RIMM

Research in Motion (RIMM) makers of the Blackberry devices has made a perfect symmetrical
triangle. This stock has 20 points to go. Technically the probabilities are on the upside but at ITM we are positioning ourselves bearish.


Trade well,
Trader D

Subscribe in a reader

Tighten up those stops

Trade well,
Trader D

Subscribe in a reader

NVDA Update

Trade well,
Trader D

Subscribe in a reader

Back into the Dungeon

We are going back in time and are buying SRS (real estate 3x short) to use as a hedge for the notorious Sep & Oct timeframe. The stop should be obvious.


Trade well,
Trader D

Subscribe in a reader

Lessons of our youth

When we were young and involved in Little League baseball, the #1 rule was keep your eye on the ball. Sure we dozed of when the pitcher would pull up his pants and dogs would wander on to the infield but as we learned later on in life, when we pay attention (even though things can take a long time or you get distracted easily) good things can come to those that can concentrate (discipline).

Case in point is NVAX which we highlighted many weeks back as a great play on the resurgence of the swine flu or H1N1. We took our profits very quickly as we made a great trade in a short amount of time, but if we came back to it or added to our winning position..we would of continued to do well. This is often called "trading around a position" when you keep the majority of the original position but you buy/sell "around" that to capitalize on short term movements of the same security.

Trade well,

Trader D

Subscribe in a reader

Pick o' the day (NVDA)

With the back to school crowd buying their laptops for their homework (or more like gaming) and Christmas season around the corner (earlier and earlier every year)..Nvidia (NVDA) could have an outstanding fall season. They make all things that deal with visual computing including devices such as computers, mp3 players, and smart devices. We will wait for a breakout first and use that resistance as the new support.

Trade well,
Trader D

Subscribe in a reader

Enjoy the Weekend

It was another fantastic week for the Bulls as Monday's plunge ended up being yet another buying opportunity. Here is an update to some of the posts we had recently:

We think Jeffries must have read our blog post from two days ago and downgraded the solars...

Aug 21, 2009, 1:27 p.m. EST

Solar shares dim as Jefferies note casts shadow
NEW YORK (MarketWatch) -- Shares of First Solar fell 3.5% to $125.82 and other major solar energy specialists declined after cautious comments from analysts at Jefferies & Co. "We expect rapid growth in solar volumes, but a downward pricing spiral and lack of discipline around capital deployment leave us cautious on cell and module manufacturers," Jefferies said. "Materials providers (ex-silicon) appear better positioned to benefit from rapid growth." Jefferies cut Ascent Solar , China Sunergy , Energy Conversion Devices , Suntech and Solarfun to underperform from hold. First Solar and SunPower were cut to hold from buy.

The Broadcom trade worked out very well especially if you bought on Monday's dip with the tight stop we mentioned:

And RINO edged it's way back up also...

Enjoy the weekend and we will do the same as we get close to saying goodbye to summer.

Trade well,
Trader D

Subscribe in a reader

Higher & Higher

Trade well,
Trader D

Subscribe in a reader

From the Oracle...

August 19, 2009
Op-Ed Contributor
The Greenback Effect

By WARREN E. BUFFETT

Omaha

IN nature, every action has consequences, a phenomenon called the butterfly effect. These consequences, moreover, are not necessarily proportional. For example, doubling the carbon dioxide we belch into the atmosphere may far more than double the subsequent problems for society. Realizing this, the world properly worries about greenhouse emissions.
The butterfly effect reaches into the financial world as well. Here, the United States is spewing a potentially damaging substance into our economy — greenback emissions.
To be sure, we’ve been doing this for a reason I resoundingly applaud. Last fall, our financial system stood on the brink of a collapse that threatened a depression. The crisis required our government to display wisdom, courage and decisiveness. Fortunately, the Federal Reserve and key economic officials in both the Bush and Obama administrations responded more than ably to the need.
They made mistakes, of course. How could it have been otherwise when supposedly indestructible pillars of our economic structure were tumbling all around them? A meltdown, though, was avoided, with a gusher of federal money playing an essential role in the rescue.
The United States economy is now out of the emergency room and appears to be on a slow path to recovery. But enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.
To understand this threat, we need to look at where we stand historically. If we leave aside the war-impacted years of 1942 to 1946, the largest annual deficit the United States has incurred since 1920 was 6 percent of gross domestic product. This fiscal year, though, the deficit will rise to about 13 percent of G.D.P., more than twice the non-wartime record. In dollars, that equates to a staggering $1.8 trillion. Fiscally, we are in uncharted territory.
Because of this gigantic deficit, our country’s “net debt” (that is, the amount held publicly) is mushrooming. During this fiscal year, it will increase more than one percentage point per month, climbing to about 56 percent of G.D.P. from 41 percent. Admittedly, other countries, like Japan and Italy, have far higher ratios and no one can know the precise level of net debt to G.D.P. at which the United States will lose its reputation for financial integrity. But a few more years like this one and we will find out.
An increase in federal debt can be financed in three ways: borrowing from foreigners, borrowing from our own citizens or, through a roundabout process, printing money. Let’s look at the prospects for each individually — and in combination.
The current account deficit — dollars that we force-feed to the rest of the world and that must then be invested — will be $400 billion or so this year. Assume, in a relatively benign scenario, that all of this is directed by the recipients — China leads the list — to purchases of United States debt. Never mind that this all-Treasuries allocation is no sure thing: some countries may decide that purchasing American stocks, real estate or entire companies makes more sense than soaking up dollar-denominated bonds. Rumblings to that effect have recently increased.
Then take the second element of the scenario — borrowing from our own citizens. Assume that Americans save $500 billion, far above what they’ve saved recently but perhaps consistent with the changing national mood. Finally, assume that these citizens opt to put all their savings into United States Treasuries (partly through intermediaries like banks).
Even with these heroic assumptions, the Treasury will be obliged to find another $900 billion to finance the remainder of the $1.8 trillion of debt it is issuing. Washington’s printing presses will need to work overtime.
Slowing them down will require extraordinary political will. With government expenditures now running 185 percent of receipts, truly major changes in both taxes and outlays will be required. A revived economy can’t come close to bridging that sort of gap.
Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes. In fact, John Maynard Keynes long ago laid out a road map for political survival amid an economic disaster of just this sort: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.... The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
I want to emphasize that there is nothing evil or destructive in an increase in debt that is proportional to an increase in income or assets. As the resources of individuals, corporations and countries grow, each can handle more debt. The United States remains by far the most prosperous country on earth, and its debt-carrying capacity will grow in the future just as it has in the past.
But it was a wise man who said, “All I want to know is where I’m going to die so I’ll never go there.” We don’t want our country to evolve into the banana-republic economy described by Keynes.
Our immediate problem is to get our country back on its feet and flourishing — “whatever it takes” still makes sense. Once recovery is gained, however, Congress must end the rise in the debt-to-G.D.P. ratio and keep our growth in obligations in line with our growth in resources.
Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar’s destiny lies with Congress.
Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company.
Subscribe in a reader

