We had a nice follow through on the spike up in the $VIX. It happened fast this time. The good numbers always help. I also want to make note that the market is focusing more on the good number rather than the bad at this time. I guess the real test will be the prior swing high. I’ll be watch for that to become resistance due to the deep pullback we just had. The DJIA is still the strong one in the heard. The bonds are still at new highs and looking for support at 113 to hold. Oil is showing the first sign that the slide could be over, so they can jack the prices back up during the winter months. The Dollar and Gold and battling here. A drop in the dollar under the 80 point could mean some serious issues for the overall stock market.

My plan is to play this back up to the old swing high and get real tight when, and if, that happens. My stock plays are focusing to the long side. Here is my first run:

Long Ideas:
SXE
ACOR
ASCA
BYD
FCX
DLB

Short Ideas:
WSM

From Trading Quotes:

Survive first and make money afterwards.

George Soros

A great read on the Different Players in the market from Traderfeed.

So you have figured out that trading is hard, here is a great Comparision from Tyro Trader.

You wants some hard Market Numbers – Bill Rempel has them for you.

Here’s Maoxian’s Top Ten Links.

Here is a must read  that I got off Trade Mikes Links about Trading Plans.

It has been a week since I’ve had the chance to post something. During this time I found myself in a different lie. I had a tough week and it brought my equity curve down though my moving averages. This changes the situation and puts me in a defensive mode for my trading this week. I can only play second chance shots until I get back in line.

The big question during this time is what happened? I see this happen every time that the market goes into a transitional type set up. The main problem with this is that if it doesn’t go down, but goes sideways instead, my transition plays just fail to play out. This is what cost me the down move in my equity curve.

A big part of trading is understanding when you are better off not trading.

I have just found the Trading Quotes blog – here is this:

To Each His Own
Virtually every successful trader I know ultimately ended up with a trading style suited to his personality.

Randy McKay

Here is an interesting view of some of the data the goverment feeds us, by Shadow Government Statistics 

Still looking for my perfect trading journal I did come across a interesting one from some site called Woodies CCI Club.  If you get to the main page you can download the excel file.

If any one has any other ideas for trading journals please feel free to email me at gmail.

Well we had a little move down today which shoot the $VIX up to an unreal level of 11.51.  I set up an option play betting the volatility would increase between now and January 2007.  Might have been a suckers bet but we’ll see.  Not much happen except the weak got weaker on the 60 minute time frame, going from Yellow to Red.  Took four shorts today that I plan on playing with a ton of spin, tight stops, due to the fact we are still in an uptrend.  These shorts put my portfolio to work at 75% while making my current risk 58% of my allowable level.

Not looking at to many longs here for a second.  I did find a nice Second Chance set up on VIP.  The big problem here is do you believe the breakout, the volume is not backing much here.  But not doing much more than that for now.  Will be focusing on making sure my risk is taken away on my shorts.