Okay, so that age old theory that January is usually a more profitably month turned out to be wrong this time around. Naturally, we all (myself included) were expecting an Obama rally as hope and optimism flooded the market, but we got the complete opposite. Once again, you cannot trade on hopes, dreams, and what you hear in the media. Successful traders watch the charts and trade the odds. Still, even though we have fallen so much, there are still amazing short and long trades out there for the taking. I have narrowed down a very long list (only the best saved for members of course) where money is going to be made over the next couple of months. Markets cannot move in one direction forever, so we had all better prepare ourselves for the next move when ever it decides to come. After sifting through hundreds of charts the last two days, I have put together a very comprehensive Trading Video which you can watch below. It's a little on the long side and I apologize for that, but I needed to get everything in before next week and month for that matter.

I'm happy to say that the popularity of this site has grown much more than I originally expected which is fantastic. What had started out as a mere part-time hobby to keep old trading buddies informed and up to date has turned into an amazing community of traders and investors! As such, I am still committed to increasing the quality of experience for my members and their successful trading development. So, I suggest you sign up for a membership now if you catch my drift...

Good Morning! If you didn't watch last night's trading video I suggest you do so first! As you probably already heard, GDP for the fourth quarter fell 3.8% which was ironically enough BETTER than the expected 5.5% by economists. As such, futures are pointing slightly higher. But the fact remains that we shrank! We didn't expand and we sure didn't shrink just a little bit; we are falling off the edge very fast here. Still, it's always up to the markets (which usually look ahead not behind) to determine where we are going next. Since I started trading, I've always found that because the markets are pricing in the road ahead not the one behind, usually when we start getting the worst news is when things begin to turn around. I'm not saying that this will happen overnight and we will rally from here, but when everyone thinks we are headed down is just when we start to rally big! As promised, here are the S&P support and resistance targets. As a note, we need to hold the 835 level if we see any sell off today. If we break that then we are headed to 800 fairly fast. Happy Trading!

So much for a minor sell off that I was expecting. I guess there this market is just too sick at the moment to put together a huge rally out of this bear market bottom. And to be honest, I again found my portfolio fairly neutral today instead of having huge profits from my shorts. Still, I am glad members and I sold out of (OIH) yesterday because it was down nearly 4% today. I have a lot of charts to look through before the video tonight (including gold at the request of some members). I'll be back later with a big wrap up video as we try to digest what happened today and where we are going next in this extremely volatile market...

As I had mentioned on last night's Trading Video, we should see a modest sell off today as most institutions are going to take some profits off the table before the next (hopeful) leg up in this intermediate rally for the bullz. So, all in all it should be a fairly quiet day for once which gives me time to look over many more of my charts searching for the best trades out there. Oil has also dropped nearly 3% this morning as of this writing. Thank goodness I advised members to take profits on our (OIH) long position yesterday which locked in nearly a 12% return in a week or so. Not bad for a counter-trend oil trade these days! As usual, here is the S&P support and resistance targets for today. I don't think we will get to any of these, but if we do you all will be ready. Remember that yesterday's levels were almost perfect (only 1 point off) for an intra-day retracement...

Click this link to view the TRADING VIDEO! http://www.screencast.com/t/CzO8MpuvL

Good morning Traders! First, if you didn't watch last night's Trading Video I suggest you start with that. As I mentioned in the video, I think we might be in for the rally to continue in a strong way today. However, there is a fair amount of overhead resistance as you can see on my S&P support and resistance levels posted below. If you are short going into today I suggest you tighten up stops and let your longs keep your portfolio afloat for now. There will come a time when we can re-short and make some great returns on the next leg down. As far as the big bailout plan that everyone is talking about, I really don't think it's going to fix our problems anytime soon. We still need to get through all this "bad inventory" before we can actually move forward with confidence. But, who said we couldn't profit from market movements in the mean time? Happy Trading!

Word of the week: Volatility. I honestly become more and more amazed at how much volatility there is in the markets these past few weeks. For those who have been lucky enough to make money off of every single rally and sell-off, congrats to you. As I tapped my network of other traders, there is a general consensus that there will be a nice rally coming soon and that being patient with your trades will make you so much money in the coming weeks. As for my portfolio I still remain hedged for both directions, though my long Oil and short dollar strategy is doing very well. Please check out the new Trading Video below...

Click this link to view the Trading Video! http://www.screencast.com/t/CzO8MpuvL

Talk about a weak rally today and an overall victory of sorts for the bearz. Granted the news coming out of America's largest companies about job cuts was pretty bad but come on bullz. I thought they might have more left in them. Today we formed was would look like a very clean shooting star pattern on the S&P and can very close to my target resistance level from this morning. However, the problem is that the pattern didn't come at the end of an uptrend, which is how they appear in Trader Heaven. Still, the fact that we formed a long upper shadow is telling us that the market is rejecting higher levels with added selling pressure. And, I don't mention this much, but the MACD and Stochastics have started to clearly signal an oversold reversal.

This a time in history when some will survive and others will fail. You can see just what I mean with news from three of the biggest companies announcing completely different items. (CAT) is going to cut nearly 20,000 jobs and cut its 2009 profit outlook. At the same time (HD) is also going to cut 7,000 jobs, freeze salaries, and exit the expo business. Now the good news company (PFE) Pfizer, which is going to make another huge acquisition of Wyeth for $86 Billion. Clearly you can see why the markets are having a hard time digesting all this news.

As usual, I have posted the S&P intra-day support and resistance targets below. I cannot stress enough how important it is to use these levels in your trading strategy! As we reach each level, you should be making bets for 1 t0 2 day reversals. Naturally, at the more overstretched levels you can make higher value trades.



I think that very soon we will see a dramatic move in the markets, whether it's led by the bullz or the bearz is unknown. If you are not a member, I suggest you sign up soon to take advantage of these great trades and before the membership price goes up (more on that later this week). Happy Trading!

Hard question to answer these days huh? While we really haven't seen any economic factors that would lead us to think we are going to climb out of this hole anytime soon, we have fallen so far and so fast, that bottom-feeders are starting to get hungry again. Still, let's face some facts about the health of our economy. First, we are attempting to solve our financial problems rooted in debt with more (albeit less expensive for now) debt. Second, we are still of the school that just because we are Americans means that we are guaranteed to get paid higher wages for doing a job that someone else overseas will do for 1/10th of the cost. Finally, we resolve to continue and blame others for our own greed (myself included).

At the end of the day it will be a slow and painful climb out of this hole, but we will recover! America is still a young and determined country will many years of success ahead of her. It's natural to have these pull-backs and recessions in a healthy economy. The only thing I am worried about is that we are not attempting to solve these problems in a way that will produce another bull market anytime soon.

Now, back to the charts. We are at a vey interesting point in the markets; break-point. If we hold the support levels from here we could rally quite well over the next few weeks. But, a break hard below these levels and we are headed for pain and suffering...

Let's face it, this market is volatile; point blank. Still, I woke up this morning expecting to see futures relatively tame instead of the nearly 2% slump they are currently in. And really its no surprise give the absolutely horrible earnings numbers from GE, one of the biggest companies on the planet. In my video last night I had mention that after yesterday's rebound (if you want to call it that) was turning me more and more short term bullish on the index's. I guess I can throw that perspective out the door! If we see a big sell off and actually close down today without any mid-day rally then I think the blood will start running in the streets again as we search for a NEW low past those of October and November.

I remain relatively hedged in my portfolio. Again, I did mention last night on the Trading Video that members and I had picked up some more shorts and thank god we did. Should prove to be an incredibly interesting day! Happy Trading!