Wednesday, February 29, 2012

Feb 29 2012

(Course on chart pattern recognition is available now:  

Interesting day, with sudden selloff out of nowhere. We were not really immediately shorting it but found our trades as events developed. For a great discussion of a good trade, follow that FCX short called at 14:41 for the next hour.

Session Time: Wed Feb 29 00:00:00 2012
[09:09] {MigC}  good morning
[09:09] {Threei}  migc :)
[09:10] {stewy} gd morning all
[09:10] {Threei}  stewy :)
[09:15] {beau} good morning you all
[09:15] {Threei}  beau :)
[09:17] {Threei}  KS) US officials indicate that North Korea has agreed to halt its enrichment of uranium and stop testing of nuclear and missile material
[09:17] {Threei}  - US to finalize details of a food aid package for the country
[09:17] {Threei}  "will make peace for food"
[09:19] {rambler} gm..
[09:19] {RonS} gm
[09:19] {Threei}  rambler, ron :)
[09:19] {Threei}  ron... there is still hope for michigan, eh
[09:20] {RonS} always hope i guess...
06[09:20] * Les slaps nemo with a 12 pin setup
[09:20] {Les} morning
[09:20] {Threei}  les :)
[09:21] {Les} got the pc up and running
[09:21] {Threei}  rambler, dcc please
[09:21] {Threei}  new one les?
[09:21] {Les} had to ring a technician to find out that the GTX560 needs a 12 pin setup. Hungry little piggy it is
[09:21] {Les} yeh
[09:21] {Threei}  cool
[09:22] {nemo} got yourself a rocket ride now
[09:22] {Les} beasty looking thing
[09:22] {Les} so I got a bios initial check
[09:22] {Threei}  8 cores, 16G memory?
[09:22] {Les} dunno if it is hyperthreaded
[09:22] {nemo} he's got hyperthreaded 4 looks like 8
[09:23] {Les} or a stock standard 4 core
[09:23] {Les} 16g yeh
[09:23] {Les} anyway, after bios intialisation, I can throw in the Windows disc now?
[09:23] {nemo} yeah
[09:24] {Les} cool. tomorrow then
[09:24] {Les} Bernanke speaks when?
[09:24] {nemo} dude, make sure you download coretemp
[09:25] {Les} ?
[09:25] {ese} morning.....just poping in for a little bit to get my brain back into this
[09:25] {nemo} you'll need to monitor the internal temps, you have to clean the radiators and fans regularly
[09:25] {ese} and to say hi
[09:25] {Threei}  hi ese
[09:25] {RonS} hi ese...
[09:25] {nemo} hi ese
[09:25] {ese} vad ron nemo
[09:26] {Threei}  today's is Beige book... other than that, I see no ben in schedule
[09:26] {RonS} chi pmi at 9:42...
[09:26] {Les} ciao ese
06[09:26] * Les slaps Nemo around with fake Fed date book
[09:27] {Threei}  oh wait
[09:27] {ese} les....gonna be in your neck of the woods in a week
[09:27] {Threei}  10 am, Ben speaksd at the House
[09:27] {Les} aaaah all is forgiven Nemo
[09:27] {Threei}  sorry
[09:27] {Les} nice time to visit ese
[09:28] {ese} Milan...Bologna...then Rome
[09:28] {ese} crowds
[09:32] {Threei} Short Setup: FCX  .05 break
[09:32] {Threei}  if stays under 44
[09:32] {nemo} you mean long?
[09:32] {Threei}  .95
[09:32] {Threei}  crap
[09:33] {Threei}  mistype
[09:33] {Threei}  covering half .87...
[09:33] {Threei}  grr
[09:34] {Threei} Short Setup: GM  .85 break
[09:34] {Threei}  wtf
[09:34] {Threei}  .05
[09:35] {Threei}  if stays under .10
[09:35] {stewy} can't short hmm
[09:36] {Threei}  aggressive entry for 26 break
[09:36] {nemo} market is a long
[09:37] {Threei}  dino, watching SODA?
[09:38] {dino} yes, and vocs
[09:38] {dino} bvocs sm l .76
[09:38] {dino} vocs, no b
[09:39] {Threei} Long Setup:  TZA  .35 break
[09:39] {Threei}  if stays above .30
[09:40] {dino} out vocs .52, -.24
[09:40] {dino} all over the place
[09:40] {dino} rinsed
[09:40] {Threei}  GM no go
[09:42] {dino} vocs sm l .45
[09:43] {RonS} chi pmi must be pos but response muted in es futes...
