Enlightened By Randomness

I love the price action in China this morning. But then again, I talked about that last week. This week I am shopping for long positions in Health Care, Biotech, Retail and various Technology stocks. I am shopping for new shorts in Pharmaceutical, Airline, Broker/Finance and a few high end Retails.

On an intra-day basis, I have been long, short, and long again in the Russell.

I have also attached the Economic Calendar for this week. Most of the meat will be served later in the week.

I take Monday's to piece together and formalize my weekly watchlist, so if you came here for fish, you'll have to check back with me tomorrow. However, I will give you a glimpse into some of my trading activity today. I became a share holder of Rick's (RICK).

Little slice of heaven, right? Well, actually I was referring to the entry point.

In the meantime, more content is developing. Until then, there was some decent football being played this weekend. The two longest winning streaks in college football ended (Boise St 14 / BYU 11). I have personal interest in both being relatively local. Plus I happen to own a Boise St DVD, courtesy of Arty, and a BYU t-shirt courtesy of bad decision making processes.

For the NFL how can you go wrong with a straddle on the Patriots and the Colts?

Recommendation: Look up the spread on that trade.

Long: Football

Short: Gambling

Disclaimer: This post should not be taken as a recommendation to gamble. As a trader, I can attest that gambling references should be interpreted as entertainment value only.

Speaking of gambling, click here.

VCG is another publicly traded strip club.

Are you sure?

COST had a nice dive in the last 1/2 hour of trading today.

Thanks for the advice.....just don't follow with a trde rec next time. MNST I'm in.


Brian K


Precisely. Way to wait for the close to make decisions.


I like the box affect you have created when you post. Does this mean we should step INSIDE the box??

David in NH...
Step awaaaay from the computer. Have a look at DRYS again, buddy. It's right at the top of it's channel. In a market like this... it's about as far away from it's REE as you're going to see. Just like EXM. I tried to get out today to keep my profits. Couldn't get out cause of the huge spread in Bid/Ask. liz are you still in? I was away all Friday and couldn't get to a computer. I would have gotten out on Friday.

DG are you still in CVH? I think it's still worth hanging on to if you're still in it. I got out on Thursday but 57.50 is proving to be pretty strong resistance. I like how hard it's pushing... but it can't break through.

BIDU. I've mentioned several times that 215 is a strong support/resistance plus it's a fib line I have on my chart and this thing has just bounced of it nicely. If I had $1,000,000 in my account I'd buy a contract. I can't believe how expensive it is!! I'll just go buy myself a coffee and live vicariously through all you rich folk.

Arty... You can't be serious. Living on a farm entails getting dirty? Ewwww!!! I just thought I'd hire Raimo and get him to clean out all the rattlers and bears.

Sorry I was away all weekend. I'm away again tomorrow too. The great thing is that on Friday I was up and today... I was up THIRTY SEVEN BUCKS!!! REE is working. What a delightful afternoon (being alone in my hotel room means that's as close to some afternoon delight as I'll get.)

Did I miss something on VCG? Unless it means something like "Very Cute Girl" it's an unreckognizeable ticker symbol.

Not that I was looking.


Brian - Please don't take me as sending out trade recommendations. When I called out MNST, I was just trying to bring attention to it because it might be a good entry, depending on your rules.

Having said that, I did take the trade myself even though it is sitting at support (32.50ish). I liked the intraday price action with the heaviest volume of the day coming in the last 15 minutes as it sold off. (This is my reason for taking the trade). It is a bit more aggressive, but I am taking that into account in my plan.

Jeff, thanks for the video. I have never seen that movie, but I love that scene. We do feel more when we lose, and the profitable trades to me feel so easy, and effortless when they happen. I went to the link with the script and loved what you wrote there from last year, about being able/planning for losses. Here is what you said:

Think of that loss as one loss out of the next thousand trades. Seems inconsequential doesn't it? I preach about a 285% year last year. Seems amazing doesn't it? What most people don't know is I only made money 35% of the time I traded. Imagine having to cope with that mentally, knowing that the probability of sucess on this trade is slim. My advice to you would be to continuously work on coping with handling losses"

Jeff, when I talked to you last week you told me that day you got stopped out 5 times and had other trades going well. It is a comfort zone you have built to take 5 losses a day. I be in shock. But I can see why you do it because like that basketball saying, you miss 100% of the shots you dont take. Congratulations on your skills you have developed and for your persistance and stamina. Very inspiring.

