Missing Catalyst - December 14, 2011

[Billy]

Forum Clusters 111214.xlsx

Sorry for the shorter and delayed posting, but I unexpectedly had to help a cousin in emergency situation this morning and couldn’t complete my normal routine.

I wouldn’t dare to say that Santa Ben is actually Satan Ben, but it is clear that the FOMC announcement missed delivering the catalyst that could have morphed an improving market structure and consolidation into a new rally.
IWM is now on the brink of a steep decline if the last lines of support confluences break. These lines are Monthly pivot (72.00), Yearly pivot (71.84), 50 dma (71.66) and Quarterly pivot (71.25). If such an important cluster doesn’t attract fresh large buyers our initial robot trade is probably toasted and the trailing stop is conveniently positioned at 71.02.

An encouraging signal comes from today’s robot settings and edges which are giving the green light for a secondary long entry at a limit price of 71.96.



Talking about the brink of a precipice, it is what describes best the precarious fate of GDX if it falls down to the next support clusters. A short position was entered by the GDX robot at 55.96 and the trailing stop is at 58.77. No secondary entry for Wednesday is advised. GDX is used to overshoot the Weekly S3 (54.20) but it is indicative of a much oversold level for this week.
Billy

[ilonaross]

http://www.nytimes.com/2011/12/14/bu...l?ref=business

Read starting paragraph 9 focusing on rotating membership that may provide the missing catalyst.

[Timothy Clontz]

Hope your cousin is okay.

[Billy]

Hope your cousin is okay.

Thank you Tim, he's okay now.
Billy

[nickola.pazderic]

Hi Billy,

Hope all is well.

Can you provide some clues how one might trade the current double open Robot situation?

It is not easy. One is close to a stop out. And the other is only beginning. In fact, we are yet below the opening price if I recall correctly.

Thanks always,

[grems8544]

Can you provide some clues how one might trade the current double open Robot situation?

It is not easy. One is close to a stop out. And the other is only beginning. In fact, we are yet below the opening price if I recall correctly.

I know you intended this for Billy but let me add my two cents.

Treat each trade as a separate trade, unless you get exactly the same entries. Hence, if we hit the stop, you're out on that trade, but if we hit the entry of another signal, you're in. I set One-Triggers-Other orders so that the limit buy and the stop loss levels are automatically set when the level is attained.

Regards,

pgd

[nickola.pazderic]

Happy b-day for your son. I know it is important to you, too!

I didn't let myself get stopped out of TNA. I decided to be a tough guy (ha) and wait for a 15 minute bar to close at or below our stop. So I'm still in.

I want to short TZA very badly here. But TOS has no shares to share.

[manucastle]

Happy b-day for your son. I know it is important to you, too!

I didn't let myself get stopped out of TNA. I decided to be a tough guy (ha) and wait for a 15 minute bar to close at or below our stop. So I'm still in.

I want to short TZA very badly here. But TOS has no shares to share.

Hi nickola,

Try shorting TNA

Trev

[nickola.pazderic]

The point is: now would be the time to enter at a great entry point according to the robot signal of today. Conversely, one could also get stopped out. Turn around and hit the market with the same bid for the same number of shares just sold to the machines. This is confusing. In either case, we must retrace the loss to recapture the equity lost.

[nickola.pazderic]

Yes. Paul's answer was very good.

But, I'm tired of paying TOS to lose money.