I read Hitman’s Hitlist quite often. It’s a interesting saga of love affair, trading, and many things in life.
The market went up a bunch today after consumer confidence and new housing start data was released. DOW ended @8,781.35, NASDAQ @1,556.69, Russel @427.71 and S&P @951.48.
Targets: IBM @90, CSCO @16.6, MSFT @26 and LOW @42 (gap down as resistence).
HPQ earning should lead market higher tomorrow. HD jumped about 9% contrasted to LOW’s 9% drop yesterday! Little changed on all indexes.
Closed all shorts on LOW, SOHU, CSCO and IBM.
401(k) is 100% in cash now.
DOW has passed 8500 and NASDAQ has passed 1500. We shall see how the market reacts on CSCO earning report (1c over estimate and flat guidence for Q4, traded lower AH).
SOHU closed lower @18.48. Long SOHU May 20 Put. Added GSF May 20 Calls. Shorted MSFT May 25 Calls and Long MSFT June 27.5 Calls.
Here’s an interesting article. Here I copied portion of it. We can figure out which pond we are in.
| NAME | POND | HOLDING PERIOD | FOOD SOURCE | QUALITIES |
| Investors | Random | No clue | No Clue | No Clue |
| Mutual Funds | Daily | Weeks | Investors | Huge amounts of money, Marketing/research groups, and a tackle box full of Investrador lures. |
| Swing Traders | Daily | Days | Investors | Smart, careful. Decision-making after market hours. |
| Institutions | 15 Minute | Hours | Mutual Funds | Deep pockets, Move Markets over short timeframes, very astute, inside information. |
| Day Traders | 5 Minute | Minutes | 15 Minute Fish | Waits for rock solid plays. Decisive. Decision making during market hours. |
| Momentum | 2 Minute | Seconds | Investradors | Timing High Volume, High Volatility Stocks. |
| Scalpers | 2 Minute | Seconds | Everyone | Happy just going click, click, click all day long. |
Basically, you are taking money from the timeframe above you and giving money to the timeframe below you. For example, if you measure your holding period by minutes, then trade off a 5 minute chart. However, you need to monitor the 15 minute and daily charts for opportunities. Likewise, use the 2 minute chart to monitor that pond for hazards. But remember if you are playing in the 5 minute pond then stay there. Don’t move from pond to pond.