Posted on July 30th, 2008 at 11:45 AM

I have not shared this video of Apple (AAPL) on the blog.  I made the video when AAPL was a stochastic buy in August 2007.  This is a textbook stochastic setup.  Remember, these trend trades can be found every day using our scanner.  For specific scan settings click here.

Posted on July 30th, 2008 at 01:10 PM

Below is a chart of USO (USO) which is the OIL ETF.  USO triggered long today.  Most importantly, look at the risk reward the trade presents.  6 to 1 risk reward.  This is definitely worth a shot on the long side.  I have also included the chart of Oil futures.

Posted on July 30th, 2008 at 05:22 PM

Aggressive money management saves the day!  My last post on ELN, showed a text book False Bar Stochastic Buy with an aggressive profit level based off of Gann at 35.47.  It rallied for two days and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} ultimately failed the pattern.  We reached a high of 35.88 which would have triggered our profit taking on July 21 and then reversed. 

By Raghee Horner of EZ2Trade*

Charts, News and Indicators. In my travels, I usually find traders and investors of two camps: Fundamentalists and technicians. Although I use aspects of both, I really don’t consider myself either. I am a chartist. I rely primarily on price and price action. This, of course, leaves room for secondary considerations, such as indicators and news. But, the main tool I use for entering the market (meaning determining entry price, profit targets and stop loss) is price.

Enter the price chart. The art of tape reading and chart study seems to be scrutinized constantly as if chartists somehow ignore news and indicators. This simply is not true. Price can offer certain cues if a trader or investor takes the time to see the psychology behind the price. There needs to be a measurement though. Otherwise, this psychology cannot be compared to other psychological reactions.

By Mike McMahon, Director of Education, Online Trading Academy*
Posted: August 1, 2008

There are too many items to keep track of in the market. Traders must understand that they cannot "know it all". If you could, you would be the ultimate trading machine. This being said, we realize that we are imperfect.

We have only 100 percent of our mental energy to use in any given time frame. Some of it is used in maintaining our bodies -- breathing, walking, talking, and so forth. Some is used to keep track of our lives -- What time is it? Did I turn off the coffee pot? Did I pay the phone bill? Most of it is used trying to understand the complexity of our world -- the input from our senses and its identification and categorization.