This is an excerpt from Finance Yahoo, Utilizing this and our Stock Market System you could make a fortune from the market in the next few years!
The bull market turns one on Tuesday having surged almost 70 percent from its 12-year closing low on March 9, 2009. History shows that by simply passing that 12-month threshold, it will make it that much more rare for the advance to suddenly end.
The 13 bull markets since 1930 that have lasted more than a year have averaged, a total gain of 153% and a total length of 4.4 years, according to data from Bespoke Investment Group.
“Bull markets that pass the one year mark have almost always lasted two years or more,” wrote Bespoke’s analysts, in a note to clients on Friday. “The one bull that lasted more than a year and ended after 393 days was in 1948, and that bull only saw a gain of 24 percent, so it’s nothing like the current one.”
The research firm defines a ‘bull market’ as an advance greater than 20 percent that follows a fall in excess of 20 percent.
To be sure, as some of the greatest investors like Legg Mason’s Bill Miller to your average investor with a retirement account learned all too well in the last decade, historical performance doesn’t always match future returns. But right now, many smart strategists believe that this bull has earned a lifespan of at least two years based on powerful emergency spending by the Federal Reserve, the tremendous earnings growth by companies because of productivity increases and the resiliency of demand for goods and materials from emerging markets.
“We continue to believe the economy and financial markets remain in longer-term recovery mode,” wrote Brian Belski, Oppenheimer’s Chief Investment Strategist, today. “Therefore, we continue to recommend that investors gain exposure to U.S. stocks at current levels.” Belski recommends for clients to overweight the technology, industrial and health care sectors.
We likely won’t get that next 70 percent this year however. Two other widely followed strategists, Goldman’s David Kostin and Raymond James’ Jeffrey Saut see about a 10 percent gain from here to 1250 on the S&P 500. Both cited powerful 2010 earnings growth that Goldman Sachs believes will hit 33 percent on average for companies in the S&P 500. Historically over time, the stock market has tracked gains in earnings plus dividends.
But why is one year the magical milestone? Perhaps it is because it takes more than a year for a bull market to prove its mettle with the often stubborn and less nimble retail investor, which has sat out most of these gains in bonds. Once they are convinced, their money comes flowing in and provides at least another 12-month lift to stocks.
I know its a catchy title but the truth is that my stock market system and the way I view the market and trade it has been very profitable. This stock market system consists of many thing dealing with technical analysis and the watchlist being built of fundamental watchlists. This system will reap you reward after reward but the deal is that you have to learn to follow the rules.
On Friday I traded CCME with my system on the market and saw a 2% or $500 gain for the afternoon.
That morning with my system I purchased LIWA at 9.16 for 2500 shares and it closed at 9.37 do the math my system brought in 20 cents times 2500 shares another $500!!
This is great way to produce income on the side while working a regular job, or even if this is it for you. Take a look at SCOK and see how it ran from $3.50 to $53 in 3 weeks! This stock is out of control and may be a great short from here right back down to the 20’s…
Enjoy your weekend and if you have any questions about my stock market system please let me know! ben4trials@gmail.com
Regards!
Ben Brinneman
Sold 4000 of the 5000 shares of CHOP I was holding according to my stock market system that I use.
Rebought NEP in the trading account for 3000 shares at 9.04 and started buying CCME here at these prices. Gotta put that capital to work.
Here is the amazing thing about LIWA, we bought at 8-8.40 and it runs all the way to $10. This was based using our stock market system that I sell on here for a minimal $299 and $399 which we will make back almost immediately. Once you sell on our strategy with a massive return it runs all the way back down to $9!!!!!! So we might have a chance to buy in the 8’s again. The rule is never to chase but take your gains, and maybe just maybe let a small amount ride. In these small cap stocks without un-sustained volume they tend to run right back down to cheap prices. Hopefully you are learning and earning at the same time!
Please email me back with your Profits and Losses for encouragement!
