marketspath

Done for the day.. And a great day at that!! What I saw-and how I traded the move..60 minute timing system chart

Posted by Gary Dean 08/18/11 @ 3:50 pm

Our style is to layer in of trades and layer out of trades. Very rarely will I catch the top or bottom on the first entries and as much as it is frustrating, we wait patiently for the next pivot and take another block.

When the indexes were crashing, I was seeing buy signals on our 60 minute and daily timing system. Being we were moving 500 per day, I didn't even try the long side at the lows. But after the bounce and then pull back, we jumped long IWM 66. Unfortunately, the news out of Europe freaked me out a little and I took the long positions off..way way too early-and IWM went right up to the 72 target I was telling members it was heading to. NOW that was frustrating!!

Instead of chasing the IWM up, I decided to switch hats and start looking on the short side. At 69.20 we took 1/4 position, as it was a pivot. Once it blasted through that pivot, we took a 1/2 position at 70.30 and then a little stress-as the "no news Monday rally" jacked the Russell up some 2.8% that day.

Underwater on 3/4's of the position, we filled the last 1/4 at 71.45 and I sent out an alert about"if you had powder-short the IWM at the close on Monday" It was a turn date, we had sell signals on the timing system and IWM was right up at resistance. Frustrating that we were long at 66 and it went to 72 like I thought..absolutely!

The turn date worked out perfectly and IWM gapped down some $2 on Tuesday, where we closed 1/2 the open trade with some small gains (I am conservative like that) and we held onto the 2nd which was averaged in at 70.45. I almost filled the position yesterday, but decided against it when IWM was trading back at 71.50.

Today, IWM opened down some $3, we took the 2nd 1/2 of the trade off for a nice 3% gain (options exploded much more than that) and then re-shorted it at 67.60, as instructed in the morning trade alert e-mail.

The target to move to cash-TODAY was IWM 66 and 65.50, with a "move to cash by the close in the sell zone of 66/65.50" in which we cashed in another 2.5% (options much higher). Why did we move to cash? The 60 minute timing system was giving out buy signals-options expiration tomorrow and some psychological factors that may weigh on the shorts tomorrow-will Ben Launch the next failed QE over the weekend? We may gap down in the morning and it will hurt, but profits are profits.

Here is a look at the 60 minute timing system and why I closed the shorts today. I hope you had a great day trading and I hope to see you as a member soon. G-