Friday, January 30, 2009

Invest Trade Fake Money and Win Real Cash

These days of online investing and trading, beginning investors and traders as well as experienced professionals can practice investing and trading in the stock market with simulated virtual stock market portfolio's. No more need to aimlessly walk into the stock market not knowing anything and losing money anymore. Learn practice and perfect your stock investing and trading with fake money before risking your real money, and have the chance to win cash prizes at the same time too.

Below are two of the best simulated virtual stock portfolio stock market games and contests where you can learn how to invest and trade first in the stock market, and have a chance at winning cash prizes too while playing these investing trading games.

Fantasy Stock Market Contest
Umoo Stock Market Game Contest Real & Fun Money Games - Win Cash Prizes

What's UMOO? UMOO is the leading virtual online trading platform for Financial Entertainment, combining the fun of Internet based multiplayer games with the thrill and opportunity for reward offered by the stock markets. Enjoy UMOO the best fantasy stock market game where risk is minimal and the opportunity to trade, compete and win is real!

How does UMOO work? UMOO's concept follows the ebb & flow of the S&P500 stock market index using real time quotes. Traders compete against each other instead of the markets to win. Once entering a trading competition, players receive virtual money with which to build and manage a virtual stock portfolio based on real stock market data. The objective of the players is to make the highest returns on their portfolio, just like in real life. Throughout the duration of the tournament, players are benchmarked against the performance of other players and at the end of the tournament the winners are those who have the highest relative returns. UMOO offers absolutely anyone a real opportunity to win; you can learn more about our competitions here.

UMOO helps you gain trading skills. UMOO offers real- time market data and a variety of research tools & information which are available on the UMOO platform. All the data and information provided by UMOO is there to help players compete effectively and fairly while improving their financial trading skills.

Who is UMOO for? UMOO is for everyone! From professional traders to the absolute novice, the UMOO game can be played by anyone who wants to take part in online investing without the risk! UMOO offers you a great place to learn trading skills and compete for wealth, recognition and entertainment. We call it "The People's Market"

Click here for free sign-up and learn successful investing trading before you risk a penny.

Fantasy Stock Market Contest
Wall-Street Survivor Stock Market Game Contest - Win Cash Prizes

A Fantasy Stock Market Account allows you to get in the driver's seat and manage your own fantasy stock portfolio while competing risk-free against friends, peers, and colleagues for the chance to win lucrative cash prizes.

No Risk - Learn Then Do

You learn to master the market by executing your fantasy stock trades of real companies in real-time. The financial data feed is from Thomson is the same one used by brokers and traders around the world.

Financial Intelligence Empowerment

After the experience and knowledge gained from playing Wall Street Survivor, you will have the skills to take charge of your financial future. You will have earned the training and practice needed to take an active roll in directing your retirement investments, your savings plans, 401(k) company plans, or your mutual fund investments. All the while, you play in highly entertaining contests and participate in a community of like-minded traders.

Benefits Features

Wall Street Survivor offers exclusive features and personalization through a collaborative social network platform, where Survivors exchange valuable strategies and trading ideas with other traders and friends.

Free Membership

As a Free Member, you'll gain access to our Research Center where you can select and review a vast array of personalized market data, charts, a stock screener, earnings calendar, a watch list, as well as news and other research tools that broaden your market knowledge and confidence so you can make informed trading and investment decisions.

Click here for free sign-up and learn successful investing trading before you risk a penny.

Thursday, January 29, 2009

EURUSD: Anticipate

Conventional forex analysts do a good job of explaining how news stories move the markets . . . in retrospect. This week, for example, as the euro-dollar exchange rate EUR/USD moved about 400 pips higher, a story on the morning of January 28 said this:

Jan. 28 Bloomberg. The dollar and the yen weakened to almost one-week lows versus the euro on speculation a U.S. plan to set up a “bad bank” to contain toxic debt will reduce demand for the currencies as havens.

That was a Wednesday morning headline. But later the same day, right after the Fed's interest rates announcement at 2:15 Eastern, the USD suddenly gained, sending the EUR/USD some 150 pips lower in a matter of minutes.

What happened to the "speculation of a reduced demand for the dollar as a safe haven"? I'm sure there is a way to work that in somehow, but how does it help you, the trader? You'll again be explaining the move that has already happened. Great, but what will the EUR/USD do tomorrow?

Here is a method that actually helps you to anticipate the market: Elliott wave analysis. About an hour before the EUR/USD started falling on January 28, EWI's Currency Specialty Service posted this intraday update for subscribers:

Wednesday, Jan. 28 13:14 ET/18:14 GMT

EUR$ is poised to fall. It appears the dollar is turning as expected. Risk is low and potential reward is high!

Need a forex forecast? EWI's Currency Specialty Service brings you forecasts 24 hours a day.

Why did our Currency Specialty Service turn bearish on the EUR/USD before the Fed's announcement? This intraday chart and forecast, posted at 08:38 AM on Wednesday, explains it from an Elliott wave perspective:

08:38 ET/13:38 GMT
[EURUSD] Last Price: 1.3257
The rally from 1.2769 is close to a five-wave affair. Allowing for a push above 1.3326, the rally is nearing an end, setting the stage for a correction, or more. Just a correction could see 1.3122, or worse. Whether the turn takes place before or after the FOMC announcement, we believe the opportunity is to the downside.

Don't get caught up in the game of "postmortem" explanations. Instead, anticipate. Our Currency Specialty Service can help – now.

Click here for a Free InterbankFX Metatrader4 Platform Demo

Click here for Automated Forex Trading Using Metatrader4 Expert Advisors

Good day and good forex trading!

Wednesday, January 28, 2009

Van Tharp 2009 Trading Workshops

Dr Van Tharp
International Institute Trading Mastery

The Traders Coach Dr. Van Tharp is starting his International Institute of Trading Mastery 2009 trading workshops this January 30 in Phoenix Arizona with his "How To Develop a Winning Trading System That Fits You" workshop. Van Tharp is one of the most successful traders interviewed in the Jack Schwager's famous Market Wizards book. Van Tharp teaches investors and traders successful low-risk high-reward investing and trading.

Van Tharp 2009 Trading Workshops

January 30-Feb 1, How to Develop a Winning Trading System That Fits You, Phoenix
February 6-8, Highly Effective ETF and Mutual Fund Techniques 101, Sydney Australia
February 10-12, Peak Performance 101, Sydney Australia
February 15-18, Advanced Peak Performance 202, Sydney Australia
March 14-16, Professional Emini Futures Tactics, Cary North Carolina
April 24-26, Blueprint for Trading Success, Cary North Carolina
April 28-30, Peak Performance 101, Cary, North Carolina
May 11-13, Highly Effective ETF and Mutual Fund Techniques 101, Cary North Carolina
May 15-17, How to Develop a Winning Trading System That Fits You, Cary North Carolina
August 21-23, Highly Effective ETF and Mutual Fund Techniques 101, Germany
August 25-27, How to Develop a Winning Trading System That Fits You, Germany
September 19-21, Day and Swing Trading Strategies, Cary North Carolina
October 16-18, Blueprint for Trading Success, Cary North Carolina
October 20-22, Peak Performance 101, Cary North Carolina
November 7-9, Professional Emini Futures Tactics, Cary North Carolina
November 11-14, Advanced Peak Performance 202, Cary North Carolina

Do You Want Bigger and More Consistent Profits from the Market?

