Going long- QQQQ

Bought QQQ CO (March 41 Calls) for $0.70. RSI 5 is calling to go long the Q's. RSI -5 below 20.
Trader Tyler

Trading short the Q's

RSI 5 signaled a short on Thursday in the early part of the morning and although the market seemed to be going higher, it never did. since then the market has come back as RSI 5 predicted (short term of course). One more good move down and then it's time to close the profit.

Market moving up

The market moved up nicely today after a down day yesterday. I did not get in a trade as the RSI-5 did not signal a buy signal. It got really close at 28, but I wanted to see at least 26 to get in. Near the end of the day I did get a sell signal, but I also watch the ADX trend and currently it's showing a strong buy. I will stay out for now.
Trader Tyler

Closed for a profit

Q's continued moving up this morning and I closed out my option trade at $1.35. A nice 66% profit move.
Trader Tyler

Still in the Trade

Yesterday I went long QQQQ calls (Feb $40-QQQBN) and kept the position on overnight. My trading system is getting VERY close to indicating that I close the position. The RSI 5 topped above 70, and now I'm just looking for a crossing of the simple moving averages. The moving averages cross is a method used to squeeze a bit more out of the trade. But I'll be looking to end this ride at a moments notice.
Trader Tyler

Market's on the rise

It appears the market is in an oversold range and today we are getting a nice little upmove (except for ENG on my list which has slowly dropped from around $13 to now just under $11). The RSI -5 method triggered a long call buy signal yesterday. I bought the Feb. $40 calls for $0.90. My original stop was $0.80 but I've moved it up to $0.95 now. (QQQBN trading now at $1.05/$1.10).
Trader Tyler

ENG -

I've been trading ENG for several months now. Mostly on a buy and hold method. I got it around the low $2.00 range and rode it up to around $10 and then back down. I sold some around the $8 range and I've been getting in again at $6 and $7. It's now at $9.31 this morning and has been on a steady climb. This stock trades on lower volume and on the NYSE which makes me pause about putting in a protective stop. As for now....still holding.
Trader Tyler

Trading methods

I took several weeks off from constant trading for several reasons.

1. The market was killing me and I think it's best when getting chopped up to stand back and reassess what's going on.

2. The market during the holidays seems to be a bit to unpredictable to me. Maybe that's just me, but with a lot of people on vacation I decided to do the same.

3. I need to reconfigure my trading methods and basically calibrate my methods for risk control. I was too heavily leaverage on option contracts and the risk/reward was just too high.
Trader Tyler

2006 and up we go?

It's a new year and the market headed straight up. I think we will see some a positive economy this year, unless the Democrats muck it up with their tax and spend ways. However, being the optimist, I think that even their heavy handed politics can't subdue what we are going to see this year.
Trader Tyler

Fed Announces today

Today the Federal Reserve meets and is likely to announce a 1/4 raise in rates. This would be the 13th straight time the Fed will have raised rates. Of course now that the street is expecting a 1/4 point, the actual language that is used becomes the catalyst for the immediate market direction. The market was not interested in making a move prior to this announcement yesterday and today it appears to be on the same path. A path to nowhere.

Combining the Fed meeting with the fact that this week is options-ex, it would probably be a good thing to stay in cash for the short term. Therefore, I'm long the December QQQQ 42 puts! Trader Mike stays out of the market altogether during options-ex week. Here is a good description as to - Why I Avoid Options Expiration.

Good trading!

Success at last

I finally had a good trade. I bought the December 42 Puts for $0.50 and sold them for $0.75. I kept moving my stop order up as the put value increased and then got stopped out. Actually it appears the market center incorrectly filled my order as the stop should not have triggered, but as the put value dropped thereafter, I was okay with that.

This trade was fairly good for me on many levels. First, I followed the RSI (5) trading rules and secondly I was strict on using a stop to protect my position. For my last 4 trades I have put a stop on and all have been stopped out and only the last one for a gain. However, this is not a bad thing as it actually saved me money by not getting bigger losses on the 3 previously stop outs. Looking for another short now as I missed the last buy signal. The Q's are at $41.85 right now and RSI (5) is at 75. Looking for a 76 RSI value and then a cross of the price line with the SMA (2) to go short.

Confused Trader

It's been awhile since I've posted about the market and my trading. This is due to the fact that I have been in a funk with my trading as of late. It probably would have been better for me to post about this as it was happening, but instead I just didn't want to think about it.

I've been trying to following the Nocona RSI (5) system and seem to get the wrong end of the trades. Of course it still seems to be working, but I'm either stopped out or I jump in on the few drawdowns it incurrs. Great. Anyway, the market went up up up and I was short and then when I got out I just kept watching the market rise while not playing the long side. Currently, I'm trying to go short again with the Q's around 42. 42!!!!! are you kidding me! My biggest loss was just a while ago while I held the 42 calls...those would be worth a bundle right now. Oh well. Live and learn.

