Friday, July 13, 2007

Charts Of Interest

AAPL reached my objective today so I sold my option for a nice profit. This trade was a perfect symmetrical triangle that worked from the start. We should all have trades that work this well.

Here's another symmetrical triangle that just about reached my objective of 315. I posted the above chart of the Dow Jones World Stock Index last week on the breakout. Looks like that was a great indication that many stock indices were about to move higher.

Above is a weekly chart of the Diamonds (DIA). As you can see the 2nd week of the month continues to be bullish for the dow and I exited my long DIA on the close today. This trade has been good to me and we'll look to do it again next month.

Notice the dollar touched the low from 2004. I remember a few weeks ago when I turned bearish on the dollar how everyone was bullish and they said the dollar had bottomed.

Some of my best trades take place when many people are looking for the market to go the other way. You know the saying, the market likes to make its moves with the least amount of people on board.

Same thing happened in the gold market. All the longs got taken out 2 weeks ago on that sell off which caused the put/call ratio to shoot up to one of its highest levels. Everyone was bearish. Well here we are just 2 weeks later and gold is much higher.


dankir said...

Hi Kevin

Just to congratulate you on your excellent work. I will try to incorporate it a bit into my own trading which has never realy worked for me so far becuase of a terrible bearish bias.

Have a nice weekend

Kevin said...


The good thing about trading is that there is always another opportunity right around the corner to make some money.. Have a nice weekend


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