Last Week of August 08

BellaGeneral Comments1 Comment

The last week in August is the worst trading week of the year.  Our desk is instructed to take off during this month.  Many were away this past week.  And many will be away this week.  I will be trading.  My vacation will start next week.  Steve gets this week off and I get the next.  But there are some things that you can do to make this week profitable. 

I have a pretty simple view of trading: if you are gonna show up to trade then prepare properly and be alert.  It is more important to be professional than make money.  If you are on a trading desk then be ready to make money.  Or else stay home.  It is disrespectful to the market to show up unprepared.  If you do the market will reach into your trading account and take your money. 

As much as the last week in August is slow we may see some trading opportunities.  Some levels for Monday: XLE (R) 76, HK (R) 34, FCX (S) 90 and (R) 92, LEH (S) 13.75 and (R) 15.50, GG (R) 35.  Oil and gas and Gold were active last week.  And there are some good levels to trade off of for the stocks above.

Also watch for stocks that start to move uncharacteristically next week.  Hedge funds tend to play some games with stocks during a slow week.  They find some stocks to mark up.  If you see this, then follow the momentum.

The Open will offer you best opportunity to trade.  If it starts to get light, then lower you tier size, and wait for only the best trading setups. 

If you are going to show up next week to trade then trade.  Be prepared.  Be alert.  Be professional.   There will be some money out there.

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