"consolidating"

"breakouts lead to trends, trends lead to extremes, extremes lead to backing and filling, backing and filling leads to consolidation, consolidations lead to breakouts"
Wash, Rinse, and Repeat.

check blogs,  March 31, China capping its annual rare earth output.
                     April 4,  Why can't most people buy the all time high ?

The information contained herein is not, and should not be construed as an offer to sell or an offer to buy any securities

follow up, " Pivotal Points "

Possible change in basic market direction, and the perfect psychological moment to act at the beginning of a new move. maybe!

The information contained herein is not, and should not be construed as an offer to sell or an offer to buy any securities

follow up, breakout through "pivot buy pint"

The information contained herein is not, and should not be construed as an offer to sell or an offer to buy any securities

First thing first. Before we make money

Everything starts with a belief system, as it determines our experiences in life and trading.
We don't trade the markets, we trade our beliefs about the markets. Knowing that, we have to have a plan that is supported by our beliefs or we have to change our beliefs in order to get results we want. Desired results are therefore the starting point in developing our trading plan and dictate the plan we chose.

" Pivotal Points "

There are  market patterns that work as I have observed and learned. One involves a market rising from a bottom, and another one is a falling market. Basically, the trend is your friend. Moderation and Patience for Confirmation are required for that style of trading.

The information contained herein is not, and should not be construed as an offer to sell or an offer to buy any securities

"gaps"

check blog : March 28

Is there a viable way to trade gaps ? 

Basing after big run.

    Moved over 500% in 10 month since its IPO, and is in the top group, and is in the normal basing process.
      BSFT is expected to announce its earnings before open on Mon. May 9.

The information contained herein is not, and should not be construed as an offer to hold, sell or an offer to buy any securities

"Constructive base"

Polypore International (PPO) has been consistent leader since the beginning of this upward trending market and is in a top group. Earnings release is expected after the close on Wed. May 4.


The information contained herein is not, and should not be construed as an offer to sell or an offer to buy any securities

U.S. Dollar Index

The path of least resistance is downward.

After Bernanke's press conference.

The dollar continued lower while precious metals headed higher. The general market headed higher as well. In other words, the market sees a continuation of devaluation, money printing, and rising prices.

"road to truth"

"There are two mistakes one can make

                                                         along the road to truth - not going all
                                                           the way, and not starting." - Buddha

                                                               Illustration by jared@flickr

Silver

While the secular bull market in precious metals remains intact, and silver is still well under its inflation adjusted peak price of $129.59 achieved in 1980, silver is highly volatile, typically moving two to four times the moves of gold, thus it is prudent to keep a close eye on signs of intermediate term tops especially after the huge move we have seen in silver.

The information contained herein is not, and should not be construed as an offer to hold or an offer to sell or an offer to buy any securities.

U.S. dollar nearing major infliction point

A good interview given by legendary investor Jim Rogers:

http://www.hedgeworld.com/blog/?p=2485&utm_source=twitterfeed&utm_medium=twitter

" follow up "

Last Lecture.

worth while watching

http://www.youtube.com/watch?v=ji5_MqicxSo

Happy Easter to everyone. I hope you all have a great one!

traditionally a time to think of new beginnings

The day ahead.

http://www.reuters.com/news/video/story?videoId=204360975&videoChannel=5

Will the US lose its triple-A rating ?

Standard & Poors today said there was a one-in-three chance it would lower the U.S.'s long-term triple-A rating within two years. The ratings company cited lack of action taken by U.S. fiscal policy makers, particularly compared to other countries.

An eventual US downgrade would further catalyze China to decouple the yuan from the dollar, continue their consumption of hard assets, and thus potentially enable China to unload U.S. treasuries faster. With each passing day, the chances of the dollar losing its status as the world's reserve currency increases. It may take a number of years for this to occur, but the clock is ticking.

Education.

In the late 1990s, Long Term Capital Management found out the hard way that educational pedigree and mathematical genius (even with a Nobel Prize) is no match for the market—demonstrating that theories and the real world can decouple in a very ugly way.

The stock market does not care how educated you are or whether you have a PhD.  In the market, we all go back to the grade one and have to learn and earn our way to the top. If you've made up your mind you can do something, you're absolutely right.

On being wrong.

No one likes to be wrong, but everyone is wrong at least some of the time. Some people are unwilling to face that fundamental fact of life. In the market, those who can't admit mistakes end up going broke.

Reversal ?

Quantitative easing (QE) remains in effect until at least June, so if history is any guide, downside could be limited to -10% in the NASDAQ Composite. The only time since QE began that the NASDAQ corrected more than -10% was in May 2010 when QE was halted for a few months.

Check market internals,  http://finance.yahoo.com/advances, to further your insight into the market.

The Implications of a Downgraded U.S.

The potential global downside here is large, as Mohamed El-Erian explains:

The world looks to America for a range of "global public goods" — including the reserve currency, the deepest and most liquid government debt markets, and the "risk free" standard. With no other country able and willing to step into this role, the result would be global efficiency loses and a higher risk of economic and financial fragmentation.

What to do if there is a losing position on ?

If you have a losing position, get out of it. You will be able to see more clearly and without emotion while you don’t have the position still going against you. By doing so, you won’t waste valuable mental energy on a losing position. You will cut the opportunity cost by getting out of the loser and finding another trade. Most importantly, you will conserve your capital.

"Never Give Up And Always Believe In Yourself"

http://www.youtube.com/watch?feature=player_embedded&v=7XI3U8eupNQ

\check out (above link) video

" Trends "

Trends persist, and those with historic highs can go on for a long time and have several parabolic spikes during the moves.

John Henry on Trends.

" Trends always go further than rational people expect, or even imagine.
In a very uncertain world, perhaps nothing makes more sense than simply following trends."

"follow-up with some nice charts"

for educational purpose only

Support is still holding.

Still resting at support.

Inverse head and shoulders pattern. It's in the eyes of beholder of course, but we could go places from here, and in any direction. As always, ready, we'll wait for the market to tip its hand.

Time, Energy and Money.

Each of us has a finite amount of time, energy, and money; you must choose for yourself how you will spend them.  That could be a point of focus to a good, reliable method of operating a trading business.

Resting at support.

" follow up "

check March blog,  Is there a viable way to trade gaps ?

for educational purpose only

Under pressure.

At 20/50 dma support levels.

Now is How, and How is Now.

Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.
- Buddha

" follow up on mcp & wtw "

There is no such a thing as too high or too low price in the market. High price usually goes higher and low price tends to go lower.

Note: for educational purpose only

Why can't most people buy the all time high ?

The historical price breakout offers an important entry point, but the moment it occurs most people find it too emotionally difficult to buy it.

Simple but not easy.

"You have to learn the rules of the game. And then you have to play better than anyone else."
Albert Einstein