* * * Trading Smart Bomb * * *

My most inspirational moment of 2009

2009-12-08T21:18:00.005-07:00

As a pilot I cant say how much joy this picture brings... Being a good trader is not a lot different from being a good pilot. Of course making mistakes as a pilot carries with it a much bigger potential loss. The best part about this story is that Capt Sully spent his whole career as a pilot preparing for this 5 minute test of his skill and merit. He is a true hero and I am motivated every time I see this picture.

LINK

BIG TRACK HOE WON THE BET

2009-11-10T10:40:00.002-07:00

Since I posted on CAT back in June The stock has nearly doubled. too bad I was playing tic tac toe

GLD did set a new all time high intraday today. Amazing.

The Harvest Is in.

2009-10-27T20:11:00.002-06:00

This is a video taken by my Dad while me and my buddy J.B. were rolling down the hill to make those spuds pop up like bubbles. Apples of the earth or ground berries... Call it what you will. Now its time to go to market and "engage in commerce with our brethren" as Adam Smith would say.

I closed out STAR for a 75% profit today... still long GLD

2009-10-13T21:08:00.002-06:00

STAR shined enough to get the attention of CSCO who made an M&A play for the issue for $35 per share. A nice piece of news to wake up to.

steel,nation

2009-09-13T01:31:00.006-06:00

I didn't loose a close friend or family member in the tragedy that was 9-11-2001...

I will say that many people I care about and interact with on a daily basis did. I can't even tell you how many tear filled conversations I have had with associates; in and out of the business because of those evil deeds; and to greater extent the heroes who later keep deeds at bay

I do know this. "I LOVE NEW YORK" and I love the USA. Lets fight to keep it safe. I teach my kids all the time about how their daddy could have left for work one morning and could be gone forever.

My best friend is going back to Afghanistan this fall and I pray for him and his newly wed wife, I know he is out there taking the fight to the enemy, which in turn keeps us domestically safe.

GOD BLESS OUR TROOPS AND THE WAY OF LIFE THEY DEFEND- AMEN We Love our Armed services.

2009-09-09T09:20:00.001-06:00

4 good trades and 1 great video: Its almost that time of year ...

2009-09-05T13:14:00.001-06:00

currently long GLD STAR FUQI ARST

please enjoy the video

DONT FIGHT THE TAPE

2009-08-08T11:41:00.004-06:00

Every time we find the stock market in an unexpected run to the up or downside and the pundits are wetting themselves with glee; Eventually some old relic from the crash of 1929 gets on the air and reminds us of the only important information a trader needs. Hence the old stand by quote for times of so called irrational market behavior... "DON'T FIGHT THE TAPE!!!"

The market is what it is! Standing by in unbelief never made a trader a dime. The market is not Mr. Spock. It doesn't have to act logically. Moreover it doesn't have a mind, let alone "a mind of its own." Prices on a ticker tape. You as a fortune teller have one of two methods for calling the market direction ( you can use history or you can guess at it) if you use the past, or "the tape"- go with the trend and make a profit we call it a win. Some traders use the latter method and still call it skill when they win. The day you let the tape tell you where stocks are headed, AND trade accordingly; you will finally start to get in on the right side for consistent returns.

New Watchlist Stock

2009-07-01T10:41:00.006-06:00

In recessionary conditions many traders and investors will look to companies like Kellogg. Why? The first reason is that traditional sector rotation used by many money managers dictates that they should. Secondly, there are companies that produce goods that we the consumer wont give up. I.e. Food. Lets face reality, we all need it and you will give up the dream of a brand new car if it means the difference between feeding your kids and letting them starve.

I want to highlight (K) Kellogg for some additional reasons. First they pay a steady dividend, moreover the earnings per share are actually coming in higher than expectations. and perhaps most important The stock price has begun to establish new highs. As always the trade has to be right for you, so let your own rules dictate the actions you take.

Trading/Farming Update

2009-06-26T18:38:00.004-06:00

I am down to 3 active stock trades and I can only say I am really all that happy with 2 of them. I will say that if you have been watching ticker symbol STAR one of my holdings, you can see what a good "scale in opportunity" might look like as price movement continues to set new highs...

A special photo comes from my farm in carbon county... This is a close up picture of a Peregrine Falcon that became dehydrated and decided to hide in the shade of the old John Deere. My Dad found her just trying to find shade. she was not in good shape. she needed water bad. My dad did what he could and took a few pics. The Animal rescue folks came the next morning and took her to the sanctuary. She should be just fine in a week or so. I think she is like most investors right now- cant run cant hide and certainly cant find much air up there. Please enjoy and if you have any questions about my trading and really want to learn something; ask a question or 2- I am always in the mood to talk stocks.

