Saturday, January 16, 2010

Natural Gas & S&P Eminis Update.

Hi guys, this is just a quick update on what's going on. I've been actively trading the u.s equities and have been away from natural gas. The problem with u.s equities is that it only moves 1-2% a day and it rarely trends for the month (the u.s equities will gap up 5-10% in a 5-10 trading day span and then it will stay in a 3% range for the next 10-15 trading days). Natural gas tends to trend for 21 trading days at a time, thus if YOU CAN CATCH the move, which I will help you to do, you can make money. I am going to spend the next few weeks, with my free time, reading up on natural gas, looking at charts, spotting trends/cycles, and then will be posting actively. Until then, let people know that my blog is up and running again!

This chart shows natural gas should be shorted if it reaches the 5.85 area.

This chart shows the U.S equities are still safe to long; however, you must have stops

Hi guys, I post new charts every month that are suppose to be used to ride the main trend. This is a high probability way to make money and requires little work and offers much reward if your entry is super! [Because this system uses stops, if your entry is say 1% higher than where you really should of entered, then your risk can increase by 10-30%, with options even more.]


Previous Chart : Nov 27th 2009. The last time I looked at a chart was on Nov 27th. The chart is not invalid, nor is it useless but it lacks the methodology to make money and it does not account for the fact that the markets may reach 1200 before selling off. Here was the original chart : http://social.stocktock.com/photo/future-cycles?context=user


As you can see my 1145 target has been hit and now it's do or die. C, WFC, GS all report next week. Let's se what happens.The more recent chart, the one you are looking at, does not take into account larger cycles, such as the Mid-Term elections that will be highly taked about in Q3-Q4 2010, that years in 0s usually are negative, that we have likely peaked in terms of larger term cycles (3months), that the 10th year anniversary of the dot com bubble is here, neither do we forsee an interest spike in the next 2 months which can alter the cycles. It would be fun to include these events in cycles; however, this procedure would just lead to tons of permuations and in the end you wouldn't get anywhere.

I think this is the reason why I do not use TA indicators(oscillators, volume,...) because it leads to too many options and confusion (i.e the RSI is not low enough, the RSI cannot be used in trading ranges...). Surprinsingly this system that only looks at price and time has worked EXTREMELY WELL on the INDICES.I do not have an opinion on the market; but I do know that wall street leaves signs for us to follow in the main indices

LONG anything Above 1115 stops at 1085.


Short anything below 1085, stops at 1115.

Good Luck.

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