[09:43] {nemo} spy target 138.32
[09:43] {Threei} Long Setup:  CAT  .10 break half lot
[09:44] {Threei}  got away
[09:44] {Threei}  see if gives second chance
[09:44] {Threei}  .95 stop
[09:45] {Threei}  *(US) FEB CHICAGO PURCHASING MANAGER: 64.0 V 61.0E
[09:45] {Threei}  1:1
[09:45] {Threei}  1:2, out
[09:45] {Les} ty sir
[09:45] {Threei}  that was very nice of CAT to return for a pickup
[09:45] {Threei}  yw
[09:45] {nemo} no shorting today
[09:48] {Threei} Long Setup:  LVS  .80 break
[09:48] {Threei}  if stays above .70
[09:53] {Threei} Long Setup:  TNA  .50 break half lot
[09:54] {Threei}  stop under .40
[09:54] {Threei}  target 1:2
[09:54] {Threei}  1:1
[09:55] {Threei}  play by the book
[09:55] {Threei}  textbook setup calls for textbook action
[09:55] {Les} sold vocs +.37 ty dino
[09:55] {Threei}  1:2, out
[09:55] {Threei}  gj les
[09:55] {nemo} I would hold beyond 1:2
[09:55] {dino} out vocs .09, +.64
[09:56] {Threei}  beautiful
[09:56] {dino} gj les
[09:56] {Les} vocs VWAP .05 good exit
[09:58] {dino} gntx sm l .53
[09:58] {dino} ty
[09:59] {dino} panl sm l .73
[10:00] {cipher} +.74 vocs thanks dino!
[10:00] {dino} lol, always better than i
[10:00] {dino} ypf drop
[10:00] {Threei}  allow me dino:
06[10:00] * Threei slaps cipher around a bit with a large roll of cash
[10:01] {dino} sm l .62
[10:01] {Threei} Short Setup: MSI  50 break
[10:02] {Threei}  if stays under .05
[10:02] {cipher} +.29 ypf thx
[10:02] {Threei} Short Setup: LVS  .80 break
[10:02] {Threei}  if stays under .85
[10:02] {dino} ypf nationalization rumors
[10:03] {dino} out .92, +.30
[10:03] {Threei}  (US) Fed Chairman Fed's Bernanke: Higher gasoline prices could temporarily push inflation higher, reiterates that longer-term expectations show inflation to remain subdued - semi-annual Monetary Policy Report- Highly accommodative monetary policy stance meets both of the Fed's mandated policy goals. - Reiterates that US economic growth in 2012 to be modest, Fed does not see more substantial declines in unemployment. - It is not feasible to set a fixed goal for US employment levels.
[10:04] {Threei}  no go LVS
[10:05] {dino} ypf pulp dance
[10:06] {Threei}  if we knew Ben could be this effective we would buy all TZA there is
[10:06] {Threei}  but we used to think of him as useless
[10:06] {Les} I watched the .30 break, but how many times have we watched TZA fizzle...?
[10:06] {nemo} buddy in futes pit, everything getting dumped
[10:07] {Threei}  well, thisd is not a technical move les
[10:07] {Les} yeh right
[10:07] {Threei}  Ben doesn't say anything that would be surprising though
[10:08] {dino} really, what he said i expected
[10:08] {dino} ypf sm l .50
[10:09] {Les} yet silver racing along. We being setup for another smackdown?
[10:09] {Les} rhetorical thought
[10:12] {Threei} Short Setup: SLW  .60 break
[10:12] {dino} out ypf .03, +.53
[10:13] {Threei}  .68 stop
[10:13] {cipher} wtg
[10:13] {Threei}  no go
[10:14] {beau} gj all morn dino
[10:16] {dino} ty
[10:18] {dino} out panl flat
[10:19] {Les} gntx stop -.09
[10:20] {dino} 07 red
[10:20] {Threei}  SLW rinsed
[10:20] {Threei}  dirty scoundrel
[10:21] {Les} what is 07 red dino?
[10:21] {dino} gntx stop -.15
[10:22] {Les} speak of the devil, off comes silver
[10:22] {dino} mt "pulp" scanner, when it goes all red on 30 stocks, we are going down
[10:22] {Les} ok
[10:23] {dino} its priced in .07 increments, so things are moving
[10:25] {dino} chickened out on panl
[10:26] {dino} ipgp sm l .73
[10:28] {dino} 07 red
[10:37] {dino} out ipgp .08, +.35
[10:41] {Threei}  bounce time is close
[10:41] {Threei} Long Setup:  SLW  .20 break
[10:41] {Threei}  stop under .10
[10:42] {Threei} Long Setup:  TNA  .92
[10:42] {Threei}  if stays above .80
[10:43] {Threei}  change to .80 break
[10:43] {Threei}  stop under .70
[10:43] {Threei}  target 61.10 or so
[10:43] {Threei}  half out .94
[10:44] {Threei}  SLW target 1:2
[10:44] {nemo} slw either way
[10:44] {Threei}  wow
[10:45] {Threei}  no go
[10:45] {Threei}  what the deuce
[10:45] {dino} 07 fast red
[10:45] {stewy} oh boy
[10:45] {dino} stepping back
[10:45] {stewy} no kidding
[10:46] {Threei}  not only Ben doesn't say anything that he didn't say 15 times, but also everything'sa fine in Polnad:
[10:46] {Threei}  (PL) Fitch affirms Poland rating at A-; outlook Stable
[10:49] {Les} IWM support 81.30-.40
[10:49] {Threei}  we are getting our selloff we wanted, but so out of blue, we haven't had a chance to regroup for it
[10:49] {stewy} yesterday's dream...
