Oh baby... simply ripping!

Alright, so much for waiting to take on some trades :)


I was tempted to take on some day trades yesterday, but I will be on holiday until the 18th of August and not around a high speed computers. So I am limiting my trades... cause a lot about trading is not just about being correct in your thesis, but re-adjusting when needed, and I will not be able to re-adjust if needed.


Anyway... the market looks to want to keep testing the 320SMA. As such, closed out my protection. The trade was a loss, but not a loss to my portfolio. From the 320SMA level we may get a consolidation. Keep in mind, if the market wants to keep rallying we will need to consolidate somewhere. (Does not mean the market has to go down, could be flat... SQM is a perfect example.) It is still very overbought, and too bullish to maintain this momentum via multiple months.



I have a core position I plan on keeping, and will have the limit orders (in the previous post) in case I get lucky while on Holiday.

Waiting on a few trades

Simply going down the list...

JPM - will have limit order at mid 36 (althought the support is at 36)


GS - would like to get in around 153, via the 155 Jan Call options



BKE - will enter another position at the high 20s, if it is achieved (if it does, the sellers of this stock are idiots)

BNI - around mid 73-74


AAPL - would like to get into the 150 Jan call options at 155.

Trade - F

As indicated, I unloaded F. Missed a few cents of the high, but it is still too overbought at the current level.

Will re-enter upon consolidation.

Trade - F

I had a limit order w/ F at 6.70 (i guess I was the 'low-of-the-day' trader today :), and it got executed. Ford is still overbought, along w/this market, but at 6.70 I was willing to enter it. IMO, I expect a consolidation around that level or at least 6.70 will not be broken downward as it is consolidating.


I am taking two approaches to this trade...

1. If F rises from here, I will unload it at 7.00-7.04.

2. If F continues to consolidate, I will enter a double down position when the CCI is between 0-100. That will probably correlate to a price of 6.40-6.50.

Also, just an FYI... I still have the market protection despite the added trading.

man... talk about being wrong

...at least in the short-term... The market just does not give up here. Technically speaking, the SP500 clearly broke free from any resistance holding it back. The Great Wall at 950 is no more.

As far as being extremely overbought... the market players do not care. They just keep bidding the thing up.

Luckily for the GOOG options I got into yesterday, or I would have missed this move w/my protection. (So I can not complain... and yes I did sell some stuff today... how can you not?)

Due to the upside from my trades, I kept the protection, but repositioned it via the 98 Sept Puts on the SPY (from 95).

This is the 11-12 days in a row the market has gone up, and breached resistance w/a very overbought condition. Discipline dictates protection.

Who ever said 'buy and hold' is dead is an IDIOT. Moves like these prove them wrong, and prove Buffett right over-and-over again. (I don't care are how good of a trader I am, I will never bash the most humblest of greatness.)

Market Thought... overbought, but bullish

Things are overbought, and there is no skirting around these conditions. Too many internals (individual stocks) are also too overbought to be outright bullish at these levels.

The SP500 is at its 950 resistance (albeit, the 950's top end resistance), and still very overbought


But the interesting thing that happened, as the market was coming down from its afternoon spike, the oscillators started coming down (ever so slightly). The action that I see may suggest the SP500 may only consolidate to the low 940 level. Although I would rather see it come down to the 930 level.

The Naz is in a similar boat, but a new higher end support is now fairly clear. Top two horizontal lines.


Although I see a short-term pullback, my limit order in GOOG got executed. GOOG is fairly consolidated, and still maintaining its uptrend.

very overbought conditions

The market, and many stocks out there, are up about 9-10 days in a row. That is not healthy. Be cautious if deciding to enter new positions here. Especially in the true players (ie. FXI, FCX, BNI, AAPL etc...)

Ultimately I think we go to the 320SMA on the SP500, but w/respect to short-term movements, the market is very overbought right now.

The protection is costing me at the moment, but my money is where my mouth is. If the markets begin to ease from the overbought condition, while moving higher, I will close out the protection for a loss. But at the moment, that is not the case, and the SP500 keeps getting more overbought.