Here is a market update:
Greece’s long-awaited austerity plan wasn’t enough for participants to forget about the fiscal troubles that still face the likes of Spain and Portugal. That left the stock market unable to sustain solid, broad-based gains… Led by the materials sector, stocks made their way to fresh one-month highs. The materials sector had been up as much as 2.0% before it saw that gain cut in half. Still, materials saw the best gain of any major sector as a combination of momentum and a weaker dollar provided it with support… Weakness in the greenback came as the euro and British pound rebounded from recent losses, which were frequently attributed to the fiscal woes that face the likes of Greece, Portugal, and Spain… Greece attempted to quell concern over its fiscal health with the release of a new austerity plan that includes civil service salary cuts and a sales tax increase. Despite such plans, problems persist for Portugal and Spain. That reality caused Europe’s major bourses to show little initial reaction to Greece’s plans, but the continent’s major averages gradually pushed higher to log strong gains… U.S. equities were unable to mimic the move. The Dow, Nasdaq Composite, and S&P 500 each added modestly to the previous session’s gains, but eventually rolled over. That left the stock market to finish flat after three straight gains… The afternoon slide left the S&P 500 below the 1125 line, which many traders believe could act as a springboard for further gains if the stock market closes above it… Economic data received little attention this session. That’s essentially because participants remain cautious ahead of the official nonfarm payrolls number on Friday. Cautious trade also led to light trading volume, which failed to surpass 1 billion shares on the NYSE… A glimpse into the payrolls report was given with the February ADP Employment Change Report, which indicated that 20,000 private payrolls were shed last month. The number was in-line with expectations and the smallest decline in one year… Meanwhile, the ISM Services Index for February came in at 53.0, which was above the reading of 51.0 that had been widely expected and marked the highest reading since October 2007… The Fed’s Beige Book, which is largely full of anecdotal economic news, came with little surprise. It indicated that nine of the 12 Fed districts reported modest improvement in economic activity during February, while consumer spending improved slightly in many districts… Commodities had a strong session that pushed the CRB Commodity Index back above its 50-day moving average. Oil futures prices closed 1.5% higher at $80.87 per barrel, despite a larger-than-expected weekly inventory build of 4.03 million barrels. Silver had another strong session and closed with a 1.6% gain at $17.33 per ounce. Dow -0.1%, Nasdaq unch., S&P 500 unch.
Regards
Ben Brinneman
Man people wonder where can I do this? Is this really possible without doing something illegal? Here is what I would do. We have a certain stock market system you can follow.
I would have bought the DECK options we purchased on Thursday afternoon 7 call options at the 130 strike price or .70 cents a piece and you would have been able to purchase 7 because that times 100 time .70 cents equals $490 plus commissions. Right at $500 investment. At the end of Friday or even at 3pm on Friday after noon your $500 would now be worth 7 times 100 times $2.60 so $1820.
Now we would take that and… well you will have to see what happens with our next stock market system or options alert which will take that $1820 and turn it into right at $4000 dollars then we will invest that amount in a few stocks for a swing into options expiration Friday and earn the remainder $1000 dollars! No problem! All in less than 30 days.
IF you follow my every move with that $500 we could easily do this within the month. OR your $50 per month stock market system alert subscription back!
I could come up with some other clever ways of earning 10 times on your money but this has to be the best one for me. I might actually sell some old furniture pocket that change and then invest that in the market or re-invest in someone that could make my money grow. But good luck any other way and you will prolly lose all your hard earned cash trying to do it on your own!
For now check out my STOCK ALERTS and my course for sale
We will see you on board shortly!
Below is a market update read through what happened on Friday.
All the whipsaw action earlier this week left participants subdued for most of the week’s final session. That left stocks to spend most of the session trading listlessly in a tight range… Participants were generally unmoved by the revised fourth quarter GDP numbers. The headline growth rate was upwardly revised to reflect 5.9% annualized growth rate, which exceeded expectations, but the personal consumption component increased at a softer-than-expected clip of 1.7%. Core personal consumption expenditures increased at a faster-than-expected quarter-over-quarter clip of 1.6%, though… The rest of the morning’s economic data also failed to lift the mood of market participants. Specifically, existing home sales for January made a surprise 7.2% month-over-month drop to an annualized rate of 5.05 million units. Meanwhile, the final February Consumer Sentiment Survey from University of Michigan was little changed at 73.6 and in-line with expectations… During recent months weakness in the dollar has been cause for stock market gains, but participants shrugged off the dollar’s latest dip. The greenback had gyrated in the early going as the euro garnered support as news that United Kingdom GDP was upwardly revised overshadowed the latest batch of headlines regarding Greece’s fiscal woes. The greenback eventually rolled over to finish with a 0.5% loss against competing currencies… Financials attempted to provide the stock market with a late lift, but the move lost momentum into the close. Still, JPMorgan Chase (JPM 41.97, +1.33) led the financial sector to a 0.7% gain, which was better than that of any other major sector. Though there was no specific news item to account for strength in JPM, it was still able to put together its best single-session percentage gain in more than three months… AIG (AIG 24.77, -2.74) was a laggard in the financial sector. The booked its worst single-session loss by percent in nearly three months after its latest quarterly results proved disappointing… In other earnings news, a better-than-expected bottom line from Gap (GPS 21.50, +1.11) helped shares of the retailer put together their best single-session percentage gain since September… Though the broader market was able to eke out a gain, it wasn’t enough to turn stocks positive for the week. Instead, the S&P 500 settled with a weekly loss of 0.4%. Despite that slip, the stock market finished February with a 2.8% monthly gain… Trading volume on the NYSE exceeded both its 50-day moving average and its 200-day moving average as more than 1.5 billion shares exchanged hands on the big board… Commodities finished the month on a strong note. As such, the CRB Commodity Index finished the session with a 1.2% gain, which helped drive a 3.5% monthly gain… Treasuries had a relatively quiet session. Though the benchmark 10-year Note settled off of its high, it still netted a few ticks to push its yield back toward 3.60%. Dow unch., Nasdaq +0.2%, S&P 500 +0.1%, Nasdaq 100 +0.3%, S&P 400 +0.1%, Russell 2000 -0.3%
Hope you have a great Saturday!
