Thursday, February 2, 2012

Feb 02 2012

(Course on chart pattern recognition is available now:  

 Very strong day with a lot of nice trades. Catch of the Day too, clear JBE:

Session Time: Thu Feb 02 00:00:00 2012
[09:01] {dino} gm
[09:01] {Threei}  morning dino
[09:10] {MigC}  good morning
[09:11] {Threei}  Migc :)
[09:17] {stewy} gd morning all
[09:18] {Threei}  stewy :)
[09:23] {Threei}  feels like "up" is the theme for the morning
[09:23] {Threei}  small gap down got erased
[09:28] {Threei}  somewhat unusual that we got a few nice winning trades yesterday afternoon
[09:29] {Threei}  gotta be less comatose...
[09:30] {Threei} Long Setup:  FCX  .40 break
[09:30] {Threei}  half lot
[09:31] {Threei}  change to .30 break
[09:31] {Threei}  stop .15
[09:32] {Threei}  no go
[09:32] {Threei}  one more leg down for another shot
[09:32] {Threei}  no... .20 break
[09:33] {Threei}  if holding .10
[09:33] {Threei}  in
[09:33] {Threei}  target .45
[09:34] {rambler} morning ...
[09:34] {Threei}  half out .33/long slw .60 break
[09:34] {Threei}  rambler :)
[09:35] {Threei}  half out .33
[09:35] {Threei} Long Setup:  SLW  .60 break
[09:35] {Threei}  stop to .19
[09:35] {RonS} gm got fcx .22 to .34  thanks 3i
[09:36] {Threei}  :)
[09:36] {Threei}  SLW stop under .50
[09:37] {Threei}  FCX top to .24
[09:37] {Threei}  stop
[09:39] {Threei}  no go SLW
[09:39] {thomcbell} lvs should be closely watched for scalps today
[09:40] {Threei}  looks to me capable of more than scalps
[09:40] {Threei}  need pullback
[09:42] {Threei} Short Setup: OAS  .50 break half lot
[09:43] {Threei}  stop above .60
[09:43] {Threei}  1:1
[09:44] {Threei}  1:2, out
[09:44] {RonS} gj
[09:44] {cipher} nice one
[09:44] {stewy} now that's life affirming
[09:44] {Threei}  1:3... oh well
[09:46] {Threei} Short Setup: HON  .55 break
[09:46] {Threei}  stop above .65
[09:47] {Threei}  nope
[09:48] {Threei}  LVS will never pull back, will it
[09:50] {Threei} Short Setup: MON  .10 break
[09:50] {Threei}  half lot
[09:51] {Threei}  hmmm... why didn't I say it easrlier about LVS
[09:51] {Threei}  MON, stop above .20
[09:51] {Threei}  target 1:2
[09:51] {Threei}  1:1
[09:52] {Threei}  half out
[09:52] {Threei}  stop to .12
[09:53] {Threei}  (EU) EU's Rehn: Reiterates expecting the Greece debt swap deal to be completed by the end of the week
[09:53] {Threei}  yeah yeah
[09:53] {Threei}  same deal that three months ago wad to be completed within hours
[09:54] {thomcbell} qcom looking for a short entry
[09:54] {Threei}  NKE....
[09:54] {Threei}  nah, not sure about it
[09:55] {dino} swm sm s .47
[09:56] {stewy} vad you out of mon?
[09:56] {Threei}  swing traders, have a look at REE
[09:56] {Threei}  yes MON
[09:56] {stewy} k
[09:57] {Threei}  see C&H on daily?
