Wednesday, August 3, 2011

Game plan

Market to go higher but not for long
Then a tank down maybe 14% from current prices
Then QE3 officially

Trade Plan 1)

Ride up some long calls, take profits rather quickly and remorselessly, assume this can drive up 5 or 6 %, the put call is about as high as it ever gets, it only get this high maybe 8 times in 8 years.   This is the perfect setup for HBB to crush bears.

On the way up scale into some longer term puts

Trade Plan 2)

Buy short term calls
Sell long term calls

Trade Plan 3)

Trade the BPT SPY Killer system, but due to volatility, use the scale in version and instead of trading 2,3,4,5 ES futures, trade 1,2,3

The trade is currently active, although sorry to say, enrollment is not open.  

Trade Plan 4)

Definitely play the BPT GDX (Gold Miners) mechanical index.

Trade Plan 5)

Possibly play some BPT generated long breakout ideas, be satisfied with 6% to 10%, never more
Also review Slope of Hope for trade ideas (usually Knight will be leaning short)

Trade Plan 6)

Invest in Oil/Gas US drilling, 82% tax deduction 1st year, 14 to 18% annual returns thereafter of which 30% is tax free.   Yes indeed the old boy club has been creating these tax shelters for a hundred years....join them.   Hard to find a broker

Trade Plan 7)
Buy some physical silver, just to have, I am only talking a few thousand worth.    Barter money.

Overall Plan:
  1. Conserve time on trading/investing.
  2. Click through the most important indicators, get them set up on Stockcharts all under INDICATORS chart list
  3. Quick review of HT custom indicators, FF, VOS, and PM Exuberance index 
  4. Do not obsess over any news. 
  5. Blog reading restricted to Slope of Hope for trade ideas, BPT blog trade ideas, total time 15 minutes in morning, 10 in evening, speed read BPT nightly newsletter, 10 min max, 10 min setting alerts on possible trades.
  6. Do not obsess with continuous monitoring of stocks during trade hours
  7. Blog posting, only for historical documentation of trades or perspectives
Stay away from leveraged ETFs, the flash crash shenanigan can probably be "played" by HBB a few more times before that is more regulated.

Short term tick trading is just not working.   Hold off on that.


  1. OH I forgot, read PikerTrader.

    Piker mean small, but even though he is small, he is not retail minded.

  2. And so, as it does for all men, death comes to Charles Foster Market.

    Hey, it's a great movie even after 70 years. More than you can say for everything but bonds at this point.

    I have to say, I enjoyed the plummet immensely and actually made money. Praise the lard, as they say down south.

  3. Never saw that movie, but I guess any thing or market starting with money just handed to it, has a challenging future.  

    Wall of Worry or Ramp of Pimp, I think the latter.   And some day the swans will come home to roost (if swans roost, that is, they might just shit up a storm!)


Insightful and Useful Comment!