CRDN

Traders should take some profit off the table, the earning is coming out soon.

WBSN

I mentioned in the chat room couple of days ago.

Morning

Most of indecis are in green this morning. I continue to like this market.

Strong close

Weak open, strong close; bullish action, typical bull market behavior. I like it.

NTRI

It was featured in my newsletter two day ago.

Open

This morning the market faces some profit taking, which is absolutely normal after several days' advances. I am not in a hurry to "all in", as I am still concerned by the semiconductor index that is trying to build a bottom.

NTES

Another pick from last night. It is rocking!

AX

It was featured in my last night's newsletter as well.

JCOM

A pick from last week, rewarding us pretty well so far.

NWRE

It was featured in my newsletter last night.

BCSI

It was one of my intraday pick on last Friday. Up another 5% this morning.

Chat room

Due to the increasing numbers of platinum service users, I opened a chat room last week to replace the MSN chat. This way, I think I can offer a better quality service to our members. Also the members can gain positive experience from each other.

Trading record

I just updated October trading record. This week, I had some small losses due to the market volatility, which I forgive myself. After the market bottom is in, I believe I can do much better.

Techs

The information technology sector is showing the leadership, which is why I remain bullish on the market overall. I think the volatility is just part of bottom process.

Another reversal?

Today it is ugly. We give back all we had from yesterday. Difference? Techs are holding better. I guess I have to wait for tomorrow to change my stance again:)

Update: MEDI

Target hit.

TOMO

It was featured in my newsletter last night.

Reversal

In the last post, I said I liked the action, but I didn't expect we had a such strong reversal. I am back to the bull camp, officially.

Better action

I like today's action. The Nasdaq is down a tiny 3 points. The important banking index is holding very well. I think the bull may get a chance.

Update: TEVA

TEVA rocks in a bad environment.

Update: LSWN

It continues its recent strength.

TEVA

TEVA continues its recovery.

BBBB

Breaking out big time intrady, mentioned over MSN this morning.

Facing resistance

After last week's rally, the market is facing some profit taking. I don't recommend traders to bet the farm here. We are not out of the woods yet.

Trading record updated

The October trading record is just updated. I did very well this week, both shorts and longs. And only two losing trades.

CRDN

Mentioned over MSN this morning.

MEDI

Mentioned over MSN this morning.

BCRX

Mentioned over MSN this morning. More upside ahead.

Open

The market is trying to continues yesterday's momentum, so far the result is pretty weak, though we still remain green. I still see this as a sucker rally, with it in mind, traders should have quick fingers on the longs and do not hesitate taking profit.

Is this the bottom?

Honestly I don't know. I am closing some of my long positions I bought this morning. Even though I am happy to see some relieve, I still treat it as a sucker rally as right now.

Update: semiconductor index

Remember what I said yesterday about this tech index?
http://uclatrader.blogspot.com/2005/10/update-semiconductor-index.html
It is up over 2% now. Nice!

AHC

It was featured in my newsletter last night.

UPL

It was featured in my newsletter last night.

LRCX

I brought this one up as well over MSN.

AMLN

I brought it up over MSN this morning.

Shorting

Some subscribers complained before that I barely recommended shorting. The reason? Because we had been in a bull market till recently, in which the pullback is normal. There is no reason to short a bull market, which I think it is stupid and suicidal. But this week is different. All my recommendations have been shorts and they are all profitable. I hope now they understand my strategy a little bit more. A stock, which does not go up today, does not mean it will go down tomorrow. Remember, trading is not that easy; it is not just black or white.

Update: semiconductor index

It is approaching the support quickly. Bounce, anyone?

VLO

I recommended it as a short yesterday over MSN. Target 100.

Covering some shorts

Even though the market is still weak, I don't suggest any new short positions. Instead, I am covering some of my shorts, because I think the market is due for a bounce. We are in an oversold territory.

GOOG

Lower prices seems waiting for GOOG.