[09:59] {Threei}  breaking out
[10:00] {Threei} Long Setup:  SLW  .60 break
[10:01] {Threei}  stop under .50
[10:01] {Threei}  target 1:3
[10:02] {thomcbell} there's a pullback in lvs
[10:02] {thomcbell} violent
[10:03] {thomcbell} eqix on radar for long
[10:03] {thomcbell} right at yesterday's highs but extended here in our time frame
[10:04] {Threei}  SLW 1 cent to 1:1? come on
[10:05] {Threei}  stop to .54
[10:06] {Threei}  LVS
[10:06] {Threei}  51 break long
[10:06] {Threei}  risky
[10:07] {Threei}  if go for it, stop .85 and target .40
[10:07] {Threei}  SLW 1:1
[10:07] {Threei}  first partial
[10:08] {Threei}  stop to .58
[10:09] {Threei}  1:2
[10:09] {Threei}  second partial out .79
[10:09] {stewy} yes slw
[10:09] {Threei}  dtop to .65
[10:10] {Threei}  finally some things start working for more than quick scalps
[10:11] {Threei}  LVS 1:1 for you fearless gamblers
[10:15] {Threei}  SLW trail to .69
[10:17] {thomcbell} fcx 46.51 break
[10:17] {thomcbell} not a scalp for me
[10:17] {thomcbell} 1:3 target
[10:19] {thomcbell} vad - lvs lord god
[10:19] {thomcbell} fcx 1:1
[10:19] {Threei}  SLW 1:3 target hit
[10:19] {Threei}  out
[10:19] {stewy} slw thanks
[10:19] {Threei}  welcome sir
[10:21] {dino} ci sm l .00
[10:22] {thomcbell} treating fcx like standard fare now - taking profits at 1:1
[10:22] {thomcbell} its misbehaving
[10:23] {Threei}  .60 break could launch it...
[10:25] {thomcbell} using a 0.49 stop on it
[10:26] {thomcbell} nxpi trading well again
[10:26] {thomcbell} as is eqix
[10:27] {stewy} oas testing low again.
[10:28] {thomcbell} nice target Vad on SLW
[10:28] {thomcbell} out fcx
[10:28] {thomcbell} it will give us another entry
[10:28] {Threei}  ty but don't ask how I arrived at it
[10:29] {Threei}  for visual,
[10:30] {Threei}  now, let me give you clear visual of Pinocchio
[10:30] {Threei}  (US) Fed's Bernanke: Will not actively seek to raise inflation, will not tolerate and do not want higher inflation - Q&A
[10:30] {dino} out ci .30, +.30
[10:31] {Threei}  inflation is his wet dream
[10:32] {thomcbell} kind of like the 12 year old strong dollar policy
[10:37] {stewy} widowmaker ung
[10:37] {stewy} daily chart a possible db?
[10:38] {Threei}  looking at it, I have very little doubt it will lose 5...
[10:39] {dino} gremlins
[10:39] {dino} trcr sm l .12
[10:40] {stewy} thx
[10:44] {dino} pcar stop -.31
[10:45] {thomcbell} fcx still interesting but cant quite set the trade up
[10:45] {thomcbell} sensai?
[10:45] {Threei}  anyone went for REE?
[10:45] {Threei}  not sure either tbell
[10:46] {thomcbell} interesting continuation pattern on daily
[10:53] {Threei}  what do you know
[10:53] {Threei}  FCX worked
[11:01] {Threei}  come on, no one got interested in REE?
[11:01] {Threei}  that was so perfect break on daily
[11:06] {Threei}  mama mia... just looked at SLW after our exit
[11:06] {thomcbell} lvs short entry
[11:06] {thomcbell} Vad
[11:06] {thomcbell} if holds 51.20
[11:07] {Threei}  not sure about trigger
[11:11] {Threei}  ummm
[11:11] {Threei}  lol
[11:12] {thomcbell} these are the types of scalps in lvs i was talking about -
[11:13] {Threei}  oh boy
[11:13] {Threei}  dino
[11:13] {Threei}  remember we used to trade CEDC in $70-80s
[11:14] {Threei}  I just saw where it trades now
[11:16] {dino} yeah, thing was an animal
[11:17] {Threei}  I guessd it drunk too much of its own product
[11:19] {RonS} mindblower:
[11:26] {thomcbell} ftnt gave another setup long here
[11:26] {thomcbell} time of day etc etc
[11:29] {Threei}  I just read it Ron
[11:29] {Threei}  world turns on its head
[11:33] {dino} crazy, pay to play
[11:33] {Threei}  cover charge, lol
[11:43] {andj} Good morning...
