Special DaytraderRockStar Alert Watch list

Wednesday, October 8, 2008

Tonight after after doing a intensive research session and going over this weeks charts and examining the volume levels and historical price levels. I am not ready to step up my trading volume and share limits. Over the last 2 months i have drastically scaled back on on my position size, mainly because believe the markets have been very unstable, I also have a very popular radio show where I take pride in showing discipline and patience in the markets, two requirements of a successful trader. Over the lat 2 week we seem historic levels in the market and in the response of out government in trying to stabilize the markets. If you look as the history of the stock market you you would be hard pressed to find a 2 month period of this much drastic selling, Market ALWAYS bounce back to the 20 DMA. Below is the daily chart of the S&P500 the 20 period moving average is at 1142 the price is at 985 (now i can go into all the formulas and definitions of standard deviation and the measurement of volatility, but time is precious in my situation and I will leave that for another day, but I will simplify things by saying that no time in my recent history have I seen a sell off of this magnitude and volatility, In the face of this sell off I go back to my prior statement the markets always retrace to there averages (moving) Hence this is the time to step up to the plate. There will not be many opportunities like this one, and mark my words when a rally starts and starts to hold into the close you want to be long.

For those wondering why I am going long at this point in the markets I will express one main factor that has not been touch apron by many people and what will cause this market to rally. At one point certain companies become so cheap that they will become a minnow in a sea of sharks. Watch for acquisition in the market place. Companies that once where targets Will soon be taken over and the first big hostile take over will mark a bottom in this market. Below is the reason i am acquiring some of these stocks.

Today I took 3 trades AAPL, GOOG, and F Tonight i am long the futures 1 contract of the ES futures @ 988 with a stop at 985 oh yeah AAP was for just under 3 points GOOG 2 points and F holding long from 2.55 300 shares.

Tomorrow I am going shopping

over the last month I started building positions in stocks that I feel will rebound first or have a buyout potential

Tomorrow at the open " I will be buying"

AKS 400 Shares
SNDK 200 Shares
C 400 Shares
MT 300 Shares
SPY 400 shares
Currently long 1 contract es 988 stop 985 will be monitoring the markets overnight

Considering for a trade and will decide tomorrow

DELL (Holding)

One thing to remember everyone has a different situation..today i took a long in F at 2.55 3k shares I announced it on the radio and had many traders follow me in to it, F soon after sold off to 2.20 causing some grief to many traders, I tried to calm some of the shadow traders some held some got scared out, ford (f) preceded to rally to 2.80. This just shows how intense the markets can be and how important it is to have a game plan going into a trade. My purpose on this site is to show the how execute a trade with discipline and patience and how to run a business as a trader. I discuss this everyday on the radio www.daytradingradio.com You need to be disciplined and wait for the perfect set up in a trade, its easy to explain but hard to execute. It take experience and self control, but once you are able to master these two disciplines you will gain more then profits in the markets.

Just as a recap I am now bullish on the market and expect an rally before next Tuesday if not tomorrow.

Target on the S&P 1140