RISK

i had set up to go short at 1103 level 33% position and rest 1109 hoping to make a better average.
however i had a strong feeling that it wil not go much above 1103 levels but still played safe.
sometimes one has to take appropriate risks to make that extra money.

exited shorts

am out of my shorts at 1085.will see how cash opens.hopefully it will not gap down too much.it should be some time before spx gets to 1145 even to 1125 levels will be difficult, but i am still in the camp that we have not seen the highs.at the moment i am looking on shorting on more weakness or on bounce from 1103-1110 kind of range.

any time now a bounce has to start.but a viable scalp maybe if cash opens flat, then short for 1085 levels again , just as intraday play.

contemplation

spx has shown significant weakness.so contemplating what do with the short position: book profit or place breakven stop.

it is difficult to bet against neely's record in calling important turning points but as of now , i still feel that spx will make a new high or almost reach there.given the decline so far, i am of the opinion that it will form a contracting triangle.however this is just an analysis. for trading we have to be short for positional/swing trade.

sold puts

closed puts..2.75

bought puts

added 113 spy put at 1.87

reaction on way

i am looking for 1110 on cash for initial exit and see how it holds/doesnt 1103 level.if it doesnt , there will be atleast 20-30 pts straight more.
but looking at nasdaq 100, i am inclined to think that a little more decline atleast is on way

reaction

expecting a reaction in spx to 1115 levels .
one should look to go long on such decline with sl at 1103 on closing basis for tgt of 1170+

from the kirk report

Knowing what you want in life and then having the right mix of patience and preparation will make the difference between success and failure. Once you understand that, anything and everything you desire is within your reach. The good news is that no matter what your heart's desire or how young or old you may be, there is no better time than right now to begin working toward what you really want and making it happen for you and your life. All you have to do now is simply get started!

feeling

It seems to get more difficult with the more I know

nasdaq position closed

sold the feb qqq 46 call for 1.37 bought yesterday.
price action is not impressive to give me confidence to hold to an option position.

20 and 50 dema

long qqq feb 2010 46 call @ 1.20

long qqq feb 2010 46 call @ 1.20
a couple of days back, nasdaq 100 looked superbullish.. now a great deal of that immediate bullishness has been negated..still worth a shot , tgt on nasday 100 is 1925, and the 1970

must read

1. mastering elliott wave-glenn neely.-even if one is not interested in elliott wave /neowave , for me it is the most important book i ve read on undeerstanding market behaviour.and in case one is interested in elliott wave, the bible. a fan for life.
2. candle stick charting- bigalow
3. candle stick charting-nison
4. candle stick charting-morris
candle stick charting along with 20 and 50 dema are such a powerful tool.not to be disregarded.
5. technical analysis- edward and magee: contains wealth of information on market behaviour and chart patterns ,one can simply trade on this book.
6. way of turtle- faith: just for the fact that it is disciplined trading that earns you money.
7. technical analysis of financial markets: murphy-- good overview of a lot of concepts
8. come into my trading room: elder
9. the logical trader : fisher-his concept of pivot, rolling pivot is worth a read.
10. books by dr brett- great writer and trading coach.even his blog is a must read.

i plan to do a comprehensive writeup of each book covering their highlights

trading nuggets

few nuggets i read today (i loved the last one) :
1.The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
2.The key to successful trading is knowing yourself and your stress point.
3.The difference between winners and losers isn’t so much native ability as it is discipline exercised in avoiding mistakes.
4.Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.
5.Standing aside is a position.
6. Lose your opinion – not your money.
7. When the ship starts to sink, don’t pray – jump!

change

change is necessary before it is necessary.