[10:50] {Threei}  bulls got too comp[lacent I guess... othewise hard to justify the severity of it
[10:50] {dino} spy broke s1
[10:51] {Les} TNA 51 - .10 are might be interesting
[10:51] {Les} area
[10:51] {vijay} wow good I was stopped out of SLW
[10:51] {Les} sorry 59
[10:52] {Threei}  good illustration of how stop is your friend, eh?
[10:52] {vijay} yes Sir
[10:52] {Threei}  newbies hate stops
[10:52] {Threei}  experienced traders consider them best friends
[10:52] {vijay} :-) been burnt
[10:52] {vijay} before
[10:53] {Threei}  friends don't let friends continue losing money
[10:53] {vijay} is the boucne in SLW good?
[10:53] {vijay} yes true 
[10:53] {Threei}  let's let the dust settle a bit
[10:53] {nemo} bounced of IWM support
[10:53] {Les} would like a db here
[10:53] {Les} iwm
[10:53] {Threei}  no need to be a hero and jump in the scorching heat
[10:53] {vijay} yes Sir
[10:54] {dino} ipgp sm l .26
[10:54] {Threei}  look at the volatility
[10:54] {Threei}  TNA full dollar in two bars
[10:54] {Les} been a while
[10:55] {nemo} that's likely the bottom...third bounce at major support for IWM
[10:55] {Les} 3rd time lucky for a break of this support?
[10:56] {nemo} I doubt it, buy the frickin' dip!
[10:56] {Threei}  yeah, I'd start looking for double bottoms here
[10:57] {dino} agreed nemo, its a buy the dip market
[10:57] {Threei}  nice preview of things to come when the slightest crack in foundation becomes apparent
[10:57] {nemo} yeah, until it isn't
[10:57] {dino} europe is flooding the system
[10:57] {RonS} mutual fund thursday tomorrow...
[10:57] {nemo} QEIII
[10:57] {dino} print, print, print
[10:57] {nemo} monetary anarchy
[10:58] {dino} their salvation thru inflation is the plan
[10:58] {Les} yeh I see the ECB is good for 500bn in fresh money from this LOTR
[10:58] {nemo} until people go...they can just print it...what's it worth?
[10:58] {nemo} LTRO?
[10:58] {nemo} LOTR=Lord Of The Rings
[10:59] {dino} ioc sm l .53
[10:59] {Les} whatever dude
[11:00] {nemo} we'll finish positive today, no problem
[11:00] {Les} I could believe that
[11:00] {Threei}  obviously we were not ready for this selloff, but then again, I don't think anyone was or there was any way to see it coming
[11:00] {nemo} nope, when I saw apple coming off hard I thought it might happen
[11:01] {Les} lol, TZA from humble support at .20 this morn...
[11:01] {Les} recognised important support in TZA, no need to suspect severity of selloff
[11:02] {dino} we are up 8 of 9 days in s/p
[11:03] {nemo} we'll keep going up until May unless oil really spikes
[11:04] {Les} TNA 59.45 half pivot support. Maybe higher low
[11:05] {Threei} Short Setup: SLW  .50 break
[11:05] {Threei}  if stays under .60
[11:05] {nemo} gg climbing
[11:06] {dino} end drop
[11:06] {Les} silver smackdown. I know that feeling well
[11:07] {Threei}  invalidated
[11:09] {RonS} end l .10
[11:12] {Threei}  this sounds like a bad joke
[11:12] {Threei}  (US) Fed's Fisher: Mexico is beating the US in many areas including recovery from the crisis; no comment on economic or monetary policy- US should not expect inflation to help the labor market - Peso is a good store of value, Mexico's fiscal policies are better than that of the US
[11:12] {RonS} out end .35 +.25
[11:12] {Threei}  wtg ron
[11:13] {RonS} took ioc .55 to .90  thanks dino
[11:13] {dino} gj
[11:14] {dino} wtg
[11:14] {Les} l tza .01
[11:14] {Threei}  IMO, divo to 137 and double bottom around there is the most likely course for SPY
[11:14] {Les} stop under. 95
[11:15] {Threei}  that would translate into 19.20 target for your TZA Les
[11:17] {Les} ?
[11:17] {Threei}  ?
[11:17] {RonS} ??
[11:18] {Les} half out .05
[11:19] {Threei}  frikin SLW
[11:19] {Threei}  this thing just isn't itself today
[11:20] {nemo} see the secondary trend line on spy and IWM?
[11:20] {Les} noted from Armstrong a panic cycle due 3rd of March for metals. I interpret that as intermediate low coming
[11:20] {Les} .09 tza me out
[11:21] {Threei}  half out TZA for me here
[11:21] {Threei}  playing for that 19.20
[11:21] {Threei}  see SPY diving to 137?
