1 January 15th, 2013
January 15th, 2013 Please take the time to read the important disclaimers and notes at the end of this report "In the business world, the rearview mirror is always clearer than the windshield." Warren Buffett Market Recap 1-14-13: I hope you are sitting down when you are reading this. This is a HUGE surprise especially in relation to how the market has been acting lately. The market actually chopped around as NYSE volume pulled in and NASDAQ volume expanded. Breadth was flat. I hope you were able to see through that heavy, thick cloud of sarcasm! This week’s battle plan (Updated For Monday, 1-14-13): The market came out of its coils last week, but we didn’t go very far. We are still targeting the 2012 highs, as there are no signs of distribution up here in the indexes, and we are above line in the sand resistance levels on the S&P 500 and Dow. Our plan remains the same as last week. We will continue to watch for weakness for buying opportunities. If we get to the 2012 highs, that’s where the proverbial rubber will meet the road. Do we break right through? Do we pause and retreat? It’s not a good sign that the NASDAQ is lagging here, but again, this can continue on the short term for much longer than the Bears expect it to. We’ve entered the first earnings season for 2013, and this is always a key week to pay Copyright 2013 Winning Edge Trader
1
attention to. The perceived tone set by those reporting early will have some sway on how the next batch is traded into their respective dates. It’s also the first options expiration of the year. OE week has a Bullish tendency, but as you have seen over the past week, we’ve had a Bullish opinion, this is just another thing to back up our bias. Index Analysis: We are coiled again and looking for expansion. The Russell 2000 (IWM) continues to lead, if only ever so slightly.
Copyright 2013 Winning Edge Trader
2
Sector Analysis: The Semiconductors ($SOX) recovered early weakness to close above their open, although still finished negative on the day. The Financials (XLF, $XBD, $BKX, KIE) Finished lower, but not by very much. The Cyclical Index ($CYC) hit a new 17-month high. I’ll write up this index in tomorrow’s Sector Spotlight. Tiny’s Trading Tip of the Week Just like in real estate- It’s all about location My personal coaching students learn firsthand from me how to design a perfect trade setup using just 3 components. Don’t mistake the term “perfect trade” with a trade that always wins. That would be disingenuous and just plain silly. The reason that these trades are “perfect” is that they offer predictable, reliable, consistent results. My favorite saying (at least for the time being) is that if you want consistent results, you make consistent trades, but if you want arbitrary results, take arbitrary trades. Which do you want your business to rely on? The three components that must be present in the design of the perfect trade are strategy, tactic, and location. Each of these components has many different variations, but they are easily digestible in bite sized chunks. There is no hierarchy of these components; they are all needed in order to complete the perfect trade setup. In this week’s tip, I want to talk about using the 200 day moving average as a location area. The 200 day moving average is by far the most popular moving average setting. It’s used by traders, institutions, publications, the media, and even those that hate technical analysis. Everyone wants to know where the 200 day moving average is, and you should too. There have been many studies done in regards to where a stock sits relative to its moving average, and the ones I have read have all shown an edge in taking longs above and shorts below that key barometer. There are program trading algorithms specifically designed to watch for crosses in price above and below, as well as scanners across trading desks doing Copyright 2013 Winning Edge Trader
3
the same. This is often why you will see a push above and below this moving average be accompanied by range expansion and volume. One of the ways that I like to use the 200 day moving average is to watch for retests back to it, as well as tight consolidations just above or below it. This allows me to accurately measure my risk, and become confident that if the stock doesn’t react as I am expecting it to after the tactical entry I use that I am not “giving it enough room” to work. I can take the small stop out and search for the next entry.
In the chart above, you see a nice coil just underneath the 200 day moving average. This makes it easy for me to get in if there is confirmation of the breakout, and there is a defined level to lean against.
Continued on page 5
Copyright 2013 Winning Edge Trader
4
In this chart, you can see the end result of the trade which was a “no harm, no foul” as we never broke above the 200 day moving average out of the coil I was watching. The astute trader uses the breakdown as an entry on the short side, as the price action rejects the 200 day and heads down to the lows. All trades won’t work out like the one shown above, and many times they will fire off one way, only to fail and come back, stopping you out for a loss. That is fine if you incorporate a sound money management matrix to your trades, because the risk reward on these is so favorable. The key is again, having consistency.
