12/31/07

I entered short on the open at 51.57 and the 15¢ trailing stop captured a 6¢ per share profit.  See above for the December monthly results.  Tonight the Trade Bias is S&P 0 Negative, so use these rules for entry and exit.

 

12/28/07

I entered Short on the open at 52.05 and the trailing stop was set at 51.80, for a 25 cent per share profit.  For the holiday shortened week, the annual return was 241%.  Tonight, the Trade Bias is 0 and the S&P 0 Rule applies, so use the Trade Bias 0 (zero) rules for entry and exit.

 

12/27/07

I entered short at 52.36 and the trailing stop captured 13 cents per share profit.  Tonight, the Trade Bias is Negative so use the Negative Bias Rules for entry and exit.

 

12/26/07

It was a break-even day on volume that was half of normal.  Tonight, the Trade Bias is POSITIVE so use the Positive Bias Rules for entry and exit.

 

12/24/07

I picked up 20 cents today.  Tonight the Trade Bias is 0, the S&P 0 Rule and the market was lower the last hour so I will be looking to SHORT the open.

 

12/21/07

The Q’s gapped open 81¢ higher and I never chase a market, so there was NO Position today.  For the week, two days were profitable, one that was breakeven and two with no positions.  The annual return was 308%.  Tonight, the Trade Bias is 0 and the S&P 0 Rule applies, so entry will be Long on Monday.  We have seen a huge rally the past couple of days and trading volume will be light Christmas eve.  I will be traveling on Monday, but I do not need to be near a phone… my orders will be in!

 

12/20/07

The Q’s gapped open 79¢ higher and I never chase a market, so there was NO Position today.  Tonight, the Trade Bias is Positive, so entry will be by the Trade Bias Positive Rules.

 

12/19/07

I bought the open this morning, but was stopped out about 15 minutes later at break-even.  Tonight, the Trade Bias is Positive, so entry will be by the Trade Bias Positive Rules.

 

12/18/07

Today the Q’s gapped higher by over 15¢ and the Trade Bias is Negative, so I sold the open.  My 15¢ trailing stop captured a 34¢ per share profit.  Tonight the Trade Bias is 0 (zero) and the four indicators that determine the trading direction, for the first time ever, are 50/50.  Since there was a strong close to the upside, I am going to buy the open, by the entry rules.

 

12/17/07

I sold on the open and the trailing stop took got me a 40¢ per share profit.  Volume was rather light early in the day, but pretty good later and I expect this to continue this week.  Tonight, the Trade Bias is Negative, so I will enter by the Trade Bias Negative Rules!

 

12/14/07

Today the Q’s gapped much lower and entry did not occur until the market recovered and got back to yesterdays close (by the entry rules).  I entered short at 51.50 and the trailing stop caused an exit at 51.30.  A 20¢ per share profit.  For the week the annual rate of return was a respectable 399%!  This was an extremely interesting week and has once again shown the validity of the Bias Indicators and the trading method!  Tonight, the Trade Bias is 0, which means the Market Bias Indicators do not agree.  The T2118, TRIN, VIX and Mortgage Index are NEGATIVE, so I will sell the open on Monday!

 

12/13/07

Today I went long at 51.33 on the open.  The Q’s rallied, but I used my 15¢ trailing stop and accepted a 15¢ per share profit very early in the day.  Trading was mostly lower the rest of the day.  Tonight the Trade Bias is NEGATIVE, so I will sell the open, by the rules!   

 

12/12/07

Today the Q’s opened 93¢ higher.  I wanted to buy the open, but a gap open this high causes me to PASS!  There was not a position today!  Tonight, the Trade Bias is Negative and the S&P 0 rule is in play.  I am going to BUY the open!

 

12/11/07

I entered on the open at 52.61.  I don’t like having a position going into a FOMC report, but the SHORT contra signal from yesterday’s market was about as strong as I’ve have ever seen.  I used a trailing stop and exited at 52.00, for a 61¢ per share profit.  It was a huge down day!  Tonight, the Trade Bias is Negative and the S&P 0 rule is in play.  I am going to BUY the open!

 

12/10/07

I entered on the open at 52.44.  There was little movement in the Q’s all day and exited at breakeven.  Tonight, everything is too Positive, so a contra SHORT position is called for on Tuesday.

 

12/7/07

I entered short on the open at 52.29 and the trailing stop caused an exit for an 11¢ per share profit.  For the week, the gain on an annual basis was a respectable 241%.  Tonight, everything is Positive, so a contra SHORT position is called for on Monday. 

 

12/6/07

I entered on the open at 51.63 and there was only a 2¢ profit before the market headed higher.  This small profit put the stop at 20¢ and I was stopped out for a 20¢ per share loss.  Unfortunately, a loss is part of the big picture of trading.  No real damage, other than a little to my ego.  Tonight, the Trade Bias is 0, which means all of the Market Bias Indicators do not agree.  Use the Trade Bias 0 Rule for entry and exit on Friday.

 

12/5/07

Today I entered on the open at 51.20 and accepted a 45¢ gain.  Tonight, the Trade Bias is Negative, so I will Short the open unless the gap lower is over 20¢.  The Mortgage Index is Positive, so there will not be a position if there is a gap lower of over 20¢.

 

12/4/07

Today the Q’s gapped lower by 42¢, so I did not have a position today.  Tonight, the S&P Bias is 0/33 which my research calls for a contra position.  Tomorrow I will BUY the Open and gaps will not matter.

 

12/3/07

I was filled on the open at 51.06 and used a trailing stop to capture a 22¢ per share profit.  Tonight, the Trade Bias is Negative.  The Mortgage Index is very Positive.  I will short the open unless the gap lower is over 20¢.