More weakness ahead

I can't smell a thing bullish. No bottom yet. Avoid this market.

Semiconductors

The semiconductor index is close to breakdown, which often leads the Nasdaq.

Past trades for the October, 2005

bot desc @ 7.74, sold @ 8.75, net 13%
bot redf @ 15.18, sold @ 15.9, net 5%
bot redf @ 15.18, sold @ 17.53, net 15%
bot redf @ 15.18, sold @ 17.9, net 18%
bot jcom @ 40.78, sold @ 39.53, net (3%)
bot lm @ 109.68, sold @ 108.91, net (1%)
bot uthr @ 71.07, sold @ 70.47, net (1%)
bot cmed @ 22.5, sold @ 23.9, net 6%
bot cmed @ 23.51, sold @ 24.8, net 5%
bot smsc @ 30.08, sold @ 29.6, net (2%)
bot iiji @ 10.14, sold @ 10.15, net 0%
bot cnvr @ 14.5, sold @ 14.19, net (2%)
bot mgn @ 6.85, sold @ 6.6, net (4%)
bot gold @ 16.1, sold @ 15.5, net (4%)
----------------------------------------------
short goog @ 311.07, cover @ 303.18, net 3%
short shld @ 118.96, cover @ 116.2, net 2%
short aapl @ 50.61, cover @ 47.99, net 5%
short vlo @ 107.46, cover @ 100.1, net 7%
short aapl @ 49.21, cover @ 50.53, net (3%)
bot rbak @ 10.1, sold @ 10.1, net 0%
bot amln @ 34.31, sold @ 35.9, net 5%
bot lrcx @ 32.17, sold @ 33.73, net 5%
bot amln @ 35.4, sold @ 36.15, net 2%
bot cme @ 290.55, sold @ 310, net 7%
bot bcrx @ 15.35, sold @ 16.8, net 9%
bot bcrx @ 15.32, sold @ 14.9, net (3%)
bot bcrx @ 15.3, sold @ 16.8, net 10%
-----------------------------------------------
bot medi @ 32.57, sold @ 32.61, net 0%
bot crdn @ 37.16, sold @ 38.01, net 2%
bot ngas @ 12.25, sold @ 13, net 6%
bot rhat @ 21.21, sold @ 20.985, net (1%)
bot lwsn @ 7.21, sold @ 7.42, net 3%
bot bbbb @ 25.15, sold @ 26.46, net 5%
bot tomo @ 17.1, sold @ 19.155, net 12%
bot rhat @ 21.5, sold @ 21.25, net (1%)
bot bbbb @ 26.65, sold @ 27.04, net 1%
bot teva @ 34.7, sold @ 35.01, net 1%
bot leap @ 34.55, sold @ 34.24, net (1%)
bot bcrx @ 15.42, sold @ 15.35, net (0%)
bot ctxs @ 26.29, sold @ 25.97, net (1%)
bot holx @ 54.75, sold @ 53.94, net (1%)
bot ntrs @ 51.76, sold @ 52.22, net 1%
------------------------------------------
bot jcom @ 40.5, sold @ 43.8, net 8%
bot lrcx @ 33.83, sold @ 34.2, net 1%
bot arba @ 7.09, sold @ 7.12, net 0%
bot arba @ 7.09, sold @ 6.9, net (3%)
bot ctxs @ 26.47, sold @ 26.54, net 0%
bot vclk @ 16.95, sold @ 17.19, net 1%
bot vign @ 16.85, sold @ 17.17, net 2%
bot redf @ 18.5, sold @ 19.49, net 5%
bot akam @ 17.45, sold @ 17.16, net (2%)
bot cnqr @ 13.58, sold @ 13.35, net (2%)
bot sbac @ 16.05, sold @ 15.52, net (3%)
bot anst @ 30.28, sold @ 30.89, net 2%
bot ntri @ 29.2, sold @ 30.81, net 6%
bot amln @ 36.93, sold @ 37.51, net 2%
bot issx @ 25.33, sold @ 24.1, net (5%)
bot wbsn @ 57.22, sold @ 58.4, net 2%
bot ffiv @ 49.35, sold @ 51.32, net 4%
bot crdn @ 39.31, sold @ 41.47, net 5%
bot actg @ 6.47, sold @ 6.28, net (3%)
bot dgin @ 29.04, sold @ 29.2, net 0%
bot bcrx @ 16.04, sold @ 15, net (6%)

