Wednesday, March 19, 2008

Short Setups


fish said...

Im thinking today wasn't a very good day for the Bulls here short-term. Not based on any TA, but more psychology. Today had all the makings of a run to the upside and the unfortunate realities of our economic situation is just hitting too many people in the face right now. I think by this time next week, we'll already be at/hit new lows.

Stewie said...

hey fish, today was a major blow to the bulls. to lose 3/4 of yesterday's awesome single day rally has to be a real slap on the face for the bulls. CNBC is calling bottoms all day today. They don't ring a bell at the bottom or the top. If we 'retest' the lows this time around, we will most likely break it this time. Real fear will kick in when this double bottom breaks. The bull's saving grace is this 'double bottom'. If that goes........

madhatter said...

just wanted to toss out NEM as another possible short... teetering on its trend line and with gold and commodities selling off, this one could tank.

Stewie said...

nice catch. check it out. i just added it. massive H&S distribution pattern taking shape. reminds me of BIDU several months back when i posted it.

Blue said...

Stewie, I made the most money I have ever made trading on MF today and I wanted to make sure you are watching MF and IBKR which has a similar pattern.

I like to use you as a successful benchmark and I'm $200 shy of your weekly $3k take home. I think it is incredible I've done this well since I just installed a streaming trading platform on Mon. Up to this point I've been using Fidelity's web based account for the last year hitting the refresh button every 3 min. Can you believe that shit? I don't think I qualified for their Active Trader Pro program until last month since I really didn't turn into a day trader until Jan. this year.

If you aren't alrady turned on to MF I hope you look at it. I missed buying MA again because I was too busy working MF in the AM. Personally I think MA is the best trading stock I've seen all year and I again want to thank you for turning me onto it. I'm bummed I didn't get to trade it at all this week, but I'm happy with my profits non-the-less. Hopefully I've outgrown some learning curve issues, trading platform issues, and I can stop fumbling around and improve upon today's success ($2,600 take home on MF).

On a side note, I would love to get an explanation of how you use MACD. I've read several articles on it, but I still don't get it. I have three indicators I can plug in: short period, long period, and EMA. Right now I use 12,26,9 and I'm not sure that's right and I don't get how the MACD can be a forward looking indicator.

Hope you read this. Thanks in advance. Really trying to learn from your example here.

Stewie said...

hey blue! Congrats my man on your weekly performance bro. if you want to trade well and especially this market, you gotta get real time data. I'll track IBKR and MF.
MACD setting i use are: 12/26/9.
I use the MACD in couple different ways. I like to use to detect when a trend looks to be coming to an end. I like to look for divergences between price and the MACD and RSI. If price makes higher highs while MACD and RSI make lower highs that forewarns me that the trend might be getting tired. Study the Short Setups that I placed in this post very carefully. notice how as the price was either consolidating or moving higher, the MACD and RSI were clearly making lower highs. MTL was PERFECT example. I MACD and RSI to spot these divergences on ALL time frames, I use them for day trading too using 1 and 5 min time frames. Add them to your trading arsenal and you got a serious edge. Keep up the great work Blue.

p.s. The MACD is an incredibly versatile indicator and i use it in many mnay different ways, but let's start with the basics and learn how to use it to spot divergences in stocks and the indexes. good luck blue.

Blue said...

Thanks Stewie, I'll review what I know about MACD, I'll look at your charts this weekend and follow up with questions.

I also now have all my charts auto load with Vol (with an average 20ma line), RSI (20day) and MACD. One click I put in the ticker and get all the data. It's a beautiful thing. It's the way it should be.

I don't know if I'll ever turn into a full time trader, but $3k a week is incredible supplimental income. Now all I have to do is make it repeatable, like a good golf swing.

paul said...

blue if I were you, based on the tone of your post, I would trade half your usual size next week.


Blue said...

I will continue to be cautious. I'm at the best spot I have been in all year. I have no intentions of giving back my profits.

Thanks Paul

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