 

11/30/07

This was an unusual week!  Three days had large gaps higher and my Mortgage Index was Negative.  I do not take a position when this happens.  I only had positions two days this week, but the annual return was still a very respectable 220%.  Tonight, the Trade Bias is 0.  I will use the Trade Bias 0 rules to enter on Monday!

 

11/29/07

I entered at the open at 51.27 and took a 28¢ per share profit using a 15¢ trailing stop.  Tonight, the Trade Bias is POSITIVE as well as everything else except the Mortgage Index.  I will buy the open unless there is an upside gap of 25¢ or more.

 

11/28/07

Today the Q’s gapped 67¢ higher and never looked back.  I don’t chase a market so there was not a position again today.  I hate markets like today and yesterday.  Each had large gaps higher and continued to go higher, with very little entrancement.  This is not good for my conservative style of trading and I am not going to change what I do because of the past couple of days.  The bad news is I didn’t have any positions, so I didn’t make any money; the good news is that I didn’t lose any money either.  My Bias Indicators were right on, but the risk was way too high to enter the market!  Tonight, the Trade Bias is POSITIVE as well as everything else except the Mortgage Index.  I will buy the open unless there is an upside gap.

 

11/27/07

Today the Q’s gapped 42¢ higher and never looked back.  I don’t chase a market so there was not a position today.  Tonight, the Trade Bias is Positive so I will BUY the Open unless it gaps up by over 25¢.  The Mortgage Index is Negative.

 

11/26/07

Today I was filled at 49.97 and used a trailing stop to capture a 25¢ per share profit.  After that, the market traded mostly sideways, but had a huge sell-off into the close.  Tonight after a 237 point decline in the DOW, I would have expected a NEGATIVE signal, but the Trade Bias is Positive by a good margin and calls for a BUY on the Open.  I will buy the open unless it gaps by over 25¢.

 

11/23/07

The Q’s opened 35¢ higher, which is too large of a gap for entry.  The Mortgage Index is negative so it was a pass for the trading day.  This was a holiday shortened week, but the annual return was still a respectable 199%!  The Trade Bias is Positive tonight so I will BUY the Open, of course by the rules.

 

11/21/07

The Q’s opened 45¢ lower, which is too large of a gap for entry.  The Mortgage Index is negative so I waited for the market to come back to the prior day’s close to enter the position.  I got filled at 49.90 and the profit was 50¢ per share.  The Q’s have had a 10% correction this month and the August lows were taken out.  This is not good for the bulls, but it occurred on very light holiday volume. Tonight, all Bias indicators are negative, T5118, TRIN and VIX are negative and the Mortgage Index is negative.  My research and rules call for a contra position, so I will buy on the open on Friday.

 

11/20/07

Today was a very wild trading day!  From high to low there was a 185 point swing in the Q’s.  I entered short on the open at 49.95 and accepted a 20¢ per share loss shortly thereafter.  The Bias indicators were correct, but I will not risk 75¢ to see what will develop.  I place the stop and this time I took a small loss.  My trading is unemotional, so it either works or it doesn’t.  Today it didn’t, but there is another day tomorrow and I’m ready!  Tonight, the Trade Bias is Negative so I will short the Q’s on the OPEN.

 

11/19/07

I entered Long at the open and took a quick 18¢ per share early in the trading day.  Good thing because the market took a dump after that.  Tonight the Trade Bias is NEGATIVE and I will short the open if it does not gap down over 20¢!  The Mortgage Index is Positive so if the gap is over 20¢ lower, there will be no position.

 

11/16/07

I entered shortly after the open when the Q’s pulled back to yesterday’s close of 49.82.  They rallied 28¢, but there was not any carry through so I exited at breakeven.  For the week, I was right on target with a 307% annual return.  Tonight, the S&P 0 Rule (0/41) is the position.  The Mortgage Index is Long so the entry will be LONG on the OPEN, regardless of gap or gap direction.

 

11/15/07

I entered at 50.00 on the open.  There was a rally to 50.39 and used the 10¢ trailing stop to capture a 29¢ per share profit early in the trading day.  Tonight, the Trade Bias is Positive so I will get Long on the Open.

 

11/14/07

Once again the Q’s gapped 65¢ higher this morning and I never chase a market.  I always wait for the market to come back towards the prior days close and the Mortgage Index to agree with the position.  Today the Mortgage Index is calling for a Long Position, so I waited to enter at yesterday’s closing price.  I was filled at 50.75 and my 15¢ trailing stop exited the position at 51.00, for a 25¢ per share profit.  Tonight, the S&P 0 Rule (41/0) is the position.  The Mortgage Index is Long so the entry will be LONG on the OPEN, regardless of gap or gap direction.

 

11/13/07

The Q’s gapped 73¢ higher this morning.  I never chase a market.  I always wait for the market to come back towards the prior days close and the Mortgage Index to agree with the position.  My Bias indicators are calling for a Long and the Mortgage Index is showing a Short.  Given this contradiction, there is NO position today.  Tonight, the Trade Bias is POSITIVE so I will BUY the OPEN, by the rules.

 

11/12/07

The Q’s were a wild ride today.  I went short on the open and pick up 20¢ per share very early in the trading day.  Not pretty but a profit!  After the exit, the Q’s got to 49.93, but at the close was 1.20 lower than the open.  A very nice profit was missed, but the risk was way too high to trade.  A small profit with a small risk was the way to trade today.  Tonight the Trade Bias is POSITIVE so the open will be bought.

 

11/9/07

The Q’s had a large gap lower on the open so the 0 Rule calls for a long position.  This did not work today and I accepted a 25¢ per share loss.  I had a pretty good week as my return was 337% on an annual basis.  The markets on the other hand saw a steep decline and there would be considerable pain if you held a long position!  Some are saying that this is just a correction and others are saying that this is just a start with lots more declines coming.  It’s anybody guess and is one of the many reasons that it is wise to be a short term trader.  Tonight, the Trade Bias is 0 so I will buy or sell depending upon the OPEN (follow the rules).