SFM, I'd love to hear your strategy to return 285% like what type of risk you are taking and what type of options you buy/sell.

On a stocks note did anyone notice GS break the 180 resistance it has had pretty strong recently? This was on above average volume, do I take this technical signal? I am thinking I will wait for it to retest 180 to confirm. Looks like I should have stayed in AAPL, but again I think we will see more down days this week and will wait for it to test 135 again.

I got out of GRMN, as it closed below 105, I hate taking losses but did feel good about just following the rules I did lose 2% though on that loss.

Jeff- can you give some tutorial or examples on how you are day trading? Like today the SPY would have been good it seems, I had puts and got out right before I would have been in the money, but I broke my rule trading in the first hour, do you just look at old resistance levels, such as I saw the Dow hit 13,200 and turn over, would have been a good place to get some puts but besides the price what can I look at in terms of volume pattern to confirm?



No worries. i take full respons. had this on my watchlist anyways. I like the pattern so I traded it.

Night all.

Brian K


""**SFM, I'd love to hear your strategy to return 285% like what type of risk you are taking and what type of options you buy/sell.**""

If I remember reading the blog way back then I think that the 285% belongs to Sir Jeffery Kohler "the round mound of kiss off the glass".

I think SFM was just quoting.

Glad to see you are placing $1 bills in you own OA thong!. And that farming is dirty too!

I wanted to recommend Rick's on Friday as a stock play, but I didn't to offend the fickle sensibilities of the Blog constituents.


Hello everyone. Just spent an incredible weekend at 10,300 feet on the top of the 3rd highest mountain in Oregon. Lately I feel like my trading action is as much a struggle as that hike/climb was. If only my account to climb to similar heights.

How about GES? I know Jeff put it out to look for a long trade, but today it broke below 46 on strong volume. That to me sure looks like a triple top! I don't see any support until around 40. I'm thinking short. What say you?


Matt.....i went short GES today, i have had it on my bearish radar since the "wonderful" earnings announcement....i see a potential 5 point target and the next area of support will be $42.50, which is just under a $5 move.....if it stalls at $42.50 i will probably take my profit, esp if it is close to sept 18th....

You are too funny. Hope you had a great weekend.

I love the box.

GRMN at REE, I better check the charts.

Yes, we are moving back to Portland. Maybe we can still meet before I leave. E-mail me and we will see what our schedules are.


VCG owns The Men's Club chain, Penthouse Club cahin, and the PTs chain. http://www.vcgh.com/stockquote.aspx

Scores is also publicly traded
http://www.scoresholding.com/quotes.htm You have to be a moron to have never heard of Scores.

Neither of them show up in the investor toolbox.

As a part-time Scores entertainer, I can attest that about $1.4 million cold hard cash is slipped into entertainer's gstrings in every 24hour period in Las Vegas (and if the cash runs out they take credit cards). The clubs have very little overhead. There is virtually no payroll since all the "workers" are independent contractors. Entertainers pay the club $80-200/night to work there. The markup on beverages is insane. I sold a bottle of champagne for $550 that retails at the grocery store for $32.99 Despite the decline in sales in most industries, the entertainment business is booming both here in Phx and in LV.

I don't post a lot, since I only trade the indexes and don't have much to say about individual stock/option plays. Nevertheless, I wanted to offer my $0.02 on this. I do refer a lot of my clients to this board.
Arty, I got into RICK last week on the support bounce too. They're taking over Crazy Horse II both in Philly and in Vegas. Jeff, if the OA thongs were stage legal (they're not) I'd offer to be your walking billboard.

Hmmm...if I offended anyone. Sorry, time to step into 2007.

