Steve, Could you give an example of yours in tonight's update, please? Matt gave a few hints but I would like your systematic review :-)

    To Roy and All -

    Posted by dodgerdog on 23rd of Mar 2009 at 05:21 pm

    To Roy and All - I reviewed a few triggers in depth last night (see the two tick charts that I reviewed extensively last night).  These charts CONFIRMED today's move and NEVER ONCE gave a SELL SIGNAL.  Those are two indicators one may consider following for triggers.  In summary, I gave everyone a SPECIFIC LEVEL on the SPX that if broken would lead to a rally and further stated that NO ONE SHOULD LOOK TO SHORT WITHOUT A TRIGGER SELL SIGNAL being in place.  Bottom line, we broke resistance and held positive symmetry the entire session.

    Steve, I know it must be

    Posted by sethbru on 23rd of Mar 2009 at 06:31 pm

    Steve,
    I know it must be hard for you to anticipate how any of your listeners might misconstrue your analysis, so I am not criticizing - merely explaining my reasoning so we can all learn where I went wrong. At the close on Thursday March 12,
    we had just finished 4 consecutive up days, we had reached upper resistance at S&P500 741, and we were supposedly "overbought". So, I went short at the end of the week. At the start of the following week, the Daily SPX 5,3,3 full stochastic started to signal a bearish cross - I have noticed this to be your most reliable swing trade indicator from the nightly report (which is all I have time to analyze each day). So, I felt good holding the short position. But, we never saw a bullish cross or strong Buy trigger, so I held that short until I caved today after we broke above 804. I guess the lesson is that reaching upper resistance is not a sufficient sell signal, so I had entered a short position too soon - it just seems that selling at resistance works for others here. In any case, I am not nimble enough to day-trade - I can only react to major signals like the 5,3,3 full stochastic crosses. Any other guidance? Thanks!

    Selling at or near resistance

    Posted by dodgerdog on 23rd of Mar 2009 at 07:11 pm

    Selling at or near resistance is very prudent but we were NOT overbought on most time frames.  The Daily takes precedence when swing trading.  You also needed to see a TRIGGER to short besides just being at resistance - for example when we get to resistance do you see the TICK chart or something else going negative confirming a reversal is likely?  If not, then the chances of reversing are minimal.  Further, you should of had a STOP in place just above your entry since you viewed that as resistance which was broken - this alone would have limited your losses allowing you to re-enter at higher prices.  Lastly, the 5,3 Stochastics were on a BUY signal at that time and NEVER came close to crossing back down after March 9th.  With that said, this indicator alone is not infallible and it's prudent to have confirmation from other indicators.  While we thought at the beginning the rally could be just a Minor Wave 4, we clearly stated that a break over 780 must be construed as positive.  Hopefully, this helps.  Let me know if you have further questions.

    Steve, OK, I see MY MISTAKE.

    Posted by sethbru on 23rd of Mar 2009 at 10:44 pm

    Steve,


    OK, I see MY MISTAKE. I simply took the test of the upper resistance (along with much bearish sentiment) as a Sell signal and went short big-time at the close on
    March 12. There was no confirmed Sell signal - my bad. The Daily SPX 5,3,3 full stochastic started to signal a Bearish cross a week later (you posted a Warning
    on 3/18 and it appears to have crossed down the next day), but at much higher levels.  Had I shorted there at that valid Sell signal on 3/19, I would have experienced a much smaller loss today. Instead, I took comfort in that Bearish cross on 3/19 and held my imprudent shorts until we were solidly above 804 today. So, I did learn from this.

    Due to my schedule, I can only react to major reversal signals that you show on the nightly update, such as the 5,3,3 full stochastic crosses. Next time:

    1) I will adhere to the 5,3,3 full stochastic more strictly to decide which day to act - i.e. I will not Sell halfway between the last Bullish cross and the eventual next Bearish cross.

    2) I will look at the daily $NYMO oscillator to decide which day to act - i.e. it looks like we are nearly overbought now.

    3) For timing intra-day, it sounds like the $TICK chart might be a good indicator of a reversal. How much does StockCharts charge for the rights to see that?

    I have switched to a heavy long bias at the end of the day. Hopefully, tonight's update will give some clues if I should hold my longs. Thanks!

    Seth

     

    Stockcharts is quite cheap -

    Posted by dodgerdog on 24th of Mar 2009 at 12:35 am

    Stockcharts is quite cheap - like the cost of a few trades and the charts can save you a bundle if used effectively.  Anyway, be careful chasing this market on the long side up here as well since we could get a deep pullback fairly soon.  I prefer to buy pullbacks but if long keep stops in place.

