Posted by Tom C.
I know, if I were the guest host for Leno or Letterman you would be staring at a blank television. Sorry. My power was out this morning, so I did not trade today. I hope to get a few charts up before X is back next week.
In the meantime you have this to look forward to:
LOS ANGELES — Michael Douglas and Oliver Stone are back together again with a sequel to their 1987 hit "Wall Street."
Douglas is reprising his role as Gordon Gekko and Stone is on board again to direct the sequel, which for now has the working title "Wall Street 2," said 20th Century Fox spokesman Gregg Brilliant.
Brilliant said the project is timely and relevant given the state of the world.
"We need to keep the story line under wraps, but it's literally ripped from today's headlines," Brilliant said. "It's going to be very big and very cool."
With the economy and financial markets in a tailspin, it will be different times for Douglas' Gekko. In the original film, corporate raider Gekko was a symbol of Wall Street greed and corruption during the boom era of the 1980s.
Gekko has endured because audiences give him the "same kind of respect we've got for the great white shark," Douglas said in an interview Friday with Associated Press Television News for his upcoming life-achievement award from the American Film Institute.
"He's a villain. Gordon Gekko is a great, old-fashioned villain," Douglas said. "And, interestingly enough, if you look at most actors' careers, their biggest achievement, not necessarily success, but (achievement), is playing a bad guy."
Academy Awards voters agreed. Douglas earned the best-actor Oscar for Gekko.
The sequel is scheduled to start shooting this summer. Edward Pressman, who produced "Wall Street," also is back for the sequel, while Allan Loeb ("21") wrote the screenplay.
from The Huffington Post
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Tuesday, April 28, 2009
Monday, April 27, 2009
A new week
Posted by Tom C.
I apologize for the lack of posts on my part. I love blogging, but it is a low priority for me. Trader-X is due back next week, and I will post a few charts this week.
And thank you for the positive feedback in comments. Have a good week everyone!
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I apologize for the lack of posts on my part. I love blogging, but it is a low priority for me. Trader-X is due back next week, and I will post a few charts this week.
And thank you for the positive feedback in comments. Have a good week everyone!
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Monday, April 20, 2009
AEM - 042009
Posted by Tom C.
AEM gapped up and printed a strong first bar, with the next few bars staying above the halfway point of the first bar's range. I plotted my Fibonacci lines over the OR high to the previous day's low (classic X-style). The 4th bar broke the 50% retracement, but the 5th bar formed an "offsetting bar" and made a hammer-type candle, closing back above the 50% retracement and the halfway point to the high.
I entered on a break of the 5th bar's high (first yellow arrow), and closed the position at the FE. I entered another position on a break of the 11th bar's high (second yellow arrow). It was a classic "beyond the Fibonacci extension setup" (if you are not familiar with the term, search the blog). The 11th bar was also a hammer-type candle, and formed on support at the Fibonacci extension. I closed the position on a break of the bar indicated by the blue arrow.
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AEM gapped up and printed a strong first bar, with the next few bars staying above the halfway point of the first bar's range. I plotted my Fibonacci lines over the OR high to the previous day's low (classic X-style). The 4th bar broke the 50% retracement, but the 5th bar formed an "offsetting bar" and made a hammer-type candle, closing back above the 50% retracement and the halfway point to the high.
I entered on a break of the 5th bar's high (first yellow arrow), and closed the position at the FE. I entered another position on a break of the 11th bar's high (second yellow arrow). It was a classic "beyond the Fibonacci extension setup" (if you are not familiar with the term, search the blog). The 11th bar was also a hammer-type candle, and formed on support at the Fibonacci extension. I closed the position on a break of the bar indicated by the blue arrow.
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Twitter? No thanks.
Posted by Tom C.
Nothing against those of you who do it, but I just don't get it.
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Nothing against those of you who do it, but I just don't get it.
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Sunday, April 19, 2009
Another Tom C. setup...
Posted by Tom C.
Trader-X will return soon. Until then, you are stuck with a few more posts from me.
Another trade I like is a setup that forms around the OR high (or low for a short). DRYS is a great example. Price gapped up and remained strong. It bounced around the OR high (the first 30-minutes - see the black line on the first chart) and the 9th and 10th bars stabilized above it, and narrowed in range. The 10th bar was a hammer-type candle, and I entered on a break of it's high (yellow arrow).