If you want consistency and you want to make profits from the market then you'll want to attend Van Tharps Trading Workshops. You will learn and use little-known, closely guarded secrets that you're not likely to find unless you accidentally stumble upon them yourself.

Low-Risk High-Reward Investing

Are you a low-risk investor who just wants to make small, consistent profits each month with only an occasional loss? We can show you how to develop a system that will allow you to develop a unique methodology that will give you that kind of consistency.

Low-Risk High-Reward Trading

Are you a gutsy trader who would like to make yearly profits of 100%, 200% or even 1,000% per year? It's possible, although risky, and we can show you how to do that too. The interesting thing is that you can do it in such a way that the only money you are risking is the money you've already made from the market. That's real leverage.

Click here to review and register for Dr Van Tharp's trading workshops, and get the winning edge with your investing and trading.

Tuesday, January 27, 2009

Free Option Trading Webinar Wednesday

Free Options Trading Webinar
Wednesday 9PM EST options expert Ron Ianieri will be showing how to trades options for free. Also how you can use simple powerful option trading techniques to maximize your returns and lower your risk.

You'll find out how to master these strategies in the shortest time possible. With volatility and the VIX hitting all time highs, and likely to continue volatile throughout 2009, small and big fortunes will being made during this financial meltdown. Make sure your on the opportunity side of this disaster by attending the webinar.

Click here on how to maximize your profits this 2009 and keep risk to a minimum by attending this free options trading webinar Wednesday 9PM EST.

Master Options In The Shortest Time Possible

On this webinar, Ron Ianieri from Options University is going to reveal some of his easy to learn, yet very effective and highly profitable, options trading strategies, and how you can master every one of these techniques fast.

These are the same powerful techniques he learned through the hard-knocks training of live floor trading on the Philadelphia Exchange where he "honed his trading" for over 15 years.

And these stratgies were (formerly) the closely-guarded, little-known, "hush-hush" techniques, kept confidential among the hard-core, battle-hardened floor traders.

These trading strategies are are very profitable.

They had to be. Because they gave the floor traders the "edge" they needed to
stay in business. After just a few minutes with Ron, you'll begin to get a feel
for his intense knowledge, and equally intense passion for options, and it will undoubtedly begin to rub off on you.

But fair warning, once you see how Ron unveils the unique and many advantages of options trading "his" way, you will never see stocks in the same light again, and you may actually decide to change the way you trade stocks, or at least the way you have in the past, and forever.

Click here for the link for more information, and to register for the free options webinar:

Think about it. You can now get your hands on the exact information Ron used to
train some of the top traders on Wall Street. Some of these traders have gone on to amass millions of dollars of options trades for their respective trading firms.

This is not your ordinary options training class "everybody else" teaches, where you simply learn a handful of trading strategies, without having a clue about how and when to use each of the strategies.

Not knowing that will get you killed in options trading. Ron will supply the details of how you can avoid killing your portfolio this Wednesday night. And that's just one example of how Options University options training differs from every other training company out there.

Join the free options webinar this Wednesday night for a live training session with Ron. One evening spent with Ron could change your whole life.

Here's that link again to register for the webinar:

Good day and good options trading!

Monday, January 26, 2009

Weekly Stock Pick

Scanning the stock charts this early Monday morning, I’m remembering last week’s mixed market action. My scans are showing the same mixed market right now. I’m on the lookout for another big sell-off anytime now. The down-trend last year has been so bloody and overdone in my opinion, there’s plenty of companies selling at very low valuations right now, but not so fast to be a big buyer just yet.

Long term many equities can be a great investment from here. Short term they can be a real bad one, and if you need cashflow in the short term, don’t be too quick to buy in big just yet. I’m looking at this possible new selloff as a possible major bottoming process of this current bear-market with a consolidation phase and range trading the investing trading environment for awhile after that until the economy gets back on the growth track again. That could be quite a time away while everything gets de-leveraged, restructured, and re-liquidated.

President Barack Obama and Congress seem to be on the job to infuse a huge stimulus package for the American economy ASAP. The faster the better no matter who’s paying for it. It’s damned if you do, its damned if you don’t time. Obama met with the Congress leaders last Friday to get the stimulus package moving for an agreement and implementation. The auto industry is asking for more money now to help them develop more fuel efficient cars and advanced battery systems for electric cars. Obama and his team will be able to best address the auto industry requests for additional money in February. While there is hope and optimism for the rescue package to work in the long term, there’s more chances of things getting worse in the short term before they get better in the long term. Patience is a virtue, and proper timing in any market can either keep you in the or squeeze you out of the market, especially in times of very reduced cashflow.

This week the best long or short stock pick I could find sells sporting goods. They have 300 stores in 30 states, and you can also order online from them. Their market cap is about $1.2B and their Price to Earnings Ratio is about 9.1. Stop worrying about the economy and your finances. I recommend you to get some exercise using this companies products and buy their shares if even for a short term trade.

Buy Long Dicks Sporting Goods. Ticker DKS

Buy Entry: 10 to 11.07

Stop-Loss: Anywhere under 10.

Take Profit Areas: 12.99, 13.80, 14.60, 15.74

Dick’s Sporting Goods Company Profile

Dick’s Sporting Goods, Inc. (Dick’s) is a full-line sporting goods retailer that offers an assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of February 2, 2008, the Company operated 340 Dick’s Sporting Goods stores in 36 states, 79 Golf Galaxy stores in 29 states and 15 Chick’s Sporting Goods stores in California. Dick’s carry a variety of well-known brands, including Nike, North Face, Columbia, Adidas, TaylorMade, Callaway and Under Armour, as well as private label products, which are available only in its stores. On February 13, 2007, the Company acquired Golf Galaxy, Inc. (Golf Galaxy) by means of merger of its wholly owned subsidiary with and into Golf Galaxy. On November 30, 2007, the Company acquired all of the outstanding stock of Chick’s Sporting Goods, Inc. (Chick’s).

Click here to review and Trial the Trading Software I used in determining my long position on DKS. Enter I2S in the "coupon code" field to receive the 5% discount.

Click the Dicks Sporting Goods Stock Chart for a larger view.

