oops-I did it again!

Finally a decent retracement on the XJO......








Now of course apologies to any of you caught up in the 'route' in the market, as a result of credit worries in the U.S. plus some other factors....






I was still trialling my 5/15/1 hour trading method when at 6340 I got a clear signal. Three ducks were quacking so I shorted the XJO.



Now let me tell you, profits have been so lean the last 2 months that, as soon as I strated making money I was on it ,like a hawk, waiting for any loss of profits... the proper sign to exit is a full bar above the wma, but was I patient enough... Nooooooooooooo. The index traded up touching the fast ma. Really not so serious

Symbion just was doing nothing- I was out 'before the Route:

Casting out the Demon of Poverty

I didn't post last week, as essentially nothing happened on the stocks front. My continued experiments with 15 minute and 1 hour chart combos on the s&p XJO 200 did draw a bit of fruit - with a handy 50 points picked up after the DOW did its 238+ points. I also spent a pleasant 4-5 days in a beach-side retreat re-learning how to write songs and enjoy playing the guitar.


Unfortunately the break was disturbed by a message that a work colleague who had been dealing with various cancers was taken ill and passed away suddenly... farewell Kate.....


A quick recap on SGB - I was knocked out at break even after a couple of promising days--

MR XJO hit the ceiling and bounced-but not all the way this time-- Could this be the 'last leg' all the Ellioticians are waiting for.....

SO, I was out of range of Mr Internet for about 4 and a half days and vaguely monitored my position in (cey.au) Centennial Coal through the newspaper... it wasn't doing much.... then yesterday it had did a VERY tatsy bar... and looked like it would hand in its chips after an early break this morning but finished strongly on the close.

As to the XJO this week- I am now using a sort-of 'triple screen' method -a derivation of the methods proposed by Dr Alexander Elder in his well thumbed dissertation 'Trading for a Living'. After 4 months of this I think that I can at best count it as a Hobby - I seem to lack the 'killer' instinct, the hunger for money- It's more about finding a way to make sense of all that data and then managing myself [reactions-emotions-rationalisations] as I see the signals come through - I WILL be patient- I WILL wait for the end of the bar before taking the trade--but, but- it's "getting away!"- sucker!

I put on a trade yesterday when the 3 screens were in accord- 'the tide'-1hour chart-said "GO LONG". 'The wave'-15 minute and 'the ripple'- the 5 minute chart were in accord. It was a nice bar out over the fast Weighted MA and the trade held up overnight- I thought it would open steady this morning, and was shocked as it opened at 6427 [Entry was 6385]... my inclination was to sell immediately- it was a huge gap- but- I wanted to follow the plan and watched it ride down to around 6410- my stop was around 6399- the slow moving average- there was a spike and I was out of the trade.

-Profit is a good thing. I am grateful-

There were a few moments today where the 'little voice' was chattering about how that bar just got over the moving average and it's backed up by that other bar -but chart 2 says uh-huh no GO- DRAT!!!- and sure enough it plunged about a minute later ALMOST suckered that time- and then about 20 minutes before C.O.B. the full suite of GREENS came up and though hesitant, I took it-8 points at risk- Very close and tight, but there was nice rally at the end of the day and I picked up a further 11 points, closing right on the futures close at 1629 and 30 seconds! The rally 'may' continue..

Oh, as too the title of this weeks blog- One of the things I struggle with is getting out of my 'I'm a little poor boy' psychology /trap/game. Rationally I 'know' it's the cause of my self sabotaging behaviour in relation to money, but that has not changed the behaviours I indulge in.

I was meditating on these things this morning and wondered if I was 'possessed' by some type of demon- Of course I don't believe in that sort of thing- having studied to be a psychic at one point- i know the ins and outs of the 'spirit world'. Instead of a being I envisaged my 'demon' of poverty as an energy force- yeah OK it could look a bit like Casper the friendly ghost...But I did a cleansing meditation and commanded the demon[energy force?] to 'be removed'. I will see if my thinking changes at all over the next few months- maybe that's my 'big trading secret I can share with the world!

Trade well and prosper.

PJP

Another bounce -Barnes Wallace Rides again

(XJO.ax) Daily

Still mostly disinterested and unimpressed with the slow crawling sideways snake...Once again a journey to the 6180 region for the XJO... I did take a small wager on the way down that was quickly extinguished in the frenzied up and down-ness of it all.

Thursday I took a trade on the fifteen minute chart- backed up by the 5 minute 'Ripple' and the 1 hour 'Tide' as Dr Alexander Elder calls it.... handy overnight profit 5328-6375 but it collapsed in the morning- I exited on the 15 minute signal under the moving average.....chart courtesy of GFT Forex- who by the way have VERY GOOD CHARTS!

I wasn't scanning about much this week, but my man with the Gann stuff suggested a few trades on Thursday- I thought st.George bank (SGB.ax) was looking OK - trendline break out, double bottom- break out over the WMA. Closing the week slightly higher. Entry 35.70- Friday close 36.15. Good-O.

A scan this morning showed that Centenial coal (CEY.ax) was looking OK. I waited for the first half hour of trading to pass before getting into the trade- just as well If I had bought on the open I'd be another 6 cents worse off... closing down .04 on my entry at 3.22

So, that's it for the week...keep plodding through refining the 'perfect formula' and getting the 'Holy Grail' trading method under control.... L.O.L.!

Thinking of starting my own trading seminars to make money on the side....from suckers like me!

Oh, that's right I did my tax- I spent in the order of $8000 AUD on courses, softwares, fees etc in the last financial year. I did actually come out cash positive on the stock trading front- pity about the 25K of foregin exchange losses...ah...... that Holy Grail is a wonderful thing.

and down we go....

So, if I was a betting man..... as I've said before. Well I did take a bit of a punt , as I am sick to death of silly stocks not going anywhere.. and I 'punted' on the XJO index. Having reached 6400 and turning around as it has now done a couple of times...ho hum....I went Short around 6357, about 15 mins before close of business - I had a signal on a 15 minute chart.... AS SOON AS I SOLD it went up.. moron, fool , idiot... isn't it interesting what we tell ourselves when a trade doesn't 'immediately' work out! Any way, the close of business it was 6387 I think [on the continuous chart-trading overnight-], my stop was 6407. Off to bed to discover New York had dropped 100+ points -GOOD- for me at least.

The futures charts were showing an open in the 6317 region, and they did. And then dropping even lower to around 6302. Great , profits, money ....yeah. Then there was an afternoon clawback , and a close with 20 points of profit. One stock market teacher had imprinted a phrase on my brain- "don't turn a profit into a loss'. So I moved stop to entry + a couple of bucks.

Well over night Aussie time New York went , UP, we went UP, I was stopped out as it sailed back to 6380, then turned around.... this time I didn't have the heart to take it- I also had no signal...and then OF course it plunged down to the bottom of then channel at 6170 ish...depends which chart you're working off. If I had not heeded the teachers advice I MIGHT have picked up 100 or so points....

No lessons to be learned from all this - though I am becoming convinced that this is not the 'lifestyle choice' that is suitable for me.

The included chart is just the daily action so there's no detail on the intraday stuff...

Oh, and I was so disgusted with normal stocks I didn't even bother looking....