Copyright 2013 Winning Edge Trader
5
The above chart is a setup that is happening as I write this on 1-13-13. AMKR appears to have put in a bottom, but the key will be getting over its 200 day moving average. Currently the stock is coiled, so we can watch to see if there is expansion through this level that sticks and shows upside continuation, or rejects at the 200 day. In the next tip, I’ll discuss how to use the 200 day moving average for retracement entries. If you would like to bring your trading to the next level, contact me now for information about 1 on 1 mentoring at [email protected] and I will schedule a 100% free, no pressure, no obligation phone call to discuss your goals and desires for your trading business. Today’s Plan: It was a narrow day on Monday, but at least now we are coiled and ready to move. I’ll start with the gap, but any move past the first 30 and 60 minute range that STICKS should be watched for signs of a trend day. It may boring trading here, but with low volatility comes more easily manageable risk. It may take all day for a move, but what’s the rush anyway? Key Earnings Announcements 1-15-13 (AMC= after market close, BMO= before market open): Nothing, but the week will be a busy one starting up tomorrow. Economic reports of interest 1-15-13 (all times Eastern): 8:30AM Core Retail Sales (U.S.) 8:30AM PPI (U.S.) 8:30AM Retail Sales (U.S.) 8:30AM Core PPI (U.S.) 8:30AM Empire State Manufacturing Index (U.S.) 10:00AM Business Inventories (U.S.)
Copyright 2013 Winning Edge Trader
6
BV formed a narrow range candle after hitting another new low. Oversold bounce coming? CELG actually looked like it was going to put in a pause day! Instead it closed at yet another new high. This looks like it’s on a mission to tag 100, at a minimum. VCBI had the day after form Friday’s big move. TROV broke out on 5X its average, usually low volume. TROW paused after hitting a new high. VRTS continues to impress on very light volume and sloppy trade.. JCI has formed a nice tight coil, but has a batch of resistance to get through form last year. Glamour Stock Review: AAPL got cracked on news and flirted with closing below 500, but managed to form a small doji and close above that key level. It’s not the time to try and pick a bottom, but be watchful if any responsive buying steps in. AMZN hit new highs out of the wind up. GOOG can’t seem to get out of its own way. This needs to get above that 745 hurdle to suggest it retests the highs. GS took another pause. This is still not showing any danger signs. MA may be starting a pullback here.
Copyright 2013 Winning Edge Trader
7
HPQ has been a beauty since breaking above 16. We are still watching to see if it can get to the 200 day moving average. VLO is starting to come out of its coil mentioned yesterday. DELL exploded higher on news that they were seeking to take the company private.
Copyright 2013 Winning Edge Trader
8
Key Support and Resistance Levels Index
Support
Resistance
S&P 500 (SPY) NASDAQ -100 (QQQ)
145.22; 144.49 66.17; 65.61
148.11; 150 67.34; 68.30
Russell 2000 (IWM)
86.04; 85.26
88; 89.33
Dow Industrials (DIA)
132.74-.69; 130.67
135; 136.48
Indexes at a glance Index S&P 500
Direction Bullish
Notes Targeting 2012 highs
NASDAQ -100
Bullish
Could be better
Russell 2000
Bullish
Leading the way!
Dow Jones Industrial Dow Jones Utilities
Bullish Bearish
Targeting 2012 Highs Still below the 200 day
Dow Jones Transports
Bullish
Almost…..
Copyright 2013 Winning Edge Trader
9
Sectors at a glance Index
Direction
Notes
Semiconductors (SOX) Software (IGV)
Bullish Bullish
New multi-month highs Heading for a triple top
Telecom (XTC)
Bullish
Looking for highs
Banks (BKX)
Bullish
Winding up
Brokers (XBD) Insurance (KIE)
Bullish Bullish
Winding up 2011 highs next
Cyclicals (CYC)
Bullish
Headed to highs
Materials (XLB) Consumer Staples (CMR)
Bullish Bullish
Resistance in the low 41s At highs
REITs (IYR)
Bullish
Should see 2012 highs at a minimum
Cons. Discretionary (XLY)
Bullish
New highs
Retail (XRT)
Bullish
Heading for highs
Biotechnology (BTK)
Bullish
Reversal at new highs, still ok
Healthcare (HMO)
Neutral
Choppy, but showing signs of life?