 

11/8/07

I bought at 53.14 on the open and the price went to 53.33 before it fell.  I NEVER LET A PROFIT BECOME A LOSS, so I exited at breakeven.  The market is oversold, but can get much more oversold before it turns higher.  Today is such an example as the Q’s closed 173 points lower!  Regardless, I don’t fight the tape!  When the market does not perform as my bias indicators indicated, I want and get out of the market, ASAP!  Tonight, the Trade Bias is 0 so I will buy or sell depending upon the OPEN (follow the rules).

 

11/7/07

I bought on the open at 54.22 and took profits at 54.43, which is a 15¢ per share pull back from the high.  This happened within the first 45 minutes of the trading day.  The profit was 21¢ per share for the day.  All of the markets were considerably lower at the close.  Tonight, the Trade Bias is POSITIVE so I will BUY on the OPEN, by the rules.

 

11/6/07

The Q’s opened sharply higher this morning, so by the rules I entered with the direction that the Mortgage Index indicated.  I got short at 54.34 and exited at 53.88, for a 46¢ per share profit.  Tonight, the Trade Bias is POSITIVE so the open will be bought.

 

11/5/07

The Q’s opened sharply lower this morning.  My indicators and research called for a Long position, so I bought at 53.86 on the OPEN.  I took a 39¢ per share profit about 90 minutes into the trading session.  Tonight, All Bias, T2118, TRIN, VIX and the Mortgage Index are NEGATIVE.  When this occurs the entry is contra to the signals, so I will BUY the OPEN.  Read the rules for this trade, as a large gap changes the trade!

 

11/2/07

I went short at 54.42 on the open.  About 9:05 I took a 61¢ per share profit.  This week was interesting as it looked as if it wasn’t going to meet my long term averages.  Three days were exited at breakeven and on Wednesday there was only a 17¢ profit.  For the week, the return was 324% on an annual basis, which is very consistent with the long term results.  Tonight, All Bias, T2118, TRIN, VIX and the Mortgage Index are NEGATIVE.  When this occurs the entry is contra to the signals, so I will BUY the OPEN.  Read the rules for this trade, as a large gap changes the trade!

 

11/1/07

I entered Long at 54.68 at the open.  Shortly later when there was no follow through and I exited at breakeven.  Tonight, the Trade Bias is NEDATIVE so I will sell on the Open by the rules.

 

10/31/07

I entered at 54.47 long on the open.  I do not like to have a position during a FOC announcement so I exited about 11:30 at 54.64 for a 17¢ per share profit.  FOC lowered interest rates by .25% and fueled the market to a much higher close.  It is a 50/50 call on what the Fed might do, so it is best just to watch as the risk is way too high!  Tonight, the Trade Bias is POSITIVE so I will BUY the open.  Watch gaps over 25¢ higher and wait to buy (see rules).

 

10/30/07

I entered Long at 53.94 on the open.  There was about a 20¢ per share profit, but it did not continue.  The exit was at breakeven.  I was correct the market during the day, but when there is not follow through, I NEVER let a profit become a loss.  Tonight, Trade Bias is Positive so it is a BUY on the OPEN, by the rules. 

 

10/29/07

I entered LONG at 54.19 on the open.  I got a dime profit, but there was no follow through so the exit was at breakeven for no profit or no loss on the day.  Tonight, My Favorites is a draw at 1/1, but the Trade Bias is POSITIVE so the Open will be bought.  Watch gaps to buy on the open!

 

10/26/07

I picked up 47¢ per share before the market headed higher.  For the week it was a whopping 728%

Annual return!  Tonight the Trade Bias is POSITIVE so I will BUY the OPEN unless it gaps open 25¢ or more.  Mortgage Index is NEGATIVE so if there is a large gap higher, I will sit the day out.

 

10/25/07

So far this week, I had a great day on Monday, but my signals on Tuesday and Wednesday were wrong!  For all of the days money management was the difference between success and failure.  Even though my signals called for a wrong position on Tuesday and Wednesday my money management tools kept the losses to 0 (zero).  Understanding my basic money management strategy is the secret to successful trading and investing!  Today I picked up 48¢ per share, with a textbook trade and was out around 9 AM.  Tonight, the S&P 0 rule is 45/0, which means I will sell the open tomorrow.

 

10/24/07

It was a wild day!  The market gapped lower which should have been a good long entry point.  I entered long on the open at 53.75.  I had a profit of 19¢ per share and it eroded away.  The market did not get to a level where a trailing stop would be placed, so the trade was exited at breakeven about 9:05 AM when there was no follow through to the upside.  At one point the Q’s were down about 150 points, but closed a little higher than the open, but lower on the day.  Tonight, the S&P 0 rule applies.  Sell the OPEN. 

 

10/23/07

I sold on the open at 53.61 and was stopped out 15 minutes later at 53.61 for a breakeven trade.  Tonight, the Trade Bias is POSITIVE so I will buy the open.  After hours the market was sharply lower on earnings news, so this should be a good entry point.

 

10/22/07

I bought on the open at 52.15.  There was light volume and took a profit of 79¢ per share at 52.94.  Tonight the Trade Bias is 0, so I am copying the rule so there is no mistake. It is as follows:

If Trading Bias is 0 and the Q’s gap higher by over 15¢ --- SELL the open, but if the Q’s gap lower by over 15¢ --- BUY the open!  If the gap is 15¢ or less higher --- BUY the open, but if the gap is 15¢ or less lower --- SELL the open.  A 20¢ stop loss is used if the position is not profitable and also use the volume stops below.  If profitable, with good volume, use a profit goal of 35¢ to 40¢, with a 10¢ trailing stop to capture the profit.