Dicks Sporting Goods Stock Chart

Friday, January 23, 2009

Fantasy Stock Market Contest Win Cash Prizes

Fantasy Stock Market Contest
Wall-Street Survivor

A Fantasy Stock Market Account allows you to get in the driver's seat and manage your own fantasy stock portfolio while competing risk-free against friends, peers, and colleagues for the chance to win lucrative cash prizes.

No Risk - Learn Then Do

You learn to master the market by executing your fantasy stock trades of real companies in real-time. The financial data feed is from Thomson is the same one used by brokers and traders around the world.

Financial Intelligence Empowerment

After the experience and knowledge gained from playing Wall Street Survivor, you will have the skills to take charge of your financial future. You will have earned the training and practice needed to take an active roll in directing your retirement investments, your savings plans, 401(k) company plans, or your mutual fund investments. All the while, you play in highly entertaining contests and participate in a community of like-minded traders.

Benefits Features

Wall Street Survivor offers exclusive features and personalization through a collaborative social network platform, where Survivors exchange valuable strategies and trading ideas with other traders and friends.

Free Membership

As a Free Member, you'll gain access to our Research Center where you can select and review a vast array of personalized market data, charts, a stock screener, earnings calendar, a watch list, as well as news and other research tools that broaden your market knowledge and confidence so you can make informed trading and investment decisions.

Click here for free sign-up and learn successful investing before you risk a penny.

Thursday, January 22, 2009

MTPredictor Tradestation Software Free Webinar

MTPredictor Trading Software

Tradestation Software
What: Free Webinar Using MTPredictor Tradestation Real Time with MTPredictor 6.0 Trading Software

Date: Thursday, January 22, 2009

Time: 4:30 PM - 5:30 PM EST

Duration: 1 hour

The Tradestation version of MTPredictor does not have all the functionality of the other MTPredicator real time platforms. Specifically, the Tradestation version cannot do manual Reward/Risk analysis and has limited manual Decision Point functionality.

In this webinar, the trader will be shown how to properly connect to the Tradestation data feed and how to setup MTPredictor 6 to automatically update its charts on a timed basis.

Using MTPredictor 6 in conjunction with Tradestation can help the trader overcome some of these missing functionalities and also allow them to do even further advanced chart analysis to uncover many more potential setups.

The main presentation will last about 45 mins. Questions will be answered at the end of this presentation.

After registering you will receive a confirmation email containing information about joining the Webinar.

Click here to review MTPredictor Trading Software. Receive a 5% discount by entering I2S in the Coupon Code Field.

Click here to review Tradestation Trading Software.

Good day and good investing trading!

Wednesday, January 21, 2009

Multiple Market Trading Strategies

Multiple Market Trading Strategies
Day-trading, swing-trading strategies for currencies, futures, stocks, and commodities.

Trading multiple markets can provide low-risk high-reward returns. Trading multiple markets with multiple trading strategies in multiple time-frames could seem daunting but actually it can be very simple and provide much needed diversification with high-returns and low-risk.

Universal Market Trader Live Interactive Training Course is a complete strategy for trading multiple markets, in multiple timeframes for multiple opportunities everyday.

Free "FX Live Forex" Trading Strategy Webinars are being held January 22, 26, and 29.

Sign up for the FX Live and be given free complete and full access to the UMT Simple Course & Strategy. Your are entitled to all the benefits and features that current UMT Simple owner's have including the online-based video training, owner's club, mastery series weekly webinars, and the live training rooms.

Also you will be receiving a multi-week set of webinar modules in which you will learn the strategy and build your foundation completely on forex markets. Training on exact timeframes and currency pairs that perform the very best with the UMT strategy. You'll see forex charts, learn forex specific trading techniques, and have the ability to get all your questions answered live.

You'll receive access to the new advanced tactics trading calculator that identifies up to 80% of the setups for them, and first access to the not-yet-released software upgrade for MetaTrader4. Plus, you'll be able to attend the brand new Forex Live Training Room on a daily basis.

At the conclusion of the FX Live series, you will be sent the UMT training manuals, videos, and all of the recorded FX Live webinars for your future reference.

Good day and good trading multiple markets!

Tuesday, January 20, 2009

Banker-in-Chief Obama

Barack Obama Speech
Obama Becomes Banker-in-Chief as Credit Market Freeze Persists

The U.S. economy has little chance of recovering from what may prove to be its worst recession since World War II unless President Barack Obama shows he can get banks to lend money again.

Since the Bush administration and Congress last year approved the $700 billion Troubled Asset Relief Program that injected capital into Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., individuals and companies aren’t getting any of it as fourth-quarter lending by the biggest banks by assets plummeted. The asset-backed market, which is supposed to enable banks to keep lending by transforming loans into tradable securities, remains frozen, leaving would-be lenders unable to package and sell mortgages, credit-card debt and auto loans.

After reporting more than $1 trillion of market losses and writedowns, banks are adding billions of dollars to reserves amid a 16-year high in unemployment and two years of falling home prices. Investor confidence has waned, sending an index of bank stocks to a 13-year low last week. Obama, 47, can’t expect relief from the Federal Reserve, which already cut its main interest rate to as low as zero. All eyes will be on the 44th president today in anticipation that he may unveil a sweeping recovery plan.

“It’s a day-one, minute-one problem for the new administration,” said Stuart Eizenstat, deputy U.S. Treasury secretary from 1999 to 2001 and now a partner at Covington & Burling LLP in Washington. “It’s difficult to understand with the degree of oversight exactly how those banks got into such deep water. The point now is to keep them liquid, get the balance sheets in order and to get them to start lending.”

Real Rates

The mortgage market has contracted even as the Fed reduced interest rates, according to Freddie Mac. While the average 30- year fixed mortgage rate fell below 5 percent this month for the first time since the McLean, Virginia-based company started keeping records in 1971, the real rate that banks charge customers is the highest in more than two decades.

That’s because the spread between 30-year mortgage rates and 10-year Treasury yields is about 2.6 percentage points today, up from 1.6 percentage points in 2003 and 1.5 percentage points in 1993, data compiled by Bloomberg and Freddie Mac show. The difference was about 3.3 percentage points in June 1986.

The failure of banks to pass along savings is hurting a U.S. economy that’s already in the deepest recession since the 1980s, based on the decline in U.S. manufacturing, exports and consumer spending.

‘Economic Pearl Harbor’

Companies slashed payrolls in 2008 by almost 2.6 million, the most since 1945, the Labor Department reported. The unemployment rate climbed to 7.2 percent in December, the highest level in almost 16 years, and the rate may climb to 8.4 percent in the fourth quarter, a survey of economists compiled by Bloomberg shows.

Analysts have been reducing growth forecasts. The economy will contract 1.5 percent this year, a half percentage point more than projected last month, according to the average estimate of economists surveyed by Bloomberg last week.

