Posted on June 28th, 2008 at 05:41 PM

Emulex (ELX ) has finally paid off for our patience. The move has continued and is very close to our MOB. I will take it as a profitable trade and be done with it. Hope you followed along.

Posted on June 30th, 2008 at 07:56 PM

After some struggle with an oversold stochastic, Bonds are now triggering long.  This trade can done by being long bond futures or long one of the bond etfs such as the TLT (TLT). 

I like bonds for two reasons.  First and foremost, the technical setup presents a nice risk reward ratio.  Second, bonds have typically spiked in times of volatility.  While the market has sold off meaningfully, volatility has barely budged.  Before this leg down is over, I think we will see a spike in the $VIX ($VIX).  Because of the complexities that threaten the stability of our financial system, I feel that it is possible that we will see a spike in the $VIX unlike anything we've seen in many many years.

Posted on July 1st, 2008 at 09:42 PM

In this evening's mentoring class one of the stocks we looked at was AAPL on the Daily chart.  We have a solid False Bar Stochastic Trade with an Elliott Type One Trade present.  The only thing we must wait for now is a trigger, for this stock I am using a simple trend line (orange line) drawn across the highs of the retracement.  The aggressive trader can enter the market with a simple cross of the trend line.

Posted on July 2nd, 2008 at 12:22 PM

In my June 3rd post, I challenged the cover of Barron's magazine that said "BUY GM".  Further, the cover posed the question "Why GM's share price could nearly triple".  This chart shows what the chart of (GM ) looked like at the time of my post.