Posted on September 5th, 2008 at 10:38 AM
A while back, I posted a series of articles looking at the basics and various aspects of the Forex market. I thought today would be a good time to revisit another article that was written dealing with some of the basics of the derivatives or options market. Enjoy....
~Duane Gott
Posted on September 7th, 2008 at 10:11 AM
This is the first of many posts keeping tabs on how the 3-Day event is going in LaJolla, California. This event is unique in that ALL of the presenters are here, and we have one of the largest classes we've ever had. It should be a great event, and we'll keep you all posted on how things play out.
Day one is all about theory. We'll spend today going over many of the techniques people are a bit familiar with, and give them some additional things on which to focus. Tomorrow, we'll have the live market. There will be some trading going on from the instructors, which we will be able to show on the big screen in front of the entire class. There is always a lot of excitement in the air when the trades start flying.
Posted on September 7th, 2008 at 10:33 AM
One of the markets I'll be keeping an eye on tomorrow (aside from the obvious Fannie May/Freddie Mac fiasco) is Potash. It came up in a scan I was doing today, preparing for the 3-Day event. The 60 minute chart of (POT) is showing a Stochastic Continuation Sell setup. That's all well and good, but the kicker is that the Daily chart is in a DOWN trend. I like to look for stocks that have multiple time frames giving the same directional indication. That does not mean that they show the same strategy setting up, or have the same Elliott count, but that the overall directional movement is showing the same. Watch for (POT) to retrace slightly more into the ellipse, and then watch for a trigger. More on this one tomorrow!
Posted on September 7th, 2008 at 4:06 PM
I like to keep an eye on trades I have closed to see how they went and where can I improve. With that in mind a look at Caterpillar Inc. (CAT) is in order. I closed the door on CAT a few points back. It initially moved higher and my exit looked pretty smart. CAT has since cratered and met the MOB target for the original short. So what should I be taking away from this? Well as I look back at it I think I did exactly what I should have. I exited with a time stop when my expectations (the MOB) where not met in a timely manner. Now it would be easy to cry and say darn I missed the move, but trading is about risk management and consistency. I did what I should have and managed the risk right, good trade!
Posted on September 8th, 2008 at 10:13 AM
Trading has begun here on Day 2 of our 3-Day seminar here in LaJolla. The YM shot up overnight on the news that Fannie May and Freddie Mac were being bailed by the government. Initial reaction to this news was obviously positive, even though the trend in the overall market right now is down.
On the 939 EST bar, we had an XTL Breakout. This breakout happened with heavy Volume, which is my favorite kind of trade. However, I wasn't watching the screen when it happened!
Posted on September 8th, 2008 at 10:21 AM
Half way through Monday, (POT) Potash is well on its way toward the MOB. One would have had to have done an early entry into this market, but the setup was there, the Ellipse confirmed the right price and time. We're just about half way to the MOB, so profits can be taken soon.
Posted on September 8th, 2008 at 10:24 AM
Crude Oil has had several setups today. I have not followed it, as I've been mostly involved with the YM. In this slide, CL #F is setup as both a Stochastic Continuation Sell, as well as a Type One Sell using Elliott. Either way, it's a good setup.
