Let me entertain you with this quote from A Taoist Trader:
The best of men is like water;
Water benefits all things
And does not compete with them.
Water benefits all things
And does not compete with them.
Just as smooth flow facilitates water’s health and clarity, steady and smooth trading is the best way to manage risk and guarantee steady profits. Wild swings of one’s trading account signify an abnormal amount of risk being taken. Such trading ruins a trader’s emotional and mental balance and leads to severe drawdowns. They are emotionally draining and psychologically damaging; they are also potentially ruinous for the trading account itself as the size of the drawdown can become unsustainable very quickly. A Taoist Trader guards against too much turbulence in his trading and moderates his risk taking in an attempt to prevent severe setbacks.
A trader should apply the same principle to his reading of market movements. It helps him understand whether a movement is in its sustainable stage or is coming to its end, thus enabling him to decide whether to hold his position or start looking for an exit. Smooth steady price movement with stable volume is likely to be sustainable and continue for a while. Parabolic turbulent price movement with exploding volume signals an approaching final stage – such extreme price/volume action is not sustainable and will lead to a reversal sooner rather than later.
Session Time: Mon Apr 06 00:00:00 2015
[09:04] {dino} gm
01[09:05] {@Threei} dino :)
01[09:29] {@Threei} Upside:
01[09:29] {@Threei} -QURE +44% (earnings; entered into agreement with BMY to develop gene therapies)
01[09:29] {@Threei} -CYTX +23% (Cytori & Lorem vascular receive regulatory clearance in China)
01[09:29] {@Threei} -GAME +5.6% (entered definitive merger agreement with Going Private Transaction for $7.10/shr)
01[09:29] {@Threei} -TSLA +3.6% (momentum from Friday sales numbers)
01[09:29] {@Threei} -TIF +3.3% (positive broker commentary)
01[09:29] {@Threei} -ARIA +3.3% (announced approval of Iclusig)
01[09:29] {@Threei} -LL +2.6% (positive broker commentary)
01[09:29] {@Threei} Downside:
01[09:29] {@Threei} -MHR -9.5% (disclosed notice from SEC staff that is has recommended that the SEC file an enforcement action)
01[09:29] {@Threei} -DGLY -8.3% (company's "major announcement" turned out to be a PGA event sponsorship vs. product announcement)
01[09:29] {@Threei} -HLF -4.5% (US federal enforcement officials to have contacted various Herbalife members regarding their business practices)
01[09:29] {@Threei} -WBAI -3% (no news seen)
[09:30] {jfjf64} Mornin
01[09:30] {@Threei} jf :)
01[09:32] {@Threei} Short Setup: FB .20 break
01[09:32] {@Threei} too fast
01[09:32] {@Threei} again
01[09:32] {@Threei} If holds .30
01[09:33] {@Threei} Invalidated
01[09:35] {@Threei} Long Setup: VXX .20 break
01[09:35] {@Threei} If holds .10
01[09:37] {@Threei} Short Setup: FB .50 break
01[09:37] {@Threei} sheesh... too fast again
01[09:38] {@Threei} valid
01[09:38] {@Threei} If holds .60
01[09:38] {@Threei} nah
[09:39] {jfjf64} Next candle hold .65
[09:40] {jfjf64} Na
01[09:40] {@Threei} SPY closes the gap
[09:41] {jfjf64} Fb maybe time
01[09:42] {@Threei} Short Setup: FB .70 break
01[09:42] {@Threei} If holds .80
01[09:43] {@Threei} 1:1
[09:44] {jfjf64} We break 13 ma.55 then think we get .38
01[09:44] {@Threei} *(US) MAR FINAL MARKIT SERVICES PMI: 59.2 V 58.5E
[09:45] {jfjf64} Na
01[09:46] {@Threei} Short Setup: TWTR .30 break
01[09:46] {@Threei} If holds .40
[09:47] {jfjf64} Vxx here
[09:48] {jfjf64} Whacky mkt
01[09:48] {@Threei} never-edning drive up
[09:49] {jfjf64} Yes
[09:49] {dino} qure sm s .48
01[09:50] {@Threei} Short Setup: FB .80 break
01[09:50] {@Threei} If holds .90
01[09:51] {@Threei} 1:1
01[09:55] {@Threei} Short Setup: MCD .55 break
01[09:56] {@Threei} change to .60
01[09:56] {@Threei} If holds .70
01[09:57] {@Threei} 1:1
01[09:59] {@Threei} *(US) MAR ISM NON-MANUFACTURERS COMPOSITE: 56.5 V 56.5E
[10:00] {dino} dyax sm s .70
[10:01] {jfjf64} Tesla machine today
01[10:01] {@Threei} 1:2
01[10:01] {@Threei} finally something decent
[10:02] {jfjf64} Yes
01[10:03] {@Threei} 1:3
[10:05] {jfjf64} Stop :43
[10:05] {jfjf64} ?