[11:43] {Threei}  andj :)
[11:44] {andj} How are you Threei?
[11:45] {stewy} look at rimm
[11:45] {Threei}  ty, very nice day so far
[11:46] {Threei}  RIMM takeover chatter
[11:46] {Threei}  again
[11:52] {andj} would it make any sense to try and short rimm right now?
[11:52] {dino} coin toss imo
[11:53] {Threei}  not without vlean setup
[11:53] {Threei}  I'd say:
[11:53] {Threei}  if it goes back over .10
[11:53] {Threei}  stays under ,.20
[11:53] {andj} what's vlean?
[11:53] {Threei}  then .10 recross becomes a short trigger
[11:53] {RonS} lol
[11:53] {Threei}  vlean is clean typed with fat fingers
[11:54] {andj} lol
[11:55] {Threei}  it's a Threeish dialect of English
[11:55] {Threei}  there
[11:55] {Threei}  see if it consolidates here for a min
[11:56] {RonS} too fast
[11:56] {Threei}  yeah
[11:57] {Threei}  maybe second chance entry
[11:59] {andj} so when the volume spikes and price is dropping...that's the right time to short?
[12:00] {Threei}  too general...
[12:00] {Threei}  you need a chart configuration
[12:00] {Threei}  offering a setup structure
[12:01] {andj} so you can see where the resisance is?
[12:01] {Threei}  and trigger
[12:02] {andj} how far below resistance is the trigger?
[12:02] {Threei}  RIMM just gave perfect conservative entry
[12:02] {Threei}  it's defined by a chart, not by arbitrary number
[12:03] {andj} the conservative entry would be the second bounce up that rimm just had?
[12:03] {Threei}
[12:03] {Threei}  types of entry
[12:05] {andj} is that what your 101 charting course deals with?
[12:06] {Threei}  chart patterns, yes
[12:06] {Threei}  configurations, setups, entries
[12:06] {Threei}  but it's not 101... it's 111
[12:07] {andj} right...i was thinking of an entry level college course
[12:07] {RonS} ten better than 101...
[12:07] {RonS} :)
[12:17] {Threei}  FCX
[12:17] {thomcbell} shocking move
[12:17] {Threei}  reversal rime is close
[12:18] {Threei}  drop under .90 for double bottom
[12:18] {Threei}  staying above .80 of course
[12:19] {Threei} Long Setup:  FCX  .91 break if holding .80
[12:23] {Threei}  half out
[12:24] {Threei}  scalpers be happy
[12:24] {stewy} ok, happy :)
[12:25] {Threei}  hehe
[12:25] {Threei}  andj
[12:26] {Threei}  yolu just saw the idea in action
[12:26] {andj} yes?
[12:26] {Threei}  chart configuration is envisioned,
[12:26] {Threei}  trade is structured in advance,
[12:26] {Threei}  you wait for a stock to get in your setup structure
[12:26] {Threei}  and if it does - you have your standard course of actions
[12:26] {Threei}  just execute it with no thinking
[12:28] {andj} I see...
[12:28] {andj} so my next step will be to learn the chart patterns and the trades that accompany them...right?
[12:29] {Threei}  korreqt
[12:29] {Threei}  1:2
[12:29] {Threei}  out in full
[12:29] {dino} gj
[12:29] {Threei}  nice and easy
[12:29] {andj} 111 charting course..heh?
[12:30] {Threei}  well, technically it's 111 Trades course
[12:30] {Threei}  because, guess how many trades are cited in it
[12:30] {andj} I may never get the name right...
[12:30] {andj} you know what i mean:)
[12:31] {Threei}  ummm
[12:31] {Threei}  that's what told my wife when just met her... turned intio decades of marriage
[12:32] {andj} congratulations....I'm about to hit the end of my first decade
[12:32] {andj} congratulations only if you are happy about the decicion...
[12:33] {andj} decision..