[11:22] {Les} yeh
[11:22] {cipher} ipgp l .00
[11:22] {Les} it's the db I'd like though. If it is a db
[11:22] {Threei}  right
[11:22] {Threei}  11:14] {Threei} IMO, dive to 137 and double bottom around there is the most likely course for SPY
[11:23] {Threei}  out TZA .15
[11:23] {Threei}  watching TNA and FCX for db now
[11:23] {cipher} l ibm .80
[11:24] {cipher} l tna .53
[11:25] {cipher} 1/2 out ibm .10 +.30
[11:25] {dino} gntx sm l .06
[11:26] {dino} gj
[11:27] {Les} there's .20 tza
[11:27] {dino} out ipgp flat
[11:28] {Threei} Long Setup:  FCX  .75 break
[11:28] {dino} pslv drop
[11:28] {dino} sm l .52
[11:29] {Threei}  if stays above .65
[11:29] {dino} jjc drop
[11:29] {Threei}  invalidated
[11:31] {dino} air pocket day
[11:31] {dino} out pslv .83, +.31
[11:32] {dino} out gntx flat
[11:34] {Threei} Long Setup:  FCX  .65 break
[11:34] {Threei}  stop under .50, target .90
[11:35] {andj} Hey dino...did you do the short or long on PSLV?
[11:35] {dino} jjc l .32
[11:36] {dino} long
[11:39] {andj} So I guess this is a good time for bounce plays?
[11:39] {nemo} careful, lunchtime
[11:40] {Les} only in MA
[11:40] {RonS} who knows...this is treacherous fcx held by .01
[11:40] {andj} Right,  I just had breakfast...
[11:40] {Threei}  TNA nice bounce
[11:41] {dino} half out jjc .46, 
[11:41] {dino} +.14
[11:41] {nemo} going to vwap spy likely to pivot
[11:41] {cipher} out tna .10 +.57
[11:42] {andj} Hey nemo...what is vwap?
[11:42] {cipher} out ipgp.40 +.49
[11:42] {nemo} Volume Weighted Average Price
[11:42] {dino} gj cipher, i chickened out
[11:43] {Threei}  FCX, hard to tell if this is going to play out
[11:43] {RonS} stopped fcx
[11:43] {cipher} out rest of ibm .19 +.39
[11:44] {andj} vwap an indicator?
[11:44] {dino} out remainder jjc .37, +.05
[11:46] {cipher} out gntx .20 +.14
[11:46] {cipher} too soon
[11:48] {Threei}  andj... IMO, leave VWAP for later
[11:48] {RonS} dammit fcx rinse...
[11:48] {Threei}  there are more basuc things to master first
[11:48] {andj} ok
[11:48] {Threei}  ron... it never hit the stop
[11:49] {RonS} you said .55 stop...wnet .52
[11:49] {nemo} .50 stop
[11:49] {Threei}  11:34] {Threei} stop under .50, target .90
[11:49] {RonS} ah...sheesh...
[11:49] {nemo}   FCX  .65 break
[11:49] {nemo} [11:35] {&Threei}  stop under .50, target .90
[11:50] {Threei}  I am still not very confident in it though... lagging SPY
[11:50] {Les} yeh
[11:50] {Les} out flat. brb
[11:50] {Threei}  TNA showed much cleaner double bottom
[11:51] {Threei}  look at it... picture perfect
[11:51] {nemo} IWM just about to touch vwap
[11:51] {stewy} but where the heck to grab it?
[11:51] {stewy} tna?
[11:51] {nemo} it's about to pull back a bit
[11:51] {Threei}  was very volatile in the bottoming process
[11:52] {RonS} amen...Ron Paul To Ben Bernanke: "People Lose Trust In The Government Because You Lie To Them About Inflation"
[11:52] {nemo} always is, just needed to buy it with a stop comfortably above the bottom, and then hold your knows and make sure diapers are secure
[11:52] {Threei}  you go Paul
[11:54] {stewy} cipher congrats. you grabbed it.
[11:55] {Threei}  half out FCX
[11:55] {Threei}  formally hasn't reached 1:1 yet but it lags so much, I feel the need to lighten the load
[11:56] {RonS} dino...slv gap fill intraday?
[11:56] {stewy} it hit 1;1 before already
[11:56] {Threei}  1:1 would be .80
[11:57] {stewy} yer right, forgot about the .15 risk
[11:57] {Threei}  don't see it there?
[11:57] {Threei}  :)
[11:57] {Threei}  anyway, stop to .59
[12:05] {nemo} iwm dropped from vwap, tail is wagging the dog today
[12:06] {cipher} gntx l ..13
[12:06] {dino} 32.37 area ron? perhaps
[12:06] {dino} w/market drop
[12:07] {andj} threei what do you want me to look for with IMO?
[12:08] {nemo} huh?
[12:08] {dino} \gntx l .16
[12:08] {Threei}  IMO = in my opinion
[12:08] {nemo} cat
[12:08] {andj} duh...
[12:09] {dino} roflol
[12:09] {nemo} read your sentence andj
[12:09] {andj} I need to buy a chat room jargon book
[12:09] {Threei}  or just google "internet abbreviations" :)
[12:10] {andj} I thought IMO was a stock ticker:)
[12:10] {Threei}  google era ended books, haven't you heard...
[12:10] {dino} i still like holding a book
[12:11] {Threei}  very much so
[12:11] {Threei}  but ever since getting that tablet, I find myself being able to have and read easily so many of them...
[12:11] {andj} Yes I love PDF books..
