Not too bad of a trading session banking on the long side while cutting losses short on our losers.

Technical analysis Day Trading Review :

Stock picks

Technical Analysis Day Trading Review: IPG, MS, LVLT, and AIG from Cameron Fous on Vimeo.

It was another volatile day in the markets as every one was cautious over the FED’s announcement of the 1/2 point rate cut which we all knew would likely happen. Most often the markets sell off on news like this if it is already expected to happen and known in the market. The Stock Market discounts future events that are expected. Its the surprises that spark a huge sudden move in the market. This is known as the buy the rumor sell the news theory.

We made some Big Trades today for our black service members and pulled in some big gains making this a hugely profitable week. The stocks traded today were LVLT, ARRS, SOLF, MF, MTG, and HERO. I’ll highlight some of the big winners.

Day Trading Stock Pick #1 - LVLT

I bought LVLT yesterday right near the close in hopes that we would see the breakout of the ascending triangle at $1/share today and we sure did. Unfortunately i was planning on buying some more today if price did in fact breakout above $1/share yet slept in about 45 minutues to much and missed the breakout. But at least i still caught it and made an awesome 22% gain. There was horizontal resistance around 1.20/share which is where i wanted to take profits.

Technical Analysis:

Day Trading Stock Pick #2 - MTG

Next stock we tackled was MTG which was breaking out from another ascending triangle pattern (aka: my favorite and most reliable pattern) and i hopped in and alerted black service members to go long at 2.20. Price ramped up quickly on increased volume. I took my profits quick and sold at 2.35 and 2.71 near horizontal resistance. Price ran as high as 3.70 share even! Could have made some huge money on this if you bought on the breakout and sold at the top! But thats the fantasy world, no one does that except very rarely.

Technical Analysis :

We also made a quick trade on HERO bought at 7.05 and sold at 7.32 near the close. I had some excellent looking positions in ARRS, SOLF, and MF moving into the fed announcement yet got stopped out on the volatility after the 1/2 point cut.

arrs -buy: 6.06 Sell:6.12

solf- Buy: 5.12 Sell: 5.06

mf - Buy: 3.35 Sell: 3.27

So todays rally was huge, well, the mother of all rallies in fact. The Dow Jones clean sweeped the previous record, which was 603 points i think i remember them saying on CNBC today, and closed up a whopping 936 points! This was also the largest % gain since 1932 and the 5th largest % gain in the history of the stock market. This is by far one of the craziest times in the stock market that you will witness in our life time. We’re gonna look back at this time in 20 years and say remember when we would see 500 point days in the Dow as if it was normal, dow futures would rally and fall near 200 points after market hours every session, and we would break new records just about every week the largest rallies and declines in a single day? This truly is a unique time that we are in for the stock market. Even though it has been a rough trading environment, it will be fun to talk about later in life for memories and stories to tell.

The most important thing is that we come out of this unscaved and prepared to make the right trades as they arise. Don’t force any stupid trades, stay conservative in this volatile market, sure you can place big bets and win big but with the big moves we are seeing these days your gonna lose big trying to gamble this market. And i don’t want too see you have to give up on trading because you got greedy and lost all your money. Diversify!

In any regards, it was nice too see some green today. But it doesn’t really matter what direction these stocks are heading we can day trade either long or short. The fact remains that the current market conditions are still extremly volatile, thus still highly dangerous. I mean shit the dow rallied 1000 points today, the market is still highly unstable and unpredictable for holding anything trying to swing trade. Day trading and cash remains King.

Theres a new sherrif in town.. But looks like hes a little out numbered hehe.

This was a funny email i got yesterday about the “real” underlying definitions of stock market terms.

Enjoy

CEO –Chief Embezzlement Officer.
CFO– Corporate Fraud Officer.
BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.
BEAR MARKET — A 6 to18 month period when the kids get no allowance, the wife gets no jewelry.
VALUE INVESTING — The art of buying low and selling lower.
P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.
BROKER — What my broker has made me.
STANDARD & POOR — Your life in a nutshell.
STOCK ANALYST — Idiot who just downgraded your stock.
STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves.
FINANCIAL PLANNER — A guy whose phone has been disconnected.
MARKET CORRECTION — The day after you buy stocks.
CASH FLOW– The movement your money makes as it disappears down the toilet.
YAHOO — What you yell after selling it to some poor sucker for $240 per share.
WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.
INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.
PROFIT — An archaic word no longer in use.

Apple announced today the release of there new line of ipods today with several new updates to the Models. The new Nano is the thinest ipod to date and they switched back to the longer rectangle shape instead of the latest small square shape which i thought was pretty cool for the Nano in my opinion. And prices are fairly reasonable for the new Nanos as well with the new 8gb for just $150. I still have my 1gb nano that i paid $200 for when apple first released the slim nano model a few years ago haha. Funny how much changes in a few years with technology and prices…. Also another new feature with Itunes 8 is a really cool feature that actually was already featured in the napster software that i just ended my year long sub for cuz i had it for free But Apple calls it genius, click the buttom and it will create a playlist of all similar songs and artists on your ipod and in itunes. This was a great feature for me when listening to music on my napster desktop software. Just find one song you like, click the mix button and it would stream a lot of cool songs for as long as you wanted. Of course napster sucks because you can’t put the songs on your ipod…..

But how about AAPL’s stock? It tanked today around 4% on the news yet you can’t really blame the news when the DOW stumbles 280 points basically taking all of Mondays FRE and FNM bailout  recovery gains… This market is so retarded…. But anyways Looking at AAPL stock chart price is sitting right on heavy support in the $150/share area so this could be a promising support area to play a short term bounce in this stock. Of course keep your stops tight and wait for signs of stability/reversal.

Technical Analysis: