AMAZING RESULTS SO FAR ON APWR AND GIII. ENTERED HEAT AT $6.10

I see SXCI as a buying opportunity.  I plan on setting a buy limit at $36.41.  Wanting the stock to rise to $40.41, I'll set my target there.    In order to prevent losing a lot of money, set the stop loss at $34.28. 

This past month has treated the account very well as evident by the pic above. (click on the picture to enlarge it). 

CHECK OUT APWR, HEAT IS IN A BUY AREA AGAIN

So I may have been wrong on the direction of the market a few days ago, but APWR way more than made up for it today.  Also a strong showing in GIII.  This makes all my positions to be in positive territory.  

I am also scanning stocks and if you haven't gotten in on HEAT, this is a perfect opportunity to do so. 

WRONG ABOUT THE MARKET GOING LOWER

Crap.  My level of resistance on the S&P500 didn't hold and we are now in a market where I am seeing stocks making new highs left and right.  This leads me to believe that we are in a market that is going to move higher.  Take for example TQNT which I bought back in may at $6.58 and more at $7.96, is at a 52 week high around $9.00 today.  SLV which is an ETF that tracks the price of silver is at an ALL-TIME HIGH!!!!.  GLD which is the gold ETF continues to push it's all-time high too.  APWR which was bought into a few days ago is slowly making some movement up.  I posted a buy point for GIVN on 7/21/2010 is finally making the move I wanted it to do.  Here is a screen shot of some current holdings. (Click on the pic to enlarge it.)

The one bad side to this whole story was I bought SPXU which is the three times the inverse of the S&P 500.  I expected the market to go down as it met resistance, but it burst through it and the S&P is now making monthly highs.  Got out of that trade early this morning. 

This is why I hate to be a fundamental trader and not a technical trader.  As a technical trader, I need to wait for the pullback and buy into this strength now.  As a fundamental trader, I would be shocked as the fundamentals of the US suck with high unemployment, low GDP, and massive debt. 

NEW SHORT-TERM TRADING TECHNIQUE

I am working on a new system that trades both long and short positions that will only be held for a week or two.  The goal is to get a 10% return on each trade while risking about 8%.  This is arbitrary so don't stick hard and fast to these numbers.

Here is the first trade on this system.  SHORT - DFS.  Click on the chart to see the explanation.

Click on the second chart to see the explanation of this losing trade.

So this one triggered my stop loss as the stock rose to new highs and knocked me out for a 4.9% loss.  That is why stop loss orders are absolutely necessary or do the technique I teach by "buying" insurance.

APWR IS IN A BUYING AREA

I was scanning my charts and noticed this one being set up for a nice run. Part of the problem is that the overall market is in an oversold area and meeting resistance. This would potentially knock this stock back down since stocks follow the overall market 65% of the time. But since this is a long-term trade, I want to take this as an opportunity to buy it. I will then place my insurance policy and have someone else pay for it. 

So the trade was entered at a price of $6.30.  The intent is to let this trade move up to the $7.30 area and begin to enter the "insurance phase."  

SPY HITTING RESISTANCE

Plan on going short near $113 on the SPY. Click on this chart to see why.