[12:12] {Threei}  can't deny the usefulness of this form... even though emotionally not really agreeeing with it
[12:12] {Threei}  1/4 more out FCX
[12:13] {stewy} out fcx +.20 thanks
[12:13] {Threei}  :)
[12:13] {dino} i understand
[12:13] {stewy} a good trade for this disciplined challenged trader!
[12:14] {Threei}  to illustrate the concept: I have a list about 40-50 books on photography I need to inhale
[12:14] {Threei}  having therm on a tablet and always with me, vs hard copies... you can see the difference :)
[12:14] {Threei}  out FCX .90
[12:15] {Threei}  target
[12:15] {Threei}  stewy, as far as discipline goes, that was an ideal trade
[12:15] {Threei}  tested your patience
[12:15] {Threei}  made you question the validity
[12:15] {stewy} hey, all that talkin yesterday about emotioin, discipline, 10,000 screen hours,
[12:16] {Threei}  eqzakty
[12:16] {stewy} forced me to assess everything i'm doing here and i'm
[12:16] {stewy} not there discipline wise yet
[12:16] {Threei}  and it was a perfect wu-wei trade
[12:16] {stewy} During that fcx, of course i second guess everything.
[12:16] {dino} out ioc .10, +.57
[12:17] {Threei}  and who know not what wu-wei is and what it has to do with this trade, go, no run to read Taoist Trader
[12:17] {Threei}  wtg dino
[12:17] {dino} ty took forever
[12:18] {Threei}  lol, good one on perspective:
[12:18] {Threei}  Markets in turmoil as S&P PLUNGES a whopping 0.50% after a 4 month, 28% rally
[12:18] {Threei}  not exactly right though, as much as cute it is
[12:18] {Threei}  it's sudennes and severity of the selloff that influence emotions so much
[12:18] {dino} going green
[12:19] {dino} 07 green
[12:20] {andj} Threei what do you think that I should be doing right now?
[12:21] {Threei}  have you gone through all the materials yet?
[12:21] {Threei}  MPP, 11 trades, videocourse
[12:23] {andj} Mostly yes
[12:23] {Threei}  then make sure you understand the setup structure as far as elements of the setup go,
[12:23] {Threei}  trigger, stop, partials, targets,
[12:23] {Threei}  and start small shares
[12:24] {Threei}  following room calls at first
[12:24] {Threei}  starting to look for some on your own and paper trade them in a few
[12:25] {Threei}  if they work, start trading them with small shares as well
[12:25] {Threei}  if not - figure out where the difference between your finds and room calls lies
[12:25] {Threei}  no kidding
[12:25] {dino} gld sm l .00
[12:26] {Threei}  that's a program for the first steps
[12:26] {Threei}  also, give a quick reread to the last chapter of MPP, Practical Trading
[12:27] {Threei}  make sure everything is in place, aligned, followed
[12:27] {Threei}  be that rare beginner that begins things right, not in traditional haphazard manner
[12:28] {Threei}  that costs us all so much
[12:29] {dino} lol
[1[12:30] {andj} Got it Vad...that sounds like a good, safe plan...God knows you are right about the cost of doing this haphazardly.
[12:30] {dino} priced like a harvard education
[12:31] {andj} right
[12:31] {dino} out gntx .29, +.13
[12:32] {dino} snowing like crazy here, about 4" already
[12:33] {Threei}  wow
[12:33] {dino} gld stop -.26
[12:34] {RonS} spring weather here...yest rain,snow,sun three 55...tomorrow snow 
[12:34] {Les} definitely not permitted
[12:35] {dino} i get your weather a day or two later
[12:35] {cipher} ioc l .89
[12:37] {dino} vad will appreciate this, lunch is cream of brocoli soup
[12:38] {Threei}  ugh
[12:38] {nemo} with bacon bits?
[12:38] {dino} unfortunately no
[12:39] {Les} TNA VWAP at .80 holding
[12:39] {dino} cipher nice ioc, i was looking for .65 pullback
[12:40] {cipher} out ioc .14 +.25
[12:41] {cipher} thx sold too soon as usually
[12:44] {dino} curse of a scalper
[12:44] {Threei}  (GR) International Swaps and Derivatives Association (ISDA) further delays decision on Greece CDS to Monday- Decision had previously been expected for Thursday
[12:44] {dino} gut feel, re-test of mkt lod
[12:46] {Threei}  (US) Fed's Fisher: too big to fail banks are now even bigger; reiterates five largest US banks should be broken up - Q&A
[12:46] {Threei}  lol
[12:46] {Threei}  good job
[12:47] {Threei}  the irony of a cure becoming worse than the illness...
[12:49] {dino} well what did tey expect w/the big banks buying up troubled ones
[12:51] {andj} Do you think I should paper trade your picks as well?
[12:51] {Threei}  as a first step, sure
[12:51] {Threei}  that's what MPP prescribes, isn't it
[12:52] {andj} I have to say yes...
[12:54] {cipher} andj how long have you been daytrading?
[12:57] {andj} Well I am only learning now...
[12:58] {andj} I had been trading options with only break even results.
[12:58] {andj} I really want to get scalping and day trading right and then
[12:58] {andj} include options in a longer time frame.
[13:13] {dino} .
