Update: DESC

After its breakout, it continues to climb.

Morning

Yesterday it was a solid reversal day with heavy volume. Now I am looking for the strength to be continued.

Alan Farley

I made some comments on avoiding overtrade earlier this week. I had this thought, but did not put it on a piece of paper, and did not sum up a guideline. Now Alan Farley, the commentator at the Street.com, seemed to have heard my calling and wrote an excellent article on this subject. Since some readers don't have the subscriptions of the paid website, I will just post his points that I totally agree on. The only thing I omit is Talk to your spouse, which I don't see any benefit out of it. For the detail, please go to http://www.thestreet.com/p/rmoney/theswingshift/10245009_2.html

1. Create a trading diary
2. Review the environment
3. Study the charts
4. Don't try to get even
5. Walk away
6. Study your winners

Update: KONG

KONG remains strong after the breakout. Keep an eye on TOMO.

CNVR

Intrady breakout. I mentioned it over MSN this morning.

Update: REDF

Finally I can upload the charts. It has been in my newsletter for two days.

Technical problem

I had difficulty to upload the charts this morning. Anyway, today it looks more promising. I think we may see the short term bottom.

HAWK

Breaking out today. It was featured in my newsletter two days ago.

WITS

Breakout intraday, I recommended it over MSN this morning.

BKX

Banking index is testing the low, it looks like it is going to resume its downtrend. Not good for the general market.

Retreat

The major averages quickly sink into red. The Russell 2000 leads the way down.

Morning

The major averages hold the low formed earlier this week. The most bullish tech indices is NWX-networking index. Traders may want to study further on its components.

BIDU

BIDU starts a leg down? It could be really ugly. I will not touch it, maybe a little short?

DESC

Breaking out intraday. I brought it up over MSN. Please check out its weekly and monthly charts as well. Very bullish stuff.

Workstation

This is my friend's workstation. He is a future trader. I will interview him in the near future, when he is available. Maybe he will probably agree to unveil some his trading methods.
I am looking forward to it, are you?

REDF

I mentioned it over MSN this morning. Our former play. Love it.

MNTA

Another pick from last night.

Update: semiconductors

452 is the key. Below that, we are going down, baby.

Update: TOMO

Green arrow is my buy point.

Open

The Nasdaq and Russell 2000 have been lagging the Dow in the recent runup, which is definitely bearish. Also the volume on the up days are lighter that is not helping the bullish case either. Even though I see some momentum plays are jumping, I say be patient. Don't get trapped.

HOMS

It was brought up over MSN yesterday and was featured in my newsletter again.

Update: TOMO

This is the 3rd day on the rise. I would start to take profit.

Open

The market is bouncing due to the various reasons. One is oversold condition, another is less severe hurricane Rita. I am still holding most of cash, since we are still at the sell signal.

Trading record

September trading record is just updated. Please notice that I had lots of small loss this week and I come up a conclusion after that: the market turned soft on September 13th, why did I bother trading since then? If I shut down the computer on that date, I would have avoided all these small losses. And that is what I am going to test in the future. When my indicators say the market is not in a friendly environment, I would just close my positions, shut down my computer and get away.

KONG

A loose triangle base breaking out, I brought it up this morning over MSN. And it is in the same group with TOMO. Comparing two, I prefter TOMO though.

Green

The major averages just turn geen across the board. I picked some long positions, just a little, to test the water.

Still cautious

The market is oversold, trying very hard to bounce. We may see green this afternoon, but I still remain cautious. We are definitely not out of woods yet.

TOMO

Buy was triggered in the morning, I brought it up over MSN.

Small bounce

After two days' selloffs, the market tries to bounce a little. Notice that the Nasdaq and the Russell 2000 are both lagging. I would feel much more comfortable if they are leading the rebound. Anyway, time is still early, keep your powder dry.

Caution

I think it is wise to take ALL THE MONEY off the table right now. Longs certainly don't look good, that is what I am going to do.

Update: semiconductors

The sox is right on the support now. Any further weakness will lead to melt down on the Nasdaq.

Wait

I am currently on the sideline waiting. We have a splitting market right here: the general market is weak while momentum stocks are holding well, the names like GOOG, CME. So I want to see who is going to be the winner before I make a bet.

CME

It was in my newsletter two days ago, breaking out big time today.

Open

The market is trying to reverse yesterday's selloff. Though it looks promising right now, I would not pull the trigger until the Fed's decision.