The first thing I want to start with is the watch-list below is what I watch everyday. That hasn’t changed. I will run through exactly what I am thinking with some of the stocks on this list. The only thing that hasn’t changed is the market. It continues to be super boring and flat. In times like this you can easily think you can force a trade and earn some easy cash SOMEWHERE. It is quite the opposite you have to wait for the trade to come to you. So be thinking about patience and keeping your cash ready when there are some good buying opportunities. In my long-term account things are dribbling down but I don;t care they shouldn’t be down here. LIWA CHOP CHBT NEP etc. I explain below.
DIA SPY QQQQ SMH AAPL AFAM AGM AMED AMZN ATVI BAC CBAK CCME CHBT CHL CHOP CLDX CREE EGMI F GAXC GGWPQ GNW GS HEAT LIWA NEP HIG LNC MIC NFP MOS POT SEED FEED RINO TRIT TSTC NFP SYNM TIE X
Starting with the indices…
The indices are sitting at the 50 day support/resistance. Wavering Wavering. Boring.
CLDX is the only thing on my list that has started to move significantly to the upside. This was my latest trade idea that generated right at 20% so far and I believe still has some upside to it. I will update if I see anything on it that would change its story, but so far so good.
GNW hit new 52 week highs today, lots of strength, but could be a great short with our stock market system as it has hit some resistance. Watch it.
BAC looking strong
CBAK I bought this at 2.43 according to our stock market system and sold at 2.43 no upward movement so I decided to put my capital where it would work.
CHL long the june 52.50 calls
EGMI is halted and now a worthless stock because of a possible fraud within the company.
(Here are the current numbers which are accessible to anyone. Unless the company hired a chef instead of a CFO right from the get-go these should have been accurate.
- They have 12m+ in the bank
- They have a debt / equity ratio of 0%. In other words they have no debt
- Their return on sales is roughly 46%
- Their return on equity is over 35%
Whatever the case, there has long been a struggle for power at EGMI, I’m not sure of the exact details, but I imagine that the board & management are at odds based on the lack of execution over the last few months. I think this power struggle lead up to the events of last week.
I believe there is a chance that they do have the 12m cash that they always claimed to have. We have no choice but to wait, and hope that there is something brewing internally and we’ll hear all about it next week before the stock re-opens. Whatever the case, even if they have a glowing story and “it was all just a big misunderstanding” the stock will likely drop before it moves back up. Borrowed from Bullsonwallstreet.com)
NEP is riding up with Oil and has found its trading range here in the upper 9’s, on a dip, will be a great buy again and again. With our stock market system we nailed NEP at 7.86!
GAXC I keep a peripheral eye on this anything under .90 cents Ill start accumulating it again.
LIWA is so cheap right now thats all i have to say (buy buy buy)
CHOP has no volume but wait till some fund sees it true potential and starts to buy it. IFLG is a good example of what could happen in one day to these equities that are super undervalued.
CREE Looking to buy the calls once it dips 2-4 bucks will let you know.
TSTC I mentioned at 10 now at 20 and some change. This has some really good volatility but I have yet to purchase any shares and try it for a swing trade or investment. Great company. Strong company.