Drugs (DRG)
Bullish
Shooting star after new highs
Metals & Mining (XME)
Neutral
Needs to clear the 48s
Gold (GLD)
Neutral
Choppy
Silver (SLV)
Bearish
Weaker than Gold
Gold And Silver (XAU) Oil (USO)
Bearish Neutral
Below the 50 and 200 day MAs Rebuffed at the 200 day MA
Energy (XLE)
Neutral
Coiled but looks “ready”
Oil Services (OSX) Bonds (TLT)
Bullish Bearish
Getting ready to move (still) 20EMA resistance
Home Builders (HGX)
Bullish
Paused, but no damage
Agribusiness (MOO)
Bullish
Longer term rangebound
Steel (SLX) Commodities (GSG)
Bullish Neutral
Looks like a bottom was put in Winding up for a move
Copyright 2013 Winning Edge Trader
10
Market Timing- Daily Direction
Timing Signal
Notes
VIX- Bollinger Bands VIX- Multi- Day Highs/Lows
Neutral Bearish
VIX Moving Average Stretch 10-Day TRIN
Neutral Neutral
TRIN Moving Averages
Neutral
TRIN over 2 Close
Neutral
A-D line Multi Day High/Lows
Neutral Neutral
Coiled, like the market
Multi day up/down
Neutral
No edge
Moving Averages
Bullish
Closing $TICK $TICK Moving Average
Neutral Bearish
Overbought
$TICK Afternoon McClellan Oscillator
Bullish Neutral
New highs in the afternoon Diverging a bit
RSI Overbought/Oversold
Neutral Neutral
Almost O/B (still) Almost O/B (still)
High Yield (Junk) Bonds Euro/Yen Cross
Bullish Bullish
Confirming Strong
Aussie Dollar/Yen cross
Bullish
Strong
Still near the lows
Market Timing- Weekly (updated Mondays) Timing Signal Direction Notes New Highs-New Lows Neutral Slight Divergence Cumulative A-D Line Overbought/Oversold
Bullish Neutral
New All Time Highs
Long Term Moving Averages Seasonality
Bullish Bullish
Market is in the best 6 month period
Leading Stocks
Neutral
AAPL still smacked, Financials leading
Market Sentiment (updated as needed) Timing Signal
Direction
Notes
Media Sentiment Surveys
Neutral Neutral
Mixed Mixed
Rydex Fund Flows Equity Put/Call Ratios
Neutral Neutral
OEX Put/Call Ratio OEX Put/Call Open Interest
Bearish Neutral
Copyright 2013 Winning Edge Trader
Been this way for a while
11
Swing Stocks HIG-The Hartford Financial Services Group
Analysis: HIG started off 2013 with a push up to new 17 month highs. The stock is currently in a Bull flag, suggesting upside continuation. Strategy: Go long HIG on trade to 24.05 as long as the stock does not open up at 23.95 or better. If the stock is set to open at that level or better, cancel the trade. Initial stop losses should be placed at 22.78. Move stops to entry after a .65 gain is seen in the trade. Take half off +1.50 Management of existing positions: NTRS triggered Monday, 1-14-13 at 52.58. The stock fell out of bed, but got a nice bounce and managed to only close down a few cents form the trigger. Sell the entire position at +1 OR into the close win, lose, or draw on Tuesday, 1-15-13 (that’s today).
Copyright 2013 Winning Edge Trader
12
ALTR triggered on 1-11-13 at 35.01. The stock crapped out on Monday, but got a bounce to hang in. Stops are currently 34.09. Move them to breakeven on trade above Friday’s highs of 35.48. Sell half at 38.70 CVX- half the position was taken off +2.54. Stops on the reaming half should be at breakeven. Take the second half off at 105.19. This was entered at 110.19 on 1-10-13. FDX pushed higher and half the position in the February 2013 $95 call options was sold at a double. Sell the rest at $7.70. The calls are now a completely risk free trade with the only costs now being commissions. Stops on the stock position are now at breakeven. Sell half the stock position at 100.74. The stock triggered long on 1-8-13 at 95.06. CLF stopped out Friday for a 2 point loss
Quick Hits: Don’t forget to join Tiny and Danny in the live chat room where they manage the Newsletter as well as live index futures calls. Go to www.StockMarketTrendsX.com and click chat room for details. Keep the feedback coming! What would you like to see in this nightly newsletter? What can we make better? Send your comments to [email protected] and be as forthright as possible, we won’t get offended! We will be running a market timing class soon. Stay tuned for details.