[13:16] {nemo} Davey Jones of the Monkees died
[13:23] {andj} So Vad I have been wondering what I am supposed to be doing while I´m waiting for your calls.
[13:24] {Threei}  look around to try and find something?
[13:24] {RonS} pet the dog?
[13:24] {Threei}  paper trade what looks good to you
[13:26] {andj} OK...what types of setups are working best right now?
[13:27] {Les} the reward goes to the trader who can find those setups
[13:28] {Threei}  I can't answer that
[13:28] {Threei}  it changes a few times a day
[13:28] {andj} So when it changes then you use that style setup?
[13:29] {andj} And are you waiting for the next change?
[13:30] {Threei}  I am not sure I understand your question
[13:30] {Threei}  trending market calls for certain setups,
[13:30] {Threei}  spikes call for others
[13:31] {andj} It's  like a needle in a haystack?
[13:31] {Threei}  huih?
[13:31] {Threei}  it's identification of current conditions and following them,
[13:31] {andj} I don´t know what I´m looking for.
[13:31] {Threei}  because you are trying to leap over steps
[13:32] {Threei}  follow the procedure described in MPP, and you will progress from one stage to another
[13:32] {Threei}  right now it's like you trying to see what's on the other side of the hill while standing at its bottom
[13:33] {Threei}  gotta climb it first, then you'll have much better view
[13:34] {andj} So should I be watching the indexes and scanning for stocks?
[13:34] {Threei}  yes, eventually
[13:35] {andj} But what right now?
[13:35] {beau} homework
[13:35] {Threei}  return to 12:23 and reread the whole thing
[13:35] {Threei}  that's your program for rught now
[13:36] {andj} ok
[13:36] {Threei}  andj, you are trying to absorb the whole trading approach in one inhale
[13:36] {dino} gld lod
[13:36] {Threei}  do it step by step, as you would learn any other profession
[13:37] {Threei}  progress from simple things dine under the guidance
[13:37] {Threei}  to more complicated with bigger share of independent work
[13:37] {Threei}  to untlimate goal of being abke to do it all by yourseklf
[13:38] {Threei}  it takes time and discipline
[13:40] {Threei}  guys, remember we spoke yesterday about stocks starting to move more independently of the market?
[13:40] {RonS} yes
[13:40] {Threei}  look at SPY, LVS and FCX over last hour
[13:40] {dino} soda sm l .90
[13:41] {Threei}  SPY is locked, LVS went up, FCX went down
[13:41] {nemo} metals getting whacked
[13:41] {Threei}  I like what I see
[13:42] {andj} why?
[13:42] {dino} more opportunity
[13:42] {Threei}  right
[13:43] {Threei}  abnormal correlation of last year or two created a situation where you were pretty much locked into doing what index was doing
[13:43] {Threei}  with rare exception of news-impacted stock
[13:44] {Threei}  more normal is a market where there are stocks following index closely,
[13:44] {Threei}  there are some with this o that degree of correlation,
[13:44] {Threei}  there are some that just do their thing
[13:44] {Threei}  so you have more choices
[13:47] {dino} out soda .stop soda -.15
[13:47] {andj} Threei why do the indexes have so much impact on the market?
[13:48] {andj} Is it they are more powerful or that they act first and the others follow?
[13:48] {dino} indexes are markets
[13:48] {RonS} sorry, but lol...Snooki is preggers (and she's shopping the story)! How many pro-lifers are reconsidering their stance now?
[13:49] {dino} lol
[13:49] {Threei}  indexes are compiled of the major stocks
[13:50] {Threei}  they refelct the mood and invite the less important ones to follow
[13:50] {Threei}  sorry for showing my being totally out of tune but... who the f is snooki?
[13:51] {andj} A loud mouth reality star from New Jersey.
[13:51] {Threei}  ok, that explains me being totally unfamiliar with the name
[13:52] {andj} You aren't missing anything.
[13:52] {stewy} fcx into low of day
[13:54] {dino} meli drop
[13:55] {Threei}  FCX starts looking tempting for short
[13:55] {Threei}  two ways to go about it
[13:55] {Threei}  one is traditional,
[13:55] {dino} sm l .35
[13:55] {dino} meli
[13:55] {Threei}  wait for it to consolidate above .50, then short a break
[13:56] {Threei}  another is aggressive, take a break of some range established above .50 - .60 one
[13:56] {Threei}  with idea to partial near .50 and ride the ultimate breakdown
[13:56] {dino} mkt going up
[14:00] {Threei} Long Setup:  LVS  .80 break
[14:00] {Threei}  if stays above .70
[14:01] {Threei}  andj, one more idea for the time being: make sure you can identify the setup behind the call, for practice sake
[14:02] {Threei}  consider it 111 Trades training video in real time
[14:04] {dino} out meli .ioc sm l .45
[14:05] {dino} out meli at .65, 
[14:05] {dino} +.30
[14:05] {cipher} gj
[14:05] {dino} ty
[14:06] {andj} So that´s a double top...right?
[14:06] {Threei}  double top would be a short call
[14:07] {andj} So a JBE?
[14:07] {Threei}  yeah
[14:08] {andj} And the trigger is .80 because of the resistance at the same in the morning?