MARKET UPDATE:
Stocks rolled over in the final few minutes of trade to log their first loss in five sessions. The downturn came after the stock market failed to extend a move that took it from a modest loss back to its opening high… Financials were integral in the afternoon advance. The sector was a steady outperformer for the entire session and finished with a 1.1% loss, despite a lack of clear catalysts within the sector. While the broader market inevitably failed to follow the financial sector to a gain, its strength helped limit losses… Technical support at the S&P 500’s 50-day moving average also provided support. The line acted as a floor for trade during the entire session. It even held firm as stocks extended their opening slide into negative territory amid news that President Obama has proposed to broaden the Medicare Hospital Insurance tax base in his latest health care reform plan. Despite the negative reaction to the news item, health care stocks finished fractionally lower… Energy stocks were the worst performers. They shed 1.3%. Schlumberger (SLB 61.57, -2.33) was a primary laggard following news that it has agreed to a stock-for-stock merger with Smith International (SII 41.03, +3.33)… In other merger and acquisition news, Thermo Fisher Scientific (TMO 48.10, -1.12) has made a $6 billion bid for Millipore (MIL 87.35, +16.01)… Treasuries traded in quiet fashion this session. Results from an $8 billion auction of 30-year TIPS did little to stimulate interest in the space. As such, the benchmark 10-year Note finished just a few ticks lower… The dollar also traded quietly along the flat line. Its movements had little overall effect on the broader market… Trading volume was paltry once again as fewer than 1 billion shares traded hands on the NYSE. Dow -0.2%, Nasdaq -0.1%, S&P 500 -0.1%, Nasdaq 100 -0.3%, S&P 400 unch., Russell 2000 +0.1%
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
Ok I really didn’t lose a million in the market but by the end of next year 2011 I will have this website that you are currently visiting earning me $1,000,000 per year and here is how I plan to do it.
I am going to use the money that I earn in the market each and everyday to pay a firm here in Charlotte NC (codank) to build me a new website www.csquaredtrading.com and drive traffic to it via Google. The first way I will bring in revenue is to build a subscription membership base of 2000 subscribers paying me $50 per month. That will be $100,000 per month The other way will be to up-sell them on my courses that I have for sale varying in prices from $199-$399. I will also be continuing to educate people in how to trade on SKYPE for an extra fee.
Currently I have had 31 people purchase my course in the last few months and it has been nothing but a great experience for them as they have all profited off of my strategy and earned thousands and thousands of dollars on the market. In total we have brought in about $150,000 in trading profits since last October 2009.
2010 is going to be a great year as I trade in my pajamas all day and count my duckets and write 3-5 blogs per day. I might as well be comfortable while I am working. I earned a couple thousand in the last few days, netting out to some gains as the market has sold off since the last few days of January.
I want to start a new website that has some amazing features in it, but shhhh I have to keep it a secret so you don’t steal it from me and learn how to make money online like I did. The funnything is that I used to be a banker and Bond-Trader for a bank here in Charlotte and they fired me for trading equities. I do not regret that because this job utilizes my creative faculties as I endeavor each and every day to earn money online.
The day that Google wrote me a check that looked like this
Google Check
I knew then it would be possible to earn a living online. If you have any questions please email me at ben4trials@gmail.com and I would be happy to answer any questions about trading or investing or earning a living offline.
Hope you enjoyed!
2010 here we come!!!!
Regards
Ben Brinneman
The other day I wrote a blog on NEP and how I had nailed it at the price I had been looking for. Today I held on to the stock as it fell to a total of $400 loss in my account, but, I knew I was right. I continued to hold and at the end of the day the stock soared from the 7.70’s to the 8.30’s. This put my account up nicely for the day. I will rebuy tomorrow if it goes lower. My lesson was to sit tight when I am right as I prematurely sold NEP at 8.06.
I also bought and sold LIWA earning my money back from what I had lost in it prior to today. I am still holding a bunch of companies from China and someday will blog about how this entry that I made today, will make me very rich someday in the future. I pulled in a little over $1000 today on my trades in two accounts. A few of my subscribers made some good buys and sells today bringing in some cash for themselves. My blog has only earned me several thousand for the year but it has been a fun experience.
Here is a video of an amazing biker named Danny Macaskill
This is a bit of entertainment for the weekend, hope you are having a good weekend and enjoying your time before the market opens again.
If anybody needs help learning how to trade, I am the guy to go to. See what my subscribers are saying. I am willing and able for a small fee to show you how to trade and consult for hours on the phone as I do with all my subscribers and clients. Please sign up for the free alerts and purchase the course. It will blow your mind as it was written by a hedgefund trader and myself.
