BIDU Trade Walk Through

Frustrating trading today - FAZ and MON

Today was very frustrating.  I finished in the black but I was close to having a remarkable day if I'd just made the most of FAZ and MON.  I had great timing on my trades but was too careful to book profits instead of hold for real money.  Examples are below. 

Trades not taken: MON long - likely $2-3 gain with about .10-.20 cents risk.  Should take that trade every time.

Trades taken that I didn't make real money on: FAZ short.  The financials have gotten clobbered and were due for a bounce after gap downs.  I shorted FAZ at the perfect moment about 6 minutes into the trading day.  Covered for a nice little gain.  But... I settled.  I should have covered half, and let the rest run.  I thought the stock would fill the gap and it eventually did that and much more.  No reason for me to not ride that trade and make 10 points or so.  Later in the day I initiated another FAZ short, once again with perfect timing.  I closed it too for a quick little gain but if I'd held through the end of the day I'd have made 6 points and the stock never went any higher than where I covered.  Frustrating to have the right ideas but for some reason lack the conviction to stay with them.

FAZ:

 

MON:

 

FAS

The FAS rallied today after yesterdays brutal sell off.  You can see below on the 60 minute chart that the time to buy was on a move upwards through the 8.47 level.

DXO out of the declining tops

I was a chicken these last couple of days and never established a position.  Now that DXO has broken out of the declining tops I'll wait for some semblance of a pullback to jump in.

Linda Raschke's Market Thoughts

The Dow, SP, Russell have had well defined downtrends on both the daily and the weekly time frames. Currently, the weekly charts are correcting an oversold condition which should lead to further upside. However, it would take an incredible amount of work to turn the daily time frames, as well as the weekly time frames from downtrends to uptrends. That is unlikely to happen in the next few months, so on these indexes at least, you are still looking at a corrective rally in terms of structure.

Watch to see what type of volume comes in over the next week. Naz has already had a clean upside breakout. So - that is my two cents worth - the market can still have upside potential from here, but much of it is coming from rotation, which never supports a sustainable long term rally.

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SKF intraday setup

Watchlist for 7/31/08