For my exit, I plotted my Fibonacci lines over the morning's high (including the 4th bar) to the previous day's low (see the second chart). I sold at the FE.
There were a lot of great "u-turn" setups Friday. A few I traded were PNC, ADBE, and FDX.
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Trader-X will return soon. Until then, you are stuck with a few more posts from me.
Another trade I like is a setup that forms around the OR high (or low for a short). DRYS is a great example. Price gapped up and remained strong. It bounced around the OR high (the first 30-minutes - see the black line on the first chart) and the 9th and 10th bars stabilized above it, and narrowed in range. The 10th bar was a hammer-type candle, and I entered on a break of it's high (yellow arrow).
For my exit, I plotted my Fibonacci lines over the morning's high (including the 4th bar) to the previous day's low (see the second chart). I sold at the FE.
There were a lot of great "u-turn" setups Friday. A few I traded were PNC, ADBE, and FDX.
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Tuesday, April 14, 2009
A Tom C. setup...
Posted by Tom C.
Regular readers know that I use MAs in my trading. One setup I like to trade is a large gap where price moves in the opposite direction (of the gap) to tag the 8EMA - you can think of it as a "reversion to the mean" trade.
Please note, this is a higher-risk setup; it is higher risk because price does not have to rally (or fall) to the 8EMA...it can move sideways until the 8EMA "catches up", or it can continue in the direction of the gap at a slower pace until the 8EMA "catches up". So it is important to only take strong setups with good candlestick patterns.
BP from today is a classic example of the setup I like. Price had a large gap down but the first bar was strong. The second and third bars consolidated in the upper half of the first bar's range with the third bar being solid green (opened near the low, closed near the top). It was also a narrow-range, inside bar.
I bought on a break of the third bar's high, and my initial target is the 8EMA (white MA line). I also look for other areas in the vicinity to confirm (or adjust) my target. As you can see on the second chart, I plot my Fibonacci lines over the previous day's high to the OR low and the 50% retracement is just above the 8EMA. I closed the position at that level, and it proved to be solid resistance throughout the morning.
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Regular readers know that I use MAs in my trading. One setup I like to trade is a large gap where price moves in the opposite direction (of the gap) to tag the 8EMA - you can think of it as a "reversion to the mean" trade.
Please note, this is a higher-risk setup; it is higher risk because price does not have to rally (or fall) to the 8EMA...it can move sideways until the 8EMA "catches up", or it can continue in the direction of the gap at a slower pace until the 8EMA "catches up". So it is important to only take strong setups with good candlestick patterns.
BP from today is a classic example of the setup I like. Price had a large gap down but the first bar was strong. The second and third bars consolidated in the upper half of the first bar's range with the third bar being solid green (opened near the low, closed near the top). It was also a narrow-range, inside bar.
I bought on a break of the third bar's high, and my initial target is the 8EMA (white MA line). I also look for other areas in the vicinity to confirm (or adjust) my target. As you can see on the second chart, I plot my Fibonacci lines over the previous day's high to the OR low and the 50% retracement is just above the 8EMA. I closed the position at that level, and it proved to be solid resistance throughout the morning.
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Tuesday, April 07, 2009
LNC - 040709
Posted by Tom C.
I almost passed on LNC (as a "u-turn"-type setup), because I wanted the trigger bar to close above the low of the OR, but it closed at the low instead ($6.61 vs. $6.62).
But I like the bottoming pattern and the move up off the 8 and 13EMAs, so I bought on a break of the trigger bar (yellow arrow). I exited the trade at the FE (Fibonacci lines plotted over the first 30-minutes).
I watched the 50% retracement for a reversal, but price action was bullish as it never closed below the 13EMA. Overall it was a great trade, returning around 8% (and as X says, a high volume stock that was easy to enter and exit).
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I almost passed on LNC (as a "u-turn"-type setup), because I wanted the trigger bar to close above the low of the OR, but it closed at the low instead ($6.61 vs. $6.62).