[10:06] {jfjf64} Me out Ty
01[10:06] {@Threei} yup
[10:06] {jfjf64} You still in
01[10:07] {@Threei} no
[10:08] {jfjf64} Vxx ready
[10:08] {jfjf64} ??
01[10:09] {@Threei} I'd prefer one more pullback
01[10:09] {@Threei} and buy around .90
[10:12] {dino} epam spike
[10:13] {dino} sm s .05
[10:14] {jfjf64} You still Dino
[10:15] {dino} of course i'm dino
[10:15] {jfjf64} Lol
[10:15] {dino} yes, bs at .41
01[10:15] {@Threei} hehe
[10:15] {dino} stopped
[10:16] {jfjf64} Got on my radar
[10:17] {dino} epam sm s .76
[10:17] {dino} bs .02
01[10:18] {@Threei} Long Setup: VXX .90 break
01[10:18] {@Threei} If holds .85
[10:19] {jfjf64} Nice tight stop like
[10:20] {dino} bid/ask getting wider, should drop
[10:20] {jfjf64} Now
[10:21] {jfjf64} Here we go
01[10:21] {@Threei} nah
[10:21] {jfjf64} Elam
[10:21] {jfjf64} Epam
[10:24] {dino} wtf stopped epam, too greedy
[10:26] {dino} rinsed
[10:26] {dino} sm s .71
[10:29] {jfjf64} That ma holdin up .57
[10:33] {dino} stopped .10 ave -.39
01[10:33] {@Threei} Long Setup: VXX .70 break
01[10:33] {@Threei} If holds .64
[10:33] {dino} had .30 on it twice, stupid, stupid
01[10:34] {@Threei} Invalidated
[10:46] {jfjf64} Valid
[10:46] {jfjf64} Vxx
[10:51] {dino} epam last try sm s .34
01[10:52] {@Threei} Short Setup: MCD .60 break
01[10:52] {@Threei} If holds .70
[10:53] {jfjf64} Go Dino
[10:54] {dino} lol
[10:55] {jfjf64} Tna .30 long
[10:58] {jfjf64} 1:1
01[11:02] {@Threei} 1:1 MCD
[11:04] {jfjf64} Watching safm reversal
[11:06] {dino} late post, dyax stopped .01 -.31
[11:08] {jfjf64} In
01[11:11] {@Threei} 1:2
[11:26] {dino} gj
01[11:26] {@Threei} ty
[11:27] {jfjf64} Yes nice job vg
01[11:27] {@Threei} Market participants had all weekend to think about the big payrolls whiff in Friday's US March jobs report. This morning traders are buying the dip although trading volumes remain light.
[11:28] {jfjf64} Not me
[11:28] {jfjf64} Lol
01[11:28] {@Threei} There was talk over the weekend that the worsening debt crisis has reanimated debate within Greece's ruling Syriza party about possible snap general elections if discussions with creditors fail. The country faces a Thursday deadline to repay a €450M IMF loan
[11:46] {jfjf64} Aapl 127
[11:46] {jfjf64} Long
[11:47] {jfjf64} I'm buyin dip
[11:48] {jfjf64} 1:1
[11:48] {jfjf64} Now hod
[11:49] {jfjf64} Not
[11:56] {jfjf64} Time for lunch
[11:56] {jfjf64} No 1:4 vg till back
[11:56] {dino} gj
01[12:13] {@Threei} Long Setup: HLF .10 break
01[12:13] {@Threei} If holds .95
01[12:13] {@Threei} 1:1
[12:35] {jfjf64} Gonna take shot vxx
[12:36] {jfjf64} .40 break
[12:36] {jfjf64} Small stop
[12:50] {dino} taking a break
01[12:50] {@Threei} stall...
