Bureacrats For Change: 2011

Friday, November 25, 2011

Sector Rotation 2

Stocks that get hammered the hardest (logically) reach Demand Levels first

Sector Rotation and Top Down Analysis 1

Instructor: Chuck

ETF Sectors

XLE - Energy

XLI - Industrials

XLB - Basic Materials

XLU - Utilities

XLP - Consumer Staples

XLV - Healthcare

XLK - Technology

XLF - Financials

XLY - Consumer Discretionary

These all move in packs:

Energy

Industrials

Basic Materials

Utilities

Consumer Staples

Services

Technology

Financials

Cyclicals

Each Week Review Anchor Points on StockCharts.com:

90 Days - 2 Best and Worst

30 Days - 2 Best and Worst

10 Days - 2 Best and Worst

In Bull Markets we want to BUY Strong Stocks

In Bear Markets we want to SHORT the Worst of the Worst Stocks

Look for Technology and Financials to turn up to reestablish BULL Market

Monday, August 29, 2011

The ES is opening up but still inside the Projected Range with a Projected High of 1201.38. SPY could be gapping up into SUPPLY. DeMark is showing more upside potentially off the open. I'm looking for a rally off the open into SUPPLY around the 1215 level with a potential pull back following that. This could be a pivotal day with the continuing of last week's uptrend or more ominously a breakdown creating more lows. Long term DeMark is still showing more downside but we will have to see more SUPPLY kicking in soon.

Today's Outlook: Opening up into SUPPLY and then declining thereafter.

Thursday, July 14, 2011

Sam Says ...

If price goes more than 50% into a Supply or Demand Level, Sam wouldn't take that trade again.

Monday, April 11, 2011

Daily Summary for Monday, April 11 2011

As my cliche goes, today and this level is critical to the short-term direction of the Major Indexes. TD Setup Boxes have now closed on all Daily Major Index charts. Today the NQ looks to try to test some short-term highs and then potentially breakdown again into a daily Fibonnaci retracement level. Because IBD's Market Pulse says we're still in an uptrend we must be aware that we may continue up. The NQ adjusted chart also shows a gap up from Friday's close into Sunday night's open of 6.25 points from 2320.00 to 2328.25 so this is definately some Demand we should be watching although price has already bounced off this level overnight. If price does breakdown it looks to be coming down to the 2289.50 level.

Sunday, April 10, 2011

Just and Idea

Let's go through Sam's newletters and copy charts to assemble a bunch of great patterns that we should be looking for.

Sam Says:

"Make sure you are trading with market speculators that have no idea what they're doing."

A New Plan of Action

Preparation

Focus

Commitment

1) Preparation

Each morning both traders present 2-5 specific trades with specific 1/2/3 Entries parameters before 7:30 AM after which we agree on which trades make the most sense. If no agreements are made, no trades are made. We should also present our specific reasoning for each trade (specific charts, indicators, levels, candlestick patterns, etc.)

Also, the majority of our concentration should be on OTA trades. We should be limiting our focus of scalps.

2) Focus

All attention should be focused on the market from 7:30 until 10:30 or 11:00. Since the majority of the best trades happen before 11:00 AM we should be concentrating on being mentally prepared to "pull the trigger" at any moment if our trade signals are met before 11:00 AM. In my opinion we should stop trading at 11:00 unless we are in a trade. We should leave and do other things. There is plenty of money to be made most days before 11:00. There is no reason to spend the rest of the day staring at the screen if we are not trading. This, I believe, will concentrate our focus on our morning trades. We are in a rut and I think we need to shake things up. This is one way of doing that. This will force us to be focused and determined in our trading everyday.

3) Commitment

We are trading against the best traders in the world. If we do not bring our "A Game" everyday we will get our shorts handed to us (which has obviously happened from time to time). Everyday we have to ask ourselves: "Are we doing EVERYTHING we can to become the best trader we can be?" If not, then why not? We still have a lot of work to do. XLT's and studying charts and drawing levels are the only way become better (and better prepared).

We must double down on our committment. Anything less is not acceptable. We must refuse to lose.

Finally, we have made a tremendous amount of progress over the last few years and we are very close to becoming successful. Now is the time to recommit. Now is the time to start making money.

Wednesday, April 6, 2011

Quick Hits

Michelle Says:

We need to be able to scale into positions Supply and Demand levels

Watch for CLOSES ABOVE/BELOW candlestick levels to confirm direction

The "Candle in Charge" is the candle that produces the Highest High (Supply) or Lowest Low (Demand) It's color is not important.

Anytime that you're coming into a weekly and monthly low or high and the daily session can't penetrate that level and the overnight (GLOBEX) market continues to repel from that level, you've reached a major turning point.

Monday, April 4, 2011

April 4 Market Commentary

We are approaching a potential Supply Level on all of the Major Indexes so one would expect there to be some sort of a breakdown if not a reasonable hesitation. That being said, this also has the potential to be one of those supply levels that could be blown right through. After re-establishing an up trend after last week we are still in the midst of a continuing uptrend in the Big Picture. Shorts in this area can be taken with an understanding that we are still in an uptrend. If momentum continues we should see a clear path up toward the 2378.75 level relatively soon. Onc could also look at this as a level on top of another level with the previous high of 2304.00 back in mid February