Tuesday, October 29, 2013
Monday, September 30, 2013
Saturday, September 28, 2013
sectorspdr.com. It is the second largest sector in the index after the technology stocks (20.32%). No wonder that when the financial stocks are underperforming, it doesn't bode well for the index as a whole. On the 5 year SPX chart I marked periods when the SPX made higher highs and the Financials Sector ETF (XLF) in the upper window made lower highs thus creating a negative divergence. A meaningful correction in the SPX usually followed after that. The building negative divergence between the SPX and XLF is worth keeping an eye on. Also, take a look at the chart I posted a week ago.
Monday, September 23, 2013
very promising bullish pattern DDD failed to produce a strong breakout and continues trading in a range. This is also raising questions about the underlying strength behind the September advance.
All entries and exits are posted on the Trading Log tab the same day when the trades are executed.
Sunday, September 22, 2013
Monday, August 26, 2013
Saturday, August 17, 2013
All entries, exits and the rationale behind them were posted on the blog the same day when the trades were executed.
During the August options cycle all profit in blog’s trading account came from the trades in GLD.
Nine months ago when I decided to allocate $5000 for the blog trading account I wrote:
“I am doing it for several reasons.
First, reading various technical blogs I am, always, interested how authors would implement their market technical forecasts. Have they put money on the line at all? It's not a secret that our perception of the market can change drastically depending whether we have a vested interest or not. If it is interesting to me, I assume, it is interesting to other people too.
Second, the real trades help to better understand analyst's time-frame and a time-point when his view on the market is changing. When I write that I am bullish on a stock in the intermediate term, it gives too little information to readers. When you see that I bought a stock and closed a trade after a while, you see clearly that my opinion regarding this stock was changed for some reasons.
Third, the blog track record will keep me accountable for my technical analysis, though I understand that a poor trade execution can undermine an otherwise good analytical work.
$5000 is the starting amount I am comfortable with to post my trades online. I am planning to write about a trade and a technical rationale behind it on the same day I enter or close a position. The summary of all trades you will see on the page "Blog's Trading Account". For calculating the account performance I will count the third Friday of the month (the last trading day before the option expiration) as the end of the month for the purpose of convenience.”
Since then the blog trading account balance has been doubled, so, I assume, my analysis was on the right track.
I will continue to keep the blog trading account and post all entries and exits the same day they are executed on the page "Blog's Trading Account". However, I will stop posting a description of every trade on the blog, partially because I am limited in time, partially because I don’t want to turn a technical blog into a trading journal. Nevertheless, I will gladly answer any questions regarding the rationale behind a trade if those will arise.
I will continue to write my technical view on securities, sectors and industries, which I see tradable opportunities in or have trades in, with more focus on the intermediate time-frame.