“We are in the middle of the economic Pearl Harbor right now,” said billionaire investor and Berkshire Hathaway Inc. Chairman Warren Buffett during an interview late last week with Tom Brokaw of Dateline NBC. “Now we have to get mobilized to win the war, which we will.”

With lenders tightening standards, as few as 50 percent of applications are resulting in mortgages this month, compared with an average of about 70 percent during the past 18 months, according to data compiled by analysts at Zurich-based Credit Suisse Group AG.

Frozen Markets

Unfreezing credit “is the single most important thing,” said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, in an interview.

Only government-supported programs, with stricter standards than private lenders once required, have kept home-mortgage lending from shutting down in the U.S., according to newsletter Inside MBS & ABS, published in Bethesda, Maryland.

The securitization rate, or amount of new mortgage securities relative to new loans, rose to 78 percent in the first nine months of 2008, the newsletter’s data show. Issuance of bonds with government backing accounted for 99 percent of the total. In 2006, lenders such as banks kept 32 percent of loans and private mortgage securities accounted for 56 percent of sales.

Sales of bonds backed by auto-loan and credit-card payments plummeted 40 percent in 2008 as investors fled to the safety of U.S. government debt, New York-based Merrill Lynch & Co. reported. There have been no public sales of such debt in 2009. The gap, or spread, on top-rated credit card-backed debt maturing in three years is about 4.75 percentage points more than one- month Libor, compared with 0.5 percentage point a year ago, Merrill data show.

‘Cheap Capital’

Banks have been able to raise cash by selling government- backed bonds through the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program. About $115 billion of such debt has been sold since Nov. 25, according to Bloomberg data.

The average yield, or spread, investors demand to own investment-grade company debt has shrunk to 5.6 percentage points from a record 6.56 percentage points on Dec. 5, according to Merrill, the biggest U.S. brokerage, which is now owned by Charlotte, North Carolina-based Bank of America.

“All of these new banks and old banks that are issuing FDIC-backed bonds are getting what I feel is cheapity-cheap capital,” said Marilyn Cohen, president of Envision Capital Management Inc. in Los Angeles, which oversees $175 million in fixed-income assets. “So what are they doing with that money?”

Obama, an Illinois Democrat who spent four years in the U.S. Senate, began proposing policies to restart the economy while campaigning against Republican candidate John McCain in the presidential election.

Toxic Clean-Up

As the George W. Bush presidency entered its final days earlier this month, Obama unveiled an economic stimulus package calling for corporate tax breaks to encourage hiring, a request that sparked dissent from some Democrats. The president-elect plans to save or create as many as 4 million jobs, in part through investments in alternative energy and infrastructure projects like roads and new schools.

“Hopefully that helps in the first two years or so,” Paul Krugman, the Princeton University professor who won the 2008 Nobel Prize for economics, said in a Jan. 14 interview with Bloomberg Radio. “Hopefully, we find some private sector drivers for recovery beyond that.”

Obama probably will back a bank-rescue effort that combines capital injections and steps to deal with toxic assets clogging lenders’ balance sheets, people familiar with the matter said on Jan. 16.

Bank of America

He scored a victory last week in the Senate, gaining access to the $350 billion in bailout funds, the second half of the Troubled Asset Relief Program, designed to ease the foreclosure crisis and support banks. The vote, after the close of trading on Jan. 15, followed a plunge in financial stocks that sent the 24- company KBW Bank Index, already at its lowest since 1995, down another 8 percent.

Obama’s economic team will use some of the $350 billion to help homeowners avoid foreclosure, according to people with knowledge of the plan. He also may assist cash-strapped cities and states that have trouble selling bonds, the people said.

“We’ve started this year in the midst of a crisis unlike any we’ve seen in our lifetimes,” Obama said in a Jan. 16 speech in Ohio. “It’s not too late to change course, but only if we take action as soon as possible.”

Bank of America, the largest U.S. bank by assets, fell to an 18-year low on Jan. 16, after reporting a $1.79 billion fourth- quarter loss. The figures exclude a record $15.3 billion deficit posted by Merrill Lynch, caused by errant mortgage trading before the Bank of America takeover was completed on Jan. 1.

Record Foreclosures

Chief Executive Officer Kenneth Lewis, 61, agreed to buy Merrill on Sept. 15, two months after the purchase of foundering mortgage lender Countrywide Financial Corp. He struck the Merrill Lynch deal the same day New York-based Lehman Brothers Holdings Inc., once the largest underwriter of mortgage-backed bonds, filed the biggest bankruptcy case in U.S. history.

Citigroup reported an $8.29 billion fourth-quarter loss, with more than half coming from writedowns on subprime home loans and related bonds. The New York-based company, which has lost more than 85 percent of its market value in the past year, was forced to obtain $45 billion of government rescue funds and announced last week it will split in two.

Home prices in 20 U.S. cities dropped a record 18 percent in the 12 months through October and have fallen every month on a year-on-year basis since January 2007, according to the S&P/Case- Shiller index. Foreclosure filings reached a record 3.2 million last year, RealtyTrac Inc. of Irvine, California, reported, pushing down property values and increasing the number of borrowers who owe more on their mortgages than their properties are worth.

TED Spread Narrows

“The challenge that no one has really addressed is the fundamental core problem and that’s the declining housing market,” said Gregory Habeeb, who oversees about $7.5 billion in fixed-income assets at Calvert Asset Management Co. in Bethesda, Maryland. “Everybody’s just addressing the casualties of the problem. If there is some more spent on solving the core problem, we might start seeing the end of the decline.”

Obama plans to tackle the problem with the help of his nominee for Treasury secretary, Timothy Geithner, and Lawrence Summers, whom the president picked to direct the National Economic Council.

They also face the task of stimulating credit markets that seized up after the Lehman bankruptcy and have since started to loosen.

The difference between what banks charge each other for three-month loans and the rate that the Treasury pays, the so- called TED spread, has narrowed to about 1 percentage point, the tightest in five months. The spread, a measure of banks willingness to lend, peaked at 4.64 percentage points in October.

Bleak Prospect

The credit market is “sick, but still ambulatory,” said Envision’s Cohen, who has worked in the bond market since 1979. “There are transactions that are being done.”

The financial crisis has seeped into the rest of the economy, forcing companies to slash jobs and lifting unemployment to it highest since 1993. Motorola Inc., the No. 2 U.S. seller of mobile phones, Schlumberger Ltd., the world’s largest oilfield- services company, and drugstore chain Walgreen Co. are among companies that have announced job cuts this year.

Obama faces “problems all across the horizon,” said Nobel laureate economist Robert Solow, 84, a professor emeritus at the Massachusetts Institute of Technology in Cambridge. “His initial focus really has to be on the real economy, on getting the recession turned around as soon as he can manage it, which is not going to be very soon.”

