ABAXing Up

ABAX is progressing nicely trying this morning to break the $47.00 barrier for a third time which probably will do it as the stock seems to be gaining momentum for yet another run up on its way to our 5% gain goal. The $45 April Call option is also up nicely again this morning to $2.50 on the ask and $2.35 just now on the bid price. So for each option contract you are up $75. Not bad on a $160 investment! Above is a chart this morning of ABAX courtesy of BigCharts.com. If this isn't fun what is?

I just checked ABAX again and now the stock's up above $47.00 so it made it through the dollar barrier. That is always a struggle to get through those even dollar levels. The $45 April Call is up to $2.55 on the bid price and $3.00 on the ask. Another 20 cents and the Call will have doubled in price.

One thing I might mention here is be careful when you are playing options. Don't put all your money down on a trade. You could lose it all. Always keep some in reserve so you can make another couple of plays just in case you hit a losing streak and lose a couple of times. Hopefully the third time will be a success and you will be back in business. No strategy is successful all of the time and according to Gary B. Smith this one is successful 8 out of 10 times. So be ready for the two losers to come along in the normal course of events.

Here's a Link to a Stock Chart of ABAX

ABAX Chart Courtesy of BigCharts.com

How Much Cash Is In The Box?

ABAX was our Cash-In-The-Box  play I selected last Friday evening for this morning, March 11th. (See Previous Post regarding Cash-In-The-Box).

This morning the $45 April Call option sold on the open  for $1.60. The stock opened at $45.11. We had our gain objective of 5% gain on the stock price and to sell automatically at that point.  You can also do a contingency order if you are playing options. Just set your option to sell at market when the stock reaches its 5% goal, and your broker will sell your option.

 The goal for the gain on the stock is $2.25 which means our target price is $47.36. At this point the stock has been up to $46.60 or $1.49 per share. Always remember to have a protective stop just beneath the breakout line which is at $44.60 so set your stop loss at $44.55 or something underneath the breakout line. I usually just use a mental stop but you can put a hard stop in with your broker. Things can always go wrong so you will be taken out of the stock or option if the stock hits $44.55 for a small loss. Right now the Call Option is worth $2.30 on the ask and $2.00 on the bid. So the option is up about 40 cents. One contract of Call Options, (100 Shares) is up $40.00. For every $160 investment risked you now are worth about $200. If the stock makes its goal you very possibly will double your money depending on volatility. Now isn't this fun? I think so. Stay tuned for more updates and a new pick once this play is over.

  

Skirting the Issue

Promised a while back to publish the photos of my done-it-myself RV skirt that I purchased from EZ-Snap company of Canada. I finally took some pictures this weekend before it snowed.  I put this skirt on in the fall of 2011. So far since then I have not had one freeze-up. The prior winter of 2010-11 I had something like 10 days of freeze-ups. Temperatures that winter got down to 26 below. The winter temperatures this year and last have not fallen that far as far as I know. According to Accuweather the low so far this year has been 12 below zero. I think it was similar for last winter. However before putting the skirt on my plumbing would freeze up at about the 11 below zero point. It hasn't done that and we definitely hit below that.this winter and last.

This fall I doubled the original number of snaps I put on because of the tremendous winds that we have here on the open prairie. It is not uncommon for the winds to kick up to 90+ mph. Also this fall I went ahead and fastened the base of the skirt to a PVC pipe system as recommended by EZ-Snap on their website EZ-Snap RV Skirt Web Page. You can see a video of how to construct this simple system there. EZ-Snap RV Skirt Video . I used the 3M adhesive studs since I am mechanically challenged and was afraid of putting holes into my RV. They worked well even in the high winds once I doubled the number of snaps. I think when I placed the first set on I allowed about 11 inches between each snap and that was not enough snaps to hold the skirt on without ripping the snaps off. Just too much stress per snap with 90 mph winds flapping the fabric. So this last fall I placed extra snaps on so that there is about a 5" space between the snaps. Held on much, much better.

The first winter I didn't have the fabric affixed to the little PVC pipe system recommended by EZ-Snap. This last fall I engineered the PVC pipe base. It was very simple to do. I then placed small paving blocks inside each corner to stabilize the PVC pipe foundation. We have had lots of wind as usual but the skirt has stayed down this winter. Last winter I'd just used 4x4's to hold the fabric down and that did not work at all in the high winds. I had the skirt loose and flapping to the point you could see clear under the RV and beyond as the wind tore under the RV.  I used the EZ-Snap pipe clamps at the every 4 ft. interval. However the next time I order some replacement snaps I will order another bunch of the pipe clamps to place clamps at the every 2 ft. interval. It just makes the fabric stay around the pipe that much better as I had a couple of places where it began to unroll a bit off the pipe. Not a serious problem but I'd prefer it not do that.    

Financing an RV Lifestyle with Cash-In-The-Box

What is Cash In The Box? Probably the most profitable, reliable and geometric stock chart pattern.   The easiest geometric pattern to recognize on a stock chart is a rectangle. Whatever trend was in place before the rectangle formed is likely to continue once the stock breaks out of the rectangle.  Rectangles are a kind of holding pattern once a stock has run up, or run down, kind of like treading water. A stock gets stuck in a trading range between price support on the bottom line and price resistance on the top line. It represents a base of demand support on the bottom price and selling resistance on the top price and the stock vasilates between the two forming a rectangle, or range. When the stock finally breaks out of the box it represents a lucrative trading opportunity, usually an explosive opportunity. That's why my mentor's, Jon Wirrick, his mentor brother, Steve Wirrick, calls them a Cash-In-The-Box. I highly recommend Steve's book, High Octane Trading  if you are interested in trading stocks and options for making serious money. What a great way to finance an RV lifestyle with today's mobile internet and online brokers. And it takes only a small amount to get started if you use options.

  A great example of a Cash-In-The-Box from earlier this week: would be the AIRM Chart . AIRM traded in a flat range from Jan. 17th 2013 to Feb. 28th 2013. On March 1st 2013 it broke out on a heavy volume spike. It traded the next morning from $45.64 and continued up to $50.56 before backing off for a breather today. I like to use Gary B. Smith's strategy when trading breakouts. So one would buy at market at the open the morning following the breakout.$45.64 with a 10% goal for the move, of about $4.50 ish. The protective stop would be just below the breakout line at about $44.75. Set your stocks or options to sell once the stock reaches the apx. 10% gain at about $50. The gain was reached yesterday March 7th, 2013, so the sale was triggered for a gain on stock of about $4.36 or better. April $45 call options were about $2.40 and once the stock moved would have sold for about $5 for a gain of about $2.60 per share. So for an investment of $240 in call options you could have made a gain of $260 more than doubling your cash. You can see the beauty of options for leverage on a small investment/risk. Later this evening or weekend I will post my next Cash-In-The-Box  breakout to trade Monday, March 11th, 2013. Let's paper trade these over the next few weeks to see how they do. Gary B. Smith said his average with this kind of play was about 80% winners over losers. Check back later to get the next breakout plays for Monday morning. I will be doing my picking probably this evening after the market is closed.

This setup looks likely as Cash-In-The-Box breakout and buy for Monday morning.

ABAX

Picking the Pocket of the NWO

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

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.