MBT - Setting up for higher

MBT is starting to look nice - a move above 80 would have the stock above its 21, 50 and 200 day averages and it'd have just broken out of the declining tops.

GOOG - Kissing the channel goodbye or setting up for another run at 600+?

GOOG has long been a favorite stock of mine. I love their products and made some good money on its 3 year bull run. The question now is whether it is setting up to "kiss the channel goodbye" as the Worden's like to say (WEEKLY CHART), or is it setting up for another move higher as the daily chart seems to imply.

I'm long GOOG and betting that 600+ will come soon.



Update: Just saw that Brian Shannon at AlphaTrends took a look at Google just the other day.

Boone Pickens Talks Oil

Must see TV for anyone interested in oil and energy. The entire video is about 1:15 in length but well worth your time.

Boone Pickens on Oil, Wind and Energy at 2008 Milken Conference

Update: Removed the video as I couldn't figure out how to not have it auto play. You can view the video on Paul Kedrosky's site.

The Mental Aspect of Trading - Linda Bradford Raschke

Linda Bradford Raschke on the mental side of trading: "The Mental Aspect of Trading"

OK. Realistically, every trader has made a stubborn, big losing trade. What do you do if you're really caught in a pickle? The first thing is to offer a "prayer to the Gods". This means, immediately get rid of half your position. Cut down the size. Right off the bat you are taking action instead of freezing up. You are reducing your risk, and you have shifted the psychological balance to a win-win situation. If the market turns around, you still have part of your position on. If it continues against you, your loss will be more manageable. Usually, you will find that you wished you exited the whole position on the first order, but not everyone is able to do this.

Linda Raschke's Basic Rules for Swing Traders

Linda Raschke is a trader I've followed since coming across her interview in Jack Schwager's Market Wizard series. Below is a snippet I've had saved in my email box for years detailing some of her rules for swing traders.

Basic Rules for Swing Traders

Because of the short-term nature of this technique, swing traders must adhere to some very basic rules, including:

• If the trade moves in your favor, carry it overnight--the odds favor follow-through. Expect to exit the next day around the objective point. An overnight gap presents an excellent opportunity to take profits. Concentrating on only one entry or one exit per day relieves the pressure.
• If your entry is correct, the market should move favorably almost immediately. It may come back to test and/or exceed your entry point a little, but that's OK.
• Do not carry a losing position overnight. Exit and play for better position the next day.
• A strong close indicates a strong opening the following day.
• If the market doesn't perform as expected, exit on the first reaction.
• If the market offers you a windfall of big profits, take them to the bank on the close.
• If you are long and the market closes flat, indicating a lower opening the following day, scratch or exit the trade. Play for better position the next day.
• It is always OK to scratch a trade!
• Use tight stops when swing trading (wider stops when trading trend).
• The goal always is to minimize risk and create "Freebies."
• When in doubt--get out! You have lost your road map and your game plan!
• Place your orders at the market.
• When the trade isn't working, exit on the first reaction.
• ANTICIPATE!

PKX ready to explode?

PKX looks very similar to DRYS and EXM just before they started moving. I'll likely get long PKX on a move through the declining tops with a short term target of about 145 and looking for 160+ over the course of a few weeks.

GFA - 5/2/2008 - Better to be lucky than good

I picked up some GFA yesterday on a canslim type buy as the stock had broken out the day before and looked good for a long term hold. Lucky for me the stock decided it'd gap up 10% today on no news making this just about the easiest 10% I've made in a while. I booked the gain and will get back in a bit lower.

Bought at 45.08, sold at 49.50 - Time in trade: 1 Day