‘Little Blind’

Profit at companies in the Standard & Poor’s 500 Index has dropped for the past five quarters, matching the longest losing streak on record. Declines are forecast for the last three months of 2008 and first three quarters of this year, according to estimates compiled by Bloomberg.

Rebecca Blank, an economist at Brookings Institution in Washington and once a member of former President Bill Clinton’s Council of Economic Advisers, said it all adds up to the worst economy since at least World War II. The only comparable period was the back-to-back recessions of 1980 to 1982, she said. Then, Obama was an undergraduate at Columbia University in New York.

“It’s been 25 years since economists and politicians in the United States have had to engage seriously about what you do when employment collapses and your financial markets collapse and you’re in a full-economy recession,” Blank, 53, said in an interview. “That means you’re flying a little blind on this.”

By Bloomberg

Monday, January 19, 2009

Weekly Stock Pick

Buy Sell Hold

Scanning the charts this early Monday morning, my scans came up with a few more short-sell candidates than new buy long positions. The broad market looks like it’s headed back down. My scans didn’t really show any new buy or sell opportunities except one that stood out this week. My scans came up with a buy long candidate on a stock that is going ex-dividend this month.

Buying long into dividend paying stocks and stocks that are going ex-dividend can provide a good reward to risk right now. Not all high dividend paying stocks and stocks going ex-dividend are candidates for this investing trading approach though. The financials might not be good candidates right now as they still seem to be in financial trouble those companies involved in getting TARP funds are supposed to be restricted from increasing dividends, making acquisitions and buying back shares.

Buying into stocks before they go ex-dividend can be rewarding though and are worth looking at in this current investing environment. This trading technique works best in Bull markets normally. Buying into stocks going ex-dividend is a technique of buying stocks before their ex-dividend date and selling the equity soon after the ex-dividend date, and still being entitled to receive the dividend. So now the shareholder has the possibility of gaining on the appreciation in stock price and receiving the dividend also.

I’m putting a buy long call on a company that is going ex-dividend on 1/26/2009. It has a Yield of 3.38%, a P/E ratio of 16.0, and a PEG ratio of 1.66.

Buy Long Clorox. Ticker CLX

Buy Entry: 50.56 to 51.96

Stop-Loss: 49.88

Take Profit Areas: 55.49, 57.11, 58.73, 61.03

Clorox Buy Long Analysis

With the ex-dividend date coming soon, and the looks of the CLX chart, Clorox looks like it has a good chance of moving up this week, and providing a tight stop-loss in case there’s not enough buying pressure to get it to move up in the next five trading days before it goes ex-dividend.

Clorox Company Profile

The Clorox Company is a manufacturer and marketer of consumer products. The Company markets brand names, including its namesake bleach and cleaning products, Green Works natural cleaners, Poett and Mistolin cleaning products, Armor All and STP auto care products, Fresh Step and Scoop Away cat litter, Kingsford charcoal, Hidden Valley and K C Masterpiece dressings and sauces, Brita water-filtration systems, Glad bags, wraps and containers, and Burt’s Bees natural personal care products. It manufactures products in more than 15 countries and markets them in more than 100 countries. The Clorox Company sells its products primarily through mass merchandisers, grocery stores and other retail outlets. The Company operates through two segments: North America and International.

Click here to review and Trial the Trading Software I used in determining my long position on CLX. Enter I2S in the "coupon code" field to receive the 5% discount.

Click the Clorox Stock Chart for a larger view.

Clorox Stock Chart

Friday, January 16, 2009

Options Trading Manifesto

Options Trading Manifesto

The other day I posted a free options training video I think you should see. Here's that link again, if you missed it:

Free Options Training Video

Are people making money in these markets? You bet they are. Not everybody of course. There is still one place you can trade, and still make money. No matter which way the market is going.

Lehman Brothers? They made a killing. Investing in the financials? These traders are up big time. Who am I talking about? Two traders video case study that shows the difference in a true eye-opening fashion.

"The Options Trading Manifesto: A Tale of Two Traders."

You won't believe who the two traders are. And how one can be so unsuccessful while the other one is banking big gains. On The Same Stocks As the 1st Trader with much better results. I don't know how long that video is going to be out there so don't wait to view it.

Click the links above to review these two free options trading videos. Also you will get 5 free reports revealing some true insider secrets of former options floor traders just for checking it out. Watch it now before they take it down.

Good day and good options trading!

Wednesday, January 14, 2009

Free Options Trading Video

Options Trading

There's a brand-new video that is just released from the traders at The Options University. Here's what it's all about. On this short, information-packed video, you'll discover some 'little-known' but powerful facts about options trading!

Free Options Trading Video

On this video, you'll discover:

Why the correct use of options can be your key to not only recovering your losses in the recent market meltdown and to protect your portfolio, but also to exploit the wide daily swings in the market to extract over-sized gains as the market recovers.

Why options were designed to be the "Perfect Hedge" against anything and everything else going on in the stock market. With the proper use of options, you could have fully protected your portfolio against the recent massive market volatility, and
potentially saving yourself tens of thousands of dollars in the historic market massacre.

The many "virtues" of options trading. Yes, that's right, options trading is not "risky" or "dangerous" as the clueless mainstream financial media portray. Far from it. When used the 'right' way, they can be your 'best friend'.

The unusual "jack hammer" analogy of using options in trading. Both are very powerful tools, but can be dangerous when used improperly, or by someone who doesn't know how to use them.

The 3 major "advantages" of options over any other type of trading vehicle. Once you fully grasp and understand these advantages, you may never want to trade stocks again. At least not the same way you've done so up until now.

How to get your hands on the same options trading information taught to some of the highest-paid options floor traders on Wall Street and why this information is much more important to you now than it was to them then.

How a 15-year options floor trading veteran taught his toughest student to date, his Dad, to trade options, and how this 72-year old, thick-headed Italian is making more money in the markets today than he ever has in his life.

And finally, how to get your hands on some of the most valuable and free accurate, no B.S. options trading information you've ever seen.

Review the video for these profitable option trading techniques. This is one of the better option trading videos I've seen lately. I'm betting you may have never thought about options trading like this before. And you may never look at them the same way again!

Here¹s the link to get immediate access to this free option trading video:

Good day and good investing trading!

Tuesday, January 13, 2009

Your Investing Trading Beliefs

The Belief Examination Paradigms by Van K. Tharp, Ph.D.

International Institute of Trading Mastery

Van Tharp Trading Workshops

Van Tharp Training Programs

Your beliefs create your life. Whatever you believe creates your reality and that’s what you experience. Those might be strong words for some of you, but that’s probably because you don’t believe what I just said. And, of course, you get to be right about your beliefs; that’s why it’s important to start examining them.