This week I will be putting on a few short positions. MIC and HIG will be my top two short picks, as they seem to be breaking down and have hit resistance lately.
What is a short sale you may ask? (To profit from a decrease in the price of a security, a short seller can borrow the security and sell it, expecting that it will be cheaper to repurchase in the future. When the seller decides that the time is right (or when the lender recalls the securities), the seller buys equivalent securities and returns them to the lender.)
This is a great way of showing how short sales in securities work.
How Shorts Work
If you have any questions please email me at ben4trials@gmail.com.
MIC fading
HIG Short Bearish Flag, short on spike.
I will be shorting these stocks on any spikes and the ones that I also mentioned in my email to my subscribers.
Here is another bit of entertainment. Herschel Walker (47) is now cage fighting after being out of the NFL. He is in great shape for someone of his age. Not only that, he was on the celebrity apprentice and had a great time there. I like this guys lifestyle lol.
Herschel Walker Cage Fighter
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
I bought NEP today at 7.86 at the bottom of the daily bollinger bands. It was that combined with the fact that the market never discounts anything twice. So Lets think about this. Bernanke confirmed as chairman, Obama has slammed the banks and the market priced that in, then China is raising interest rates and that slammed chinese equities, Fed is keeping rates low here, and OBAMA’s speech is tonight, so with all that priced in and the market refusing to go lower today it was inevitably to go higher.
With that in mind and the constant selling off of all the markets I had named some prices on some equities that I wanted to enter.
NEP $7.86
NEP Pullback
CHBT $13
CHBT Chart Low
LIWA $7.95
LIWA Low
STEC $15
With that being said I made those entries today except for STEC, and started to add to it as the stocks climber higher into the close.
I was down about 400 yesterday on LIWA and then this morning it popped up to 8.38 and I sold for a $20 loss. I re-bought way lower. I think that was the turning point at least for a few days or weeks for the market. Currently I am up on all my positions except my hedge position just in case the market crashes.
Market Update:
Stocks spent most of the session mired in moderate weakness, but were able to push higher in the wake of the latest statement from the Federal Open Market Committee (FOMC)… The first FOMC policy statement of the new year came on the eve of a vote to put Ben Bernanke back into the seat of Fed Chairman. To little surprise the statement indicated that economic activity continues to strengthen and that the deterioration in the labor market is abating. The FOMC also opted to keep the federal funds rate at 0.00% to 0.25% and will maintain exceptionally low levels for an extended period of time. Kansas City Fed President Hoenig was the only FOMC member to dissent… A knee-jerk reaction to the statement caused stocks to whipsaw before they eventually pushed into positive territory. Financials, which had steadily outperformed since the opening bell, were a primary leader in the late advance. The sector managed to make its way to a 2.3% gain. Regional bank stocks (+3.7%) and diversified banks (+4.1%) were leaders in the sector. Their strength came amid news that Barney Frank, Chairman of the House Financial Services Committee, stated that proposals to clamp down on risky activities at banks could be put into law within months. Such measures would likely have more of an adverse impact on larger, diversified financial services companies, but even they were able to climb 2.4% this session… While financials provided leadership to the broader market, Apple (AAPL 207.88, +1.94) helped the Nasdaq Composite outperform its counterparts. Apple’s advance came amid a favorable reaction to the company’s newly launched iPad, as well as pricing for the product. News that Apple will rely on the network of AT&T (T 25.62, +0.29) provided support for the integrated telecom giant… There were several earnings announcements for participants to chew on this session, but the results were largely overshadowed by anticipation for the FOMC statement. Still, earnings continue to generally exceed expectations — Caterpillar (CAT 53.44, -2.41), United Technologies (UTX 67.61, -1.57), Boeing (BA 61.93, +4.22), Illinois Tool Works (ITW 43.99, -1.20), Abbott Labs (ABT 53.90, -0.58), and ConocoPhillips (COP 49.81, -0.62) were part of the latest bunch. However, some of the reports were of lesser quality and featured mixed guidance… Despite another underwhelming response to earnings, the stock market was still able to book a gain this session. However, all three major indices remain below their 50-day moving averages… Commodities were wrought with weakness this session. Not even a surprise draw in weekly crude oil inventories could deter sellers from dragging down oil prices to close pit trade with a 1.4% loss at $73.64 per barrel. Oil had been as low as $72.65 per barrel, which marked a one-month low… Collective weakness among commodities gave the CRB Commodity Index a 1.9% loss. That marks its worst single-session percentage slide in two months and leaves the CRB down 2.5% week-to-date… The latest batch of new home sales numbers were displeasing. According to the report, annualized new home sales for December made a 7.6% monthly decline, which contrasted negatively with the consensus call for a 3.0% month-over-month increase. Dow +0.4%, Nasdaq +0.8%, S&P 500 +0.5%, Nasdaq 100 +0.8%, S&P 400 +0.2%, Russell 2000 +1.0%
This video is about an hour long. So grab a drink, take notes, and watch! Below are the rough notes on the video.
