QQQ moves up a little, but it needs to take out 35 to reverse the slide started two months ago. If the rotation of big money out of tech stocks has come to an end, it may go sideway for a while. Any good news probably will invite some to jump back in the market. Anyway, it has to hold the 34 support level firm, next support is at 32.5.

China Stocks took big hit …

LFC took a big hit as its predecessor was found with accounting irregularities. It dropped $2.13 or 7.4%. Other China stocks was also impacted. Increased my LFC position. Also bought CHN. Looking for opp. to buy HNP again.

SUNW went down to 5.12. It needs to stay above 5 level to keep previous uptrend. Otherwise, we shall see it back to 4-4.5 level.

China Stocks

The internet stocks SINA, SOHU and NTES are all at or near the major support level. The possible play may be buying slight ITM Jan calls, but they are all richly priced due to their high volatility. Holding SOHU Jan 30 Call. Closed NTES 40 Jan Calls.

Other stocks such as ACH, PTR, SNP and CHA are making big moves at new highs.

INDU held above 10K

INDU closed at 10042.16. S&P 500 closed at 1074.14 and NASDAQ closed at 1949. It looks like more money is moving into the big caps.

Started experimenting YM, the e-mini Dow Jones index future. It trades in much lower volume compared to ES. The result has been good so far using the same setup for ES. Actually, the same setup (trend following plus price action, resistence and support, plus Bollinger Band with Slow Stochastic is being used in stocks, stock options, and futures.


1 point tonight. Two shorts: 1046.75 and 1046.5. Covered them at 1046.25 and 1046. The stop was set at 1048.5 way above recent high 1047.

It’s been profitable on ES front although scalping is just picking the pennies. I may venture into swing trade over a few days or a week horizon. What would be the target and stop for swing trade? I guess I would risk no more than 1-2% of the capital on each trade. The setups will be two: trend following using SMA 5 and 20, and Bollinger Bands/Slow Stochastic. I’m using the same setup trading other stocks and options.

Bot SUNW Jan04 at 4.05, rolling over Nov contracts to Jan.

Other than a long position on SUNW, almost 100% is in cash right now.