[14:09] {Threei}  mostly because it forned this restance from 13:40
[14:11] {andj} So the stop is at .70.
[14:11] {andj} Are you going for 1:1?
[14:15] {Threei}  kind of moot point
[14:16] {stewy} lvs, you moody wanker.
[14:16] {stewy} sorry, had to get that off my chest
[14:16] {Threei}  lol
[14:17] {andj} So now that the price has backed off the trigger will you go on to look for a different stock?
[14:18] {Threei}  or different setup ion the same
[14:18] {andj} So about how many stock will you look at on any given day?
[14:19] {andj} stocks
[14:19] {Threei}  a lot
[14:19] {Threei}  not all of them make the cut to the calls of course
[14:26] {andj} So I'm supposed to be scanning and scanning the stock charts to look for the patterns in 111 Trades?
[14:26] {nemo} that for acouple of years, then ask questions
[14:26] {Threei}  eventually
[14:27] {andj} Ask questions about what nemo?
[14:28] {Les} have to thank you for Koppel's Tao of Trading recommendation Vad. Great little book
[14:28] {Threei}  :)
[14:30] {dino} you have a scanner, right?
[14:31] {andj} Is that question directed to me?  If so yes...I have it.
[14:32] {Les} like SLV here VAd?
[14:33] {dino} then tweak it for vads jbe, etc
[14:34] {Threei}  34 break les?
[14:34] {Les} yeh
[14:34] {Les} but watching equities risk off again
[14:34] {Les} not so sure
[14:35] {andj} Those are pre-loaded on the scanner.  I'm unsure which one is best to use at different times of the day
[14:36] {Threei}  andj... step by step
[14:37] {Threei}  you ask questions which I can't answer because you don't have points of reference for the answers yet
[14:37] {nemo} just need to observe
[14:37] {RonS} dino out of ioc?
[14:39] {RonS} gntx melt...
[14:39] {dino} ioc stop -.22
[14:41] {Threei} Short Setup: FCX  .70 break
[14:41] {nemo} 200 day at fcx low
[14:46] {dino} what do you make of gtnx ron and cipher?
[14:46] {dino} gntx
[14:47] {andj} God there's so much sitting involved with this job:)
[14:47] {nemo} that's a mess
[14:47] {RonS} shoulda bought it 2 seconds ago ...hehe
[14:47] {RonS} never seen such volume on a company i have never heard of...
[14:48] {RonS} thinkin it closes at lod sub 23...
[14:48] {RonS} 139 mil sh outstanding
[14:49] {RonS} guess they were all banking on a rear camera rule...
[14:49] {dino} ipgp ave .15 sm l
[14:50] {andj} Vad...did you get into FCX or are you waiting until exactly .70?
[14:51] {Threei}  break of .70 is trigger fior entry
[14:51] {Threei}  {Threei} Short Setup: FCX .70 break
[14:52] {andj} Because of the .70 support at 11:18?
[14:52] {Threei}  11:18??
[14:52] {Threei}  what time zone are we talking here?
[14:53] {andj} Pacific time.  
[14:53] {Threei}  no
[14:53] {Threei}  use ET
[14:53] {Threei}  otherwise you'll be looking at somethuing different than everyone else
[14:53] {Les} damn, here I been using Swiss time all these years :)
[14:53] {Threei}  NY time is across the board standard for charts
[14:53] {Threei}  lol
[14:53] {andj} I've been trying to change thinkorswim to eastern time but with no success. 
[14:54] {andj} I will just do it myself
[14:54] {Threei}  I thought you have Laser?
[14:54] {andj} I am still building proficiency with Laser.  I watched about half the videos.
[14:55] {nemo} yeah those mouse buttons are a bitch
[14:55] {Threei}  don't know about other platforems, Laser simply takes the time from your computer clock
[14:55] {andj} I can move thinkorswim around really well.
[14:55] {Threei}  so my trading machine is on ET time
[14:56] {nemo} Phone Home
[14:56] {andj} nemo do you use Laser?
[14:56] {nemo} did
[14:59] {Threei}  not a scalp for me
[14:59] {Threei}  playing for a big break
[15:00] {Threei}  1:1
[15:06] {dino} meli sm l .75
[15:09] {Threei}  come on FCX, make us a good end of day present
[15:09] {Threei}  lose that .50 and redefine the word "cascade"
[15:12] {dino} out meli .34, ave +.59
[15:14] {dino} way too soon
[15:14] {Les} IWM daily, looking ready to fall
06[15:15] * Threei hits FCX over the head with 2x4
[15:15] {andj} I see what you mean about emotional control being the most important thing.
[15:15] {stewy} vad turns to violence...
[15:16] {andj} It seems really easy to get scatter brained when you first start out.
[15:16] {Threei}  not for me
[15:16] {dino} 81.17 sup les
[15:16] {Threei}  absence of a brain made this no problem for me at all
[15:17] {nemo} that's focus andj...that's not the emotional component
[15:18] {Les} not sure how valid my fast MACD settings are for daily, but they tell me that odds are increasing for a b'down in IWM. 