But I like the bottoming pattern and the move up off the 8 and 13EMAs, so I bought on a break of the trigger bar (yellow arrow). I exited the trade at the FE (Fibonacci lines plotted over the first 30-minutes).
I watched the 50% retracement for a reversal, but price action was bullish as it never closed below the 13EMA. Overall it was a great trade, returning around 8% (and as X says, a high volume stock that was easy to enter and exit).
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Monday, April 06, 2009
Monday links
Posted by Tom C.
Well, not really. Just a few things I found interesting.
First, a photo outside Bank of England in London:
Second, a great article from Time via Jon's Stuff...well worth reading:
The End of Excess: Is This Crisis Good for America?
Finally, is this really true? If so, I smell lawsuits...lots of lawsuits.
Worst April Fools Ever: Online Brokerage Zecco Pretends To Give Away Millions, Panics When People Start Spending
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Well, not really. Just a few things I found interesting.
First, a photo outside Bank of England in London:
Second, a great article from Time via Jon's Stuff...well worth reading:
The End of Excess: Is This Crisis Good for America?
Finally, is this really true? If so, I smell lawsuits...lots of lawsuits.
Worst April Fools Ever: Online Brokerage Zecco Pretends To Give Away Millions, Panics When People Start Spending
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Saturday, April 04, 2009
Longer-term charts
Posted by Tom C.
At the beginning of the year, I made a post about watching for longer-term setups.
"With many stocks closing near the [2008] low, I will be watching for them to rally off those levels. I plot my Fibonacci lines over the previous year's high to low*, and look for price to break through the retracement zone. The idea setup is price breaks through that level and pulls back to test it as support before rallying to the previous year's high (and hopefully the Fibonacci extension)."
Many stocks are moving up as anticipated. I already had several good trades, and I expect more setups to materialize in the coming weeks.
I wanted to post a couple of charts of trades I made where price moved off of the 2008 lows. Both of these were great trades, with offsetting bars (or piercing line candle formations) and a clean move up to the halfway point between the low and the 50% retracement of the previous year's range. AEIS was a 20%+ move, and ALB was a 25%+ move.
My entry was a break of the bar indicated by the yellow arrow. I closed both positions at the end of the day yesterday.
*To give credit where it is due, I learned this method from Kernan at TRADEthemove.com
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At the beginning of the year, I made a post about watching for longer-term setups.
"With many stocks closing near the [2008] low, I will be watching for them to rally off those levels. I plot my Fibonacci lines over the previous year's high to low*, and look for price to break through the retracement zone. The idea setup is price breaks through that level and pulls back to test it as support before rallying to the previous year's high (and hopefully the Fibonacci extension)."
Many stocks are moving up as anticipated. I already had several good trades, and I expect more setups to materialize in the coming weeks.
I wanted to post a couple of charts of trades I made where price moved off of the 2008 lows. Both of these were great trades, with offsetting bars (or piercing line candle formations) and a clean move up to the halfway point between the low and the 50% retracement of the previous year's range. AEIS was a 20%+ move, and ALB was a 25%+ move.
My entry was a break of the bar indicated by the yellow arrow. I closed both positions at the end of the day yesterday.
*To give credit where it is due, I learned this method from Kernan at TRADEthemove.com
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Thursday, April 02, 2009
WYNN - 040209
Posted by Tom C.
In his post earlier this year detailing his setups, Trader-X discussed the "deep pullback". He lists it as a short setup, but here is a long setup that adheres to the same criteria.
WYNN gapped up, pulled back to the halfway point between the low and the 50% retracement, and had support from a rising 8EMA (note - I use MAs, X doesn't). My entry was a break of the trigger bar marked with the yellow line; I sold at the Fibonacci extension.
There were a lot of long opportunities today - I hope you guys made a lot of money.
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In his post earlier this year detailing his setups, Trader-X discussed the "deep pullback". He lists it as a short setup, but here is a long setup that adheres to the same criteria.
WYNN gapped up, pulled back to the halfway point between the low and the 50% retracement, and had support from a rising 8EMA (note - I use MAs, X doesn't). My entry was a break of the trigger bar marked with the yellow line; I sold at the Fibonacci extension.
There were a lot of long opportunities today - I hope you guys made a lot of money.
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