1/12/2010 4:15 pm update: Less Red, 'BTD Index' does not generate an Entry Signal.

• what a frustrating market...the bid below the market remains strong...
• my 'BTD Index' model did not generate an entry signal at today's close...it was lined up to do so around midday, but the bulls fought back just enough into the close to negate the entry signal for this model (by a measly 3 points)...
• the NQ futures are up nearly 6 points from the 4 pm close too...
• frustration....
• perhaps there will be more selling tomorrow...and even though we are in the seasonaly weak mid january period, i have a funny feeling we have already seen the brunt of the selling, which only amounted a measly 3% from the highs in the NQ, and even less in the ES....
• i am glad i bought some out of the money calls on LTD yesterday...it is holding its breakout very well...

Disclosure: Long LTDBX.

***remember this is an illustration of what i am trading and my thinking...it is not a recommendation for you or anyone else to buy or sell this or any other security...trade at your own risk ***

Big Red!?!

Are the pre-market futures actually red this morning? Wow, I didn't think we would ever see this again.

All kidding aside, I would welcome a selloff in the major market indices. This would enable me to get long the NQ for a discretionary swing trade to what I believe will be new swing highs. It would also give lots of strong stocks a chance to pullback, which would provide me an entry via some cheap out of the money calls on them.

***remember this is an illustration of what i am trading and my thinking...it is not a recommendation for you or anyone else to buy or sell this or any other security...trade at your own risk ***

1/7/2010 12:30 pm update: CERN, NBR, NQ

• numerous studies i follow, including this one by quantifiable edges, suggests that seasonal weakness for january may begin tomorrow and last through friday the 26th...
• i am looking to reduce my longside exposure: when CERN and NBR broke out of their daily base on tuesday, i picked up some cheap out of the money calls on each of them...i just sold them for about a triple on CERN and a double on NBR...
• if the typical mid january weakness manifests, i will look to buy some NQ for a discretionary swing trade...
• i will also scan the charts and look for strong stocks that put in controlled pullbacks...once i sense the move down is over, i will get long some strong stocks via cheap out of the money calls...

***remember this is an illustration of what i am trading and my thinking...it is not a recommendation for you or anyone else to buy or sell this or any other security...trade at your own risk ***