 

 

10/19/07

This was a highly unusual straight down day, with good volume and very little buying.  From the get-go the market moved lower and the DOW closed 367 points lower.  I got long on the open and it when lower right away.  My rules call for a 20¢ stop loss when this occurs.  I took a 20¢ loss and watched.  This was a terrible day and is why stops are used.  When the market does not move in the expected direction, get the hell out!  For the week I was up 57¢ per share, which on an annual basis was 237%.  This is off the average, but the past two days have not been normal trading days.  Tonight, my indicators look the same tonight as they did last night and the Trade Bias is POSITIVE again.  I will BUY the OPEN on Monday.

 

10/18/07

I got long at 53.33 and exited at 53.33 a half hour later.  It was a breakeven day.  Tonight, the Trade Bias is POSITIVE so I will BUY the OPEN.

 

10/17/07

The Q’s gapped higher by over 70¢ per share on the open.  While the contra signals would like to be long today, I never chase a market.  I want to buy this closer to yesterdays close, but this gap is too large to buy.  When a gap of this size occurs, the entry position is in the direction of the Bias Indicators and the Mortgage Index.  I went short on this huge gap open higher at 53.63.  The 15¢ trailing stop was used to capture a 13¢ per share profit.  There was much more profit later, but the trading and money management plan are always followed.  13¢ is still $520.00, which is OK.  Also this is the third day in a row that has been profitable.  Tonight, everything is NEGATIVE, just like last night, so Long unless a big gap higher.

 

10/16/07

I entered long at 52.79 on the open and was stopped out with a trailing stop at 52.93 by 10:15AM.  This was a 14¢ per share profit.  Before noon some strength came in, but a $500+ daily profit is not bad.  The close was 52.87 after considerable up and down movement all day.  Tonight, all of the Market Bias Indicators are NEGATIVE; T2118, TRIN and VIX are NEGATIVE; and the Mortgage Index is NEGATIVE.  With these NEGATIVE, this makes the Trade Bias POSITIVE as a contra trade so I will BUY on the open tomorrow, by the rules.  Large gaps up will call for a SHORT.

 

10/15/07

I entered short on the open at 53.61.  Exited about at 10:30 at 53.11 after there was a 60¢ per share profit with a 10¢ trailing stop.  This was a 50¢ per share profit.  Tonight, all of the Market Bias Indicators are NEGATIVE, which makes the Trade Bias POSITIVE as a contra trade; T2118, TRIN and VIX are NEGATIVE; and the Mortgage Index is NEGATIVE.  With these NEGATIVE I will BUY on the open tomorrow, by the rules.

 

10/12/07

I entered short at 52.90 this morning.  The market continued higher and I exited at 53.25 for a 35¢ loss.  This was not a good week considering there were three unprofitable days, one breakeven day and only one day of profits.  While this doesn’t seem very good, for the week there was still a 312% gain on an annual basis.  This is a little less than what it has been, but still pretty good!  Tonight, the Trade Bias is NEGATIVE so I will SELL the open.

 

10/11/07

I entered SHORT at 53.79 and the Q’s had a rally to 53.94.  About 2 PM there was a sell-off!  I ended up taking profits at 52.75 for a gain of 1.04 per share.  EXCELLENT DAY!  Tonight, the Trade Bias is NEGATIVE so I will SELL the open, by the rules of course.

 

10/10/07

I entered Long on the open.  The market traded on both sides of this entry point the first couple of hours.  As there was no clear direction the breakeven stop was used.  I exited with a 2¢ loss.  The market picked up some strength into the close so I would have made a little, but that is hindsight.  Tonight, the Trade Bias is NEGATIVE so I will SELL the market on the open.

 

10/09

Today I picked up 8¢ per share.  It was a very low volume day.  Tonight, the Trade Bias is 0 so the Trade Bias 0 Rule will be used once again.

 

10/08

Today was a breakeven day.  The Q’s opened a penny lower so I sold at 52.80.  They went to 52.99 and then there was a 9¢ profit.  This didn’t continue lower or hold and the market was exited at the entry price.  It was a see-saw day and when there is no follow through it is best to be out of the market.  Tonight, Trade Bias is 0 so the Trade Bias 0 Rule will be used.

 

10/05

Today was a breakeven day.  The Q’s gapped higher so I sold on the open.  I had about 11¢ per share profit, but it quickly eroded.  NEVER LET A PROFIT BECOME A LOSS!  It was a good trading week as I picked up about $3,800 on my $50,000 investment.  Tonight, the Trade Bias is 0 and the Trade Bias 0 entry and exit rules are to be used on Monday.

 

10/04

I picked up 26¢ on the contra move today.  In all frankness, I just about miss this position call last night when I was doing my update.  Everything was POSITIVE, so my rules call for a contra position.  I know this well, but it didn’t register right away.  It is rather rare for all indicators to be one direction, but I caught it and was able to pick up a profit.  Tonight, Trade Bias is NEGATIVE!  The Jobs report is out 1 hour prior to the open.  Expected is +100K.  With Trade Bias NEGATIVE I will want to get SHORT the Q’s.  If this number is much higher or much lower expect a huge gap one way or the other.  Large gap higher SELL.  On a Large gap lower, WAIT until the price gets within 5 or 6¢ from today’s close to SELL!

 

10/03

There was a small 14¢ per share loss today even though there was a 20¢ profit early in the day.  My breakeven stop didn’t get placed in time and filled and I do not use a trailing stop until a profit target is reached.  Today this didn’t work, so there was a small loss!  Tonight, Trade Bias is POSITIVE, the Mortgage Index is POSITIVE so is T2118, TRIN and VIX so I will SELL the OPEN.