01[12:50] {@Threei} HLF is moving again
[12:51] {jfjf64} Nice pull i
[12:51] {jfjf64} Bk
[13:08] {dino} out wday calls from march, +1.50 / 41%
01[13:09] {@Threei} wtg
[13:10] {jfjf64} Good job Dino
[13:10] {dino} ty
[13:12] {jfjf64} Hlf
[13:12] {jfjf64} .45 break
[13:12] {jfjf64} Thoughts vg
01[13:13] {@Threei} 50/50
01[13:13] {@Threei} no drive in the market either way
[13:24] {jfjf64} Infa
[13:41] {jfjf64} .60 break short here
[13:41] {jfjf64} .65
[13:44] {jfjf64} Nope
[13:49] {jfjf64} SOB
[14:07] {jfjf64} Fb hod.55 break short
[14:07] {jfjf64} Invalid
[14:26] {jfjf64} Celg .15 break
01[14:28] {@Threei} not holding 113
01[14:29] {@Threei} now maybe, .10 break
01[14:33] {@Threei} nah
[14:38] {jfjf64} SOb
[14:39] {jfjf64} Came off old
[14:39] {jfjf64} Lod
[14:42] {dino} lol, finally covered qure from this morning, 32.15, +1.33
01[14:44] {@Threei} nice
01[14:44] {@Threei} él fb .75 break
01[14:44] {@Threei} éc .65
01[14:45] {@Threei} Long Setup: FB .75 break
01[14:45] {@Threei} If holds .65
[14:54] {jfjf64} I'm pissed celg
[14:55] {jfjf64} Nice hold Dino
01[14:56] {@Threei} Invalidated
[14:57] {dino} ty jf
[14:58] {jfjf64} Hlf hod
01[15:06] {@Threei} Long Setup: FB .60 break
01[15:06] {@Threei} If holds .54
01[15:10] {@Threei} watching VXX for pullback entry
[15:11] {jfjf64} Mkt looks gettin weak
01[15:12] {@Threei} Long Setup: VXX .45 break
01[15:13] {@Threei} If holds .35
[15:17] {jfjf64} Brcm spike
01[15:20] {@Threei} stop to .39
[15:25] {jfjf64} Brcm .15 break
[15:32] {jfjf64} 1:1
[15:32] {dino} gj
[15:34] {dino} well, w/o counting the wday options, first negative day in last 11
[15:34] {dino} with options sale, graetly positive
[15:34] {dino} greatly
[15:36] {jfjf64} You do good with options
[15:37] {dino} ty, they've been helping my monthly totals.
[15:38] {jfjf64} Never bought a option
[15:39] {jfjf64} Something u just added
[15:39] {dino} about as hard to do as shorting
[15:39] {dino} just hit the buy to open button
[15:40] {jfjf64} Lol
[15:40] {dino} i made the short comment because cramer always tells his listeners its hard to short. i don't know why, just hit the short button
01[15:41] {@Threei} lol
[15:41] {jfjf64} Lol
01[15:43] {@Threei} FB tries to break
[15:43] {jfjf64} Watching
[15:43] {jfjf64} Weird day here
[15:44] {jfjf64} Is vol down
01[15:44] {@Threei} yes
01[15:44] {@Threei} 11%
[15:45] {jfjf64} I'm positive / not much
[15:46] {jfjf64} Enough for 2 beers / burger
[15:46] {jfjf64} See tomorrow guys
[15:47] {dino} cya jf, gj
01[15:47] {@Threei} take care guys, see you tomorrow
01[15:48] {@Threei} little scalp on VXX
[15:48] {dino} gn all
