Why trade like this? Because anytime you're in the market you're swimming with the NWO (New World Order) sharks, the heads of which are meeting in Chantilly, VA this weekend to discuss who gets to be the next puppet President and Vice President of the USA in violation of the Logan Act. Go Alex Jones and InfoWars.com!!! Check out their live feed: Bilderberg Protest . The Banking Cartel that represents these people are Goldman Sachs, the Fed, JP Morgan, Bank of America, etc. Their world political front is the U.N., NATO, etc. If you buy and hold stocks you are a sitting duck for these parasites, who by the way want to reduce the population by 90%, in other words they want to kill you and yours so they can have everything for themselves. However, if you learn to watch their footprints via charts, you can pick their pockets by making some profits at their expense instead of letting them pick your pockets which is what they count on being able to do by inflating our money into worthless ness via the Fed, our central bank, which is privately owned by the globalist banking cartel, e.g. Rockefellers, Bushes, Rotheschilds, European Royals etc.. Do some research on the NWO and check it out for yourself. A good place to start your research is with the JFK assassination, or 9/11 which was an obvious inside job. Check out Loose Change youtube video.
It's time to stop these globalists wherever we can by refusing to knuckle under. Don't cooperate with evil by becoming dependent on the government dole. Live free or die might be a good motto. Check out Larry McDonald on youtube for an explanation of these globalist elites who murdered him along with innocent people back in 1982 or 83. Larry McDonald on the NWO
Friday, June 1, 2012
Lower Lows, Lower Highs
Lower lows, lower highs is the definition of a downtrend. ACOM and LOW have been making lower lows and highs so they are trending down even if they are slow to do it. Of course as the stocks trend lower the put options' values rise. Even on a morning like this morning when the market is over 200 points lower these stocks opened lower and then have proceeded to go up. But because the stocks are making lower lows and lower highs they are still in a downtrend. I'm trading in the direction of their trend and also in the direction of the market which has been in a downtrend this past month. The old axiom still holds true: "Sell in May and go away."
Of course LOW popped up as soon as I bought the second set of puts and the value of them fell to about 20 cents at one point. This morning the puts are about 50 cents so they have only about 35 cents to get back to where I bought them about 85 cents average price. The stock will have to move to below $25 for these $26 puts to be worth much. LOW seems to be headed downward in a stubborn manner. I'd like to at least double my money on these puts before June expiration (Option expiration is the third Friday of every month). That gives them 2 more weeks to do something before becoming worthless. The stock is at about $26.60 this morning.
ACOM is in the money by approximately $3 so the puts are valued about $3.50 which is what I paid for them. I'd like to double my money on these, too. The stock will have to move $3.50 below where it is,$21.75 this a.m., for that to happen. So far no go. However, you can bet if I sell them in order to bail out the stock would then go down as expected! So far this spring only one stock I picked failed to perform and that was ESRX that I thought would go up but it never did. I did take a loss on it of about $14 on a $1900 long position in the stock itself, not the options. Not too bad for a loss. My point being: so far it has paid to be patient as the stocks generally will do what is expected. I lost money a couple of times earlier this spring because I was not patient and bailed out like a chicken when the stocks went the other way (which they almost always do). Then the stocks/options did what I was expecting once I had sold them of course!
That illustrates the need for a strategy to trade by instead of trading based on emotional reactions to the market. So, on breakouts from a "cash in the box" a la Gary B. Smith's method I aim for 5% gains or 6% losses before selling. See my earlier posts regarding the Chartman's method for trading these breakouts. His average was 80% gains and 20% losses. I was doing better than that with them. Approximately 90% wins if I hadn't bailed on a couple of them it would have been even better.
ACOM and LOW however are Breakaway Gaps. These are basically a targeted trade based on the distance the stock will fall based on the width of the triangle's base they fell out of or where previous support is located, etc. See Steve Wirrick's book, High Octane Trading, see chapter 14. Whether they will achieve their targets before expiration day when their June put options expire who knows. I'm betting they will at least get part way there and perhaps double my money or better. I could be wrong of course!
A gamble! I hear someone say . It's a chance based on logic and probabilities. It's no more of a gamble than any business I've ever been in. Farming is a gamble (though maybe not as much as it was in my grandfather's day with all the government subsidies that he so hated and refused to participate in based on his principles and belief in freedom). But publishing and advertising were a gamble for my parents and me, as was the retail business we purchased and were defrauded out of. True freedom requires a willingness to take some chances. With your faith in Christ you will never lose because even if you lose everything here on earth you will still have the true riches, the pearl of great price, Jesus the Messiah as your Savior and life. You can't get any richer than a personal intimate relationship with the Creator of the universe. Everything else is garbage by comparison.
Of course LOW popped up as soon as I bought the second set of puts and the value of them fell to about 20 cents at one point. This morning the puts are about 50 cents so they have only about 35 cents to get back to where I bought them about 85 cents average price. The stock will have to move to below $25 for these $26 puts to be worth much. LOW seems to be headed downward in a stubborn manner. I'd like to at least double my money on these puts before June expiration (Option expiration is the third Friday of every month). That gives them 2 more weeks to do something before becoming worthless. The stock is at about $26.60 this morning.
ACOM is in the money by approximately $3 so the puts are valued about $3.50 which is what I paid for them. I'd like to double my money on these, too. The stock will have to move $3.50 below where it is,$21.75 this a.m., for that to happen. So far no go. However, you can bet if I sell them in order to bail out the stock would then go down as expected! So far this spring only one stock I picked failed to perform and that was ESRX that I thought would go up but it never did. I did take a loss on it of about $14 on a $1900 long position in the stock itself, not the options. Not too bad for a loss. My point being: so far it has paid to be patient as the stocks generally will do what is expected. I lost money a couple of times earlier this spring because I was not patient and bailed out like a chicken when the stocks went the other way (which they almost always do). Then the stocks/options did what I was expecting once I had sold them of course!
That illustrates the need for a strategy to trade by instead of trading based on emotional reactions to the market. So, on breakouts from a "cash in the box" a la Gary B. Smith's method I aim for 5% gains or 6% losses before selling. See my earlier posts regarding the Chartman's method for trading these breakouts. His average was 80% gains and 20% losses. I was doing better than that with them. Approximately 90% wins if I hadn't bailed on a couple of them it would have been even better.
ACOM and LOW however are Breakaway Gaps. These are basically a targeted trade based on the distance the stock will fall based on the width of the triangle's base they fell out of or where previous support is located, etc. See Steve Wirrick's book, High Octane Trading, see chapter 14. Whether they will achieve their targets before expiration day when their June put options expire who knows. I'm betting they will at least get part way there and perhaps double my money or better. I could be wrong of course!
A gamble! I hear someone say . It's a chance based on logic and probabilities. It's no more of a gamble than any business I've ever been in. Farming is a gamble (though maybe not as much as it was in my grandfather's day with all the government subsidies that he so hated and refused to participate in based on his principles and belief in freedom). But publishing and advertising were a gamble for my parents and me, as was the retail business we purchased and were defrauded out of. True freedom requires a willingness to take some chances. With your faith in Christ you will never lose because even if you lose everything here on earth you will still have the true riches, the pearl of great price, Jesus the Messiah as your Savior and life. You can't get any richer than a personal intimate relationship with the Creator of the universe. Everything else is garbage by comparison.
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