(more) Damage Control

Looks like ex-Fed honcho is doing the 500-m backpedal...though no press were allowed in the room while he spoke, Mr. Greenspan explained that a recession in the U.S. might happen, but then again might not. Whoa! Now all is clear. How much else in this world is "Possible" but not "Probable?" ooofaa

UFO sighting

Here we have a set-up of the DJIA 5-day with Bollinger Bands over-layed. Notice the pattern?


Now come on, what's the Starship Enterprise doin' in this chart? Sorry, I just couldn't help myself with this one.

Damage Control

Doug Mills/ The New York Times

So it looks like Mr. Bernanke put on his reassuring head today in order to calm the crowd that's wondering what to think of yesterday's sell-off. It was a computer glitch...yeah, that's the ticket, a computer glitch. It's the fault of the Shanghai index...yeah, that's the ticket, the Shanghai index. Or, of course it could be that weak U.S. manufacturing report....yeah, that's the ticket.

When A.F. Greenspan speaks...

...people listen. Remember that E.F. Hutton commercial from the '80's? Well, I digress...Surely we can't attribute today's correction to one measly speech by the Ex-Fed. Chairman, can we? Similarly, we can't really expect the DJIA to ramp up 15.9% in 7 months and not make more than a 2.0% correction. Granted this 3.29% "correction" happened in only one day (worst 1-day dump since 9/11/01). Actually, when you break it down the majority of this correction happened in the course of only 10 minutes. Another train of thought....surely the Chinese market was due for a "correction" as well? This article called it 6 weeks ago. Maybe the masses just needed a catalyst, and Mr. Greenspan seemed to give enough fodder. I'm anxious to see what'll go on tomorrow. Currently the Hang Seng is consolidating after a large gap-down. The Nikkei225 doing nearly the same.

Stop!

Before you take another sip of wine go out and get yourself some crystal stemware. Once you do, have yourself a side by side tasting. Pour yourself the same wine in a crystal glass as well as in a composite glass you've been drinking out of for so long (you know, the kind that sounds like tin when you flick it). It will prove to be a whole new experience. salut!

oooffa

A solution to the masochistically inclined. Check out this hot tamale. I think I might have to order me some of those seeds and see what germinates. woohoo

More Inspiration

Another short, but profound book.

1. "Be Impeccable with your Word: Speak with integrity. Say only what you mean. Avoid using the word to speak against yourself or to gossip about others. Use the power of your word in the direction of truth and love.
   
2. Don't Take Anything Personally: Nothing others do is because of you. What others say and do is a projection of their own reality, their own dreams. When you are immune to the opinions and actions of others, you won't be the victim of needless suffering.
   
3. Don't Make Assumptions: Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness, and drama. With just this one agreement, you can completely transform your life.
   
4. Always Do Your Best: Your best is going to change from moment to moment; it will be different when you are healthy as opposed to sick. Under any circumstances, simply do your best, and you will avoid self-judgement, self-abuse, and regret."

-Don Miguel Ruiz

My Latest Favorite

A wonderful perk of living in the Napa Valley includes getting my hands on some delicious wines that many across the country may not ever discover. So, I'm going to give some recommendations every now and again. Consider it akin to insider information.
I've been loving this 2004 Zinfandel lately called Blockheadia Ringnosii. It's 100% Zinfandel made with Sonoma fruit. It's not one of those spicy zinfandels that can be so common with a 100% single varietal. It has some nice ripe blackberry flavors, mellow tannins and a nice, smooth finish. Salut!

Candlestick Charting

Japanese Candlestick Charting will be my preferred method of studying price movement.

There's quite a large array of patterns to be keeping an eye out for in the world of candlesticks. I found a good starting point to be this web site devoted to the matter. I'll be keeping an eye out for Reversal and Continuation patterns while using 15 &/or 30-minute bars for noise reduction that's common with the shorter period bars. There's just so much information on the subject matter and I couldn't get by without; Japanese Candlestick Charting Techniques by Steve Nison. It is absolutely indispensable.

A Continuing Source of Inspiration

A man should conceive of a legitamate purpose in his heart, and set out to accomplish it. He should make his purpose the centralizing point of his thoughts...he should steadily focus his thought-forces upon the object which he has set before him. He should make this purpose his supreme duty, and should devote himself to its attainment, not allowing his thoughts to wander away into ephemeral fancies, longings, and imaginings. This is the royal road to self-control and true concentration of thought. Even if he fails again and again to accomplish his purpose (as he necessarily must until weakness is overcome), the strength of character gained with be the measure of his true success, and this will form a new starting point for future power and triumph.

- James Allen

baby steps

Since I'm still in the beginning stages of developing my day-trading system, I'll be including notes and earmarks on a variety of topics in the world of technical analysis, and things I might want to be looking for to enter/exit trades. So, I think I'll start with moving averages. Some obvious signals I'll be looking for will include crossovers of a shorter vs. longer period moving averages. The shorter-period MA crossing over the longer = an up trend. The longer crossing over the shorter = a downtrend.

Keep in mind, the shorter the time period used the quicker the MA is to respond to a price movement. While, of course, the longer the time period the slower the moving average line is to react. Since an Exponential Moving Average (EMA) is calculated so that more importance/weight is given to the most recent closing price I think I'll mostly use EMA's.
I should also be looking for these MA's to help determine support and resistance levels.
Seeing how prices are reacting to these levels will help determine where to place my stops.

My Time

Most of my time these days is spent studying Technical Analysis of stocks (and their underlying indexes) and futures, as well as figuring out how to trade said markets based on those principles.

The Very First Posting

Here's a toast to the beginning of my first blog posting. No telling what will come after this point, but at least I've made it this far.

Begin at once to Live.
-Seneca