DD

My dad having fun

2009-06-17T13:08:00.003-06:00

Tic Tac Toe, or Big Track-hoe? check out CAT and tell me what you see.

2009-06-14T23:07:00.008-06:00

DBA is draging its feet

2009-06-12T12:45:00.002-06:00

my hedge is going well so far.

I went long DBA last week

2009-06-06T09:30:00.004-06:00

I am also diversifying into food I can sell and eat as well.

Listen to the Trading Smart Bomb, and you wont get fooled again!

2009-04-30T12:47:00.004-06:00

I could not resist posting this video. So join me in tipping your hat to the new revolution. let us usher in the new day where mutual fund managers are no more.

BETTER CRANK YOUR SPEAKERS FIRST!

Earnings Suprise

2009-04-27T13:18:00.004-06:00

STAR-

This is the kind of thing you want to be looking for when a stock begins its run. Big volume and price movement and a confirmation on the day after the breakout.

This song is for all those who think we are in a new bull market

2009-04-21T13:33:00.002-06:00

Stay away away from the hope dope. any decent trader can see that we are in a down trend. The only new highs we are seeing right now is from those who are too deep into the chronic.

With that in mind you may want to go long some "Little Debbies"

Trade like a robot...

2009-04-09T08:46:00.003-06:00

If you cant use your previous failures in trading as a learning tool; you will continue to trade like an animal in a maze.

Use a robot if you have too. Any thing is better than your natural human hard wiring.

I think this panel discussion on robotics will really help.

Got Dividends?

2009-04-03T09:33:00.004-06:00

Dont forget to laugh; even in the worst of times

2009-04-01T13:20:00.002-06:00

The current economic situation may have many of us in the grips of doubt and worry. I don't have any good trades to share, but let me instead share a quote from a fictional man who had to face one of the greatest evils the world of fiction has ever known.

"Oh, friend John, it is a strange world, a sad world, a world full of miseries, and woes, and troubles. And yet when King Laugh come, he make them all dance to the tune he play."

-Dr. Abraham Van Helsing- from Bram Stokers Dracula

So my trading friends- don't let the best medicine pass you by each day, "King Laugh" and don't be afraid to dance with your voice and hopefully you will get a sore rib or 2 along the way.

CNBC is an absolute waste of time, they have one thing going for them.

2009-03-06T09:44:00.004-07:00

She won my heart when I was a kid and she was on Little House on the Prairie. I can't stop loving you Missy! If only you had not gone to Harvard, and I was not already married to the perfect woman.

Let the good times roll... Throw me some beads mista!

2009-02-24T12:15:00.004-07:00

If you got short recently like I did, don't let this light volume rally get to you. Just strap on your Mardi Gras Colors and "Laissez les bon temps rouler!"

Uncle Ben and the boys at the Fed are as drunk on denial and wishes as all my buddies in the Big Easy are on the wine and jazz. I will give them credit for admitting to the fact that things are going to suck for the foreseeable future.

If you are interested in a decent dividend payer take a look at HSY

DJIA Confirms Break Down

2009-02-23T14:04:00.002-07:00

based on my chart reading techniques and prior experience; I am looking at today as a true break in support for the Dow Jones Industrial Average. I have been expecting this to happen. The NASDAQ also took a knot on the head. All you chuckle heads out there in the "trade-o-sphere" read it like it is, and make your own moves. Now is not the time to panic. Just let the market be what it is and keep making plans for your own future.

THOR

2009-02-13T16:41:00.000-07:00

"Miguel A" now has a bone to chew

Here we go?... There we went....

2009-02-10T10:23:00.004-07:00

The reality of the 6th ring has really just started to sink in for me. All you pukes out there can say what you want to. REALITY and truth speaks for and defends its self.

BAM!!!!!!!!!!!!!!!!!!!!

from Bettis to Bradshaw to Big Ben striking Ten!

YEEEEEEEEEEAAAAAAAAAH!

this is black and gold and every shade of my homies in the Burgh appreciation month!

Sha.!!!! as if we wouldn't notice!

2009-01-31T20:28:00.003-07:00

All jokes aside... The Steeler's are My team and I will see them through to glory. Dude with Slash on our side there can be only one possible outcome... Who do the Cards have on their side? Snow White?

Hallelujah

2009-01-14T23:13:00.004-07:00

Last week in our Sunday meeting those who preached the gospel were asked to focus on blessings. As I sat back and listened I was reminded just how fortunate I am to have true wealth.

Someone once said- "Empty your purse into your mind and you will never be poor" as I work on various projects to bless my family monetarily I often forget what true wealth is. The word Hallelujah simply means "Praise be to God" in Hebrew. I would be remiss if I didn't share my thoughts here. A friend of mine was talking about being a provider and making sure his families needs were met. Mostly we talk about trading stocks, but today was a bit different.

