All Eyes On The Euro.

Question ? Do we get a Santa Rally or does the Grinch step in !

Like usual, I'll take my clues from the price action and the chart patterns that develop as we go and virtually ignore most everything else.

Pay Attention !

"The adage "A picture is worth a thousand words" refers to the idea that a complex idea can be conveyed with just a single still image.

 It also aptly characterizes one of the main goals of visualization, namely making it possible to absorb large amounts of data quickly."

Follow up on shipping.

Huge rally.

This was a monster follow through day and we settled at the bear trap line. It is do or die time for the bear camp. A break above the bear trap line and the balance of power will shift into full bull mode. Now it's time to be focused on the price and playing the patterns as they unfold and ignore everything else.

A technical guide:  Watch for " crawling along" or repeated bumping of minor or major trend lines and prepare to see such trend lines broken.

Central Banks ( FED ) agreed to provide cheaper dollar loans to the European Central Bank- which can then provide cheaper dollar loans to cash-strapped European banks.

As a result of bankers united effort markets gaped approximately 40 points right from the gate. What's next ? Well we'll see, and in the meantime re-read the below blog for some possible scenarios. What's the edge here ? PATIENCE - patiently waiting for your set up to show up and accepting being out of the market as "A" position OR slowly start building your position in small increments and pyramid up only if confirmed correct by the market, staying nimble and aware that anything can happen in this crazy environment.

The ideal situation_ _ _

The ideal situation would be to see a bounce that set up new shorts on the larger time-frames. We got the bounce today but it is important to remain patient at this juncture. 
Remain focused on longer time frame and wait patiently for your entry before getting involved.

                                weekly view

Cash is king !

Stay positive, pal. Most people, when they lose, they whine, they quit. But you gotta be there for the turns. Everybody's got good luck, everybody's got bad luck. Don't run when you lose, don't whine when it hurts. It's like the 1st grade, nobody likes a crybaby.

-Gordon Gekko

Range again.

The market has lots of room to move around and even have a holiday rally ( dead cat bounce ) without even coming close to negating the technical breakdown and follow through we have seen recently. There is an increased expectation  that another move lower will occur once oversold conditions are removed. Last Thursday's breakdown out of the triangle confirmed that near term market direction is down and for long-only position trader in growth stocks, cash is king.

Note:  Lots of hedge fund managers are selling their positions and going flat/bonds.

Bears did a good job today.

Watching triangle.

Remember, it isn’t the break of the pattern initially that is most important but the subsequent follow through that comes after it.

Follow up on shipping.

Today we crossed handle's high pivot point 41.42 level and our entry just above it. The bottom of the handle is approximately 10%  from the buy point, and just below this area is a good place to put a protective stop.
GLNG's earnings were $0.01 a share in 2010, with forecasts of $0.92 in 2011. and $1.75 in 2012. With focus on 2012's numbers and the 90% estimated earnings growth we can expect shares' price advancing further.

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

Coiling up !

Waiting to see break one way or the other, overall probability still favors an upside breakout. Technically speaking a triangle is continuation pattern. There is a good size move coming soon.

Waiting.

Trading volume is low today, and so far this sell off  is not convincing.

No one is winning so far.

Three patterns to watch.

My steps of visualization used for better trading performance.


1) Sit in a quiet place with no distractions.
2) Close your eyes and clear your mind of all thoughts. (focus on your breathing only)
3) Run through your rules and trading plan.
4) Picture a trade or trades that were profitable.
5) Let the feelings come to you and accept them.
6) Focus on how you feel and what you will do today ( visualize possible scenarios)
7) Run through your rules and trading plan again.
8) Clear your mind.( focus on your breathing only)

Perceptions.

Successful trading often involves doing the opposite of what everyone else

is thinking and doing. If it’s logical, and everyone is thinking the same

way, it’s not likely going to make money. 

The edges lie in looking at the obvious and many times

looking to do the opposite. It helps to have this philosophy…and it further

helps to have the statistics and experience to back it up with confidence.

VIX

There are many, many strategies you can use by applying the VIX to the

market. The key thing to remember is that you want the VIX to be extremely

stretched from recent levels in order to give you a lower risk,

higher reward opportunity to enter the market