[12:33] {Threei}  hey, you survived the easy part then
[12:33] {andj} I know
[12:35] {andj} So basically you are looking at the scanner and the news
[12:35] {Threei}  yes, and a few usual suspects
[12:35] {andj} and then checking the charts all day to wait for them to set up
[12:35] {Threei}  active stocks that are almost always in play
[12:35] {Threei}  right
[12:36] {andj} then when they set up you get in and out according to the chart pattern and trade structure...right?
[12:36] {Threei}  you got it
[12:36] {andj} that's a all I have to do is do it correctly.
[12:44] {dino} rse spike
[12:44] {andj} what are you looking for with level 2?
[12:45] {Threei} Short Setup: RIMM  17 break
[12:45] {Threei}  level 2 is a risk evalution/entry fine-tuning tool
[12:46] {andj} so it's less important than charting
[12:46] {Threei}  just different piece of mosaic
[12:46] {Threei}  plays different role
[12:47] {andj} but you have to use the chart first right?
[12:47] {Threei}  pure chart may get you into trade that combination of chart and Level 2 would tell you to stay out of
[12:47] {Threei}  yes... if there is no chart configuration, there is no reason to look at anything else
[12:49] {andj} because with level 2 you can see support or resistance before it has been printed in the chart?
[12:49] {Threei}  nah, not really
[12:49] {Threei}  because level 2 shows you the degree of risk in temrs iof execution
[12:49] {andj} having your order filled at the right place on the chart?
[12:50] {Threei}  read the corresponding part in scalping course booklet and MPP, you will see very detailed explanation
[12:50] {Threei}  yes
[12:50] {andj} MMP?
[12:50] {Threei}  MPP
[12:50] {Threei}  master profit plan
[12:51] {andj} right...i'll get the names eventually
[12:52] {stewy} vad, for clarity, rimm not yet valid until
[12:53] {stewy} it prints a .99, right?
[12:53] {Threei}  yes
[12:54] {stewy} thx. looky ung
[12:54] {Threei}  if triggers from here, stop above .05
[12:54] {stewy} got it
[12:59] {RonS} glad am not holding my breath...
[13:04] {Threei}  lol
[13:23] {dino} gremlins again
[13:23] {dino} got out of trcr finally, .52, +.40
[13:23] {Threei}  wtg
[13:28] {Threei} Short Setup: LVS  51 break
[13:29] {Threei}  if stays under .10
[13:32] {Threei}  still valid
[13:33] {stewy} not rimm though
[13:33] {Threei}  no
[13:34] {Threei}  invalidated
[13:36] {andj} was rimm or lvs invalidated?
[13:36] {Threei}  LVS
[13:38] {andj} what is the name of the set up you were just looking at?
[13:39] {Threei}  on LVS?
[13:39] {andj} yes
[13:39] {Threei}  DBI
[13:39] {Threei}  wait
[13:39] {Threei}  looking at wrong symbol
[13:40] {Threei}  reversal setup
[13:43] {andj} so long and short are the types of trade structures
[13:43] {andj} and the DBI / JBE are the names of chart configurations?
[13:43] {Threei}  ummm
[13:43] {Threei}  long and short are directions
[13:44] {Threei}  dbi and jbe are shart configurations, yes
[13:44] {Threei}  trade structure is a combination of elements necessary to put a trade together
[13:44] {Threei}  you haven't gotten through MPP yet, have you
[13:48] {andj} I want to get the vocabulary right so that i can talk about it correctly with you
[13:49] {Threei}  you have no idea how the very fact that someone wants to talk to me at all is appreciated
[13:50] {Threei}  nemo will be deeply shocked too
[13:50] {Threei}  he is a strong believer in silent drinking
[13:51] {andj} Well you know what you are doing and you speak accurately...
[13:52] {andj} it's really easy to learn from you
[13:52] {andj} you also are able to answer questions without tying up the meaning of your response.
[13:52] {andj} I'm greatful that you are here.
[13:53] {Threei}  this is the spot where nemo faints
[13:53] {andj} I may actually be able to become a scalper/day trader with your help instead of just dreaming of it.
