Long and Strong and some BPT Trade Ideas

This market is tricky, but keep in mind the Financial Industry IS STILL in control of the Government and the markets.    Just because more and more people recognize this fact, does not change the fact.   It may take quite a bit of real pain (aka blood) before this situation is changed.

The Bankster's want their bonuses, they have gotten used to them.    Santa rally is one of the best seasonal trends.    Why fight the 80,000 pound gorilla, dance with it?

Don't read too much media, it is mostly now meant to deceive.   Don't listen to TV at all, I don't even own a TV, not joshing you either.

And join Breakpoint Trades, using the link on my blog, because they rock, and you can make more using their trade ideas on "unknown tickers" than trying to beat the super computers that run wallstreet.

Another FACT:   Profits on options and futures on indices are ALL taxed at long term capital gains rates.   Even if held for 2 minutes.    This is massive!    That is why the best computers are set to game indices.

It is easier to make money playing individual tickers, IF YOU HAVE THE TIME.

Nice move down to the Bernoulli 177 of the Triangle Legacy Line

Former Resistance is now acting as support, This 30 point ES drop is IMHO a gift to those wanting to position long.

Keep in mind, this is warfare, warfare over money.   And Deception and Boldness are two of the major components of a war campaign.    To win, you either need to have great power (HBB), control the media, control the governement, have super powers of seeing the future.....

OR

You need to see the deception and roll with it, dance with the 800 lb Gorilla
Use lines that no one else is using (Bernoulli)
Be Lucky (good luck with that)

There are three common moves up

Shock and Awe....leaving the bears in the headlights, leaving them "knowing" that it was a "fake move"

Frog Boil....keep them in their short positions as the market does the meat grinder upward with an occasional big move down to keep them salivating, keep them in their positions.   Late in late night futures a real ramp up with a gap and camp strategy.   The bears then need the "camp" strategy to wear them down mentally and time wise.

A fake out to the upside

Organic growth (yeah right, wait until 2016 for that)

Wed Egg Launch Setup

You know, "they" are experts at kicking the can, eventually it won't kick, but like support or resistance it is most probabilistic to expect the resistance to hold, or the can to kick,  than to assume the opposite.

A Euro area stick save could be just what the Doctor ordered.

SPX priced in Gold demands it

Low Put Call Demands it

Pearl Harbor Attack

I recieved this email from a friend in Hawaii.   This was written before 1947.   My friends grandfather was flying a small plane for recreational enjoyment on Dec 7, 1941, flying over Honolulu as the Japanese attack on Pearl Harbor (and the rest of Oahu) began.


Very interesting slice of life here.    3 pages.   What is very interesting also is the "denial".    They landed their plane during the attack, got out, moved 30 planes to seperate them in case of a further attack, and then drove to the police to inform them of the attack, and the police basically laughed at them, in denial that we could have been attacked. 

Read it.   Drop a comment. 

http://www.box.com/s/uxnpg9iphavyuv7betj0

A reader, Steve C, emailed me this. Indeed I have been seeing the same thing

In fact, I did my first multi-colored egg this morning.   Battle of strong forces.

Tues Muse, Don't see any edge

On the indices and currencies I don't see any edge.    Keeping powder dry, no use "betting the same thing" and just ending up in the meat grinder with profits gone.  

Oil is interesting, it is kind of the "anti dollar", a currency of sorts.    Oil has the most obvious 5 down and now in c up which could be substantial.    Does the chart predict more war?   It is funny how charts seem to predict the news.

I posted this the other day, it still applies.    It says Oil up, dollar done, US equities up.

http://oahutrading.blogspot.com/2011/12/apple-of-my-eye.html

Natty

Remember 1260 the Pretcher Line in the Sand His Disciples Stop

A perfect Taunt to the Bears....blow out their stops at 1260 and a bit higher up to 1266, and then tank the market on a quick drop.    Perfect way to get bears excited, ready to recommit their capital.    Ms. Market can be a real bitch some times.

I got very lucky, went to very tight stops after seeing a blimp on the Euro, retained 90% of all long profits, back in long from a lower level.

ES pushing up above the BBL

Trying to get traction above that line, kind of a backtest just happened.

Huxley interview 1950's

Worth watching

http://www.hrc.utexas.edu/multimedia/video/2008/wallace/huxley_aldous.html

Apple of my Eye

Zstock was stating apple to 500 in 2013, barring no big recession.

Hussman, bearish since 2007, is giving this "recovery" and job growth some credit, EVEN THOUGH he knows it is bullshit.    Weird, but sign of a Wave 2 really doing it's job, convincing even the bears that this recovery has legs.   Sheesh I hopium it does, and long ES and Euro today, which feels very smart. 


Here is Apple, it could get swatted down from the 400, at least for now. 

IB Rocks, and other Irreverant Stuffs

Interactive Brokers Rocks, although the learning curve is steep it is worth it, after all this is your money, protect it with every edge you can

Breakpoint Trades rocks too.   With a great blog and no trolls, except maybe me

False Break on the Bull Wedge

The neat part about this one is that the false break, an Egg embryo pop, and the Bernoulli 177 support were all at the same place.   I went seriously long.  Seriously enough that I was questioning my sanity on Saturday.

Here is the prediction

 Here is the results (so far)