 

10/02

I picked up 22¢ per share today on the contra trend position (see yesterday and the trading rules).  Tonight, the Trade Bias is POSITIVE, so I will BUY the OPEN, by the rules!

 

10/1/07

I got filled at 51.45 this morning and used the trailing stop to exit at 52.06.  I picked up 61¢ in what I consider a “textbook trade”.  The day and month have started out very well!  Tonight, everything including Trade Bias is POSITIVE.  Research has shown that when this occurs the market is overdone and is going to head the other way, so I will SELL the OPEN tomorrow morning.

 

09/28/07

Volume was below the average again today.  I took a 14¢ per share profit about 11:30 AM.  Please read the September 2007 results that are posted above.  I’ve had better months, but this was still a very profitable month and is in-line with my averages.  Tonight, the Trade Bias is POSITIVE, so I will BUY the OPEN, of course by the rules.

 

09/27/07

Volume was very light today.  This low volume caused a 10¢ trailing stop and the market was exited about 10 AM with a 16¢ per share profit.  Tonight, one of the Bias Groups does not agree, so the Trade Bias 0 Rule will be used tomorrow.  I am copying the rule so there is no mistake. It is as follows:

If Trading Bias is 0 and the Q’s gap higher by over 15¢ --- SELL the open, but if the Q’s gap lower by over 15¢ --- BUY the open!  If the gap is 15¢ or less higher --- BUY the open, but if the gap is 15¢ or less lower --- SELL the open.  A 20¢ stop loss is used if the position is not profitable and also use the volume stops below.  If profitable, with good volume, use a profit goal of 35¢ to 40¢, with a 10¢ trailing stop to capture the profit.

 

09/26/07

Today was a so, so market.  I never got enough profit to set a trailing stop and never got a move enough to be stopped out with a small loss.  I ended up with a small 13¢ gain.  Tonight, the Trade Bias is NEGATIVE and I will SHORT the open.

 

09/25/07

Today I picked up 32¢ per share by following the time tested rules for entry and exit.  Tonight the S&P Bias is 0/38, so the S&P 0 Rule applies.  This is like a broken record, but read the Bias rules for entry and exit instructions.

 

09/24/07

The Q’s gapped up 13¢ on the open.  I was filled at 50.49 and within the hour I picked up 37¢ a share.  Tonight, I have a 0/62 for the S&P Bias and the Mortgage Index is POSITIVE.  The Trade Bias is 0 so I will enter on Monday, by the Trade Bias 0 Rule (see Bias Trade Rules).  

 

09/21/07

I picked up 36¢ per share today.  For the week the gain was 71¢, which was an annual return of 295%!  This Week wasn’t as good as I had hoped, but the annual return was still exceptional!  Tonight, the S&P Bias is 0/23, so I want to trade the direction of the Mortgage Index, which is POSITIVE.  The Trade Bias is 0 so I will enter on Monday, by the Trade Bias 0 Rule (see Bias Trade Rules).

 

09/20/07

The Q’s gapped lower on the open so I entered Long at 50.06.  The highest that it got was 50.26. which is not the minimum (35¢) to trigger a trailing stop.  Volume was above the average.  Using the established rules, I exited about 75 minutes prior to the close.  I picked up a small 6¢ profit.  Yesterday I said my gut said lower today.  This position would have lost money today and is why I ALWAYS trade the Bias.  Tonight, Trade Bias is POSITIVE, so I will BUY on the OPEN, by the rules!  

 

09/19/07

The Q’s gapped higher by 25¢ and got filled at 50.10 about 10 AM.  Our trailing stop was hit at 50.44, so I picked up 34¢ per share (4,000 shares = $1,360).  The Fed move yesterday is positive for the market, but markets will always go up and down.  Tonight, Trade Bias is POSITIVE.  The S&P Bias is 10/0 so the contra rule does not apply.  BUY by the rules tomorrow.  I am NOT going to buy any gap higher, but will if it gaps lower.  My gut tells me to expect a lower market tomorrow, but I trade the Bias!

 

09/18/07

The market was poised to open lower, but a couple of earnings reports Ire much better than expected and the Q’s gapped 30¢ higher.  By the rules, I waited for 30 minutes to go Long and Ire filled at 48.90.  Volume was above the average and the Mortgage Index was POSITIVE.  I picked up a small 15¢ per share profit, following the trading rules!  I have been doing this a long time and the only time I have serious market concerns is when the FOMC is going to announce the new rates.  There is just too much risk to be in the market when this is happening, so I am glad the long standing rules got me to the sidelines.  This time they surprised almost everyone and have almost for certain put the recession fears on hold.  The huge upside move today will more than likely retreat some, but what was done was needed.  Tonight, the Trade Bias is POSITIVE, so BUY the open, by the rules! 

 

09/17/07

Volume was extremely light today.  Due to light volume, the stops are narrowed and I had a small loss.  Tomorrow is Fed Day, so volume will be light until after the announcement.  Tonight, Trade Bias is POSITIVE.  I will BUY the open, by the rules.

 

09/14/07

Today was a 38¢ profit day!  For the Week, there Ire three winners and two losers.  Based upon an investment of $50,000, the profit for the Week was $3,720!  This is a little less than normal, but still a pretty good Week.  This is still over a 350% annual return!  Tonight, Trade Bias is POSITIVE so I will BUY the open on Monday. 

 

09/13/07

I picked up 24¢ today.  Tonight, the S&P 0 rule happen, which makes Trade Bias 0.  I am copying the rule so there is no mistake. It is as follows:

If Trading Bias is 0 and the Q’s gap higher by over 15¢ --- SELL the open, but if the Q’s gap lower by over 15¢ --- BUY the open!  If the gap is 15¢ or less higher --- BUY the open, but if the gap is 15¢ or less lower --- SELL the open.  A 20¢ stop loss is used if the position is not profitable and also use the volume stops below.  If profitable, with good volume, use a profit goal of 35¢ to 40¢, with a 10¢ trailing stop to capture the profit.