[15:18] {nemo} that screen in front of you is a mirror to your soul
[15:18] {Threei}  and I do have laser-like focus thanks to inability to process more than one thought an hour
[15:18] {Les} I'm jealous
[15:18] {dino} and the keyboard is your turret
[15:19] {nemo} well, his wife locks him downstairs for the day
[15:19] {andj} But you get that one thing really well...I know that.
[15:19] {andj} I like the turret thing.
[15:19] {andj} Makes it more like a game.
[15:19] {Les} wish my missus would leave me alone for the evening...
[15:19] {nemo} actually the keyboard is his lunch
[15:22] {dino} make no mistake andj, this is not a game. we eat what we kill.
[15:23] {nemo} the process is a painful one
[15:23] {andj} I just mean to play to win.
[15:23] {nemo} Guess what, focus on managing your losses
[15:24] {dino} losses=skill
[15:24] {nemo} tuition
[15:24] {andj} how's that?
[15:25] {Threei}  1:1 nears
[15:25] {dino} it takes skill to take a loss that doesn't kill you or rinse you
[15:25] {andj} dino how does loss equal skill?
[15:25] {Threei}  1:2
[15:26] {Threei}  let me take this one
[15:26] {dino} old saying, profits=luck, losses=skill. losses are the most important thing to manage
[15:26] {Threei}  think of it this way, andj
[15:26] {Threei}  any idiot can grab money from the trade going his way,
[15:27] {Threei}  the less of an idiot he iks the better he will manage it to maximize his profit
[15:27] {Threei}  while minimizing risk of profit evaporating
[15:27] {Threei}  but in any case, taking profit is pocketing money and requires very little stkill.
[15:27] {Threei}  Now, when a stock moves against you,
[15:28] {dino} stop ipgp -.27
[15:28] {Threei}  this is the case that seoparates boys from men,
[15:28] {Threei}  winners from losers
[15:28] {Threei}  It takes skill, discipline, self control to manage your loss,
[15:28] {Threei}  to take it in a fashion that prevents it from growing and killing your whole account.
[15:29] {Threei}  not keeping one's stops is number 1 reason for traders' failujre
[15:29] {Threei}  whatever else you do or don't do, know or don't know - if you don't keep yopur stops the rest just doesn't matter,
[15:29] {Threei}  you WILL be eliminated.
[15:30] {Threei}  thus the saying:
[15:30] {Threei}  take cvare of your losses, profits will take care of themselves
[15:31] {Threei}  or as dino puts it, profits = luckm losses = skill
[15:31] {Threei}  luck is a tongue in cheek of course, this is luck that favors olnly well prepared
[15:31] {andj} That's a twist of logic for me but it is actually quite reassuring.
[15:31] {dino} some make their own luck
[15:32] {Les} someone I respect says miners are always last off the dance floor and GDXJ showing big ugly selling bar today
[15:32] {Threei}  well... when you get to Taoist Trader you will encounter quite a few of such paradoxes
[15:32] {Threei}  they are very delightful
[15:32] {Threei}  total mind candy
[15:32] {Threei}  and very very real
[15:32] {Threei}  they rule our life, whether we realize it or not
[15:33] {dino} calling it a day. getting into the hit/miss pattern. don't want to give any back
[15:33] {Threei}  majority doesn't realize that,
[15:33] {Les} cheers
[15:33] {Threei}  take things at face value
[15:33] {Threei}  apply straightforward logic
[15:33] {Threei}  and get chewed up and spat out.
[15:33] {Threei}  have a good evening dino
[15:34] {Threei}  when you switch to trader kind of thinking, logic changes
[15:34] {dino} thx
[15:34] {Threei}  and things possess incredible clarity
[15:35] {andj} bye dino...thanks
[15:35] {Threei}  here comes 1:3
[15:35] {Threei}  not covering in full
[15:35] {Threei}  will try to trail
[15:36] {Threei}  when this trade is over, I'll try to give you an almost real time example of trader vs non-trader thinking
[15:37] {stewy} nice fcx. good way to end the day
[15:37] {Threei}  1:3
[15:38] {Threei}  1:4, sorry
[15:40] {Threei}  so here is promised illustration:
[15:40] {Threei}  normal human being, aka non-trader:
[15:40] {Threei}  FCX tested and held .50 a few times, must be a great support, gotta buy if it gets there
[15:41] {Threei}  evilish wickedly-thinking thing, aka trader:
[15:42] {Threei}  FCX stays weak while SPY bounces a lot... that .50 looks to be a very significant support... how can market hurt as many as possible?
[15:42] {Threei}  why, by luring them into buying near that support, then breaking it and dropping like there is no tomorrow
[15:43] {Threei}  gotta take short position in FCX when market starts weakening again, ride it to .50, and when those naive buyers come in, they will complete our trade by getting killed and bailing out
[15:45] {Threei}  when you start thinking like this, you are going to find yourself ahead of most players by a step or two regularly
[15:46] {Les} FCX hammer made in 15 min chart
[15:53] {Threei}  ok guys, no more trades for today
[15:54] {Les} ciao. A domani
[15:54] {Threei}  this last trade was a good way to end the day
[15:54] {Threei}  have a great evening, see you tomorrow
[15:54] {stewy} thx vad
[15:55] {andj} thank you all