Let me tell you what is worth giving praise to God...

ANY THING GOOD IN YOUR LIFE! No matter how hard you work and how much money you earn and so on; you and I were given everything through the LORD omnipotent. plant seeds and water them, but remember that God gives the increase.

If your not trading stocks right now and you are uncertain that's fine. But don't loose your edge. Now is the time to cut bait. So while you do it, let your mind focus on the tremendous blessings of living in a free country where we can participate in a republic that allows us to practice a capitalistic system.

Life by the drop

2009-01-11T22:36:00.004-07:00

I'm not sure what has lead me to take the time to share something with all of you... S.R.V. was and is a major influence in my life and choice of music, friends and so on. To me Stevie was a perfect example of how god can give and take. Stevie had a gift that is so very rare among men. His story is a sad yet inspiring. The song "Life by the Drop" (for me) represents so many things.

The best part of SRVs story is that he died after having recovered from severe addiction. He said in an interview once that the best work of his life was produced after getting help to overcome demons. He did not O.D. or kill himself like others who have gone before and after. He was strong enough to surrender to the truth.

SRV had the touch, gift, mojo... call it what you will. I have listened to his music all of my life and I always get goose bumps when I hear him hit that one special note that only he can grab...

I have no doubt that the next few years will hold challenges and pain for all man kind.

So here is my challenge to you and I take it myself: Ready? Do it! whatever it is you need to do (you know what I am talking about) Face your demon and live the life you know you are meant to.

This song is so profound and I will let you find meaning in it for your own needs... But please don't procrastinate one more day (for SRV it meant Hard Core drug addiction) for you it may be something different, I know I can never be as good at playing the guitar as SRV- Thats not my goal. But every time I watch and listen to greatness I fee something deep in my soul that stirs... What is stirring in you? Are you going to bring it to a boil? or just fade away...

Here is my week as I see it going down...

1-Get 12 workouts in- that's about 30 hours in the Gym, Pool, road runner whatever it takes
2-Push my limits in mental terms... read 2 hours a day
3-Get someone on the midnight express with me-
4-Grow with the pain

Please join me if you are willing- that's what I meant by "getting on the midnight express.

God be with you all.

I'll be doing my first workout in about 40 minutes so I can get a strong start!

more to come... see ya tomorrow after the market breaks key support levels

Montazumas Revenge

2009-01-03T22:16:00.002-07:00

Well party people. I'm still short the DOW and long gold. I don't see the bulls getting much of an upper hand any time soon. I spent the 30th and 31st in the 4 corners area helping my big brother install a new domestic boiler in a house. We ere freezing and wondering when we would ever get done, but I would not have had it any other way. I love working with my bro. I have included a picture of the project in its final stages... this was about 8:00 PM on new years eve. Good times man!

Wild quail have taken over my chicken run

2008-12-23T14:32:00.002-07:00

This is probably some kind of omen. Everyone is consolidating these days...

I'M DONE WAITING

2008-12-11T21:45:00.002-07:00

Let J.M.s killer video play while you ask this question: What in the hell are YOU waiting for?

Adding value to the Dollar

2008-12-08T23:26:00.003-07:00

With all the recent government promises and efforts to save the economy of our country, I cant help but think that the value of my quarters and pennies are only going to fall. So here is my plan... I am going to make ornaments out of coins that I place on the railroad tracks. A hole punch, treble hook and a brass swivel I should be able to double my money. The engineer was honking his horns off as I placed my coinage down on the tracks, but at least we both had some fun... check it! Yo.

This video makes the blog entry a thousand times better

Thanks B

Behind every light-switch is a coal miner, and a wall...

2008-11-23T22:35:00.004-07:00

If anyone is wondering: I have been doing my part to keep the the coal flowing from the depths of the earth to the power plants of this great nation. I rolled out my covered call on GLD Friday. That's it for trading.

I did trade in my desk chair for a welding torch for as long as it lasts... not much good for the workout in the gym, but it does feel good to swing a hammer again.

I'm trying to create a new super hero

2008-11-01T01:10:00.006-06:00

please share your thoughts with me. The colors are basically the same as Iron man... But I wanted him to look more like a fighter than a machine... ( I used the generic A on the chest but it could easily be modified)

Do Something While You do Nothing

2008-10-25T14:37:00.002-06:00

Since there are really no good trades to talk about; let me share a recent endeavor of mine. or better yet I'll just let you follow this link to see what I have been up to. It has given me some time away from home and all the worthless crap related to the election (not that I follow it much)

I will admit, I feel like a fish out of water in an MMA gym, but Its already beginning to pay off in small amounts. I am pretty much sore all the time, but once I re-learn how to take a physical beating on a daily basis I will also remember how to work through and grow with the pain. 25 would have been a better age to do this but 35 is better than 45... I am only competing with my self.