 

09/12/07

Our 20¢ stop loss was hit, so I must accept a small loss and move on.  Let’s see, almost $80 oil, a credit crunch, sub-prime losses, housing and mortgages in turmoil and the Bias indicators are all pointing to a lower market.  Ill, it doesn’t matter!  The market does what it wants!  Volume has been above average the past two days as Ill.  When the market does NOT behave the way common sense says it should, it is time to limit the loss, because the market always applies common sense in the long term!      Tonight, the Trade Bias is POSITIVE, so I will BUY the OPEN (by the rules) tomorrow.

 

09/11/07

I got a gap higher and sold.  The Q’s moved higher and hit our 20¢ stop loss.  Tonight, the Trade Bias is NEGATIVE, so I will SELL on the OPEN, by the rules.

 

09/10/07

The Q’s gapped higher on the open, so I SOLD the OPEN and picked up 71¢.  Tonight, the S&P 0 Rule makes Trade Bias POSITIVE.  I will BUY if the Q’s gap lower on the open or SELL if the Q’s gap higher on the open. 

 

09/07/07

The Q’s gapped 61¢ lower on the open today.  I do not chase the market and anything over a 20¢ gap lower is a pass until I can enter at or about yesterdays close.  The reason is that ALL of my research has shown that the risk is too high for a profitable trade, when selling gap lower openings over 20¢.  Today it would have been OK, but a 250 point move in the DOW is highly unusual.  To keep things in perspective, there were “no positions” on Wednesday and Thursday, today no position due to the huge gap lower and only a position on Tuesday of this holiday shortened Week.  I was out of the market a lot this Week, but on an annual basis, the return was still over 200%!  I don’t know of anywhere that this yield is available, with very low risk!  Tonight, the S&P 0 Rule makes Trade Bias POSITIVE.  I will BUY if the Q’s gap open lower or SELL if the Q’s gap open higher.

 

09/06/07

I picked up 31¢ today.  Tonight, the Trade Bias is NEGATIVE so I will SHORT on the open, by the rules of course!

 

09/05/07

I had a small loss of 20¢ today.  Tonight, the Market Bias indicators DO NOT agree so I will BUY if the Q’s gap open lower or SELL if the Q’s gap open higher.

 

09/04/07

Volume was light once again, but I got a positive run today and took 57¢ per share profit.  Once the profit gets to 60¢ per share a 10¢ trailing stop was used to capture the profit, but this trailing stop will still let profits run, if the move continues.  This trailing stop does take a good profit before it erodes.   I could have gotten more profit by the close, but ALWAYS TAKE A GOOD PROFIT WHEN IT IS THERE!  Tonight, 2 of the Market Bias indicators have a 0 in the negative column, but the Trade Bias is POSITIVE so I will BUY the OPEN tomorrow!

 

08/31/07

Please view the above August 2007 Results and Comments.  It was a GOOD month!  Today volume was below the average in the first hour so the stops are narrowed and a 15 cent profit was earned by 10:30.   It appears that the politicians aren’t going to let the credit issues derail our economy and the market rallied to the resistance and sold off a little into the close.  I’m not going to try to predict where the market is headed next month, but the Market Bias Indicators will keep us on the right track!  Tonight, everything including Trade Bias is POSITIVE, so I will BUY the OPEN on Tuesday (by the rules). 

 

08/30/07

Good volume returned today!  I took a 77 cent profit about 10:30 and relaxed the rest of the day!  Tonight, the Trade Bias is NEGATIVE, so SHORT on the open, by the rules.  Monthly report tomorrow night’s update.

 

08/29/07

A huge up day!  I love volatility and hate low volume.  The last two days I have had both and I can’t remember when I have had two loosing days in a row.  I’m sure it has been several years, because I don’t forget things like that!  Light volume distorts the accuracy of the bias indicators!  Wild swings occur on light volume, because there just aren’t enough players in the market.  Around holidays is when this usually occurs.   Markets like today and yesterday had some of the lightest volume I’ve seen.  Tonight, all bias indicators are NEGATIVE and the S&P 0 rule is in play.  I will BUY the OPEN (by the rules of course).

 

08/28/07

A huge down day!  The Q’s Ire at there 50 day moving average and the S&P 0 rule caused a LONG.  I Ire stopped out rather soon, even if the market opened 26 points lower.  I always use a 20 cent stop on the S&P 0 rule and that’s what happened.  Just as the market was ready to open, it was announced that State Street (one of the very best financial companies) faced a $22 Billion exposure to asset backed commercial paper.  In the sub-prime worry world, this is very bad news as it shows the credit crunch is spreading.  About 2 PM the FOC minutes Ire released that showed the Fed didn’t talk about lowering rates, which caused a bigger decline.  Declines of this nature usually have more to go!  Tonight, the Trade Bias is NEGATIVE, so SHORT on the open (by the rules).  No positions of a gap lower of 20 cents or more.  There may be a relief rally from this huge decline, but it is no time to be Long! 

 

08/27/07

I picked up 18 cents a share today.  No real movement one way or the other.  Tonight, all Bias indicators are NEGATIVE and the S&P is 0/25, which is overdone to the downside.  The S&P 0 (zero) rule calls for a LONG on the open (by the rules).  The last time this rule was a wash, but the 5 prior times it made good money.  I have to go with the rule and BUY on the OPEN!