Update: AAPL

AAPL is approaching my $55 quickly.

Oil bouncing off support

That is why the general market is so weak.

TOL

Homebuilders

You know that I have been bearish on homebuilders for some time now, that is what I said on Sep 8th
http://uclatrader.blogspot.com/2005/09/tol.html
all homebuilders are getting sold now.

Update: PSYS

PSYS continues its uptrend.

Update: AMGN

Facing market weakness, AMGN hangs tough.

Some thoughts for the weekend

In the September issue of SFO, trader Thomas N. Bulkowski has an article "lessons learned after 25 years of trading". Mr Bulkowski is the author of "encyclopedia of chart patterns", which I think lots of investors already read it. Honestly, I bought the book, but never finish it. Not because it is not useful, because it is too long, it has too much statistics in it, he made technical analysis too complicated.

But I love this article of his, he is right on and he made his points in a straight way. Here I enclose the points I also think they make sense.

1. use stops to limit losses
2. let profits run
3. buy near the yearly high
4. trade with trend
5. ignore news

For the detail of his article, please go to newsstand to get a copy. In conclusion, very insightful for the still-struggling traders.

September trading record

September trading record has been just updated.

HOMS

After I recommended it in my newsletter, it rallied nicely.

Closing

As I said in the previous blog, banking index holding the support is a bullish sign. Its strong close may signal the recent pullback is not going to be severe and that is what the bulls like to see.

SMTS

It has been in my newsletter for couple of days too, now it is breaking out today.

Morning

The market is in pullback mode, which means I hold most cash and watch from the sideline. Speculative Nasdaq and Russell 2000 are both lagging the Dow, though it may change anytime.

Update: PSYS

PSYS is challenging the high after successfully testing the support.

MEDI

It has been featured in my newsletter couple of times this week. It is breaking out today. I mentioned in over MSN again this morning.

Update: crude oil

So far crude oil is holding support.

This is ugly

This is an ugly day. Momentum stocks are getting crushed. Now I feel pretty good about taking profit earlier this week. Add, trim, add, trim.

KNOT

It has been featured in my newsletter for couple of days, today it breaks out.

Brokerage at work

I am just astonished by the brokerage power. Look at BIDU. For the small investors, we are like small fish, they are sharks. Hard to get any food from them.

Tonight's newsletter

Tonight's newsletter is going to be late. So if you are from east coast, probably you'd better check your email box first thing tomorrow morning. For the subscribers at west coast, you will receive it by midnight.

Update: NVDA

NVDA is still climbing.

AMTD

I recommended AMTD back in July at 19, and recommended it again two days ago over MSN, now approaching to my 1st target at 22.45.

Banks

So far I don't like what I see in the bank index. It looks like it is going to test the previous support at 96.5. We need financial to hold there, if the bulls want to have some action towards to the year end.

Resting

Like I said in last night's newsletter, I expect some weakness in the next couple of day, which is very healthy for the bulls.

CTRP

CTRP is mentioned this morning over MSN.

Update: crude oil

Crude oil is at key support. If it can't hold, it would go to $57/barrel. Very bullish for the equity market.

REDF

It was a new pick in my newsletter last night.

Update: GOOG

I would trim some GOOG at 306 as well.

Update: NTES

I would trim some NTES right here at 80.8 area.

Update: BIDU

I would close my BIDU position right here right now at 110 area.

Sample newsletter

Hello traders,

The rally continues. All of my recent picks are in solid green, some of them are rewarding our subscribers nicely. I don't suggest chasing the ones already on the move, like BRCM, NVDA, FLSH, PDLI, AAPL,etc, if traders have not got them yet. Please focus on the ones just added to the list.

Now go to major averages and some individual movers.

Good luck and see you guys at http://uclatrader.blogspot.com/

UCLATRADER




D I S C L A I M E R -This newsletter is a publication dedicated to the education of online stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell stocks of any kind. The newsletter selections are not to be considered a recommendation to buy any stock but to aid the investor in making an informed decision based on technical analysis. It is possible at this or some subsequent date, the editors of uclatrader.blogspot., may own, buy or sell stocks presented. All investors should consult a qualified professional before trading any stock. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. uclatrader.blogspot.com staff make every effort to provide timely information to subscribers but cannot guarantee specific delivery times due to factors beyond our control. COPYRIGHT NOTICE -All material in the web site uclatrader.blogspot.com and its newsletter are protected under copyright laws of the United States. You may not reproduce, post or transmit, in anyway, any part of this letter or any material in the web site, without prior written notarized consent of the author






These are only four out of over a dozen of long candidates. Want to find out more of newly added picks, please email me for the free two week trial.