Copyright 2013 Winning Edge Trader
13
IMPORTANT DISCLAIMERS:
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This newsletter is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results. There are no recommendations in this newsletter to buy or sell any stocks, options, futures, currencies, or any other financial or nonfinancial instrument not mentioned. Trading involves risk and you can lose more money than is in your account. Always understand the risks involved before placing a trade. Consult your broker or financial adviser for more information.
Copyright 2013 Winning Edge Trader
14
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. Copyright 2013 Winning Edge Trader
15
All charts courtesy of Tradestation To contact the author of this newsletter, please use [email protected] You may redistribute this newsletter as long as you keep it in its original form. You may NOT claim ownership of this newsletter.
Copyright 2013 Winning Edge Trader
16
1
attention to. The perceived tone set by those reporting early will have some sway on how the next batch is traded into their respective dates. It’s also the first options expiration of the year. OE week has a Bullish tendency, but as you have seen over the past week, we’ve had a Bullish opinion, this is just another thing to back up our bias. Index Analysis: We are coiled again and looking for expansion. The Russell 2000 (IWM) continues to lead, if only ever so slightly.
Copyright 2013 Winning Edge Trader
2
Sector Analysis: The Semiconductors ($SOX) recovered early weakness to close above their open, although still finished negative on the day. The Financials (XLF, $XBD, $BKX, KIE) Finished lower, but not by very much. The Cyclical Index ($CYC) hit a new 17-month high. I’ll write up this index in tomorrow’s Sector Spotlight. Tiny’s Trading Tip of the Week Just like in real estate- It’s all about location My personal coaching students learn firsthand from me how to design a perfect trade setup using just 3 components. Don’t mistake the term “perfect trade” with a trade that always wins. That would be disingenuous and just plain silly. The reason that these trades are “perfect” is that they offer predictable, reliable, consistent results. My favorite saying (at least for the time being) is that if you want consistent results, you make consistent trades, but if you want arbitrary results, take arbitrary trades. Which do you want your business to rely on? The three components that must be present in the design of the perfect trade are strategy, tactic, and location. Each of these components has many different variations, but they are easily digestible in bite sized chunks. There is no hierarchy of these components; they are all needed in order to complete the perfect trade setup. In this week’s tip, I want to talk about using the 200 day moving average as a location area. The 200 day moving average is by far the most popular moving average setting. It’s used by traders, institutions, publications, the media, and even those that hate technical analysis. Everyone wants to know where the 200 day moving average is, and you should too. There have been many studies done in regards to where a stock sits relative to its moving average, and the ones I have read have all shown an edge in taking longs above and shorts below that key barometer. There are program trading algorithms specifically designed to watch for crosses in price above and below, as well as scanners across trading desks doing Copyright 2013 Winning Edge Trader
3
the same. This is often why you will see a push above and below this moving average be accompanied by range expansion and volume. One of the ways that I like to use the 200 day moving average is to watch for retests back to it, as well as tight consolidations just above or below it. This allows me to accurately measure my risk, and become confident that if the stock doesn’t react as I am expecting it to after the tactical entry I use that I am not “giving it enough room” to work. I can take the small stop out and search for the next entry.
In the chart above, you see a nice coil just underneath the 200 day moving average. This makes it easy for me to get in if there is confirmation of the breakout, and there is a defined level to lean against.
Continued on page 5
Copyright 2013 Winning Edge Trader
4
In this chart, you can see the end result of the trade which was a “no harm, no foul” as we never broke above the 200 day moving average out of the coil I was watching. The astute trader uses the breakdown as an entry on the short side, as the price action rejects the 200 day and heads down to the lows. All trades won’t work out like the one shown above, and many times they will fire off one way, only to fail and come back, stopping you out for a loss. That is fine if you incorporate a sound money management matrix to your trades, because the risk reward on these is so favorable. The key is again, having consistency.