    As a newbie on trial,

    Posted by macbeth on 23rd of Mar 2009 at 10:35 pm

    As a newbie on trial, I'd just like to say thanks. I followed your guidelines re SPX and the 780 level. As a result, I went long, and actually made some money ! First time in a long time.

    I have also felt that

    Posted by bruce2 on 23rd of Mar 2009 at 07:11 pm

    I have also felt that recent nightly recaps were leaning to the downside, and have exited my longs from the watchlist/triggered list, unfortunately. I hate to beat a dead horse, but many of us don't have the funds to daytrade, or set up the automated systems on srs/skf, which seem to be so profitable. They can be offset with ure/uyg without using up a daytrade, if one only knew when these systems crossed. (Matt, I thought you mentioned a while back that you were going to set up some kind of alert on your site for exactly this. Yes/No?

    Bruce that was the case

    Posted by dodgerdog on 23rd of Mar 2009 at 07:20 pm

    Bruce that was the case as of the middle of last week when we paused and pulled back from strong resistance on the initial attempt to get through the 805 level. We did get a two day pullback and we remain overbought but I also stated last night that a break of the SPX downtrend line could begin a rally attempt and once we took out resistance (took 3 attempts) the market was likely to move to the next resistance levels. Taking some profits on a move from below 666-700 area up to strong resistance (SPX 805) is prudent but if you're a long term swing trader with large risk tolerances then give it a wider stop. For example, if you're comfortable with the SPX pulling back nearly 40 points (which it did late last week) then that's fine. But you have to have a stop in place in accordance with your risk tolerance and trading objectives in case it keeps going down.  For swing traders, we are not looking to chase this market up but rather buy on deeper pullbacks.

    Sell signals

    Posted by junkmaylbox on 23rd of Mar 2009 at 05:52 pm

    Dodger, I did exactly what you suggested. I held a short from Friday, a gain then which turned into a loss. I closed that short pretty much after I had sensed the market was strong, with a small loss. I will review the yesterday's update again, thanks for the hint.

    Roy so are you telling

    Posted by dodgerdog on 23rd of Mar 2009 at 06:43 pm

    Roy so are you telling me you reversed and went long today as I suggested? If you did you should of had an excellent day.  I clearly stated that a break of the SPX trendline on the 30 minute chart would usher in some type of rally (had no idea how strong) which could be played initially as a trade to the long side.  Finally, I said that you should only consider a short if you get a TRIGGER which never occurred. 

    Looking forward, I can see two scenarios in the short term.  One a reversal down tomorrow (maybe after a some further upside probing) which would take the indices back down to test the broken channel or the market continues to rally up to higher targets (SPX 875) before pausing.  I give more credence to the first scenario BUT I will not consider shorting until I get a TRIGGER to do so.  In addition, I will immediately put a STOP in place at the time of entry.

    No, Steve I have stayed

    Posted by junkmaylbox on 23rd of Mar 2009 at 08:58 pm

    No, Steve I have stayed in cash for the rest of the day. I burnt myself a bit by trying to game pullbacks, so I decided to wait out for a deeper pullback and then go long. I didn't want to go against the market, it's way too strong here.

    Once the resistance at 805 was clearly taken out, the upside looked limited to me (810 to 825). Two factors confused me today: one, the 5,3 stochastic daily was on a sell signal, and Matt's gap handling strategy suggested selling the gap instead of buying it. On the other hand, the magnitude of the gap this morning suggested a huge up day, which it turned out to be prescient.

    I only regret not taking profits on Friday, hoping to gain more of them at the completion of wave 2.

    I am going to review your selling cues from last night's updates. I need to get a check list of buy and sell signals and follow it like a drill. Perhaps, I should get a stockcharts membership to be able to follow the $tick intraday charts or its equivalent. Matt also mentioned the volume indicator today, I need to figure out what it is.

    Matt's intraday charts are really helpful when he posts them. So are the strong support and resistance zones from nightly updates. So are Matt's indicators on his charts. I learnt to follow MACD and volume versus average volume, and get various signals from mechanical systems on 5,6,15 and 30 minute charts. I have yet to make good use of CCI(75), RSI(14). I don't have TRIX(15,9) on my StrategyDest platform, only TRIX(10) whatever it means.

    I am leaning towards swing trades now, so have a big picture for a day ahead (up and down) would be helpful. I don't know how feasible it is though, and whether or not you have time for such prognosis. Matt works his tail off, no doubt about that :(

    Thanks for your good work!