Past trades for Sep, 05

bot bidu @ 83.52, sold @ 95, net 14%
bot bidu @ 83.52, sold @ 96.6, net 16%
bot bidu @ 83.98, sold @ 89.5, net 7%
-------------------------------------------------
bot aapl @ 47.29, sold @ 48.45, net 2%
bot usna @ 52.44, sold @ 51.68, net (1%)
bot dna @ 93.36, sold @ 93.12, net (0%)
bot cutr @ 24.05, sold @ 25.3, net 5%
bot vign @ 15.54, sold @ 15.34, net (1%)
bot uthr @ 72.85, sold @ 72, net (1%)
bot redf @ 13.34, sold @ 14.64, net 10%
bot emms @ 24.37, sold @ 24.06, net (1%)
bot ntes @ 81.68, sold @ 83.64, net 2%
bot ntes @ 72.42, sold @ 80.78, net 12%
bot ctrp @61, sold @ 62.41, net 2%
bot lm @ 109.6, sold @ 108.5, net (1%)
bot pact @ 7.9, sold @ 7.84, net (1%)
bot bidu @ 115.83, sold @ 119.85, net 3%
bot bidu @ 119.04, sold @ 122.05, net 3%
bot knot @ 10.25, sold @ 11.27, net 10%
bot usna @ 53.31, sold @ 52.73, net (1%)
-----------------------------------------------
bot efji @ 9.67, sold @ 9.24, net (4%)
bot homs @ 4.1, sold @ 4.07, net (1%)
bot medi @ 30.49, sold @ 30.4, net (0%)
bot pwav @ 12.47, sold @ 12.23, net (2%)
bot goog @ 305.95, sold @ 304.85, net (0%)
bot eslr @ 8.18, sold @ 7.84, net (4%)
bot ntes @ 77.75, sold @ 81.88, net 5%
bot tomo @ 16.81, sold @ 17.55, net 4%
bot tomo @ 17.8, sold @17.9, net 1%
bot goog @ 312.65, sold @ 314.54, net 1%
bot lm @ 108.725, sold @ 108.67, net (0%)
-----------------------------------------------
bot tomo @ 17.8, sold @ 18.84, net 6%
bot mnta @ 29.46, sold @ 31.8, net 8%
bot amln @ 31.5, sold @ 33.41, net 6%
bot ntri @ 24.3, sold @ 23.71, net (2%)
bot mnta @ 29.69, sold @ 28.86, net (3%)
bot homs @ 4.35, sold @ 4.15, net (5%)
bot lm @ 110, sold @109.8, net (1%)
bot redf @ 14.09, sold @ 13.9, net (1%)
bot hawk @ 14.12, sold @ 14.3, net 1%
bot redf @ 15.18, sold @ 17.9, net 18%

Update: BRCM

BRCM acting as predicted, sweet.

Quick update on BIDU

I am trimming some of my BIDU shares here, next target 95, then 100.

UTHR

UTHR is breaking out today, I brought it up over MSN this morning.

Update: NTES

NTES is approaching my 1st target as well. Longer term, a lot higher, I think.

Update: BIDU

BIDU is approaching my first target beautifully.

Update: AMGN

AMGN still climbing, now approaching to the old high.

Semiconductors

I am little bit cautious this morning, since the Nasdaq does not get boost from upbeat TXN mid quarter updates. Traders were optimistic about the strength of TXN and INTC last night, and expected a big run up. But now the Nasdaq is lagging the Dow, up just tiny 3 pts. The stock does not perform as it is supposed to do, which always gets me concerned.

Don't get me wrong, overall I am still bullish on this market. I am just getting nervous a little.

TOL

TOL is just one of the homebuilders that show weakness. Avoid, or even start some shorts.

Update: semiconductors

Semiconductor index is following biotechs, breaking up the small consolidation.

Crude oil

$63 is the key. If it drops below that price, it will be very bullish for the general market.

PSYS

Breakout out today, it was featured in my newsletter two days ago.

Update: NVDA

Stop is raised to 29.7, target now 36.