Copyright 2013 Winning Edge Trader
5
The above chart is a setup that is happening as I write this on 1-13-13. AMKR appears to have put in a bottom, but the key will be getting over its 200 day moving average. Currently the stock is coiled, so we can watch to see if there is expansion through this level that sticks and shows upside continuation, or rejects at the 200 day. In the next tip, I’ll discuss how to use the 200 day moving average for retracement entries. If you would like to bring your trading to the next level, contact me now for information about 1 on 1 mentoring at [email protected] and I will schedule a 100% free, no pressure, no obligation phone call to discuss your goals and desires for your trading business. Today’s Plan: It was a narrow day on Monday, but at least now we are coiled and ready to move. I’ll start with the gap, but any move past the first 30 and 60 minute range that STICKS should be watched for signs of a trend day. It may boring trading here, but with low volatility comes more easily manageable risk. It may take all day for a move, but what’s the rush anyway? Key Earnings Announcements 1-15-13 (AMC= after market close, BMO= before market open): Nothing, but the week will be a busy one starting up tomorrow. Economic reports of interest 1-15-13 (all times Eastern): 8:30AM Core Retail Sales (U.S.) 8:30AM PPI (U.S.) 8:30AM Retail Sales (U.S.) 8:30AM Core PPI (U.S.) 8:30AM Empire State Manufacturing Index (U.S.) 10:00AM Business Inventories (U.S.)
Copyright 2013 Winning Edge Trader
6
BV formed a narrow range candle after hitting another new low. Oversold bounce coming? CELG actually looked like it was going to put in a pause day! Instead it closed at yet another new high. This looks like it’s on a mission to tag 100, at a minimum. VCBI had the day after form Friday’s big move. TROV broke out on 5X its average, usually low volume. TROW paused after hitting a new high. VRTS continues to impress on very light volume and sloppy trade.. JCI has formed a nice tight coil, but has a batch of resistance to get through form last year. Glamour Stock Review: AAPL got cracked on news and flirted with closing below 500, but managed to form a small doji and close above that key level. It’s not the time to try and pick a bottom, but be watchful if any responsive buying steps in. AMZN hit new highs out of the wind up. GOOG can’t seem to get out of its own way. This needs to get above that 745 hurdle to suggest it retests the highs. GS took another pause. This is still not showing any danger signs. MA may be starting a pullback here.
Copyright 2013 Winning Edge Trader
7
HPQ has been a beauty since breaking above 16. We are still watching to see if it can get to the 200 day moving average. VLO is starting to come out of its coil mentioned yesterday. DELL exploded higher on news that they were seeking to take the company private.
Copyright 2013 Winning Edge Trader
8
Key Support and Resistance Levels Index
Support
Resistance
S&P 500 (SPY) NASDAQ -100 (QQQ)
145.22; 144.49 66.17; 65.61
148.11; 150 67.34; 68.30
Russell 2000 (IWM)
86.04; 85.26
88; 89.33
Dow Industrials (DIA)
132.74-.69; 130.67
135; 136.48
Indexes at a glance Index S&P 500
Direction Bullish
Notes Targeting 2012 highs
NASDAQ -100
Bullish
Could be better
Russell 2000
Bullish
Leading the way!
Dow Jones Industrial Dow Jones Utilities
Bullish Bearish
Targeting 2012 Highs Still below the 200 day
Dow Jones Transports
Bullish
Almost…..
Copyright 2013 Winning Edge Trader
9
Sectors at a glance Index
Direction
Notes
Semiconductors (SOX) Software (IGV)
Bullish Bullish
New multi-month highs Heading for a triple top
Telecom (XTC)
Bullish
Looking for highs
Banks (BKX)
Bullish
Winding up
Brokers (XBD) Insurance (KIE)
Bullish Bullish
Winding up 2011 highs next
Cyclicals (CYC)
Bullish
Headed to highs
Materials (XLB) Consumer Staples (CMR)
Bullish Bullish
Resistance in the low 41s At highs
REITs (IYR)
Bullish
Should see 2012 highs at a minimum
Cons. Discretionary (XLY)
Bullish
New highs
Retail (XRT)
Bullish
Heading for highs
Biotechnology (BTK)
Bullish
Reversal at new highs, still ok
Healthcare (HMO)
Neutral
Choppy, but showing signs of life?
