February 10, 2014

The Curtain: A Day in Trading Amazon – Monday’s Charts $AMZN

Monday proved to be a mixed bag with most of the broader indexes seeing periods of green and red. The NASDAQ 100 on the other hand stayed positive for the entire session on the gains in PCLN (+ $20), NFLX above $430, TSLA closing in on $200 (+ $10 on Monday), and APPL regaining the $530 level (+$9).

Volumes were on the lite side, which keeps the correction scenario in place for now. AMZN produced several solid winners on Monday with the market trading around the “hard and soft edge of the curtain”. After making session highs within the first hour of trade on Monday, the market spent the balance of the day in what I feel will ultimately be a small intervening “B” wave decline as part of a larger A-B-C countertrend rally that began off of the post-earnings lows at $337. Check out today’s charts for an overall look at using Elliott wave on intraday charts and Monday’s other chart of AMZN through the eye of the Eagle.

“Click Here” to join me Monday thru Friday from 9:30 AM to 10:30 AM EST as I continue to review trading equities using DTS. The room is open to all and is a great place to review how the DTS birds are easy to use and will make consistent trading profits.

The current atmosphere remains prime for day trading. And while the $264 billion trade remains elusive there are solid opportunities to trade profitably. I expect there will be numerous opportunities from a growing list for both traders who approach the market from a bullish prospective as well as traders who approach the market from a bearish prospective.

Remember the key is being able to reduce and separate the “noise” from opportunity. This takes knowing and executing a well-defined strategy and allows you to see opportunities amongst the “chaos” and by trusting the mechanics of your strategy, be able to take advantage of them.

Opportunity continues to knock on our doors. While it doesn’t come without risk, risk can be defined and more manageable. Volatility and broad moves are exactly what a day trader desires and being able to respond without questioning is a luxury many are unaware of.

Using the Hawk, Falcon, and the Eagle within the various markets can produce strong results. The combination of any of the “birds”, the Hawk, Falcon, or Eagle platforms with Trade Manager provides a solid, more stress free way to building profitable trades.

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The Diversified Trading System from Indicator Warehouse offers cost effective products that allow a trader to enter into the “chaos” and trade more effectively.

Trade Manager from Indicator Warehouse automatically calculates the correct amount of contracts or shares based on your account size or market volatility. Automated stop-loss management and position sizing eliminates most of the problems most individual traders have. Day trading and position trading both require (actually demand) good risk management. Trade Manager does the job across the board and is an essential trading tool that ensures that you take the maximum profit from all your trades.

My point on money rotation and sector rotation is similar to that on parabolic moves that they happen with frequency within many time frames. As traders these types of moves can be a bonus for day trading or position trading so again don’t get caught up in the “what’s the catch.” Realizing a rotation is occurring within a stock you trade or a sector is a great source of stocks to plug into the Diversified Trading System. Allowing DTS to cleanly and beautifully capture the moves though any or all three DTS trading platforms. Our goal remains to assist traders to make greater profits during all types of markets. Sector and money rotation is another tool.

The Diversified Trading System used together with Trade Manager should continue to produce numerous trading signals in the DJIA, YM (mini), S&P 500, ES (mini), RUT, TF (Russell 2000 mini), AAPL, AMZN, GOOG, NFLX, and LNKD, GS, and Tesla Motors (TSLA). In the near future I will be adding options strategies to the trading list.

Here is a list of the markets where I have found that DTS (all three birds) are producing numerous signals. Continue to bear in mind that there are days when trading opportunities are not as plentiful. These are days when not trading is likely more profitable than attempting to “force” a trade”:

DJIA future (e-mini available) – highly recommended for experienced traders
S&P-500 future (e-mini available) – highly recommended large intraday moves. The SPY options are a valuable alternative to the future.
Russell 2000 future (e-mini available) – highly recommended can lead in either direction.
NASDAQ 100 future (e-mini available) very highly recommended and dominated by AAPL, AMZN, NFLX, GOOG, and TSLA – will likely continue to have higher percentage moves as the next larger degree decline begins in the NASDAQ first.
GS (Goldman Sachs) – good two way volume – usually has $3+ intraday range – Options available
AAPL (Apple Computer) – highly recommended – Options trading as well
GOOG (Google) – highly recommended – larger accounts needed – options traded
LNKD (LinkedIn) – solid intraday range and has picked up recently Options traded
NFLX (Netflix) – solid intraday range – volatility has deflated on the rise back to $300 – Options traded and very liquid
TSLA (Tesla Motors) – highly recommended – patience is required if you trade the options – trading the stock remains solid
TWTR (Twitter) – both stock and options strategies available.
30-yr Treasury Bond future – highly recommended
10-yr Treasury Note future – solid two way trade
TLT (Treasury Bond Long ETF) – very active – options as well
TBT (Treasury Bond Short ETF) – very active (moves inversely to TLT) – options as well
Gold (futures and ETF – GLD) very active – not suitable for all traders
Silver (futures and ETF – SLV) – very active – not suitable for all traders
GDX (Gold Miners ETF) – lower priced – suitable for all traders
ABX (Barrick Gold) – Large rally potential – capable of sizeable intraday moves.
NEM (Newmont Mining) superb volatility produces opportunity laden intraday moves.
EURO FX (futures, mini and micro contracts available) very active suitable for all account sizes – Highly recommended
Natural Gas (futures) – can be active and volatile
VIX Index (futures) – not suitable for all traders, more experienced traders should find a growing two-way trade.

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