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This blog is my trading journal. It contains my reasons for entering a trade and if I decide to put the trade on, my entry and exit strategy. My trade results will be recorded on my Yahoo Group site. A link to that site is provided below.
Do Not attempt to trade real money based on anything you see or read on this blog. It is intended only as a learning tool for my readers and myself.
If you are interested in learning to trade the Forex and Options markets, I encourage you to open a “demo” or “practice” account, use this account to follow my trading plans. Remember, Do Not use real money or trade in a real account based on the information in this blog.
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Friday, October 31, 2008

The Week of November 3

October 31, 2008

This week’s price action has strengthened the technical indicators on the daily chart. It appears, at least for now; the financial markets are anticipating some positive effects from the World Government’s stimulus packages. A Market pull back from the current level may present an entry for a longer term paper trade.


The short term technical indicators now favor a market pull back within the first few trading days of next week. For the shorter time frame I like ProShares UltraShort QQQ (symbol QID) and ProShares UltraShort Russell 2000 (symbol TWM).

Option traders should place an order to “Buy puts to open” November 32 QQQQ (symbol QAVWF) at the market.

Remember, this is for paper trading only.

If you are paper trading UWM or QID based on last weeks recommendation, place an order to close the position at Monday’s opening price (market order). UWM opened last Monday at $19.23, it closed today at $25.80 for a 34% gain for the week. Monday’s opening price for QID was $27.74; today’s closing price was $34.74 resulting in a gain of 25%.

Apple Computer continues to build technical strength on the daily chart. Next week may result in some downside volatility but this will most likely serve to strengthen its longer term potential.


Bob
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