Jeff Bett, Ramio, Arty or other OA’s

On KLAC I see support using the 1 year chart at $56 and $55. Switching to the 5 year chart I see support at $54. I am new to trading Options but am I over analyzing the charts?

Quick Bio on myself:

1) From Iowa
2) Farmer
3) Oldest son at UNI
4) Youngest son at ISU
5) Daughter at U of I
6) So I root for the SOONERS!!!! (football joke)

Randy & Sue


in a word,,no,,,you got it

To answer you re CVH, I'm still in it. It's not doing much but it isn't hurting me either. I did bail out of KLAC.

I'm in Orlando for the Adv.Opt. workshop the next 2 days so don't look for me to be posting much except in the evenings. I also won't be trading much this week at all.

Someone mentioned GS and I had another look at the chart earlier today and was surprised to see that it seems to have broken its downtrend and is heading back up. A couple of weeks ago I entered a bc spread on it (190/195) and it was so far away I felt I had nothing to worry about. I just noticed that it's made higher lows and today a higher high with volume. I'm now thinking of buying back the short side and keeping the long. Or I might just close the trade. I'm bearish on the brokerages in general but this one is looking feisty.

Randy and Sue,
Iowa, where? We have a group of option addicts that meet.

Arty-thanks, you are right I thought it was too coincidental the 285% return being the same as Jeff's I just didnt read well enough, haha.

Doji Girl-Yea I mentioned GS, I am somewhat in the same dilemma as you, from a technical standpoint it would be a trade to take possibly if it pulls in slightly more closer to 180 but then I consider sentiment and Jeff and Eric are both bearish on financials. I think i'll just wait and see if it pulls back and holds 180 then i'll prob enter, as I think it may run up into earnings at least. If not the 180 will be low risk entry.

Randy & Sue,
I am not one to comment on charts as I am pretty new to the game, however I can say, I am in KLAC, I have not broken through my next level of support on the way down, and I wish I lived in Iowa so I could come to your User Group mtg.

Oh and hunt Pheasants and Geese in your corn fields.

Anybody besides Brett jump on those AKAM puts last Tuesday?



Not sure why you took a loss on GRMN, but you should not have, at least not yet. For one, $105 as a stop is a little in the "too tight" side ...especially since GRMN has a strong diag trendline just below $105...yesterday I added to my position...


I did not jump on any AKAM puts last Tuesday, though I probably should have.

Hey Chris, on BIDU -- whenever I love the setup but the options are too expensive, I sell a spread. I sold the 200/195 put vertical on BIDU last Friday. It puts very little at risk and still lets me practice the entries.

Doji Girl

We live in southern Iowa South of Des Moines about 50 miles.


We live next to a large private hunting club and have abundance

Hi Ben,
The 285% last year figure belongs to our fearless leader Jeff Kohler, who also finds time to love his babe and answer the blog, all before recording the marketcast at 3pm MT.
In Manhattan, we call that Black Label. Go Blackie. SFM


I will admit I am in GS...long...

Hey guys!

I asked once before and didn't get a response so I'll ask again. :-)

Does anyone know of any trading groups that meet in the NC area, specifically Wilmington, which is right on the coast. I really need some accountability.

There are two people listed on the IT site and I have e-mailed them each a number of times and received no response. I would appreciate any help at all.

Thanks gang!

Was was even more disappointing was I did not get into IMCL about 6 times over the last 2 weeks.

Congrats on the GS calls. You long znh off the last bounce?


CLEAN CUPS... New thread!

And now, a bedtime story for DECK (those with kids might recognize it):

"Again!" cried Sam.

And she bent way down kissing Sam once. Then twice. And twice again.

Kiss goodnight, Sam. Kiss goodnight.

Then Sam went to sleep. On a dark and stormy night on Plum Street.

Goodnight, DECK.

I left a message for you and Raimo to keep the Market up while I was away today. Thank you. If you could have only had BAY filled for me early as well.

You ought to smell my shoes!

Back to the fly fishing now that I know you have things handled.



I bet this online community will rival any local traders group you might find.


Thanks for the video. It's well appreciated!


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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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