 

08/24/07

Last Week was one of the highest profit Weeks I’ve ever had and this Week was the biggest nothing Week I’ve ever had; I was out of the market for 4 days and stopped out at breakeven the other.  Some say I should have been long, but my Market Bias indicators told me that it was way too risky.  Hind sight is always 20/20, but it was too risky to be long for my conservative investing!  I would feel better about the upside, if I had a test of the recent lows, which almost always happens, but everyone is expecting this, so it probably won’t happen this time.  Most people that I talked with in the past 10 days are sure a recession is right around the corner.  I trade what the Market Bias indicators and what the markets are telling, so I don’t really care if there is one or not for my trading and investing.  I do have an opinion, so here it is:  I have felt that there was a very high likelihood that things would get tough, but I are in the third year of the Presidential Cycle (read this old article on it) and it is highly unlikely that a recession will occur this or next year until after the election.  A recession means financial pain for the voters, which means the Republicans will be thrown out of office.  They (really both Parties) don’t want this and will do whatever it takes to stay in control.  They still may lose in the end, but they are not going to let the tax base go down very far or voters being financially upset prior to the election.  Most people still vote their pocketbook!  This is most likely just a correction!  Markets are going to go up and go down!  They will be very volatile markets for the near future and when it is all said and done, most likely won’t be much different than they are right now.  I am looking forward to this and see major profits coming.  Enough Said!

 

Tonight, the Trade Bias is NEGATIVE so SHORT on the OPEN (by the rules).      

 

08/23/07

A nothing day!  Tonight, My Favorite Bias is 1/0 and all the rest are negative.  When this occurs I look at the T2118, TRIN and VIX indicators and they are 2/1 on the Positive side.  Therefore, I will have NO POSITION for tomorrow.

 

08/22/07

Our SHORT position was filled on a higher open this morning.  The market didn’t do much for a couple of hours and sold-off.  I had a little over a 10¢ profit and when it didn’t hold, I exited at breakeven.  The S&P 0 rule is contra-trend trading and my research has shown it to be extremely accurate.  This time it was a wash.  As you Ill know, I’ve been doing this for some time and there is almost ALWAYS a test of the lows when there is a sharp sell-off like last Week.  It is very unusual to have such a sharp V bottom and then head up, up and away.  I don’t factor this into my trading, but it is something to remember.  Tonight, the Bias indicators are 3 long and 2 short, so the Trade Bias is MIXED and there are NO Positions on Thursday.

 

08/21/07

I spent lots of time today trying to understand why all of the Market Bias Indicators did not show any TRUES in the NEGATIVE column last night.  After lots of work I discovered that my data was corrupt (NOT A GOOD THING).  My laptop shoId that it was correct to “Have No Positions”.  Tonight, the S&P 0 Rule is in place, so I will SHORT on the OPEN (By the Rules).

 

08/20/07

The market did little today, so I didn’t miss anything!  I have been doing this a long time and tonight all of the market bias indicators have 0 in the NEGATIVE column.  I have never seen that before!  All NEGATIVE and not one True anywhere.  Sit this out is probably the best move for tomorrow.  When something like this occurs, it is not safe to be in the market.

 

08/17/07

I got a big upside move on the open so the trade was entered.  (See yesterday) Another very profitable day!  49 cents per share profit!  For the Week, I had good profits everyday of the Week.  On a $50,000 member share, the net was a little over $9,000 for the Week.  I’m not going to calculate the return, but for the Week it was better than the annual return for many of the so called experts!  The Trade Bias is the secret as when it is Positive, I get Long and when it is Negative, I get Short!  Simple and Easy!!!!  Tonight, the TRADE BIAS is MIXED, so I will have NO POSITIONS on Monday.  “My Favorites” are 0/1, which makes them slightly negative, but this is so close, the Mortgage Index is POSITIVE (it is now posting in the “Files” Section) and the T2118, TRIN and VIX indicators are mixed!  All in all no position is warranted!

 

08/16/07

What a day!  The DOW moved 150 points every 15 minutes.  At one time it was down 340 points and ended up closing just a little lower.  I Ire not filled on the open because the Q’s gapped lower by 39 points (please understand the rules), but within a half hour I Ire filled at yesterdays close.  I picked up .60 per share, so it was a very profitable day.  From my technical background, I may have seen the worse of this sell-off, but there are usually several tests of the lows and the markets are off 10% already.  The market is very oversold so I can expect some up days and probably more down days.  Trading Bias will tell us when this will be!  Tonight, the Trading Bias is NEGATIVE so I will SHORT on a higher open.  (Personal Comment: I expect an upside pop in the morning.  BE CAREFUL!  I have had an extremely profitable Week so caution is advised)   I will be traveling Friday to Sunday, so this will not be updated until late Sunday night.

 

08/15/07

Volatility returned in a big way today!  I picked up 39 cents per share, so it was a pretty good day.  Tonight, everything is NEGATIVE across the board, so I will short (by the rules) on the open.

 

08/14/07

What a great day!  I picked up 60 cents!  Tonight, the Trade Bias is NEGATIVE, so I will short the market (by the rules) on the open.

 

08/13/07

I had a 5 cent loss a share gain today going against the trend.  Tonight all bias indicators are NEGATIVE, so I will SHORT the market on the open, by the rules.

 

08/10/07

I don’t want to appear as a broken record, but it was another volatile day.  In fact, there have been triple digit moves 11 days of the past 15 trading days… HIGHLY UNUSUAL!  This morning the Q’s open over 50 points lower, Int another 40 points lower, a short time later was 12 points higher than yesterdays close, a little later was down 50 points, worked its way up some and closed 43 points lower.  What a ride!  This kind of movement is way too much for any conservative investor, including me!  This past Week has been very unusual for me as the Trading Bias called for “NO POSITIONS” 3 days!  This was very good!  I like to be in the market, but the risk was way too high for conservative investing.  It was, hoIver, a pretty good Week, considering all the volatility, as I had two very profitable trades and no losses.  Tonight, the Trade Bias is POSITIVE, due to the 0 S&P Rule.  I will buy the open (see entry rules).