Whatever you believe about yourself is what you experience about yourself. Whatever you believe about the market is what you experience about the market. Whatever you believe about your trading business is what you’ll experience about your trading as a business. And if you don’t believe you have a trading business, then, of course, you don’t. In my opinion, you do have a business; it’s just not likely to succeed because you don’t treat it like one.

In our psychological workshops (and even in some of our systems oriented workshops) you examine your beliefs. So let’s take a look at one belief and put it through a process I call the Belief Examination Paradigm. One belief I hear all the time from many of you is the belief, “I’m just an average investor,” so let’s put that one through the paradigm.

Step 1: What Does This Belief Get Me Into?

This might be the same thing as saying, “What does this belief mean for me?” But as A Course In Miracles says, “nothing has any meaning except for the meaning you give it.”

Now, I don’t really have this belief, but I’m going to imagine that I’m someone who has it and answer it according. You might have this belief and find that the answers you give are totally different than mine. If so, it’s just because your meaning is different.

Here are some possible answers:

I still think I can make money in the market because the market generally goes up by 10% a year. If I can just be patient, I’ll make money.

I can turn to people who claim to be really good to invest for me… like the best mutual funds.

I just buy stocks and hold onto them, hoping I’ve picked the right ones.

I can get by just reading a few newsletters and watching CNBC.

I think I can make money in the market, even though I’m average. If not, why would I invest?

I tend to listen to people in authority for advice.

I have a simple understanding of the market.

So given your understanding of the principles of successful investing that we teach, how would such a belief help you? But before you answer, let’s do the other steps.

Step 2: What Does This Belief Get You Out Of?

The answer might be different for everyone, and, again, I’m just pretending that I have this belief.

I don’t have to spend a lot of time on the market because I’m just average.

I don’t have to do anything complex.

I don’t have to treat trading like a business because the average person doesn’t do that.

I don’t have to do a lot of work to ensure my success.

I don’t have to develop a working business plan to guide my investing because I’m just average and the average person doesn’t do that.

I don’t really have to have a system either… perhaps I’ll just follow other people’s advice because having a system would get too complicated.

Your responses might be different but these are some of the possible answers. Again, do you think this belief might help you? Let’s look at the third step.

Step 3: Who Gave You the Belief?

Was it your parents? Your peers? The media? Or did you deliberately pick the belief for yourself?

Your answer might be, “Well, I’m not sure, but I don’t do much and I’m just like everyone else, so I must be average.” In other words, you probably got the belief from everyone else… the media, your peers, etc.

Step 4: What Is the Evidence for the Belief?

Now, this one should not be hard because you are always searching for evidence to make yourself right. You should have plenty of evidence for your beliefs:

Well, I have a 401K like most other investors.

I don’t spend a lot of time on the markets, so I must be average.

I’ve made very little money in the markets, so that probably makes me average.

And I lost 45% on my retirement accounts in 2008, sigh, so that’s probably average.

Step 5: Is the Belief Useful?

Since you have thoroughly examined the belief by asking the other questions, you can now ask how useful the belief is. And a related question would be “Is there a much more useful belief that I can substitute for this belief?”

So how might you answer that? Here some possible reasons you might think the belief is useful:

I don’t want to do a lot of work, learn a lot of things, or do a lot of research. This belief allows me to have an excuse not to do that, so it is useful. (If this is you, please examine what you just said.).

I didn’t make a lot of money and this is why, so it’s useful to let me know why.

And here are some reasons that you might think the belief is not useful:

My investing is a joke because I don’t take it seriously. I spent 8 years learning my profession, yet here I am trying to make better money in the markets without doing what it takes to be a professional. No, it’s not useful!

I need to examine myself. I need to treat my investing like a business and have a business plan. I need to have some well-researched systems. The whole idea that “I’m average” is not useful at all because it is keeping me average.

Are you beginning to see the impact that your beliefs might have on your experience as an investor/trader or even on your life?

Step 6: Can I Pick Something More Useful or Does the Old Belief Have Charge?

One of the nice things about beliefs is that as soon as you decide a belief is not useful and find a more useful belief, you can usually adopt the more useful belief. So let’s look at a few more useful beliefs:

According to Malcom Gladwell, the best people in the world have to put in at least 10,000 hours of practice, and I’m on my way to being one of the best investors.

I’m in the process of learning what is important to be a successful investor and doing whatever it takes. That includes examining myself, developing a business plan, and developing systems for all types of markets so that I consistently make money.

So if you think you are an average investor, what happens when you try on one of those new beliefs? Perhaps you feel a lot of fear —“What if I put in a lot of time and I still lose money?” Perhaps you feel dread —“I already went to school to learn my profession. You mean I have to learn more? That’s too much work, and I don’t want to do it again.”

This says that the old belief has charge, and you need to release the charge. When the charge is gone, you can adopt much more useful beliefs. But as long as that belief is attached to negative energy in your body, you won’t be able to release it. The good news is that people can get rid of charge. (We show you how in the Peak Performance Home Study Course and in the two Peak Performance Workshops—PPTS 101 and 202.)

How powerful do you think this Belief Examination Paradigm could be for you? What if you spent three days examining your beliefs about yourself, your trading business, the market, systems, etc. You dig inside yourself to discover the beliefs that are running your life. When you do that, you can start getting rid of the old beliefs that don’t serve you—either by immediately adopting a more useful belief or by getting rid of the charge and then adopting the more useful belief.

This is why our Blueprint Workshop is so powerful. First, you get to see all of your beliefs and how they run you. Second, you get to see the big picture about what is important to trading success and how you currently fit into that. And, third, and most importantly, you get a complete blueprint of what you need to do to be successful.

The Blueprint Workshop will be offered in Sydney, Australia next month along with Peak Performance 101 (to help you get rid of the charge on non-useful beliefs) and our new four-day Advanced Peak Performance 202. It’s a very powerful combination. I know some of you are travelling over 10,000 miles to go there, but we’ll offer these courses in Cary, NC as well in 2009. But for those of you who live in Australia, New Zealand, Singapore, Hong Kong, China or Japan, this is an exceptional opportunity to get all of these workshops together. Don’t miss it because it is not likely to happen again for some time.

About Van Tharp:

Trading coach, and author, Dr. Van K. Tharp is widely recognized for his best-selling book Trade Your Way to Financial Freedom and his outstanding Peak Performance Home Study program - a highly regarded classic that is suitable for all levels of traders and investors.

Monday, January 12, 2009

Weekly Stock Pick

Scanning the stock charts this Monday morning I’ve got a negative point of view in general on the stock market. My technical low-risk high-reward stock scans are showing more short-sells than fresh buy potentials this week. Whether you’re buying long or going short investing and trading with stop-loss is a must in good markets and especially in volatile markets. If you’re leveraged into any long or short position it’s even more critical to use stop-loss and extremely important know the amount of leverage you’re using and the consequences of that leverage good and bad. That exponential leverage can make you richer faster and it can also blow out your entire trading account if used incorrectly.