Rehash + Notes of the Great Streaming Video from C2 Trading/Ben Brinneman:
Video/conference was conducted on 12/26/2009 by Ben Brinneman (C2).
With added commentary and analysis by Jim Ditsworth in BLUE
Use limit orders, never market orders.
A Limit Order is a (Buy or Sell) order at the best price.
Market orders can be filled at unusual prices since they are handled by market makers. In other words, you can get screwed. Limit orders will always be filled at the best fill price. The market maker cannot hold onto the order and manipulate the spread for a profit.
Example: Stock is trading at 7.40 and you want to BUY. You can send a BUY limit order using any price above 7.40. This avoids chasing the price with consecutive limit orders that don’t fill.
Example: Stock is trading at 7.40 and you want to SELL. If you enter a limit order at 7.40 it may not fill. But you can type in any price below 7.40 and the order will execute immediately at the best fill price. By law, the market makers are required to fill your order at the best price.
So !! IMPORTANT !! If a stock is trading at $12.42 and you want to BUY the stock, you will place a BUY limit order above the current trading price so that it will almost certainly fill.
Commentary/analysis (using a little internet research):
Limit orders get better treatment on the New York Stock Exchange than on Nasdaq. Specialists on the NYSE floor are required to give limit orders priority over their own trades at the same price. In Nasdaq, where several dealers make a market in the same stock, market makers must honor only their own customers’ limit orders. That’s an improvement from the early 1990s, when Nasdaq dealers routinely ignored less-profitable limit orders. Now, when a Nasdaq dealer receives a limit order better than his own bid or ask price, he must either fill the order or route it to one of nine electronic markets, such as Instinet, Island, or Archipelago, for display to other dealers and investors.
***
Understand what will happen when you place a limit order. It can only be executed at the specified price or better.
For a buy limit order, “better” will mean at or lower than the price you set; for a sell limit order, it means at or higher than the price you set.
***
(RESTATEMENT OF THE IMPORTANT CONCEPT HERE)
If you’re concerned that the market may move away from your price before your order is executed, consider placing a buy-limit order that’s slightly higher than the quoted market price, or a sell-limit order that’s slightly lower. This allows for a small amount of price movement, while still protecting you from an unexpected execution price.
Market makers are not allowed to fill orders at a price worse than the market price, even if your limit order allows for it. Building in a little extra room to ensure your order is filled will not cause you to overpay—you should still be filled at the prevailing market price when your order comes to the front of the line.
C2 talked about the DJIA from the 1930s and compared it to now. There could be some weakness in the DOW that could manifest itself in the next few months. Be careful going long… Follow the charts. Don’t try to predict the future.
***
(Here’s the Skype Chat during the video. Commentary is interspersed with the chat.)
anybody watching the video http://www.ustream.tv/channel/learning-how-to-daytrade
[12/26/2009 10:56:29 AM] rich.blinds: I can hear and see you fine
[12/26/2009 11:01:49 AM] alaska1004: How do you come up with the stocks you are scanning for the day?
Example: BIDU Stock is sitting at the lower vwap/bb on the 6month/daily chart
On a daily chart, look for stocks that are bottom/or upper bb
First of all, look for a stock on a long term chart that is either sitting at the upper BB and upper vwaps; or the lower BB and lower vwaps. If on the long term chart the stock is hovering over the lower BB and is encountering resistance, then you can consider going LONG on short term charts when you are bumping up against the lower BB and/or vwap bands.
If the long term chart of a stock shows the price hovering near the upper BB and/or vwap lines, and is beginning to encounter some resistance, then you can consider going SHORT on short term charts when you are bumping up against the upper BB and/or vwap bands.
Use FINVIZ.com with corresponding tables. See example.
Your browser may not support display of this image.