[13:53] {andj} Nemo's really sharp as well
[13:53] {Threei}  oh, he is
[13:54] {andj} you both can communicate clearly about trading.
[13:54] {Threei}  which makes insulting him especially rewarding
[13:54] {Threei}  he answers right back
[13:54] {andj} so many people communicate a bunch of garbage
[13:54] {Threei}  ugh... ain't this true
[13:54] {Threei}  it's my old beef with trading education industry
[13:55] {andj} If you can find someone who knows AND can tell you then you've found the way.
[13:55] {Threei}  whole lot of people who don't even trade, teach all kinds of bs
[13:55] {Threei}  repackage centuries-old things available everywhere for free, put a nice marketing on it and sell for thousands
[13:56] {andj} I noticed
[13:56] {andj} Most people do not understand the value that your courses offer.
[13:56] {Threei}  among the worst offenders:
[13:56] {Threei}  guy who sold newsletter,
[13:57] {andj} who's that?
[13:57] {Threei}  sending alerts to two group of subscribers,
[13:57] {Threei}  one went long, another - short
[13:57] {Threei}  one of them won, he touted it
[13:57] {andj} that sucks
[13:58] {andj} that's really unethical
[13:58] {Threei}  got caught redhanded when technical error led to sending both versions to the whole list
[13:58] {Threei}  another beauty:
[13:58] {andj} There is one guy that does options that i think might be pretty good.
[13:58] {andj} what happened?
[13:59] {Threei}  chatroom where calls made were listed as winners if they ticked into positive territory, no matter how small,
[13:59] {Threei}  with no signal to sell
[14:00] {Threei}  when subscribers complained about being stopped on what he listed as winner, he simply insulted them, calling them stupid for not taking profit when it was there
[14:00] {andj} I think I heard about that
[14:00] {Threei}  but if a trade went further in positive, he never "sold" until it gor really big
[14:00] {andj} The same happens with penny stocks.
[14:01] {Threei}  so, when asked how on earth he determined when to sell for coupl,e cents and when to hold for a buck, he said "learn to trade"
[14:01] {Threei}  lol
[14:01] {andj} First they collect email lists with like 50,000 names
[14:01] {dino} slow day
[14:01] {Threei} Long Setup:  RIMM  .20 break
[14:01] {Threei}  if stays above .10
[14:03] {Threei}  if triggers from here, stop under .15
[14:03] {andj} they make deals with over the counter BB companies to advertise to thier email lists in exchange for a ton of stock...THEN they email thier email lists and CREATE the buying and then they sell into the demand that they created.  TOTAL BS
[14:09] {Threei}  1:1
[14:09] {Threei}  yeah
[14:10] {stewy} in and win
[14:10] {beau} fun day, thx vad
[14:19] {andj} So Vad, are you doing what the guys in the trading pits are doing?
[14:21] {Threei}  beau :)
[14:21] {beau} and big thx to you dino
[14:21] {Threei}  not sure what yoy mean adnj
[14:21] {andj} Is this how the professional traders do their jobs?
[14:22] {andj} Institutional/Market makers...ect.
[14:22] {rambler} got to run...been following along...thx all...
[14:22] {RonS} firstly, those are two different animanls...
[14:23] {RonS} secondly i have been to chicago to the cme and the pits are nothing like this...
[14:23] {stewy} see ya rambler
[14:23] {RonS} check that it was the cboe...
[14:24] {andj} How is it different?
[14:24] {dino} beau, thanks to me, why?
[14:24] {beau} made on your plays
[14:24] {RonS} pit traders trade their own book and/or are placing orders for others
[14:24] {beau} money
[14:25] {dino} apkt spike
[14:25] {RonS} it is open outcry...
[14:25] {andj} sounds like a conflit of interest
[14:25] {dino} you pulled the trigger beau, you own it. but glad you think i helped
[14:26] {RonS} no, the pit traders have the utmost of integrity or they get thrown out
[14:27] {RonS} is chicago...
[14:29] {RonS} some home traders w/ pit experience buy and use an audio feed from the pits...they maintain they know the direction of the market from the pit noise...
