Tuesday, October 31, 2006

Tuesday Wraps Fish

What a stinky day. As I mentioned this morning the markets looked like they were going to go boom but instead they fizzled. Fortunately I ended my SAI trade at the high of the day which occurred in the first 15 minutes of trading. I then took a more normal hammer trade in VRSN which made exactly 2 cents or enough to cover commissions with enough left over to buy me an order of fries with my hamburger off the dollar menu. I'm flat going into tomorrow and that is just as well.

Note that when I follow my process (engineered trading) I don't lost lots of money - I may not make a lot some days but today was better than a loss anytime and I had a large position almost all day.

My post this morning is more meaningful (to me now even if it isn't to you) because I once again visited that trading chat room and was called "stupid" (in an indirect manner) because I prefer the long side of trading. The young moron who called me stupid had no skin of his own in the game which is why I have no compunction about calling him a "moron" but I didn't do that to his face (so to speak) because my rule is wait 24 hours and if it still matters tomorrow - I'll give him a piece of my mind. Trust me - he's going to get it.

Speaking of tomorrow - the up/down ratio remains neutral at 45%, the three sisters finished the last hour in the green and the VIX hardly budged. The new 20 day highs actually added some today (about 50) to 621 and added about 25 new lows to 275. That is goodness in that new lows give people things to buy.

As you know the only reason the market goes up is because there are things to buy and the only reason it comes down is that there is nothing left to buy. That is known as supply and demand - or at a certain price things will be bought and at another certain price they will be sold and generally those prices are low and high respectively.

I'm calling it a draw for the magic coin again so it remains at 24 and 12 and for tomorrow it says --- tails - bear in the air.

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