My direction is set now
First for some news about the market, then I’ll tell you what I’m up to. The market didn’t do too bad either way, with the DJI going down nearly 8 pts ending at 12,638 which is significantly lower than the 13,xxx area that bears fear and bulls are chearing for as some sign of something. The S&P ended up 2 pts to 1,400.36 which is past a previously considered resistance point. What’s next? Death and gloom for someone, but not for me anymore.
No, it’s not death and gloom for me anymore because I’m wiring $5k into a new account and starting over in the Red Bull Air Race Retard race, only this time I’m depositing my money into an account with futures trading enabled. Do I know anything about futures? Not a damn thing. But I have a general sense of direction for the market and think that I could squeeze out some decent wins.
Tomorrow I’ll be walking into my local bank branch and whipping out my wallet onto the table, then ordering some wench to get busy and wire my money away. If you think that you can watch me fail a second time, you might be right. But if you want to bet against me, do it here publicly. Comment away, tell everyone what you think. Hell, I’ll bet people here personally if they want, I think know that I can make money in this stock market.
I’ll let you know when the money is wired and in the account, you’ll see me bragging about it. I’ll be making money in no time.
Have a happy weekend. Oh ya, and check out this link that became a StumbleUpon most popular link for a couple days.
For you news wanting people, here’s some worthless news crap regurgitated:
Humbled U.S. consumers, scared by marching gasoline prices and a bleeding job market, slowed their spending in April.
Personal consumption increased by a weak 0.2% compared to the month before, half of the 0.4% gain in March, the Commerce Department said Friday.
Worse yet, when adjusted for rising prices, April spending went nowhere, or 0.0%.
“Consumers are still spending, but just enough to keep up with price increases and nothing more,” said Joel Naroff, who runs an economic consulting firm.
Inflation is a lurking problem that could worsen. A price index for personal consumption expenditures rose a benign 0.2% in April compared to March. Excluding food and energy, prices rose a mere 0.1%. But the gauge scrutinized by economists, the PCE price index excluding food and energy, increased 2.1% year-over-year in April for a second month in a row — a bit too high for comfort. Federal Reserve officials unofficially define their statutory goal of price stability as inflation of 1.5% to 2%.
3 Responses to “My direction is set now”
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which futures…s&ps seem to chop, nazz 100 whips around and dow has the lowest volume…just curious
gld you’re back.. look forward to your posts again.. just don’t lose to lindsey this time.. hey, welcome to the futures club!!
I’ve been trading NQ for over a year now, sometimes successfully, sometimes not, so I thought I would share some unsolicited advice so you don’t repeat my mistakes!
If you’re day trading, I highly recommend using trader pivot points for entries and exits. It is uncanny how the various support and resistance points control/influence price action. You can use the pivots to fade moves or catch reversals, either way works, just pick what suits your personality.
ES seems to be the most technical, in the sense the price hits the pivot and then drops or reverses, while NQ seems to go past the pivots a few points before dropping or reversing.
If you want to swing trade, you might want to look at a mean reversion strategy using RSI(2). The basic rule is go long when the RSI(2) is less than 10, then exit the trade when RSI(2) is 80 or above.
Several bloggers have been testing and experimenting with such a system using ProShare’s double long and double inverse ETFs, but using futures contracts could be much more profitable. You can find details of the RSI(2) system on my blog, Woodshedder’s, and Skill Analytics.
Here is an example of a recent trade. After Monday’s close, the Dow had an RSI(2) below 10, and today it closed with a RSI(2) just above 80. So, buying one YM contract at the open Tuesday and selling at the open tomorrow will net about 450 points, or $2,250 before commissions.
I haven’t tested the RSI(2) system using futures, but this week I began paper trading the system with futures to see if or how it behaves differently from the ETFs. A 10 percent stop loss is used with ETFs, but I’m not sure how to translate that part of the system into futures, yet.
At any rate, trading futures has great potential and offers many new opportunities and methods for making money.
Best of luck of there!