During the range bound market we experienced from 04-06 I learned how to fade stocks.\u00a0 Today I used that technique to make some good money in MS and JPM.\u00a0 As a trader you want as many arrows in your quiver as possible.\u00a0 This is one skill you should develop to become a well rounded trader.\u00a0 We can’t short the financials until after 10\/2 but we can find excellent risk\/reward areas to get long for short term trades.\u00a0 Admittedly it was tough to watch JPM, MS, and GS trade lower without the ability to participate.\u00a0 But I don’t work at the SEC so it’s not my job to figure out policy for the best trading rules.\u00a0 And as a trader complaining never made me a dime.\u00a0 So I figure out what I can do, how I can make money, and I trade.\u00a0 And today fading the financials on the Open was profitable.<\/p>\n
When the XLF started to crack I stopped fading the financials.\u00a0 I do not fade stocks that are broken intraday.\u00a0 That is against my trading fundamentals.\u00a0 You can fade a stock that shows weakness but not one that is broken.\u00a0 I moved over and faded Gold.\u00a0 I caught a nice downmove in ABX from near its top.\u00a0 ABX failed a few times near 39.50 so I faded an upmove.\u00a0 38 held well in ABX into the close.<\/p>\n
Tomorrow should be an interesting day to trade oil, gold and the financials.\u00a0 The price action in GS and MS indicated that the market was not thrilled about their announcement to become a regular bank.\u00a0 Doing so will eliminate their opportunity to leverage at the levels that they have.\u00a0 They will face much stricter regulation. \u00a0 GS closing below 122 was a very bearish signal for the financials.\u00a0 Crude spiked into the close.\u00a0 Gold sold off into the Close.\u00a0 I will watching these sectors tomorrow.<\/p>\n
Oh and one more thing: Jets 27 San Diego 24.<\/p>\n","protected":false},"excerpt":{"rendered":"