This week’s pick is a short-sell the in the oil and gas industry in the energy sector. There’s lot of positive energy sector, oil and gas company industry news, comments and sentiment on this stock lately, and the share price is reflecting it with a nice bull run from November 11 at 22.77 to January 6 at 36.85. I’m bullish on energy in the long-term. Short to intermediate term I see energy commodities and equities going lower before a solid strong recovery is found. I think demand destruction is still ongoing but will recover later in 2009 if and when the global markets go lower and can stabilize at lower prices, I speculate this would provide a major long-term investing time for this sector industry and company. Right now I see a good low-risk high-reward short sell on this stock.

Short-Sell Questar. Ticker STR

Sell Entry: 34.74 to 36.85

Stop-Loss: 37.90 to 39.28

Take Profit Areas: 31.93, 30.15, 28.36, 25.82

I’m a sentiment and psychology investor trader and when I see everyone all positive and loaded up on one side of the market then I see a chart that looks like it could take a sell off quick and fast I get real interested to go against the crowd for a short time. Fundamentally long-term Questar looks good. Short-term I see some quick fast short-sell money here. If I’m wrong, I’m wrong small cause I use stop-loss and don’t deviate from my disciplined trading system. With a low-risk high-reward trading approach to the markets, success is not a matter of if and when anymore, it’s a matter of time when you will get better than average returns from the market.

Questar Company Profile

Questar Corporation (Questar) is a natural gas-focused energy company with four major lines of business: gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution. The Company's operations are conducted through its three principal subsidiaries. Questar Market Resources, Inc. (Market Resources) is a sub holding company that operates through four principal subsidiaries: Questar Exploration and Production Company (Questar E&P), Wexpro Company (Wexpro) Questar Gas Management Company (Gas Management) and Questar Energy Trading Company (Energy Trading) Questar Pipeline Company (Questar Pipeline) provides interstate natural gas transportation and storage services. Questar Gas Company (Questar Gas) provides retail natural gas distribution.

Click here to review and Trial the Trading Software I used in determining my by short position on STR. Enter I2S in the "coupon code" field to receive a 5% discount.

Click the Questar Stock Chart for a larger view.

Questar Stock Chart

Thursday, January 08, 2009

Forex Metatrader Expert Advisor Forex-Robots

What is a Metatrader Expert Advisor or Forex Robot?

EA is Expert Advisor for short. Metatrader Expert Advisor are mechanical trading systems which completely automate the trading process on Forex market by using unique Forex trading strategies. These trading robots trade under control of trading platform Metatrader 4 Trading platform.

Why it is necessary to use Metatrader Expert Advisors?

Its been said by many that 90% of forex traders lose their money in the Forex market because they let the other 10% of traders to earn this money. It occurs because traders-beginners, keen by passion, rush to trade without having a Forex trading strategy. Even if they have Forex trading strategy, this strategy is usually not tested on historical data, and also there is a human factor.

First of all the use of Metatrader Expert Advisors excludes the human factor, in the second it will help you to test Forex trading strategy on historical data by Metatrader Expert Advisors of a tester of trading strategy which is built in Metatrader. The tester of trading strategies helps not only to make a backtesting of Metatrader Expert Advisors but also helps to optimize Metatrader Expert Advisors parameters by using the built-in optimizer. The use of Metatrader Expert Advisors will give you the possibility to test your own strategy on historical data. Such test of Metatrader Expert Advisors is called the backtest. To test Metatrader Expert Advisors on demo-account is called a forward test. The usage of Metatrader Expert Advisors will allow you to see all disadvantages of your Forex trading strategy.

What are the main benefits of using EA Expert Advisors?

The benefits are as simple as this. To create a consistent profitable forex trading system that takes your emotion out of the decision making on buying or selling forex positions that trades automatically for you 24 hours a day Monday through Friday while the forex market is open and you don't have to be at your computer all the time monitoring it to profit from it all.

Why do you develop your Metatrader Expert Advisors or forex trading robots under control of Metatrader?

As mentioned above the Metatrader 4 is absolutely free-of-charge and many brokers worldwide open trading accounts mini-accounts and standard accounts under control of Metatrader. It is much more convenient than to trade under control of java terminals. The Metatrader platform has variety of advantages and has plenty of useful functions among other platforms.

What is Metatratder 4 platform?

Metatrader 4 is absolutely free-of-charge and convenient for trade on Forex market. You can download platform Metatrader 4 by clicking the link here. It has the built-in Metatrader Expert Advisors based on the technical analysis, such as metatrader indicators, Metatrader Expert Advisors, metatrader scripts; it also has its own built in programming language mql4, which allows to develop customized Metatrader Expert Advisors, metatrader indicators and metatrader scripts.

Which Expert Advisor Should I Use?

This depends on a variety of factors. There's a multitude of of EA's to use for automated forex trading. EA's for different currency pairs, different trading strategies, different time frames, different account sizes, and other factors. Below is Forex Auto Pilot Turbo or FAPTURBO for short that is a very successful EA that provides consistent profits. Click the FAPTURBO image to learn more about it and try it out. Review and try other EA's to find out what works best for you. We will be updating our blog and website with more information on profitable EA's. Good day and good forex trading with expert advisors.

Automated Forex Trading

FAPTURBO Metatrader Expert Advisor Forex Auto Pilot Robot

Tuesday, January 06, 2009

Weekly Market Forecast

First Week of Jan. 2009 Week Ahead

Last week, we were expecting more of the same from the Christmas week, and in a way we got what we were expecting... and more.

The volume levels remained subdued, making it possible for the few market participants still playing to move things around quite easily. But a funny thing happened on the way to 2009. Some players decided a rally was in order, and over the course of four sessions they were able to lift the DOW by over 6%. That's a pretty nice return for a week's worth of work. Once again, the market was able to surprise by actually finding the 9000 level... but doing it in a way we originally hadn't expected. We were looking for the mark-up move to start a little sooner (and end a little sooner) but once it didn't begin on cue, we began to become concerned as the market danced precariously near our first key support level.

Our thoughts now are the low volume levels made it possible to prevent the natural wave of selling that seemed to be shaping up. Once participants were able to see the DOW magically holding (repeatedly) above 8455, they became more confident and emboldened... and the party began in earnest. We must always remember the mice will play if given the chance. They were able to dance the entire way back to 9000ish to end 2008 on a better note... as they also technically welcomed 2009.

Today, however, will represent the first "real" trading day of 2009... and we will quickly see if our friends were just having some fun... or if they were just jumping the gun a little. That is, it can't be ruled out that the clever little maneuvers of last week were only that. There could be a reason behind it. Perhaps some of the fabled and ballyhooed "tons of cash on the sidelines" is about to be deployed to get things rockin' to the upside in 2009. Perhaps they were jumping in front of the pre-swearing-in jubilation rally players?