Bounce

The market is trying to bounce. If you still have open long positions, I would suggest get out using this rally. I don't think the decline has finished yet.

Selloff

The market continues its selloff this morning. Most of stocks I watch are in red. I am surprised to see GOOG and CME holding so well. The financials are holding as well. I think we might have a chance to reverse the decline.

Weakness

The market extends yesterday's weakness. If we close like right now, I would get sell signals across the board, which would force me back on the sideline.

What is swing trading

According to Philip Gotthelf, who has a very well written article about daytrading in the current issue of SFO, swing trading "involves identifying swing points that usually are based on a momentum-exhaustion theory". He outlines a stock movement containing five phases: ignition, acceleration, deceleration, consolidation, and reversing.

For me, I see consolidation, acceleration, consolidation again, and reversing. Regardless the number of phases, as a swing trader, all I need to do is to identify the consolidation (the longer, the better), to jump on the board when it is about to accelerate to the upside, to jump off the train when it is about to consolidate its recent gain.

I am a swing trader. Are you? If you want to become a trader, you have to find out what type of trader you are or you want to be. The sooner, the better. There is no good or bad. Just find one that fits your personality best. Like music, some people love classical, some people prefer heavy metal; one is not superior than the other.

Me? Intraday trading requires me to be attached to the monitor for too long; long term investing needs me to study too much fundamental information that I can't find any truth within the data. So I stick to my favorite: swing trading.

Disappointment

I am a little disappointed that we can not have a strong followthrough since we have a weaker energy price today. Maybe we are not ready yet, we need more time. The key is still on financials, which fall to the low quickly.

Update: Crude oil

Crude oil looks like breaking down, which will be super bullish for the equity market.

Update: CMED

I brought it up over MSN yesterday at the green arrow, I think it is time to take some profit.

TEVA

I recommended it yesterday. The green arrow was my buy point.

IIJI

I recommended it two days ago at the green arrow.

Financials

I am watching the banking index closely. If it can go above 97.5, I think it is safe to say long heavily in the market.

Refund policy

1. I offer a free two-week trial for the first time subscribers.

2. Please think very carefully BEFORE pressing the PAYPAL button, absolutely NO REFUND of the current subscription;

3. But I will definitely stop billing you the next cycle, if you want to cancel the service.

4. After you cancel the service, you will not be able to receive the remaining issues. So please cancel it near the end of billing cycle.

Update: DESC

I am taking profit on DESC.

BRLI

It was featured in my newsletter last night. Breaking out today.

HAWK

HAWK is still strong after the breakout.

Waiting for the financial

The financial is still building base while others are trying hard to take off. Look at semiconductors and biotechs. As soon as the financial bounces its support, I think the Nasdaq will break out to the upside. The leading sectors will be semiconductors, biotechs and internet.

CMED

I just recommeded it this morning at $22.6 over MSN.

NTRI

It was my Friday's recommendation over MSN.

September trading record

I just updated my September trading record. I have to admit that I did not get entirely away from the market. Oh well, maybe for couple of hours. The reason? Because the individual stocks kept breaking out while the major indices were still in bad shape. I exchanged my frustration with the subscribers and said that with so many breakout to the upside, the market might have hard time to break down. So I jumped in with very tight stop and caught two big winners: REDF and AMLN. MNTA could do better, sold half at the top of the range, stop loss the rest as it went back to the breakingout point.

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.