World and Sector Watchlist

Earnings Calendar

Feb 02/b PEG SYY LO EPD HUM MAT ROK CPO
Feb 02/a APC AFL PCL PBI PRE CCK HOLX MKL

JPM and Sector Daily Charts

Month End

January comes to a gloomy close as the markets fall again on worsening economic data and nagging uncertainty about the government's bailout plans. We were profitable in the beginning +19% for the month; however; due to some extreme risk-taking on our part. Holding on to Jan Options that expired worthless - killing the account with a major loss. The bet would have paid out nicely but time was not on our side. Markets tanked the next day.

As we close this month we are now at a -30% drop in our account. Drop occurred on the 3rd week of the month; we have fixed the flaw and managed to dig out and ended up with a -30% drop instead of a much larger number.

As we, have said “Life is a Journey, not a Destination”. As we look forward on to the next month and better trade management.

E*Trade Baby Video

Don’t Be Anxious

Here are some ways I learned to sit, be patient and avoid the big losing days. Don’t be anxious –

There are 6.5 hours in the trading day so be patient and try to avoid trading the first 15 to 20 minutes.

Use this time to observe and get a feelAlways have a reason to enter a trade – Stop guessing. Trade as if you were training other traders and being held accountable for each trade. (Trust me on this one.)

Observe yourself trading with discipline.Probe (Scale in) -- If you want to take a position of 300 shares enter it 100 shares at a time. If you’re wrong the loss isn’t as bad and you spend less in commissions.

Have a stop-loss every day – Every trader should have a maximum amount they can afford to lose each day. When you hit it STOP trading!Avoid tight ranges and low volume – This is a time to sit on your hands.

Wait patiently for the market to pick a direction. Narrow range days often follow a giant move from the day prior. Buyers and sellers battle for control after such moves. When you spot this scenario, stand aside and wait to see who wins. Then join that team. If you insist on trading a narrow range day actively, then fade moves and go for small scalps.

Day Trading is a profession, so try to treat it like a business and not like a black jack table. Trade when it’s hot and learn to sit on your hands when it’s not. There aren't too many businesses that end each day in 100% cash with no inventory.

Protect that cash.

Date Earnings Release

Jan 26/b MCD KMB CAT COV DHR HAL LO DGX
Jan 26/a AMGN TXN AXP MCK VMW JEC PTV SNDK

Intraday Stock Trading Tutorial

JPM Up Into The Weekend

JPM up into the Friday closing bell, which is a good bounce off the weekly low and it is starting to come into the first level of resistance. I would look to see how the market opens on Monday before placing a trade. Banks Nationalization Program? I do not think there will be one, but if they do make a decision on a newly RTC, which was done in the G.W. Bush time. I think we will see large swings the short term. Banks can not get too low; as this causes bank runs.

Well have a great weekend!!

World Map - Sectorkool

It was infectious all over the place for the markets, this is a daily snap shot. Is everybody catching a cold?

Re: The Red Sea!?

JPM as you can see on this daily chart, that JPM made the continution trip down to the downside. So many of the Finanical - Money Centers did not make it. The market is looking forward to the earnings and bigger write-downs.

Understanding Investor Sentiment Today - Part Three

The Yahoo (YHOO) short squeeze

GS - Drop and Pop

Well it was no surprise to wake with the markets dropping on Deutsche Bank AG (USA) news. Above is a snap shot of the sector heat map and it is all red. Financials are in the driver seat again and it looks like 2008 is still being relived. Well there is more to come in the financial sector. Financial has just begun their earnings annoucements, there is alot still on the books that have not been address. Commerical lease and loans are coming up and also the next batch of residential loans.

We took a position in GS today for an intraday price for the GS - JAN 09 GSMO 75P for $1.99; rode it down to $2.60 for a 28% gain for our 0:13:28 in market time. After the initial exit, we were think about going in for a second dip, however, we had to other things to get done. Thinking about it, it would have been nice!. Large Swings are back, be careful.

Caught With Our Hand In The Cookie Jar!?

The above chart is a Daily chart of JPM as of 1-9-2009; as in the last chart we saw that the Stoch and RSI were in the Overbrought area and need to come down or find suppport, well it did move higher, then tanked with us in it. The bow MA fail to produce a quailty trade that was substainable. JPM is set for Jan 21 2009 earnings report and a Diviend Payout on Jan 31, 2009. Conference call is scheduled for Jan 21; as the earnings annoucement will be BMO = Before Market Opens on Jan 21. We see contintued pressure on the Weekly Chart for JPM to the downside.

Well we were off to a nice start for the 2009 season and in a bold move to play with the market in a game of chicken. We find ourselves in a -2% loss for Jan 2009. We were long and had a profit going into the Jobless Number, however, it did not last. We decided to straddle this trade with a put. Wrong! Instead of a closer to the money put we purchased one that was two strikes out of the money, which mean it will take twice as long to develop then one in closer or at the money.

Oh well, win some and loss them. I have gone back to the drawing board to figure out the little details that were missed.

We did find that mental stops are good if you remember them. We found that you need to check the option chain for were all the options are at in relation to Stock Price. Spreadsheets have been updated to correctly price which options are better than others.

Start of 2009 - JPM

As of Jan 2, 2009; we see the markets end up on a positive note, even as the Indus Number show a weak economic platform. We still have extremely light volume as most trader were still on holiday or vacation. Monday will be proof in the pudding, I would not give much thought until the 2nd week of Jan, to see were this baby will go.

Daily chart appears to be holding strong and RSI and Stoch are in the oversold area of the chart. MA's have completed there crossovers.

Jan 09 31C were on the menu for Jan 2, 2009. Costing us 1.63 entry at mid-day, after several hours of the market being in positive terrority, we took this position as a good trade. JPM was having trouble; as it was not play along with the others in the group. The stock was showing weakness; who knows what it was. After the initial entry JPM went sideways for a bit and but just 20 minutes before the close of session, we managed to make a profit of 1.92 exit; less fees and commission. Take-home was around 15% ROI.

Ending 2008 with JPM - Jan 31 2009 Calls

This a Daily chart for JPM, current price has moved above all MA's; time will time if this holds. We could see a bow tie effect in the coming days. Due to the extremely light volume of the market pass couple of trading sessions and weeks for 2008, we saw a great big move to the upside. Will this continue in the New Year? Well, as an Option Trader, we play the hand that is dealt; we do not believe in picking a direction of the Markets.

The resistance level appears to be around the $34 then $36 per share level; as the 50-Day MA is at this price level. Look at Dec 7-8; when the 50-Day MA held the price and then JPM moved lower. The RSI and the Stoch are becoming oversold.

I would look for an entry for your risk level.

The first week of Jan will tell us how the market should react in the coming months in 2009. Play them like you see them.