Look for stocks that have a big move on significant volume. Then go and check the news to see what, if anything, is driving the stock. Look for pullbacks to the opposite vwap (or just the middle vwap if the stock isn’t trading from band to band). Do a little internet research on the stock. Is the move warranted by the news?
You may be able to “catch the move” on news…
Commentary: Open up a new watchlist and put in ALL of the VINWIZ stocks, gainers, new highs, overbought, unusual vol, earnings before, insider buying, etc. Examine ALL of these on a 1 year-Daily. Do any of them meet the above requirements? I.e., are they sitting near an upper BB? Lower BB? Even better, near both upper VWAP and UPPER BB?
Hopefully you will find a few possibles for additional research.
[12/26/2009 11:02:34 AM] rich.blinds: You talked about the EMA flattening out when watching for a stocks movement. Is that when it is running up off the middle bollinger band or the middle VWAP?
Look at RIMM as an example. This is a daily chart. See the gap? This was a short in 71-72 price range.
See the following two charts but there are better ones below when this question is addressed again…
Your browser may not support display of this image.
Look at the EMA on the 1m and 5m charts and watch to see it leveling off. (Example RIMM).
Your browser may not support display of this image.
Here’s the 1 min chart from RIMM’s open on the GAP day. EMA (cyan line) is definitely flat or headed downward.
[What and when do you buy? ]
Look for stocks with big moves on DAILY charts that have been taken to an extreme. You are looking for a pullback. Find a stock that meets the TWS or VWAP parameters. Then switch to the minute chart and find a good buy point in the direction that you want to trade. “Trade with the trend.” This means on longer term charts, if the stock is generally headed higher, you will want to lean towards long trades instead of short trades. On stocks that are generally declining, lean towards short trades vs long trades.
Example: BIDU Options Play that C2 made. Waited for the price to settle down before making the buy. Used 3 day 5 minute chart at the start. Then switched to the 3 day 1 minute chart for the actual buy decision. When you sell, just watch the 1 min chart…
“And when it hits the upper vwap, sell and get out…”
[12/26/2009 11:11:58 AM] rich.blinds: So you bounce back between the 1 min amd 5 min?
[12/26/2009 11:13:29 AM] vnp1688: your entry is base on 1 min or 5 min ?
C2 uses lots of charts, including: 1 year daily, 5 month daily, 3 day 5 minute, then finally when it’s time to buy, he uses the 3-day 1 min.
The bigger time frames allow you to see the overall trend of the stock. Is it generally bullish or bearish?
Decision to purchase the stock is made on the 5 minute chart… Entry is based on the 1 min chart.
“On a 5 minute chart, the candles will sit right on top of the ema”
Jim’s note: EMA leveling off is still not entirely clear to me but I’ll take a look at the 5 min charts in addition to the 1 min charts from now on.
[12/26/2009 11:15:26 AM] rich.blinds: Would you mind discussing stop limits, when you use them and what distance you place between entry and exit
This is personal preference. You can use hard stops or mental stops. Good trading using our TWS and VWAP strategies should lead to very few stops actually happening. And our entry prices should be very good.
For buy trades: stop is 2 or 3 cents below the low of the day; or a “significant distance” below the lower vwap, or at a $300 stop loss. This occurs after the buy, after everything has lined up, after the 5-day ema has leveled out,
[12/26/2009 11:18:57 AM] C Squared Trading: http://www.ustream.tv/channel/learning-how-to-daytrade
[12/26/2009 11:19:03 AM] rich.blinds: So you use the upper VWAP to use to grab profits when its moving up along with the other indicators moving in the same direction.
Yes, when it hits the upper vwap, I’m out.
Mike’s rule: 3 tick rule. If it hits the upper vwap and doesn’t move higher in 3 ticks, he’s out.
This is a good rule that will allow the stock to run.
C2 sometimes sells ½ position on the run up to the upper vwap. Seems like a good idea cuz the stocks don’t always go to the upper vwap!
[12/26/2009 11:22:09 AM] vnp1688: why short MIC now
MIC is riding the upper vwap on the weekly and daily charts and is pretty high on the minute charts. It also has a high beta so if there is a bad day for the market, MIC tracks and follows the market but is more volatile so it should go down plenty.
[12/26/2009 11:25:31 AM] vnp1688: can u take a look on ATI weekly chart for me , yhx
Looks like a short.
[12/26/2009 11:25:57 AM] rich.blinds: Which stocks do you think will have some movement this week?
