So I signed up for some Big Trends services including the Grand Slam Options and the Options Sniper. GS is handled by Bob Lang, and OS is handled by Price Headley. They take different approaches. I am still figuring out Bob Lang's approach but he is incredibly basic in his approach. He uses RSI, MACD, Volume, %R, Bollinger Bands and MAs...Most on standard settings...but he does fire a lot of trades off...so much so that I can't keep up with it all on the blog if I am to trade all these things.
The Sniper service takes an approach based on multiple time frames but mainly the hourly chart to come up with signals etc. However, I have noticed that he deviates from his own "plan" relatively often. I see many stops that simply get ignored, or I see stops not get violated and then him putting out exit orders anyway.
I guess I should blog on these trades if I can because in the end I have a subscription to these services for 3 months. If I decide to go for the whole year they will have to pay for it with trades. So far Bob is doing a better job in this rally than Price...but it's just a matter of luck, they can't both be trading the same stuff and some trades are going to work out some are not...Price has just been on the not working out side. C'est la vie.
Nonetheless I wanted to explain the lack of blog entries lately, I have been trading a lot with these guys just not documenting the trades all on the blog.
I am going to try to get better at that, but because these guys provide nightly emails with the summary of their thinking and include charts most of the time...its a bit superfluous to blog about it.
This is my journal to document trades first and foremost, so if that is done in emails from Bob and Price then I don't need to do it here.
Perhaps the approach I will take is to post when I think they have deviated from the plan. This is easier to do with Price than with Bob because Price is straight forward about what his plan is based on, but I will get to the bottom of Bob's brain as well.
Anyway that's it. I also decided that I am reading a lot of shitty economics lately so get ready for some economic jibberish from me in between all this trading.
Mahalo
Showing posts with label Big Trends. Show all posts
Showing posts with label Big Trends. Show all posts
Thursday, September 9, 2010
Tuesday, July 13, 2010
My take on the rally
I read the big trends blog fairly religiously. I mostly agree with their advice and their posts. Especially Bob Lang, he runs one of their more lucrative services called Grand Slam options and Extreme Options...anyway I have no idea what his real track record but he claims he kicks ass and I believe him.
None the less today he puts up this post about fear, and how it shouldn't control your trading psychology. Then he posts another one right afterward using the lack of volume as a fear mongering tool.
So which is it? Is it that we should be afraid of this rally that came off some very extremes in sentiment because of lack of volume? Isn't a rally worth reaping if you have setups that are time tested and work in your favor?
I know how market direction is important, and how everyone must take their cues from the market. However, there are many times when you miss out because you don't believe in a rally or a sell off. I missed shorting the May selloff because I didn't believe in it.
This is my problem I am biased to the bullish side.
Anyway, Bob Lang always talks about how there are a million reasons to sell but only one reason to buy...he doesn't ever say what that reason is. But in his posts today he led us in the direction of the reason NOT to buy...not very like him.
Anyway I also read Cobra a lot and he had a couple of reasons to buy in his post today. Namely, volume is relative AND very seasonal. Which is the point Bob was arguing against...that no matter what the calendar says...volume MUST always accompany a directional move...
However, it is summertime, and volume has died, who cares if its a bit early, all we have is retirees and teachers and idiots like me trading this market...Its all good if the setups are there.
IBD realizes that while it is nice to have above average volume, all that matters in their follow through rules is that the volume is higher than the day before. They realize that the average volume isn't always helpful when it comes to summer or holiday rallies...
Anyway those charts from Cobra say it all, whenever the institutional accumulation and distribution lines cross, its a rally...and it can be believed.
Earnings season moves stocks it always does and it is a bull's best friend. Once the May selloff began, I said to myself we may do this until July earnings season begins...I should have shorted the market then...knowing there was a vacuum of hunky dorey stock based news to move the markets (not to mention the overbought and high bullish sentiment conditions back then)...
Today we have the opposite, sentiment was really negative, and now we have earnings news to chew on and make stocks go higher...so the rally is real and it is tradeable.
Regardless, if you have a good short setup take it, if you have a good long setup, take it. Define your risk and your stops and you will be fine regardless of the market's direction. There is your one reason to buy.
None the less today he puts up this post about fear, and how it shouldn't control your trading psychology. Then he posts another one right afterward using the lack of volume as a fear mongering tool.
So which is it? Is it that we should be afraid of this rally that came off some very extremes in sentiment because of lack of volume? Isn't a rally worth reaping if you have setups that are time tested and work in your favor?
I know how market direction is important, and how everyone must take their cues from the market. However, there are many times when you miss out because you don't believe in a rally or a sell off. I missed shorting the May selloff because I didn't believe in it.
This is my problem I am biased to the bullish side.
Anyway, Bob Lang always talks about how there are a million reasons to sell but only one reason to buy...he doesn't ever say what that reason is. But in his posts today he led us in the direction of the reason NOT to buy...not very like him.
Anyway I also read Cobra a lot and he had a couple of reasons to buy in his post today. Namely, volume is relative AND very seasonal. Which is the point Bob was arguing against...that no matter what the calendar says...volume MUST always accompany a directional move...
However, it is summertime, and volume has died, who cares if its a bit early, all we have is retirees and teachers and idiots like me trading this market...Its all good if the setups are there.
IBD realizes that while it is nice to have above average volume, all that matters in their follow through rules is that the volume is higher than the day before. They realize that the average volume isn't always helpful when it comes to summer or holiday rallies...
Anyway those charts from Cobra say it all, whenever the institutional accumulation and distribution lines cross, its a rally...and it can be believed.
Earnings season moves stocks it always does and it is a bull's best friend. Once the May selloff began, I said to myself we may do this until July earnings season begins...I should have shorted the market then...knowing there was a vacuum of hunky dorey stock based news to move the markets (not to mention the overbought and high bullish sentiment conditions back then)...
Today we have the opposite, sentiment was really negative, and now we have earnings news to chew on and make stocks go higher...so the rally is real and it is tradeable.
Regardless, if you have a good short setup take it, if you have a good long setup, take it. Define your risk and your stops and you will be fine regardless of the market's direction. There is your one reason to buy.
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