 

08/09/07

One more VERY VOLATILE DAY!!!  I got filled at a much lower opening and rode it up and took a 68 cent per share profit, which was a very nice profit (On my 4,000 shares it was $2,720).  The market then crashed to close 380 some points lower!  Tonight the Bias indicators are very mixed, so there will be no positions tomorrow.  I expect a reaction up sometime tomorrow, but it is too risky to trade.

 

08/08/07

Another very volatile day!  A little money could have been made either long or short, but the risks Ire very, very HIGH and money could have been lost with either position.  The bias indicators kept us out of all that nonsense!  Tonight, the Trading Bias is POSITIVE, so I will enter Long on the OPEN (by the rules).

 

08/07/07

Another volatile day.  I watched today and will tomorrow, as the bias indicators do not signal a position.

 

08/06/07

A VERY volatile day!  I Ire able to get a small 19 cent gain before the market made a major upside move the last couple of hours.  Be sure you read and understand the Short Term Bias Trading Rules.  This is located here.  Tonight, the bias indicators are mixed, so there are no positions tomorrow. 

 

08/03/07

Got a 30 cent profit early in the day and watched a mostly sideways day until the last hour when a huge sell-off happen.  On Monday, BUY the open.  All Bias indicators are positive tonight!

 

08/02/07

I Ire stopped out early today for a small loss.  Tonight the S&P Bias is 40/0, so by my research the Q’s are a SELL on the open.

 

08/01/07

Another wild day, but a 32 cent profit per share was had!  All Bias indicators are POSITIVE and the S&P Bias is 67/0.  By the rules and my research, the Q’s will be sold on the open (of course by the rules).

 

07/31/07

Ill, the market gapped up big time on the open.  I felt that there would be an upside move, but it was way too risky to trade.  The trading plan would not have entered long because of this gap, even if the trading bias indicator was positive!  The market closed much lower!   A VERY VOLITILE MARKET!  Tonight the Trading Bias is POSITIVE so I will BUY the OPEN by the established rules.  

 

07/30/07

Trading Bias is very mixed tonight, so there are no positions tomorrow.  Things are pointing to too much risk to enter!  My sector tally is 2/211 and I’ve never seen this high of a negative reading, which means the market is getting very oversold and an upside reaction is very near!

 

07/27/07

I would love to BUY the market on Monday, but there is not positive agreement in the Bias Indicators so there will be NO POSITION!

 

07/26/07

Another GREAT Day, if you are following the established trading guidelines!  Tonight all the bias indicators are negative!  I will sell on the open, unless there is a 20 cent gap lower (read my entry rules).  I think this market is getting very over sold!  The sectors Ire 199 negative and 3 positive.  In 30+ years of investing, I’ve never seen this type of imbalance.  Be careful and be very risk aware! 

 

07/25/07

Good day!  Trading Bias is NEGATIVE so SHORT on the open.

 

07/24/07

Big move down today.  Trading Bias is calling for a SHORT tomorrow.  I’m not too comfortable with this, but will go with the signal.  Trading Bias is returning Ill over a 230% annual return, so even though it might be the wrong move, I’m going to go short on the open!  Be sure to use stops!

 

07/23/07

Got max. profit again today.  Bias indicators are mixed so Trading Bias call for NO POSITION tomorrow.

 

07/20/07

Took maximum profit today.  All bias indicators are NEGATIVE so sell on the open.

 

07/19/07

Stopped out at B/E today.  Everything is NEGATIVE tonight so SELL on the open.

 

07/18/07

It was a wild day and I’m sure glad my indicators kept me on the sidelines!  Tonight all bias indicators are NEGATIVE so SHORT on the open.

 

07/17/07

Great day!  Tonight My Bias is mixed and the rest are NEGATIVE.  By the rules there is no positions tomorrow.  As an added note, after hours Bear Stearns said their sub-prime portfolio was “worthless”.  I’m glad the indicators do not call for a position!  I expect a lower opening tomorrow and a wild ride.   

 

07/16/07

Small 5 cent loss today.  Tonight the trade bias is POSITIVE so LONG on the OPEN.

 

07/13/07

Tonight the trade bias indicator is POSITIVE, so I will enter short-term positions LONG on the open on Monday.

 

07/12/07

A huge positive day!  I took maximum profits and watched!  Tonight all bias indicators are NEGATIVE, SHORT for short-term trading (by the rules) at the open. 

 

07/11/07

S&P Bias is 0/29 and by the rules, a LONG for short-term position for tomorrow.

 

07/10/07

Big sell off today.  Bias is mixed, which calls for no short-term positions tomorrow. 

 

07/09/07

I entered the market on the open, but was stopped out at b/e by 10 AM.  Tonight is a very mixed affair.  My Market Bias is slightly positive so there will be no positions tomorrow.  I expect a lower market tomorrow, but the risk is too high for a position!

 

07/06/07

All Bias indicators turned NEGATIVE tonight.  Considering that it was a very positive day is especially concerning for any long positions.  I will SHORT the Q’s using the short-term trading rules.  In case you haven’t checked the results for the short-term trading, it is averaging over a 200% annual return! 

 

07/05/07

My Bias indicator is a draw tonight so no positions tomorrow.  All of the other bias indicators are much Iaker tonight as Ill, but still positive.  This is a holiday market, with lower volume and is not a good time to be in the market.  If the signals indicated a probable direction, I would be in, but they do not! 

 

07/03/07

Short term I picked up 20 cents per share today.  My Bias indicator turned negative (4/7) tonight and the rest are still positive.  No positions on Thursday!  Just got back and I have a new grandson!