Confused Market

The last two days the market has had big days. Wednesday was a big move up and then Thursday was a big move back down. Yikes! Unfortunately I've been expecting a really big move down and am long Nov 38 Puts (QQQWL) and have missed out on playing the range. The RSI (5) system would have allowed me to really scalp some great returns, but I have backed away from that method shortly. Yesterday the Q's opened around $38.70 and then dropped to $38.24. As of right now (6:20 am PST) the Q pre-market trading is $38.50. Today will be interesting.

Tuesday Oct 18

The market has done the predicted bounce up over the last 3 trading days, but on light volume. This would seem to validate the indication that this is simply a bounce and not a bull move. I'm betting on it being a bounce before we head down, and head down quick. Also, the RSI(5) system triggered a short signal yesterday. I bought the Nov 38 Puts right when the Q's were trading around $38.05. The Q's meandered around the $38 level yesterday, reaching a low near $37.80 and then closed the day above $38 to $38.15.

This morning the pre-market showed a significant upmove as I saw QQQQ trading above $38.22 but in the last 30 mins they have settled closer to $38.07. I'm not sure what this says for the trading day ahead. But if the SPX can't break the 1200 mark, I see a down move coming sooner rather than later.

Closed out the Oct 39 Puts

Today the market rallied in my favor, which was basically a day of all red on my computer screen. The Q's dropped around $0.80 today to hit a low of $37.92 only to make a decent pop back up to close at $38.32...only $0.44 down. However, this move gave me some nice profits that I finally did cash in on. I sold my puts for $0.90 for a $0.45 gain overall. I tried to get out when the Q's were tanking and QQQVM was $1.15/$1.20 but as usual I waited to long and then lost another 20 cents or so. However, it's a good gain and as previously noted I was down big earlier this week. Nice comeback and perhaps a lesson learned. STOP OUT instead of hanging on.


Tomorrow should be interesting and I may just hang by the sidelines. Good trading!

401k a bad thing?

Mr. Robert Kiyosaki in his article "Work Hard, Earn Less?" puts forward some interesting thoughts on taxes and your 401k. Something I haven't thought about before, that is.

Mr. Kiyosaki points out the following:

Today, workers who save money and invest in a 401(k) plan are the highest taxed people in America. Now, I can hear some of you asking, "Isn't saving money and investing in a 401(k) having your money work for you?"No -- at least not according to the IRS. A worker's pay is taxed at the highest tax rate possible. So are your savings and income from your 401(k). In most cases, money goes into a 401(k) tax-deferred but comes out as highly taxed ordinary income.One of the reasons the rich are getting richer is because they have more control over our number one expense: Taxes.

The safety net the 401k provides is nice and the upfront tax break from contributions is also a plus. But it may not be the best bet in the long run.

Current trading position

Okay....I am totally breaking the mechanical trading method and am looking to recoup my losses. Therefore I didn't close my short positions (long Oct puts) and I didn't switch to going long as the RSI(5) method dictates. I am looking at a new method for entering a trade and will post on it shortly with a detailed chart. The Q's and the market went down fairly well yesterday with heavy volume.

This Man Has Studied Program Trading For 23 Years

Tradingmarkets.com has a great interview with Hank Camp of HL Camp and Company. Mr. Camp discusses arbitrage through program trading and his extensive studies of the market Since 1982. One particular note of interest is the breakdown of how the OEX options are manipulated during options expiriation. Manipulation may seem like a conspiracy type mindset, but once you read the breakdown it doesn't seem odd at all.

OUCH! Breakout and missed opportunities

The market finally decided to break out of the recent trading range and went up up up. Not good for my put position. The issue was the lame range the last week and not getting a confirmation to close to Put/short position. However, RSI(5) was VERY close to being below 30 on the hour and I did set a limit order to sell at $0.75 but didn't get a fill. Mostly I was expecting a bigger move down but we didn't get it. The Q's were around $38.45 yesterday and that's when I should have taken my profits and closed this dreadful short that just wouldn't materialize.

The RSI(5) system doesn't really afford the chance to let the profits "Run" so when I got the $0.20 to $0.25 profit I should have taken it. Currently Q's are up AGAIN today and currently around $39.36 and hitting a high of $39.45. Some are mentioning that this current run up is due to end of month and funds/institutions trying to prop up their value. Who knows.

Narrow Trading Range - Ready to Break?

The last few days the market and the Q's specifically have been in a narrow trading range and probably just setting up for a break out one way or the other. The question is which way. I don't see much upside potential...but maybe that's just because I'm currently sitting on puts. We will see soon I suspect.

The last two days the Q's have opened at $38.78 and $38.76 repsectively and closed at $38.67 both days also. That's a bit weird. Both days the RSI(5) hasn't closed an hourly bar below 30 or above 70 and therefore I've stayed put with my bearish inclination in the short term. Hopefully today we will have a good move. The futures are currently pointing down a bit and pre-market trading on the Q's is around $38.68.