Friday, September 07, 2007

A Not So Technical Trade

I know I'm not the only one annoyed by this market. It's not that we are in a trading range that's pissing me off, it's the non-sensical up and down days we are seeing.

Anyway, I'm not going to let my emotions get in the way. As we all can see, we're in an "up one day, down the next" envoroment. So today, I decided to buy the indexes on weakness.

I bought 300 shares of SSO (leveraged long S&P 500) at $87.49.

I bought 300 shares of DDM (leveraged long Dow) at $89.12.

I bought 200 shares of QLD (leveraged long Q) at $95.29.

I bought 200 shares of DBA (ag ETF) at $26.60.

These are not technical trades. In fact, the technicals don't look good for the long side. These are short term trades I expect to hold for a day or two based on the current market patterns I'm seeing. I am also using tight stops and small position sizes.


Anonymous said...

Were you still holding a position on TOL? The On Balance divergence is falling away, and were at the extended limits of a pivot point, price wise.

Also, would you be kind enough to tell us what your YTD return rate is so far? It would be nice to compare the returns for technical analysis versus any typical mutual fund.

Anonymous said...

Annoyed? Pissed off? Then you go ahead and you say you won't let the emotions get in way.

Judging by these non-technical trades, I would say you are trading on "tilt" here.

These are the worst trades I have seen you put up yet, totally against your strategy and many other sound trading principles.

While you may get lucky and these may turn out profitable for you, there is nothing more dangerous to a trader's account/career than starting to do impulsive, on-the-whim trades.

carmichael said...

Wow that was a lot of money to throw out there. I think you did more research than your post lets on or at least I hope so. In anycase your blog is one of 15 I check every 2 hours and just from what I recall from your recent trades you have done very well. Good luck.