Drugs (DRG)
Bullish
Shooting star after new highs
Metals & Mining (XME)
Neutral
Needs to clear the 48s
Gold (GLD)
Neutral
Choppy
Silver (SLV)
Bearish
Weaker than Gold
Gold And Silver (XAU) Oil (USO)
Bearish Neutral
Below the 50 and 200 day MAs Rebuffed at the 200 day MA
Energy (XLE)
Neutral
Coiled but looks “ready”
Oil Services (OSX) Bonds (TLT)
Bullish Bearish
Getting ready to move (still) 20EMA resistance
Home Builders (HGX)
Bullish
Paused, but no damage
Agribusiness (MOO)
Bullish
Longer term rangebound
Steel (SLX) Commodities (GSG)
Bullish Neutral
Looks like a bottom was put in Winding up for a move
Copyright 2013 Winning Edge Trader
10
Market Timing- Daily Direction
Timing Signal
Notes
VIX- Bollinger Bands VIX- Multi- Day Highs/Lows
Neutral Bearish
VIX Moving Average Stretch 10-Day TRIN
Neutral Neutral
TRIN Moving Averages
Neutral
TRIN over 2 Close
Neutral
A-D line Multi Day High/Lows
Neutral Neutral
Coiled, like the market
Multi day up/down
Neutral
No edge
Moving Averages
Bullish
Closing $TICK $TICK Moving Average
Neutral Bearish
Overbought
$TICK Afternoon McClellan Oscillator
Bullish Neutral
New highs in the afternoon Diverging a bit
RSI Overbought/Oversold
Neutral Neutral
Almost O/B (still) Almost O/B (still)
High Yield (Junk) Bonds Euro/Yen Cross
Bullish Bullish
Confirming Strong
Aussie Dollar/Yen cross
Bullish
Strong
Still near the lows
Market Timing- Weekly (updated Mondays) Timing Signal Direction Notes New Highs-New Lows Neutral Slight Divergence Cumulative A-D Line Overbought/Oversold
Bullish Neutral
New All Time Highs
Long Term Moving Averages Seasonality
Bullish Bullish
Market is in the best 6 month period
Leading Stocks
Neutral
AAPL still smacked, Financials leading
Market Sentiment (updated as needed) Timing Signal
Direction
Notes
Media Sentiment Surveys
Neutral Neutral
Mixed Mixed
Rydex Fund Flows Equity Put/Call Ratios
Neutral Neutral
OEX Put/Call Ratio OEX Put/Call Open Interest
Bearish Neutral
Copyright 2013 Winning Edge Trader
Been this way for a while
11
Swing Stocks HIG-The Hartford Financial Services Group
Analysis: HIG started off 2013 with a push up to new 17 month highs. The stock is currently in a Bull flag, suggesting upside continuation. Strategy: Go long HIG on trade to 24.05 as long as the stock does not open up at 23.95 or better. If the stock is set to open at that level or better, cancel the trade. Initial stop losses should be placed at 22.78. Move stops to entry after a .65 gain is seen in the trade. Take half off +1.50 Management of existing positions: NTRS triggered Monday, 1-14-13 at 52.58. The stock fell out of bed, but got a nice bounce and managed to only close down a few cents form the trigger. Sell the entire position at +1 OR into the close win, lose, or draw on Tuesday, 1-15-13 (that’s today).
Copyright 2013 Winning Edge Trader
12
ALTR triggered on 1-11-13 at 35.01. The stock crapped out on Monday, but got a bounce to hang in. Stops are currently 34.09. Move them to breakeven on trade above Friday’s highs of 35.48. Sell half at 38.70 CVX- half the position was taken off +2.54. Stops on the reaming half should be at breakeven. Take the second half off at 105.19. This was entered at 110.19 on 1-10-13. FDX pushed higher and half the position in the February 2013 $95 call options was sold at a double. Sell the rest at $7.70. The calls are now a completely risk free trade with the only costs now being commissions. Stops on the stock position are now at breakeven. Sell half the stock position at 100.74. The stock triggered long on 1-8-13 at 95.06. CLF stopped out Friday for a 2 point loss
Quick Hits: Don’t forget to join Tiny and Danny in the live chat room where they manage the Newsletter as well as live index futures calls. Go to www.StockMarketTrendsX.com and click chat room for details. Keep the feedback coming! What would you like to see in this nightly newsletter? What can we make better? Send your comments to [email protected] and be as forthright as possible, we won’t get offended! We will be running a market timing class soon. Stay tuned for details.
Copyright 2013 Winning Edge Trader
13
IMPORTANT DISCLAIMERS:
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This newsletter is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results. There are no recommendations in this newsletter to buy or sell any stocks, options, futures, currencies, or any other financial or nonfinancial instrument not mentioned. Trading involves risk and you can lose more money than is in your account. Always understand the risks involved before placing a trade. Consult your broker or financial adviser for more information.
Copyright 2013 Winning Edge Trader
14
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. Copyright 2013 Winning Edge Trader
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Copyright 2013 Winning Edge Trader
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