    Sell signals

    Posted by panaspor on 23rd of Mar 2009 at 10:10 pm

    junkmaylbox - I don't usually reply to any sites.  However, having tried a lot of so called investor sites, I have found this one to be the best, that is until today.  Factually, I have never made money on any other site, other than this one.  That tells you how much investor experience I have and what most so called investor sites are.  But today, I am sitting on a huge potential loss (no I have not sold my shorts, but hoping for a retracetment tomorrow) on the S&P.  I just followed the 5,3,3, 60 day S&P 500 signal.  However, junkmaylbox, I sat there ljust ike you. not believing what I saw.  Admittedly, like Matt described, I turned into a deer in the headlights and could not even move.  I was short since last week when the signal turned negative.  No where did I see it cross again, to the positve side.  I am trying to learn about from site about charting, but to watch I don't know how may time interval charts and to become a member of another site, Stockcharts, just to do it, why should I do that when I am already paying for this site.  I don't have time to sit in front of a computer all day.  That is why I subscribed to the site, as I don't have the time luxury to do that.

    I do read most of the comments on the site and the most underated of all is the comment from Matt, "News, Trumps the Charts".  This was big news and was designed to be.  Saying that, I wonder what will happen to the markets when Guitner speaks again, I belief, this Thursday.

    You MUST not simply depend

    Posted by dodgerdog on 24th of Mar 2009 at 12:30 am

    You MUST not simply depend upon the 5,3 stochastics indicator alone for entries and extis.  It has been quite useful but is best used in conjunction with other indicators.  Lastly, a STOP needs to be put in place PRIOR or SIMULTANEOUS with your order and then ADHERED to so that you do not realize large losses.  Live to fight the next battle.

      I agree with your sentiments

    Posted by perthx on 23rd of Mar 2009 at 11:23 pm

     

    I agree with your sentiments about having to join Stockcharts just to be able to benefit from matt/steve's charts....

     

    Or would it really have killed either of them to re-post the chart from last night again and say "look we are busting above 780 SPX and we think that is a problem for shorts?"

     

    yeah, that is probably asking for too much hand holding. but it may have kept you and others from the "deer in the headlights syndrome" x

    I have to say this

    Posted by dodgerdog on 24th of Mar 2009 at 12:48 am

    I have to say this guys - if you're truly serious about trading you need real time intraday charts.  If not Stockcharts then some other service will do but you really need to have this in place to trade effectively.  The cost of our service is a joke and should be considerably higher compared to other services who offer 1/10 the material and service we do.  If you don't have the capital to trade then you should NOT be risking it by trading.  If these services or charts save you from one loss they pay for themselves over and over.  Just think about that for a minute.  Enough said. 

    dodger, then maybe you should let

    Posted by dylan398 on 24th of Mar 2009 at 09:08 am

    dodger,

    then maybe you should let the people know when they sign up what kind of service they are going to recieve........many just want you to pick stocks for them and tell them when to buy and when to sell.....

     

    2 FREE weeks .....

    Posted by averageguy on 24th of Mar 2009 at 09:36 am

    2 FREE weeks .....

    BestFreeCharts offers--it should be no

    Posted by algyros on 24th of Mar 2009 at 12:55 am

    BestFreeCharts offers--it should be no surprise--free charts.  Their fifteen minute charts are useful in conjunction with some of the swing trade mechanical systems devised by Matt and Steve.

    algyros -wow nice free charts,  thx

    Posted by matt on 24th of Mar 2009 at 01:14 am

    algyros -wow nice free charts,  thx for posting.  I just took a look at them and they work very well

    That's a great suggestion -

    Posted by dodgerdog on 24th of Mar 2009 at 01:11 am

    That's a great suggestion - just set them up like we do if you wish.

    Panaspor , sorry for your

    Posted by averageguy on 23rd of Mar 2009 at 10:54 pm

    Panaspor , sorry for your paper loss . I`ve been at BPT almost 7mths. It took me 2 tuff mths. to realize it`s not that simple to change your trading style . After some troubled trades I realized that I had to go back to PAPER TRADING until I was very profitable on paper with my new style .I`m a bonehead so it took me about 3 mths only cash trading the most obvious trades that jumped out me before I went full time trading . Because of my patient I have hit my goals for 5 weeks! Today was a confusing day because I WAS OVERCONFIDENT and doing some things in live trading that I did`nt   " simulate " first . I find improving is a reward in itself , so without misstakes I would`nt improve . Wellcome to the blog and best of luck to you . Ed

    -

    Posted by panaspor on 23rd of Mar 2009 at 11:15 pm

    averageguy - You're comments are more than appreciated.  I obviously have to change the way I trade and I think you're idea of paper trading for a while, might be the best way to go. 

    trading fundamentals

    Posted by junkmaylbox on 23rd of Mar 2009 at 10:42 pm
    Title: fundamentals of trading art

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!