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This week, I hope we see more volume pour into the market. China was closed
last week, as I mentioned, noting that we may see less volume--and we did. Well,
China the country wasn't closed, their markets were closed for their Year of the
Tiger celebration. (that came out wrong!)
I have a few swings on the radar that aren't on the .pdf as I trade these
frequently. If you notice I am "accumulating" under a certain price, that
should be a first indication this is an intermediate swing. ("accumulating"
would be the operative word here...I need time on my side to "accumulate") It's
a growth strategy. If you need income, don't trade growth strategies!
ETRM: 1.00 plus target
HYTM: 1.00 plus target
CRXX: 1.47 plus target
Let's review the market action. My late January and early Feb blogs noted
I was anticipating a 300 point bounce (DJI) or 10225 to 10275 approx. I updated
when this move was complete approx 9 trading days ago. Thursday/Friday Feb 12,
noted I was looking for an additional 150 point bounce. I realized yesterday
that is complete. If I take the mid number of 10250 (mid number of the 10225 -
10275 set) and add 150 points, that brings us to 10400. Friday the market closed
at 10402. (on low volume, but still reached nonetheless)
What does this mean?
It translates into my consistent strategy of remaining high cash with
shorter time frames. If/when this market retraces, it can be substantial. I
refuse to be caught in losing long positions when that happens. The first part
of this week, I'll be looking for some sideways market action --which quite
frankly can continue several weeks. I am a baby bear basically.
As a day trader, I don't care which way the market goes. I trade what it
presents. Flat market days, I may have to work harder, but I can usually pull
out some day trades.
Good job to the new options students who are learning the 1k strategy
(called "proteins"). My kid made approx $525.00 last week trading a few hours
around school. Her account is 2 weeks old and up approx 50% with options trades.
She started with 1994.00 --it's worth over 3200.00. You can do this. Many have
commented how nice it is to go to bed with cash in their trading account and no
worries about which direction the market will go....we'll simply trade what the
market gives us.
Many emails inquiries have come in last week, most conveying that you'll
want to join in the options education/trading when you have learned to trade
stocks. With love, let me tell you that you'll learn to trade stocks, along with
options. Postponing on that basis isn't a valid point. Additionally, you won't
be able to make the money we make trying to trade stocks without the leverage we
have. So, if you want to learn how to make money with less working capital, I
suggest you hustle with options eduation.
Starter options accounts are around 1k to 2k. You will not be live anyway
for several weeks or months. Please don't be left behind. This system works. And
right now, I am willing to teach it. <smile>
Happy Trading !
Leigh
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