Friday, March 21, 2008

My Favorite Trading Setups and More (Q & A Part 3)

Since the market is closed today, I took some time to answer some more reader questions:

Thomas asks: What chart service do you use?

Market Speculator answers: I use Telechart. Every evening, I run my scans (breakout, pullback, etc) and flip through charts from my watchlists. Over the weekend, I analyze the best and worst performing sectors, then drill down to the individual stocks within those sectors.

Thomas asks: What are your typical plays--setups that you trade?

Market Speculator answers: I have a variety of setups that I use according to market conditions and time frames. There are too many to name here. For long term positions (an account I don't detail on this blog), I like to trade long term trend pullbacks and buffet-esque value plays. The few days a year I daytrade, I like to use pullbacks and breakouts combined with sentiment and breadth indicators.

The bulk of my trading comes from the swing trading setups. I trade many different setups. I dont' subscribe to the theory that you should have one methodolgy and follow it religiously. I believe you have to adapt to the market environment. Some of my favorite setups are: earnings breakout, breakout-pullback, trend-pullback, momentum breakdowns, distribution setups, bull and bear flags, bearish topping patterns and simple rangebound setups.

Thomas asks: What indicators do you follow closely?

Market Speculator answers: I don't focus a lot on indicators. I mainly look at price, volume patterns, and support and resistnace levels. However, I do like to look at OBV to help with volume pattern identification and strength. I also use stochastics.

Off topic questions:

Brian asks: You used to post heavily about the television shows you are watching. What are your current favorites?

Market Speculator: Yes, I don't post off topic as much as I used to.

I recently got hooked on the HBO series The Wire. Best cop show I have ever seen. What I love about it is its not black and white, good versus evil. At certain points in the series, I've felt more of a connection with the gangsters than cops and politicians. One of my all-time favs.

Lost is also one of my all-time faves. Love the blend of sci-fi, philosophy, human psychology, mystery and drama. The show keeps getting better.

I watch How I Met Your Mother simply for one character, Barney played perfectly by Neil Patrick Harris. The character is "legend-ary".

Okay, I have to admit, I watch American Idol. I don't know why.

The only other reality show I watch is The Ultimate Fighter. Some great fighters have come from that competition.

Other favorites that are either not out right now or I watch via DVD: Friday Night Lights, Curb Your Enthusiasm, Heroes, Smallville (out but I watch the DVD and Prison Break.

1 comment:

Adrian said...

Have you ever watched (or even heard of) ReGenesis? It's a Canadian show but playing on ShowTime so you might get it. It's not very well known, but like Lost & Heroes, its story lines span many episodes, it has some interesting characters and there's a certain romantic save-the-world idealism butting heads with realism. Good stuff.