Friday, July 31, 2009


Here is the daily SPX analysis. Well before the decline, I saw the initial sign of weakness in the market and sold my maxed out long ETFs at 11:22AM (as noted on twitter). I was right, and it wasn't the charts, but more intuition based on experience. I got that feeling that something wasn't right and it's difficult to explain.

Despite the intra-day selloff, the market is still bullish-neutral. I rarely play the general market, and these opportunities to max out come only once a month or so, and it's a near 100% guaranteed win. The rest of the time, I play the $1-5 stocks that have nothing to do with the movement of the general market. This strategy ensures that the highest probable patterns execute as planned, while taking advantage of major market moves.

If you noticed, my portfolio turnover is increasing significantly. That has always been the case, actually. I rarely posted day trades, until a few weeks ago. In the mornings, understand that I am making multiple trades at the open, and therefore, will not have time to post 'as they happen'. In addition, I do not know if a position intra-day will be a swing until it's 3:45PM. This is why you better know what you're doing, or else you will screw yourself.

For the most part, I try to hold on and support my positions for as long as I can, but I am not in control of the market. As a primary swing trader, I saw/see the need to increase the frequency of day trades to maximize my returns while protecting my portfolio from any loss. You may also be wondering...why the heck did I go all in yesterday at the open? A break from major consolidation areas signal a major shift that is supported by a sustained move. This is rare, but when it happens, I make sure I go all in.

No comments: