Thursday, August 28, 2014
Wednesday, August 27, 2014
Tuesday, August 26, 2014
Twitter trading plan (with options)
Don't forget that this blog is my trading "diary", I urge you to do the same, online or offline,
print the chart or blog it, then have a clear plan/strategy.
What patterns do you see
Price targets with time frames
If you have been reading this blog, you know that I have been bullish on Twitter "right around its lowest price"
Have two calls (see time frames)
And One put (why ? expect the unexpected!)
Monday, August 25, 2014
For those of you reading me for a while, you know I often use two key patterns ;
The ABC Pattern, and the GVN condition (Gap, Volume, and high impact News)
I look at hundreds of charts per week, searching for "long term wide patterns"
The longer the pattern, the stronger the move.
A long base channel pattern often faces a very strong break out
A very long up or down trend will often face a very hard reversal
Those "break outs", after long term patterns, are often part of a bigger pattern.
Back to US Steel (X), why do I have it on my key watch list ?
That recent break out tells me its part of a bigger move to come (not because some analysts says so), price/volume action confirms.
I now need to see X remain in a tight channel pattern and reduce volatility
Basically I am trying to buy cheaper options
I will buy a few mid & short term puts, as well as long term calls
Why am I buying puts if I am so sure that X will continue to rise higher?
Hedging ... I like to sleep well at night
I'll give you a few simple tips when looking at a chart ;
1) Forget well known "indicators" first, just look at the chart
2) Past key levels do have their importance
3) Focus on simple patterns (too many voodoo patterns believers out there)
4) Plan a trade, have clear scenarios in mind (at least three)
Back to coffee weekly prices, "B" level seems to hold, confirming key break out level.
Any major coffee news out there? Any known problems?
Pattern shows a high probable break out (see "C" level)
We need a catalyst
PS : We need fundamentals! This is not a penny stock that anyone can manipulate.
Sunday, August 24, 2014
Friday, August 22, 2014
Thursday, August 21, 2014
Tuesday, August 19, 2014
Silver ETF (SLV) versus the $USD Dollar index, weekly chart
As mentioned earlier, both do NOT rise in tandem
The $USD has a clear "problem" with the 82 level
SLV is almost re testing once again that key support level
Gut feeling? Gold and Silver are way oversold, and still in a wide channel pattern.
The $USD now a safe heaven ? We shall soon find out