The Trading Digest

http://www.guardian.co.uk/world/2008/feb/28/iraq.afghanistan

Read it when you have some time.

Have a Great Night!

Dave Johnson

After such a large down day I will want to add 2 positions to our long only portfolio of 5 potential holdings, derived from other websites’ short recommendations. So do some research and forward me links as well as you own ideas before Monday. Today being down so much should provide plenty of fodder for the ugly ugly chart patterns.

If you don’t wish to leave a comment you can always email me directly at dayvejohnson@gmail.com

This was a good week for intraday trading in the chatroom. In the room I have only been posting my major intraday turn calls. These will trigger on average about twice per day. For those that have been there the past two weeks I think many myths have been dispelled and a good deal of money made on very few trades. In the spreadsheet we used to track live trades you’ll see some 3 and other 4 position trades in the SP500 futures contract. Those positions sizes are my call and it make it easier for new users to scale out like myself. I trade 3 times the base multiple so my take on this very specific setup was around $4400. Not bad for 7 trades.

Again I need you guys to find me short setups and send them along.

Have a Great Night!

Dave Johnson

I have created a public Google Spreadsheet that will list all the trades from our anti-short system.

Thanks to George getting me started with some shorting candidates from Seeking Alpha in the comments of the last post. Our first long from that list is MDRX (lower highs). Remember this is a 5 position portfolio and this is only our first entry - so we will be at 20% exposure (this is important).

I will need lots of yucky charts from the readers. I may need to just use reader submitted ideas if we can’t find enough candidates from other sites. Keep them coming.

I will use the opening price that is published for each entry on both the entry and exit. So now I ask you - what do you think the performance of this system will be?

Have a Great Day!

Dave Johnson

In a previous post I had made reference to a piece on the www.swing-trade-stocks.com site that made a point I was trying to convey. In that post I said to disregard the rest of the site in a very offhanded dismissive manner. Craig from that site left me a comment that made me look a bit deeper at his site. I was wrong in summarily dismissing the content of the rest of the site. Craig my apologies. I thought, based upon the hyphenation in the URL, the audio presentation on the front page, and the tone of some of the testimonies that your site was another of the spammy type of trading catch-all sites. It’s not, as a matter of fact your work is to be commended. My bad.

If you do get a chance to check out the site it has some really useful information in relation to swing trading.

Dave Johnson

He has passed away at the age of 98 in Paris - what an event field life.

Dave Johnson

My back was in no shape to trade today. I took the opportunity to just relax. I am hoping I am on the better side of this back pain. Shooting for Monday to be up and running again. By day’s end we were just playing tunes. Here is a favorite for you.

Dave Johnson

I did not get a video yesterday. I was trying to record a different setup for you guys but I messed up on a couple of them (like forgetting to speak :)) and today my back is seized up. So I am layed out on the living room floor trying to get this thing to ease up a bit. If it does not get better I may take tomorrow off too. Worst case (hopefully) I’ll be able to be back in the saddle Monday.

I want to direct your attention to the right hand side of the page, below the blogroll and recent comments there is a little widget called Daves IM. If it says I am online feel free to say hello, ask a question, or just lend me your comments. You can also change the display name easily so your not like guest897654.

I am uploading todays trade and it will be posted sometime soon.

Have a Great Day!

Dave Johnson

Wow, Google never seems to amaze me. Their innovation and drive for new ideas is second to none. Checkout these new programs they are delving into.

http://www.google.com/tisp/

http://mail.google.com/mail/help/paper/more.html

I commend you oh glorious G one,

Have a Great April 1st !

Dave Johnson

Frequently new traders or my non-trading and basically non-market savvy friends or family will ask me my opinion on some book, website, magazine, system, etc etc etc….

Two things I recommend

1. Read Stan Weinsteins “Secrets for Profiting in Bull and Bear Market”

I saw a post at tradersnarrative.com that mentioned this book and how you might be able to benefit from it. When I was a stockbroker making recommendations for individual stocks to clients, the firm I worked for always sent along “The Professional Tape Reader” his newsletter at the time. Along with my own analysis I was never on the wrong side of the market. NEVER. That says more than any guru BS you will read anywhere else. Does this mean my returns were 100 times the market or some silly pie in the sky baloney? Nope. I was just in the market/stocks when the market was rising. And NEVER when it was not. So put this on you KISS (keep it simple stupid) bookshelf.

2. Read The Economist magazine

Kind of like Newsweek with a brain. Enough said on #2.

Also I know John has a stock research project he’s been working on. I think he may have that posted sometime soon (maybe this weekend). Truly truly mind blowing stuff that I am sure will get you thinking.

Have a Great Weekend!

Dave Johnson

John your post of charts comparing this pullback to last summers correction got me to thinking how our short term swing trading system works in this environment. The latest iteration of the system had imposed some limits when the Nasdaq is trading below the 50 day moving average. In our testing we found slightly modifying the exit criteria allowed for less drawdown and comparable returns. That modification was simple. In weak markets use any strength as your sign to exit the trade. Whereas in technically stronger markets we could wait around for a larger pop. A good visual example of this is with CHRW which I mentioned as a possible swing trade for Wednesday.

 As you can see we have had 2 white candles since then and it’s time to leave. Trade over. Could go up 10% tomorrow and that has absolutely nothing to do with this trade. You see it’s rules based. Tested inside and out.  And it’s time to exit.

One of the goals of this blog is to address many of the major axioms of trading that are taken as gospel - and proving they only stand in the way of making money in the market. In my opinion that is why most traders fail to keep up with the market.

The other thing I wanted to mention tonight is about our private trading chatroom we have during the trading day. We have a good mix of traders that over the past year have not only become good friends but people you come to respect for their opinions and market analysis. One of our members is Stoolander (i know funny name) and his market analysis is a gem to behold, especially in real time as the market unfolds before your eyes. Here is one of his charts that he posted Wednesday. Thing of beauty eh? His timing models, incorporating the fading of extremes in sentiment and price, are something that have pushed me even harder to find edges in these areas for index swings as well. 

Last note. I strongly encourage you to go to www.marketfilters.com

Learn how to use the site. Read the available articles. read the FAQ,  and send feedback to the developer of new features you would like to see. If you have a blog or website they have an embeddable widget that can go on your site.

 Really last thing. This guy cracks me up. Look forward to reading his market views.

Have a Great Night!

Dave Johnson