[14:33] {dino} ghdx spike
[14:37] {dino} back in 30
[14:37] {andj} do you ever listen to the pits with those online services?
[14:40] {RonS} experience...would not know what it meant
[14:41] {RonS} they have their own language
[14:41] {Threei}  sorry, had to answer phone call
[14:41] {Threei}  back now
[14:42] {Threei}  Ron's right andj, what we do is simply retail trading
[14:42] {Threei}  each of us trades his/her own account
[14:44] {andj} Is there any literature on WHY traders follow the chart patterns?\
[14:44] {Threei}  I have better question
[14:44] {Threei}  why do you concern yourself with whys?:)
[14:45] {Threei}  on a serious note, chart patterns reflect mass psychology of the market
[14:45] {Threei}  think of it this way:
[14:45] {Threei}  each buy and sell take place because someone decided to act
[14:46] {Threei}  reasons for those decisions are many,
[14:46] {Threei}  and few of them are rational,
[14:46] {Threei}  most of them are emotional, caused by certain perceptions,
[14:46] {Threei}  and those perecp[tions are quite subjective.
[14:47] {Threei}  When you observe crowds reacting on certain situations, you start noticing patterns in mass behavior
[14:47] {Threei}  Charts are nothing more than graphic representation of these patterns
[14:47] {Threei}  using those patterns you use knowledge about crowd behavior
[14:49] {Threei}  (end of lecture)
[14:51] {andj} So do you have a book that I could read?
[14:52] {Threei}  ummm... say what?
[14:52] {Threei}  you have MPP
[14:52] {andj} on the mass psychology
[14:52] {Threei}  there is Technique of Tape Readinf
[14:52] {Threei}  there is Taoist Trader
[14:52] {Threei}  there is 111 Trades
[14:52] {andj} :)
[14:53] {Threei}  and Taoist Trader includes in the package a few more, notably all time classic on mass psychology
[14:54] {Threei}  Extraordinary Popular Delusions and the Madness of Crowds
[14:56] {andj} thank you
[14:57] {Threei}  sure thing
[15:11] {Threei}  UNG did work that double bottom eh
[15:11] {Threei}  good spot stewy
[15:11] {stewy} yesiree
[15:25] {stewy} my lesson for the day:
[15:25] {stewy} watched ung in the a.m. and started trading the
[15:26] {stewy} rips after that 10:37 volume spike, sensing that a double bottom was in
[15:27] {stewy} thanks for the guidance, vad.
[15:27] {Threei}  music to my ears
[15:27] {stewy} shameless plug:
[15:27] {stewy} Taoist trader has been berry, berry good to me
[15:28] {Threei}  it rewarding to see you benefitting from my calls; it's doubly rewarding to see you finding your own plays and executing them
[15:29] {stewy} true. now one good day  doesn't make a trend
[15:29] {stewy} so as i get confident, i'll share these as everyone here does
[15:29] {Threei}  no... but every trend starts with first uptick
[15:30] {dino} gj stewster
[15:31] {stewy} and to think traders 'sensed' a bottom was in on it ten and  fifteen points ago
[15:32] {dino} you're last name isn't pickles by any chance is it syewy
[15:32] {dino} rugrats
[15:32] {Threei}  they didn't "sense" it... they hoped
[15:32] {Threei}  I hear for years how nat gas is destined to rocket any minute now
[15:41] {Threei}
[15:44] {thomcbell} anyone hear anything on fcx
[15:45] {thomcbell} thing is getting just smoked
[15:46] {Threei}  no news tnat I see
[15:47] {dino} no news here
[15:49] {Threei}  Trump endorsed Romney
[15:51] {andj} Thanks for everything today...Have a  good evening.
[15:52] {dino} take care all
[15:53] {stewy}  rugrats still on tv?
[15:53] {stewy} gd night all
[15:53] {Threei}  thank you ll
[15:53] {Threei}  have a good evening, see you tomorrow
[15:55] {dino} lol stewy, my guess yes, kids are too old now, but i watched many episodes w/them