February 2008


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So what happened?

Not much. Both Woodshedder and I made money, albeit not a great deal. However there were some points of interest; we picked that it would probably be a trend day…it was, Woodshedder picked that the DJIA would see -300, it did.

So how come we made chump change?

I think that is the wrong way to look at the day. We didn’t break any rules. We didn’t take any small scalping trades, although we correctly picked about 10 that worked out, we knew that GS was trading tick-for-tick with the index, we knew we had no edge today, we didn’t lose any money. Therefore, it was a successful day in my book, even though we only made a small amount of money.

However, there is an upside to everything…GS has set-up for an excellent trade Monday 3’rd March, I’ll post the analysis later over the weekend.

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I am trading GS “live” today with the “Woodshedder” via MSN link. We are not doing a whole lot of trading, as GS is pretty much chop today.

This is of course due to the “Woodshedder” curse. GS has been excellent trading all week. Today…absolutely dead.

I’ll be back with an update on how we went later.

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No-mans land.

GS closed in a real nowhere area. Thus for tomorrow, at the Open, it is a wait and see proposition. There are potentially two fairly likely possibilities;

*GS opens high, possibly gaps, and trades quite violently higher. I will then be looking to get SHORT at resistance.

*GS trades down, and again quite violently, setting up for a LONG off support.

Both scenario’s involve staying out of the initial indecision of the OPEN and waiting for an opportunity to set-up. GS will be heavily influenced by the general market tomorrow, and both will react to the news and perceptions, thus it will be quite volatile in the early morning.

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Well the plan went pretty much according to plan. The only problem was that it opened flat, and traded down pretty fast.

Thus, by the time I drew breath, in case it traded higher, I’d already missed the best entry. I added extra shares, on a pure momentum play, and exited at yesterday’s support level.

You’ll have to click on the link to the “Old blog” for the real time analysis for this trade. While de-bugging my computer…something went pete-tong and I have to start this one from scratch. I’ll transfer gradually some of the articles, but the comments will most likely be lost.