Archive for May, 2012
Bulls Still Getting Outsold
May 8, 2012 at 12:34 pm
The bulls haven’t found their footing yet as the market moves lower within its range. In some cases, we’re seeing some important recent levels get broken, namely S&P 1357. The DJIA has approached the lower portion of the 600-point range, and we’re getting a bit stretched in the near term.
Nonetheless, the bears are winning at the moment. All news is bad news at the moment, and I’m mindful of the Seinfeld episode The Serenity Now where George Costanza gets outsold by his childhood rival Lloyd Braun. No matter what George tries, he gets outsold. The bulls can certainly relate. (Hit the video link below for an entertaining 1-min clip.)
Lloyd Braun outsells George Costanza
While it’s important to be careful pressing shorts at this stage of the pullback, it’s equally important to respect the fact that each bounce has been sold of late. Trying to get long before we see some stabilization could result in being ‘early’ (read: wrong), thus trapping you. It’s never good to need bailing out by the market.
Best suggestion? Stay patient here. Lighten up on shorts if you’ve caught some good moves. Keep a shopping list handy if you’re eager to get long, but protect capital here and wait for better setups to arrive. Most bearish charts need some rest, and bullish charts are hard to come by at the moment.
For those curious about our trading style in the member area, we’d love to show you what we’re all about. We’ve been short since the end of last month and it’s been a nice little ride lower. Check out the free trial to our stock pick service if you’re interested in adding our ideas to your own.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Video Review of the Indexes 5-6-2012
May 6, 2012 at 3:48 pm
Last week the indexes finished red despite having moved higher earlier in the week. Key levels were approached but the senior indexes were unable to clear them, prompting traders to raise cash.
We caught some nice trades on the week, so in case you missed the recap be sure to check it out.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
Selectivity remains the key for new plays, which I’ve been noting for subscribers of our stock pick service.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Week 18 Trades Review (Video)
May 6, 2012 at 3:41 pm
Week 18 is in the books, and overall it was a solid week of trading. Despite not taking a lot of trades, it was a profitable week thanks to caution on the long side and some shorts which fared well in the decline.
I wanted to offer a video recap of the trades just as I have so far each week this year. This should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late.
For those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. Check out the free trial to our stock pick service if you’re interested in adding our ideas to your own.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Play Like A Pro – WTBR Episode 5
May 3, 2012 at 8:32 am
Today, I bring you Episode 5 of When The Bell Rings.
In this episode, we’ll talk about some distinct differences among traders regarding their approaches to trading. It should either give you some added motivation, or a boost in confidence.
I hope you get a lot out of this installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!
Run time is 3:08.
(Direct video link is here for those interested in embedding it elsewhere to share).
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Have a Unique Trading Routine
May 2, 2012 at 8:50 am
I heard from a trader this week with whom I’ve worked for 1 year this month. He’s a class act and quite likeable, making him even easier to correspond with. 🙂
During that time, he’s completed both the Basic Trading Course and the Advanced Trading Course, and he’s been a subscriber of the nightly stock pick service. He has truly put in the work, and he’s utilized me and my experience along the way as well (as he should).
One of the things which has made him successful is that he has truly modified everything I’ve given him to fit his own unique needs. I’ve mentioned this to many in the courses and nightly newsletter, but some do it better than others. This guy has done it exceptionally well, so I wanted to share with you what it looks like.
It’s different than mine, and it should be different than yours. But by seeing it, you’ll notice things which spark ideas for your own routine. You’ll identify ways where he has adjusted and you have not, and it may expose a weakness you haven’t previously considered. I’ll tell you the same thing I have told him, which is to take what’s useful to you and then make it your own.
Here’s his routine:
If the indexes have a big gap, I know most of the movement has been sucked out before things have started (unless it is a panic dive out of stocks). I won’t start trading until after 9:30 to avoid the amateurs and HFC causing strange movements and pullbacks, though I sometimes make exceptions, but want to plan them. For instance a sustained pullback on a troubled stock will sometimes be an exception. (Though more often than not I end up regretting it.)
I have personal things I have to watch. My (physical condition) affects how sharp I feel and how confidently I respond to situations, so I take that in consideration on how much or even if I should be trading.
I look at which way I think the market will continue to go (coming back later to see if I was right) opening, and whether it has been going up, down, or randomly/sideways. I honestly look at which direction I am confident in trading. There is no point starting a trade you do not trust – you’ll just pull out too early with a loss.
I decide on my loss level. If there is little juice left in the market I may only let a trade come back a support level or so. I need a strong runner to make it worthwhile in that case.
I look at how long I can trade. I have limits depending on how my arthritis is on how long I can sit, I also may have personal commitments, but decide to see if I can get a good runner that I can leave with a trailing stop when I run out of time. Of course on a weak day where I would use support levels that is out of the question.
Afterwards I come back and look at how much I lost/made.
Great stuff from a guy who has put in the work. He has a routine that suits him – he isn’t trying to mimic someone else. Can the same be said about you?
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
