Saturday, July 26, 2008
RedDirt's Weekly Update
This is going to be the shortest weekly update ever. Over the next month or 2 I will be building a position in a certain ETF. The symbol will be RPG. Just take a look at this CHART and you will see why growth is the choice over value.1) Commodities are falling off a cliff. 2)The $USD is gaining some solid footing and 3)all those dollars T. Boone talks about going to the MiddleEast are now looking for a parking place. The shorts will be running for the exits and this market is going higher over the next 6 months. RPG long term trade.
Looks like the Moose got bought out buy Chuck Schwab. Check out the new digs HERE.
Labels: commodities, decisionmoose, technical analysis, weekly update
Thursday, July 24, 2008
I'm Back
The market dropped on home sales. Maybe that means there is not enough supply for what buyers are looking for. I know for a fact that my house is the only one in this neighborhood for sale. CLICK HERE to see it. My new system is up and running. Vista is not that much different than XP. Took some time getting familiar with the dual monitor's but IT'S GREAT. I'll be putting it to the test over the next few weeks to see if both of my trading formats can be handled by this dual core processor along with the 3G SDRAM. Thanks for stopping by and GOOD LUCK with all your trades!
Wednesday, July 23, 2008
Great News
I just checked the status of my new computer and it has already shipped and expected to arrive on the 24th. Maybe this will be my last post from my daughter's laptop. As for trades this week I've taken' profits on 2 trades. The 1st was the DIA for 3.7% and the other was a day trade on the NDAQ for a 6.7% gain on Tuesday. I'm still long the SSO and GE. Also long CYRX.ob. Thursday is a big day for us XRX employees as earnings are announced before the BELL. I'm up about 6% on my latest 401k trade on the xerox portion of my account. I'm starting to feel like a kid on Christmas morning. Can't wait to see the DHL sleigh pull up in front of my house so I can open up the brown boxes of Dell joy.
Sunday, July 20, 2008
Computer Crash
The market's low on Tuesday was more than most mortals could stomach. It also marked the day that my computer crashed. A loud pop, and it turned out the lights. A quick and painless death. I think I'll give it a proper burial in my backyard complete with a keyboard grave marker. It's replacement has been ordered and will ship soon. 3 gig of memory and duo core processor will allow for multiple displays and multi tasking that I've been dreaming of. My daughter was nice enough to let my borrow her laptop for this post. For now my order entry will be done the old fashioned way, pick up the phone and call the broker. Hopefully, things will be back to normal very soon.
Wednesday, July 9, 2008
RedDirt's BricTrade Update
Jim Rogers stated about 1 year ago that," the Chinese market is going to correct and I hope I have the whereabouts to BUY." I saw this interview one Saturday morning on Fox Network. Well Jim, are you BUYING? The ol' RedDirt is really starting to see some evidence that this may be the time to take a serious look at the FXI(China) ETF. My BricCharts are really starting to flash some signals at me. First let's take a look at how I determine which of the BricCountry ETF's may out perform the major BricETF EEB. It's really simple. What I do is ratio each individual BricCountry ETF to the EEB as one of my indicators at the bottom of each chart for EWZ , RSX , INP and FXI. Then I look at how that ratio has performed when compared to it's 29 day simple moving average & is the ratio moving up or down. Starting to get the picture?
Now for step #2. The Hong Kong Options Index CHART was just me stumbling across something that I felt would help out when trying to determine market turns. So far it's been working. It's not much different than using the $CPEC(call/put ratio) for an indicator on the $SPX. In fact, it's been working well enough to make it my #1 chart when trying to determine positive or negative divergences.
Last but not least, step #3. When I feel really uncomfortable about going long, I look at that individual chart and determine do I place a market order, place a buy stop just above some nearby resistance or just enter a limit order to try to get filled at some sort of nearby support level. Experience tells me the best order to place is when nearby resistance is violated. I usually get filled about 7 cents above that level. Usually that price is just above the nearest Buy Fractal or the Gator moving averages. ((Visit http://profitunity.com/ for an explanation of Fractals and Gator ma's.)) It could also be just above a bullish reversal candle stick such as a Hammer or Bullish Engulfing pattern.
Here's a little update on the S&P500. As of the market close July 9th, 2008 we are just 1.6% above the 2006 lows which I feel is a very important support level. We are only 5.6% above the really big support level of 1176 neckline of the reverse Head & Shoulder pattern from the last great Bear Market. If you look at the Monthly Chart and the Weekly Chart you will clearly see the support levels I'm talking about.
