter it shot back up to around 55 and has been holding. We shall see if I get another chance.

Raimo,
I agree with your evaluation. I sometimes give stocks one or two points. I see support at 72.50 and since it has held strong today, I don't see it bouncing any lower. But, you're right, it wouldn't be a REE in the strict sense of the definition. Thanks for clarifying for those following stocks on this blog because they wouldn't know that I give stocks a little wiggle room (heck, I didn't know it until I looked at the trade again.) I am already in it and added to it today.

Michelle

Michelle,

Do you give CMT the same wiggle room as lets say CME?

Careful on giving all stocks one or two points...treat each stock as its own.....

I do not know if this means anything but the Dow just bounced off of 13,250 with authority.

ART

Tim,

I do not disagree with 54 for GRP, but look at its overal price movement the past few months..much better trending trades out there, and I trade GRP a lot..just not lately...look at it..

Just my two cents for what it is worth...

ARTY..

You AVOIDING my Brett love question..??

Hey, Brett is all mine pal, so BACK OFF!!

Raimo,
Just dodging your question for the time being until I think of something really clever to say.

Plus I don't want to hurt anybody's feelings.

Besides Raimo there is plenty of me to go around.

HANS - REE

Cheers,
ARTY

Thanks for the input on GRP, Raimo. I appreciate it. That is actually exactly why I failed to pull the trigger. I just didn't feel that it was the "most compelling" trade I could find out there. But it sure was tempting with the price right there.

Nice to hear your confirmation of my thoughts. It helps me to let it go.

Nothing like being pushed and pulled between 2 large men.

I feel like the last lamb chop on the tray at the end of the cocktail hour.

Raimo,
Yep, it does depend on the stock. Stocks like GS, ICE, CME, $SOX, I give more room because they move more. I have been trying to stay away from them unless the market is doing one of those "big move" days. Trying to play conservative and build my account up. But that is a good point for those reading the blog. Also, ideally if a stock was REE at 72.50, it would be great to get it at 72 or 72.50, but exact entries (I have found) don't happen as often as I'd like, so I try to get it as close as I can (depending on the stock.)

PCU, I show it is at some diaganol support. Did I spell that right? Looks funny (diagonal maybe)

Michelle

Raimo,
Did you mean CVD instead of CMT?

Michelle

Raimo,
Speaking of CME, you playing that one? Yesterday or today would have been a good entry. Finally broke above that 560 that it was struggling with. I am not, but hope somebody is.

Michelle

Michelle,

I meant CMT, to show that a 1 or two point move is either huge or meaningless depending on how much the stock price is, not how much it moves, though movement is of course important.

As for CME, I got in long weeks ago at about($535). I disagree that yesterday or today are good entrys for CME..look at the volume...and I see it in a bear flag..

PCU..

Okay looking at it on a 5 yr chart, i have it about $37 away from diag support. Same on a 2 yr as well. On a 1 yr, I have it about $27 from diag support. On a 6 month, it broke diag support in August. Since the middle of August, I really dont see it on any kind of a diag support line...at least not one that is reasonable for me to trust my money on in a trade...

Hey guys--came back here to check something and noticed a few still posting to this thread. There is new thread. Guess i can say "clean cups".