It's really tough to tell... because holiday sessions distort the technicals we normally rely on. How much weight should we assign to thin markets clearly more easily manipulated by smaller players? It's not an easy answer... as we've personally witnessed many "bogus" rallies able to defy gravity for much longer than a rational observer would expect. Additionally, we all know if key technical levels are reached, that can also lead to additional technical buying. We don't object to what our holiday session friends do. They do what they do. However, it does leave us guessing more than we'd like.

Looking forward, it's likely that the news (economic and earnings reports) will continue to be ugly. But that's the expectation now. If that's the case, then it will take really ugly reports to send the markets and stocks lower. It is finally sinking in for most that things are simply awful... but that fact has to be a silver lining for the bulls from the contrarian side of things. It will take worsening conditions to bring higher levels of fear... and thus to ignite selling.

Our thoughts are nearly all sellers should be out at this point... given the tax implications. This could pave the way for more buying, and thus more rallying. We believe another catalyst would need to appear to send the markets careening lower in a violent way over the short run. Perhaps that would be another unexpected failure, a geopolitical crisis or something more systemic.

Something systemic could also come from increased layoffs (and thus more foreclosures), as that scenario would add more pressure to the situation we're currently experiencing. It could also come from commercial real estate failures... or the failure of things to shape up politically as expediently as most expect. One "under-looked" possibility at the moment may be guidance. If some of the big, early names not only announce poor earnings results but also guide lower for 2009 than is currently expected by the Wall St. default-bullish analyst crowd, well then... THAT would certainly qualify as a catalyst.

The point is... the market is still much closer to the lows than the highs of a little over a year ago... and our guess would be most sellers have sold based on the information almost everyone has discounted to this point. That leaves bulls with the ball in their court - with a chance to run with it. Mind you, we're not predicting anything at the moment, we're simply sharing some of our thought processes... and "NO" we're not trying to have it both ways. We simply won't force a strong view on things when we don't have one.

The market reacted and traded well last week, but that (at least to us) is somewhat dubious for the reasons we cited above. Yet, the markets do have a tendency to "work with" bogus rallies at times. Most sellers should be "out of the way" at this point, and the selling void could be filled by optimistic bulls pulling their funds from the so-called sidelines and putting them into the game. We should know over the next few days if "trading bears", not sellers, want to answer last week's shenanigans. If they do not take the bait, then that will likely embolden our bullish fun-seekers... and they will try to build off of the shaky foundations they erected last week.

The DOW Technical Picture:

DOW Chart

We’ve highlighted the questionable volume levels that accompanied the “defense” of the 8455 level in the DOW. With “nothing” going on, it wasn’t difficult to levitate the DOW. Thus emboldened, “they ran with it” as 2008 ended and 2009 technically began.

“Is it real? Can it become real?” Trading bears will need to answer these questions early this week, and if they step aside… that will leave the ball in the court of the bulls as we noted above. They only have to move beyond 9150ish resistance to probably “beget” 9600ish.

Our “nutshell” is we won’t know until more action unfolds to see if last week was just nonsense that will quickly unravel… or smart bulls jumping the gun in front of slightly more patient bulls ready to run in 2009.

This Weeks Earnings Reports

Jan 6 - FINL - The Finish Line, Inc., together with its subsidiaries, operates as a mall-based specialty retailer in the United States. FINL has a nice consolidation pattern forming. It is only a $6 stock, but depending on what you think about the stock, the retailers, the strangle is only $0.60. Recent low was $3.42 and the recent high was $7.06. The Jan 5 put is only $0.35.

Jan 7 - MON - Monsanto Company provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Currently trading at $74.28, the recent low of $65.60 and high of $84.39. This points to another consolidation triangle, with the earnings possibly forcing it to either side of the spectrum of support or resistance. Implied volatilities are off significantly from the highs, but still high compared to one year of history.

Jan 8 - CVX - Chevron Corporation operates as an integrated energy company worldwide. The company’s Petroleum operations include the exploration, development, production, and marketing of crude oil and natural gas; refining, marketing, and transportation operations include refining crude oil into finished petroleum products; marketing crude oil and products derived from petroleum; and transporting crude oil, natural gas, and petroleum products by pipeline, marine vessel, motor equipment, and rail car. It has made a nice run from the lows $68.38, now trading at $77.61. OPEC has reduced inventory so that is driving the price of oil up slightly. This should help out the oil stocks.

Jan 9 - KBH - KB Home constructs and sells homes in the United States. The company builds various types of homes, including attached and detached single-family homes, townhomes, and condominiums, designed primarily for first-time, first move-up adult buyers. KBH is forming a consolidating head and shoulders. Housing will continue to be weak until prices start to firm up.

By Options University

Monday, January 05, 2009

Weekly Stock Pick

I hope you had a Merry Christmas and a Happy New Year. It seems we had a mini Santa Claus rally this Holiday Season. I went long some stocks and did ok over the holiday. I am looking for the market to start selling off again anytime soon, but then again it could keep going back also. Right now in general, the charts look like the market is in indecision mode. This seems to me a sign that uncertainty is still in the air, and with that, I’m ready to make more short-sell bets anytime again, and keep my stop-loss tight in case the market decides to move higher.

Scanning the stock charts this early Monday morning and I’ve zeroed in on a short-sell on a big USA communications company. It’s a short sale that is what I consider as a low-risk high-reward trade. That means a 3:1 plus reward to risk ratio for me to be interested. This trade setup is about a 3:1 plus reward risk ratio in the short term, if it works out to the lower Fibonacci levels I’m looking for. Now that’s a good return on trading risk. Longer term, the reward risk ratio could increase. Again keep your stops tight to cut-loss or take profit.

Short Sell Qwest Communications. Ticker Q

Sell Entry: 3.51 to 3.80

Stop-Loss: 3.81

Take Profit Area – See the Qwest chart below for Fibonacci levels to take profit at.





Qwest Communications Company Profile

Qwest Communications International Inc. (Qwest) is a provider of voice, data, Internet and video services. The Company operates most of its business within its local service area, which consists of the 14-state region of Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. The Company operates through three segments: wireline services, wireless services and other services. Qwest’s business customers include local, national and global businesses, governmental entities, and educational institutions. The Company’s wholesale customers are other telecommunications providers that purchase its products and services to sell to their customers or that purchase its access services that allow them to connect their customers and their networks to its network.

Click here to review and Trial the Trading Software I used in determining my by short position on Q. Enter I2S in the "coupon code" field to receive a 5% discount.

Good day, good trading and Happy Prosperous New Year!

Click the Qwest Communications Stock Chart for a larger view.

Qwest Communications Stock Chart