There will be no RedDirt's Weekly Update this coming Sunday. Sorry to say, I'm turning 47 on Saturday so I'll be recovering from 18 holes of golf and possibly a hangover. Not to mention I'm also scheduled to work Sunday.
Thanks for stopping by and good luck with all your trades!
Now for step #2. The Hong Kong Options Index CHART was just me stumbling across something that I felt would help out when trying to determine market turns. So far it's been working. It's not much different than using the $CPEC(call/put ratio) for an indicator on the $SPX. In fact, it's been working well enough to make it my #1 chart when trying to determine positive or negative divergences.
Last but not least, step #3. When I feel really uncomfortable about going long, I look at that individual chart and determine do I place a market order, place a buy stop just above some nearby resistance or just enter a limit order to try to get filled at some sort of nearby support level. Experience tells me the best order to place is when nearby resistance is violated. I usually get filled about 7 cents above that level. Usually that price is just above the nearest Buy Fractal or the Gator moving averages. ((Visit http://profitunity.com/ for an explanation of Fractals and Gator ma's.)) It could also be just above a bullish reversal candle stick such as a Hammer or Bullish Engulfing pattern.
Here's a little update on the S&P500. As of the market close July 9th, 2008 we are just 1.6% above the 2006 lows which I feel is a very important support level. We are only 5.6% above the really big support level of 1176 neckline of the reverse Head & Shoulder pattern from the last great Bear Market. If you look at the Monthly Chart and the Weekly Chart you will clearly see the support levels I'm talking about.
There will be no RedDirt's Weekly Update this coming Sunday. Sorry to say, I'm turning 47 on Saturday so I'll be recovering from 18 holes of golf and possibly a hangover. Not to mention I'm also scheduled to work Sunday.
Thanks for stopping by and good luck with all your trades!
Labels: bearish engulfing, BRIC ETF's, candlestick charts, RedDirts BRIC Trade, sp500, technical analysis, weekly update
Monday, July 7, 2008
GarpScan UPDATE
HERE is the link to the latest GarpScan. Remember GARP stands for Growth At a Reasonable Price! Now the sad thing about this scan is only 21 companies showed up with the market oversold to the hilt. Another sad thing is I ran this scan 1 week ago(although I didn't make it public) and Buffalo Wild Wings showed up. Now it's missing. I"ll be doing my Top 25 BWLD survey within the next 2 weeks. I know this sounds a little crazy but if BWLD is expanding to area's where college football ticket sales are increasing then their sales should increase big time. Everybody likes to follow a winner and so does Buffalo Wild Wings. Old RedDirt is working day shift now so I've had to restructure may trading discipline. Instead of looking at 5 time frames I'm only looking at 3 time frames. The Daily chart, Weekly chart and Monthly charts will be my main focus. The Hourly will still capture my attention and the 1 minute chart is going to become a Ten minute chart. Keep checking back in this week for a look at my BRIC TRADE update.
Thanks for stopping by and good luck with all your trades!
Thanks for stopping by and good luck with all your trades!
Labels: garp stocks, growth stocks, stock scans
Sunday, July 6, 2008
RedDirt's Weekly Update
Since this is a weekly update lets take a look at the WEEKLY SP500 CHART. The thing about this chart that really stands out is the lower lows in the price and the higher lows for the RSI. Wouldn't you consider this to be bullish. Now all we need is a catalyst to turn the market up and confirm the big bullish divergence in the weekly chart. The 2006 lows are a major support level and the 50% retracement level(1172) coincides with the neckline(1176) of the last great bear market. Can the market become even more oversold? The Monthly Chart has the Williams%R at -96. This tells me we are at the most oversold level this market has seen in the past 22 years. Damn, maybe it's time to start buying. And yet it may be time to hide the women and children, because the big bad bear may not be done devouring the bull's. What can we look for to see if this market is about to make a turn. How about GE's earnings report this Friday. Now if they can just beat the street as badly as they missed last quarter, this bell weather could take the lead and get the market's headed back up. I think I'll go see what Bill Dirlam has to say on his latest MooseCall. I'll be updating the GarpScan early this week looking for some bargain basement buys. Be sure to check back in to see what shows up. I'm also keeping a close watch on the BRICTRADE charts to let me know when the timing is just right to go long.Thanks for stopping by and good luck with all your trades.
Labels: decisionmoose, RedDirts BRIC Trade, sp500, stock scans, weekly update
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