Setting sun??

It looks as though the sun may be setting on the solar Stocks. The ETF (TAN) looks like it is about to finally break support.

If you believe that this presents a buying opportunity with a great Risk/Reward, you may want to look at Sun Power (SPWRA) as it has closed it's gap and has had very decent earnings.

Trade well,

Trader D

Subscribe in a reader

Buying Opportunity? (RINO)

As the price of Oil rises higher with the expectations of a global recovery, alternative energy stocks have moved higher also. The recent dip in crude as offered some compelling opportunities as highlighted here with RINO.
You will be hard pressed to find any solid information on this company (BB) but as you see by the volume recently, the stock is "In Play".
We may buy some shares as a lottery ticket but don't get too crazy with stocks that can see their trading volume vanish overnight.

Trade well,
Trader D

Subscribe in a reader

QQQQ chart revisited

Just to update the 3 year chart of the Q's that we posted last week. We bounced lower off of resistance and will need to take that out before we can see another rally. A little fear crept into the markets today as we saw by the surging VIX. We covered 1/2 of our hedge positions and will see if the market can maintain the strength from the previous months or we actually start a new leg down.

Trade well,
Trader D

Subscribe in a reader

BAC

Just a quick note during the selloff today. Bank of America (BAC) has held very strongly and could break out. Keep that in mind if you are using the financials (SKF,FAZ) to hedge your portfolio.

Trade well,
Trader D

Subscribe in a reader

Broadcom

Buying Broadcom (BRCM) with a stop at 24.89. Very nice clean chart of higher highs and higher lows with the indicators turning positive. The stop will cover us if we get a pullback to the previous gap up.


Trade well,
Trader D

Subscribe in a reader

Keeps going...

In times like these technicals do not work. Stocks just continue to rise.

UNTIL THEY DON'T

But until that time.....you have to stick with the trend.

Trade well,
Trader D

Subscribe in a reader

2:15 E.S.T.

Trade well,
Trader D

Subscribe in a reader

Downtime.

Well, It took awhile but the markets are officially rolling over. Stochastics are trading down, MACD about to go negative and the ADX has turned inwards. We will be looking for some great setups on the pullback and feel very comfortable riding out our shorts/puts. This market has been extremely strong so we will be quick to take profits and adjust our stops along the way.

Trade well,

Trader D

Subscribe in a reader

GILD

Excellent setup but with a negative divergence on the MACD's...we will wait and see.

Trade well,
Trader D

Subscribe in a reader

Gone Fishin'

If todays volume is any indication..it could be a slow August for the market.

Trade well,
Trader D

Subscribe in a reader

The Big Picture

The Tech heavy NASDAQ has been leading all the other indexes and is very close to resistance. As we mentioned in our last post, don't get too comfortable at these levels. Sure the markets can keep moving as if gravity doesn't exist but with the volume in a steady decline..we may see a bumby road ahead.

Trade well,
Trader D

Subscribe in a reader

This is sooo easy!

This has been one of the strongest 5 months in stock market history. The WORST thing for traders is to get too comfortable and forget their rules and proper risk management. Continue to take profits and try not let the markets unwillingness to go down get the better of your investing process.

Trade well,
Trader D

Subscribe in a reader

DXO

We are up over 80% in our DXO (Crude Oil Double Long) position and are adding more as it could soon breakout over $5

Trade well,
Trader D

Subscribe in a reader