world markets crash

stock market correction = uptrending

If you are a stock market follower you’d notice the different wording journalist are using such as “optimistic” that we hit our low just recently last Thursday Aug 16 to be exact. I was watching the market as AAPL was hitting $112’s and NYX was hitting $65’s. I was drawing my support lines because after the big red candle dropped a big white candle stood right next to it top to bottom and went right up with buyers looking for a golden opportunities. Since I’m still a student I really did not know which direction the market would go. On Friday stocks popped higher creating a doji star showing the market made up its mind. So now for the past almost 6 days the market has ran up with white candles breaking the downward trend since July 15th. I’m currently in AAPL JAN 200 CALLS up around 30% in my options +$3000 in 2 business days. I’m not going to sell at some crazy high number, but I am going to follow the major uptrend line until it is broken or bad news comes out, other wise I’m stick to my play. I’m very confident in Apple and until their next earnings call I’m going to trade it up to earnings or until I’m happy with my profit. I’d also love to be in SHLD and RIG Calls, but I’ve been taught to be in only one trade at a time even if there are other opportunities available. I need to stick to the rules and show some discipline or I’m never going to become a great trader.

Currently I’ve been looking at a trailor park to buy for $190,000. I’ve talked to many experts in this field and the price looks very good for what I’m getting which would be an 18 lot, 2.37 acre, with 18 park owned homes rented for $350-450 each, with all utilities established. It is around 20 minutes away from University of eastern Tennessee (Johnson City, TN). I’d really like to do the deal, but I want to get an outside property manager if I buy it. This is the advice I’ve gotten basically to get rid of any favoritism within the park. It would make some serious cashflow to my real estate portfolio. Between the 2 trailor parks I will eventually be receiving around a $50k net income a year more than my U.S. Coast Guard income so it would finally give me the choice of retirement at age 29. I still want to be a great trader, but it would give me choice even if I did not trade stock options.

I’m almost done with my 3 classes at HPU and will start another 5 online in the next two semesters. I want to double major by 2009 then do some pastry or music school or both when I get out. 2007 has been a very volatile year for my portfolio and my goal is to come out higher than last years or at least breaking even. Many of my penny stocks are worthless so I will have to sell them soon or I will be paying some serious taxes from gains I do not have anymore. Trends are looking good and the technicals are showing major buying right now so look out!


Is the market tired and ready for a nose bleed?

Today most stocks started to show some big red candles engulfing the previous days gains. Most international stocks and indexes, expecially Asia, fell over night. I predict the stocks might rise higher tomorrow, but continue to fall for a few days and then continue their rally since they have been bullishly buying buying buying for the past weeks. One index expecially which has had a second big move is China Index fund (FXI @ $109) currently has had a run from low $80’s to recently $110’s. With the large lower opening price today I think there will be some selling off of some profits during this earning season. I recently bought MAY 105 PUTS. If I’m right I should be sold out by Tuesday April 25. If I’m wrong I’m finished trading stocks for the year. The trade looked very clear and I’m determined that all the indicators and general market is in my favor even with Google.com’s (GOOG @ $471 – after earnings $481) surging profit beating analyst expectations. The overal market has had a good run up and even though I’d like all my stocks to fly high I know its about time for some hard selling. So far economic retail sales and non changing interest rates have made market condition good for bulls and earnings haven’t been so bad either. I think Yahoo.com’s earnings (YHOO @ $27.80) even though were lower the stock will rise because of its real solid value.

Recently my portfolio has been a smelly dump of losers sucking ever profit from me dry. My goal is now to repeatedly play stocks that are profiting me in the correct direction and increase my portfolio to a new high. My account is currently worth around $16,000 down from around $38,000 just since mid Feburary. What I did wrong was get into position and trade after a big win. This I already knew not to do. It’s a general big rule to follow, but I guess the increased account got the best of me. I’m still up for the year maybe + $5000, but I suppose feeling a bit miserable and disfunctional at the moment.

I have not bought Bigstring.com (BSGC.OB @ $.38) because on QCharts it shows buying movement, but it looks like the stock is going to settle a little lower before it moves again so I’m going to wait to buy a large amount of shares. If it does move higher then the public has gained interest and then that will be enough cue for me to know its the right time to invest in it. It maybe be struggling currently, but it is a very new type of email service that I think the trendy crowd will really jump into which will mean big money for the company advertising big names on email accounts.


DJIA down -546 pts at low! All I can say is “wow” and “shit!”

Yesterday, as you should be already so aware of, the China markets had a big correction which basically followed around the world. One of the main causes of the China correction was because asians were buying up stock like no tomorrow. Investing has become huge since the government is helping capitalism and turning asia into a major world power. Now, because of all this buying with no major pullbacks the stock market just went straight up and finally it threw up and just passed out. You should expect upcomming pullbacks. Yesterdays small crash was just the first to more to come including our own market. Analyst keep saying that 2007 will be a very volatile year. Fed Chairman Greenspan and Bernanke say the same too. I think if the banking system can fix fiscal policy then this volatile will be to the upside. The Dow’s low of -546 points yesterday was wowing. I expected buyers to buy up today and make a profit, but I expect by tomorrow even or the end of the week for the market to go further down.

You probably also should notice we are in warnings season when most companies warn for lower profits. With the major drop now in the Dow we are probably going to see stocks drop lower. If you were in any Call options you probably shitted yourself in the pants when China dropped following our market and Europe. I maybe didn’t shit my pants, but the reality check in my stock brokerage account sure did make me think I was about to have a panic attack. Yes, I did see it coming and everyone talks about how Asia was going to crash soon before going back up again, but I don’t think anyone can predict exactly when it will happen. When stocks are going up you don’t buy Puts. I suppose this is just something pricey I’m learning as a student of the market.

I’m going to read one of my commenters books who recommended Gamblers Ruin. It’s on one of my posts that I made a decent profit on. Many people that do not invest saying using the stock market to make money is gambling. I do not like questioning myself, but sometimes I think they are right when I definitely know I gambled a trade. I do not gamble in casinos. I think they are boring. I like playing poker, but I never play for money. I can not spend more then $50 in a casinos on games, although when I trade stocks sometimes I just get into this zone and I don’t even think about the stocks I’m trading, why I’m trading them, and if I should be trading. When this happens I make the worst decisions, trade too much or ALL of my money, and basically trade losing positions. It’s depressing. It’s hopeless. It’s being a totally moron of a gambler.

I really don’t know if its a dependent thing because when I trade I really wish I had someone like myself to over look me or just tell me I’m crazy. Sometimes the finance ninja gets caught in too much action. I’d say the ninja needs to just goto the bar, get a drink, and stay away from his stock trading laptop. My mentor even told me to not trade if you didn’t know where the market was going or if its just too hard to trade. Yes, trading on an easier trend would be more profitable and easy. I guess I just want to so badly get good at this and reach my ultimate goals that principles of consistent tradings get knocked out of my mind somehow.

To any traders out there like me I wish us both the best…to getting some type of help. =D