The Daily Note - Flying high on VFR

We all love a clear day. No matter what vehicle we use for transportation, clear days are easy going or as the song goes "On a Clear Day You Can See Forever" and we certainly have been yearning for clear days for at least the past month. Since the new year however, the way the markets have been acting, it seems we're flying high and seeing that forever. But what happens when the weather changes; when the fog settles in, the storm gathers?

While the sun shines, we can see clearly, but when clouds gather, or fog sets it, things get obscure. Although we always keep an eye on our instruments, it is when we fly into blind conditions that we are reminded how important those tiny gauges are in our cockpit. Those gauges, or what traders call the indicators, are our life savers and their accurate reading becomes crucial for a safe landing.

As it is important for a pilot to learn how to fly using IFR (instrument Flight Rules) under certain conditions, it is equally important for a trader to be able to rely on indicators for safe navigation of a trade. No matter which indicators are your favorites, do keep your eye honed so on days when market directions are not so clear, all those hours of study become worthwhile and you can still make it an enjoyable flight.


Happy Trading, Living and Flying
Anni

The Play List:



$FSLR Long above $138 to near $140 then to near $142.50. Needs to break above 143.50 for a significant higher move toward $147-$149 to fill the gap. Short below $137 to $136 braking $135 means revisit to $134 area with possibility below to near $132



$FWLT was a intra-day pick on Tuesday morning for Long at $31.10 with target of $32.50 and 2nd target of $33.50 area. We'll continue the trade with the long target of $33.50-$34 area. Short below $31 to near $30 and $29 levels.




$AAPL, $BIDU, $POT continued from the Play List on Monday. Adjust to further targets.

$AAPL no adjustment for open

$BIDU BIDU_2010-01-06_0318 Long above $408 to near $410 breaking above $410.70 to near $412-$414 then higher to $417. Short below $405 to $404-$403 area breaking lower to $400 $398 areas.

$POT POT_2010-01-06_0345 long above $118.50 to $119-$120 needs to break through for further highs above $120 to $122-$124 areas. Short below $117 to $116.50-$116 then $115.50-$115 area.

The Daily Note - Fresh Tracks

There are days when my mind just goes blank, not knowing what to expect, I stare at my screen of snow. I don't mean the TV kind, I mean the real beautiful scenery of snow: Pristine, ready for that first carve, fresh track kind of snow.

We should start each of our trading days that way. Cold air nipping at nose, cheeks red frost biting, quiet early hush laden morning. We can feel that first carve before actually doing it. We see it and feel the twitch of the muscle before we tip forward with anticipation. It is also how each trader should start their day. See it, feel it, taste it; then execute that perfect run in perfect rhythm on a perfect day. In this way, no day will become boring and no two runs quite the same.




Happy Trading, Living and Skiing
Anni


$AAPL Long above $214 to $216 breaking higher to 217.50 areas then $219-$220 up to $226. Short below $210 to 208 area then below to near $205. Breaking lower, $203, $200 - $198 possible.




$BIDU Long above $114.70 to near $419, breaking above $420 to near $423 then $425. Short below $410 to $408 area breaking lower to $404, $400 $398 areas.



$POT Long above $114.50 to about $117, higher to $118, 120 areas. Short below 1113.50 to $111-$110 areas breaking below to near $108.

The Daily Note - Looking Forward 2010

As with the last days of the year, full of self-congratulations, the beginning of the year is full of predictions. In a world where we don't believe in astrologers, fortune tellers, psychics or voodoo, it's amazing how much we pour over graphs and charts, much like they do, to foretell the coming year. What we think and what we'll do now may change going forward and it's important to remember that no matter how, change is the only thing permanent. Climates included.

It's not so much what we say, said or predicted, as it is how we can keep up with those changes, day in and day out; how astute we are to the nuances and how well we adapt. Changes are not easy for anyone. We, as human beings, may get comfortable with the satus quo; but we, as traders, know better than to let ourselves sit too long in the easy chair. As a result the only thing I can predict is that like always, this year will take intense work to keep all possibilities in view.

OK, so you want a prediction from me? The charts & stocks will go up, down, sideways and I will still be a $______$. But seriously, no matter what I post, say, plan, shout, profess or generally boast, it's how well I take action which will make the difference for the year. . So it is my actions, and not what I predict, which prove what I can do; and it is my trades, not my words, which prove my predictions.

That said, here is mine for the year 2010: The Dow Jones Industrials $DJI

Short below 10400 to about 10350, breaking below 10320 to about 10270, 10200 then 10127 areas. Break down of 10000 we'll see 9900-9800 retest.
Long above 10500 to retest 10550 breaking above to near 10600 after which 11000 will be possible with regular intervals. Moving higher on strong momentum the 11200, 11400 and 11800 can be revisited once again.



So now, here is to your trades, actions and foretold prosperity, why, because the Universe supports what you want, but you have to take the action to prove it so,




Happy 2010, and as always, Trading, Living and Dancing

Anni