AAPL may go to 230. It’s broken out to a new trading range. Rumors of new tablet reader. But the volume has been key.
[12/26/2009 11:27:47 AM] rich.blinds: Will you buy options or the stock?
[12/26/2009 11:28:24 AM] rich.blinds: AAPL
[12/26/2009 11:29:28 AM] rich.blinds: Jan expiration
Like to buy the options on stocks that are up in the $200, $300 range. For AAPL, would need for the stock to pull back to the $199, $200 area. Options are tricky. Buying out of the money stocks can give you better pct return than in the money stocks.
[12/26/2009 11:33:40 AM] alaska1004: Had a good xmas. I am still in PUDA in my ira it has had a good run up. do you think I shud sell a portion or let it ride
Not recommending, but would sell at this time. Looks like a stock offering is in the works.
What will Jan 2010 bring?
Usually don’t care what the market is doing. Look at individual stocks and don’t try to predict the future. Look for triple whammies, setups, and vwaps. Don’t focus on overall stock market. But look for individual stocks that are moving.
Discussion of Level II stock screens and manipulation:
Level II screens show the buyers and sellers who are currently in the market. BID = buyers. ASK = sellers. You can get an idea of the strength of buying or selling from the level II screen. Another tool that you can use, but you have to learn how to use it.
Discussion of 2 monitor setup:
On left screen, has 3 level II screens, watchlist, charts in top left, main monitor, news, account…
[12/26/2009 11:39:12 AM] vnp1688: could u please repeat Rich’s question: You talked about the EMA flattening out when watching for a stock’s movement. Is that when it is running up off the middle bollinger band or the middle VWAP?
Timeframes are important. Wanted to buy RIMM and it was tanking from the 70s to 68 or so. On 5 min chart, the EMA was pointing down. On the 1 min chart, the EMA was pointing down. Playing off the bottom vwap. Watched as the 5 min EMA leveled off… Then switched to the 1 min EMA to look for buy point.
Your browser may not support display of this image.
This looks like the time in question. This EMA line (5 day 5 min chart though, not 3 day 5 min which C2 used) is still going down until the 9th candlestick past the last violation of the vwap. That was 9:45 when it finally leveled off. The decision to buy RIMM was made from this screen, as long as everything else pans out on the 1 min screen to follow.
Your browser may not support display of this image.
On the 1 min chart, the EMA line has leveled off at 8:59 or 9:00.
Watch the EMA on the 3 day 5 min and also the 1 day 1 min chart and stay out of the position until the 1 day 1 min EMA is level. Don’t try to catch a falling knife! Look for the candlestick confirmation above the ema. 9:00 candlestock has closed above the cyan ema here.
This is riskier, but C2 also likes to “buy in” when the stock plunges down deep below the vwap lines to hopefully get the lowest price, but then he still looks for ema confirmation (or a quick exit if the stock decides to tank!). This is the difference between scientific chart buying and art. Recognize the risk that is being taken. Or play it safe and don’t buy until the confirmation occurs.
Overview of next week:
Light volume. Stay out of stocks that are < 100,000 daily volume. Focus on the runners and oversold/overbought. Use charting. Let’s look for the runners though cuz you can make a bunch of $ on them if you can find one.
Secrets to trading:
Minimize the trades. Do 1-2 a week. And/or stick to rules. Don’t shoot in the dark like a midnight cowboy. Be consistent. Don’t try to make a big buck in one trade.
Be patient and add to your winners:
Remember to cut your losses. Don’t hold onto your dogs and/or your losses.
[12/26/2009 11:50:55 AM] rich.blinds: When you talk about adding to your position as a price rises, how much of your available trading dollars do you typically use, to use in long positions that you might hold for a few months versus a few days?
Allocate accordingly. How many shares? 10,000. First lot will be 3,000. As stock rises, another 3,000 (on a pullback). Finally, on another pullback, another 3,000. Keep adding 1/3 of a position at a time.
Price target or % target. And then scale out of the position.
Have an overall position in mind before initiating first trade.
[12/26/2009 11:52:58 AM] rich.blinds: It does thanks
[12/26/2009 11:54:25 AM] vnp1688: thx
[12/26/2009 11:54:48 AM] rich.blinds: This has been excellent, thanks for taking your saturday and time to continue to help out! Later.:)
[12/26/2009 11:55:15 AM] C Squared Trading: no worries! Thanks Ill be on next week. (dance)
[12/26/2009 11:55:34 AM] alaska1004: thx ben.
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C Squared Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