So if you are like me and have the blessing of being unemployed, go do something you have always wanted to, but couldn't find the time. Also if you have the blessing of being employed and that is your excuse for holding back like I did,

I'm done watching until the election is over.

2008-10-22T13:37:00.002-06:00

Can I just tell you how nice it is to ignore the news this time? I have gone days on end with no BS campaign slogans thrown at me. I am voting for Ron Paul and until the polls open next month, I'm not even going to give it a think. everyone admits that the market is going to be unpredictable until the election... Now they just need to realize that it will continue to be a living breathing animal of its own. Just be prepared to trade what you see. Right now I see manure and big mouths.

Biggest Day for the Dow Since the 1930s

2008-10-14T08:52:00.009-06:00

I really hope (hope is not a course of action, but a traders pacifier) this is a bottom, and we can see this market and the U.S. economy recover. I know there will be a new Bull Market, and I intend to follow things closely. However please consider the following, and most importantly- MAKE COMMENTS!

biggest move since the thirties sounds more like a warning than a battle cry.
gold sold off and money moved into equities
the capital markets were closed
Volume was not much higher than average
Today is already manifesting a small sell off
There are no stock (of any import) that are hitting 52 weeks high
the VIX (fear index) is still VERY HIGH
The election looms near, and promises very little in the way of real solutions no matter the outcome.
U.S public debt (outside of SS trust fund) looms at 12 trillion and increasing by the second.

and on a personal note... I have heard countless baby boomers talk about the fact that they were able to grow up and partake of the most productive and prosperous times that this country has ever seen. I say that if they didn't learn anything from their parents (or listen to their parents) or the oil crisis of the 70, the dot com bubble of 2000... AND they are still singing the blues because of the current economic down turn- IT IS THEIR OWN DAMN FAULT!!! for the most part... Don't get me wrong. I am not enjoying watching the fact that I am a spectator on the pain of my people.

I know I am going to take some heat for this post, but its true... WE ARE ALL responsible for our own well being. we should be students of the past and live within our means, but with the exception of my Father, I know very few "Boomers" who are not looking at working until they are 70 because they thought the good times would never end, and have a bleak decade in front of them (based on what the present is forecasting)

I pray for the best for all.

DD

Long GLD and short 90 calls for october.

2008-10-06T14:46:00.002-06:00

This is my only position right now. I am thinking about just running a simple "buy-write" strategy for the next few months. This will give me the safety of gold with some of the volatility being dampened as I bring in the monthly credits. I would love to hear some thoughts from my trading friends... What say you?

Blue Angels

2008-10-01T18:12:00.002-06:00

One of my best memories from being a kid comes from my first airshow. The Blue Angels performed as the final act. My Brother recently sent me this picture that he took last month in Grand Junction Colorado. I have looked at many pictures like this one, but this one is special. The background is very familiar to me. Seeing these airplanes and the Colorado Plateau in the distance just brings back a lot of good memories for me and reminds me who I am and where I came from. I think the Blue Angels represent more than just the Navy. To me they are a reminder of what can be accomplished if one is dedicated and trustworthy. Not just one person, but an entire country made this team of aviators possible. And hey! whats a smart bomb without an airplane to drop it. I don't know that this has any bearing on the stock market or trading... I just thought it would be cool to share with everyone.

Thanks R.J. For getting me excited about aviation and being my big brother.

DD-

The sons of the soil...Who where they?

2008-09-30T12:39:00.002-06:00

Does anyone recall the name of a historical band of brothers that called themselves The Sons of the Soil? help me out here people. Who were they and what was their plight?

Warren Buffetings of Satan

2008-09-29T09:20:00.005-06:00

I hate to be Dr. Doom again, but ask this question: Who has the most to lose? Congress asked Warren Buffet for advice yesterday. His reply was essentially this, "Bail me out! Act now or all is lost!" Go read the news on your own, but if I had a 50 billion dollar net worth, I would not want it to decrease 10 or 20 billion over any period of time. The diplomacy of deceit has not come to an end. Peer through the looking glass of history and you will see that we are on the brink of something so massive that not even the great W.B. can fix it. He may try his old tricks of milking more out of the masses or redeploying group hypnosis, but those games are played out. The title of today’s post is a pun that compares Mr. Buffet to the “SS.” Both were/are economies unto themselves. The point is this: if you are not questioning every one right now you are stupid and deserve the yoke of a 20 trillion headed beast. I am all for replacing the republic with true democracy as some suggest. My best friend says it best in his article from Saturday over at www.ticktalklive.com.

Hard Boiled Assets

2008-09-23T07:22:00.003-06:00

On the lighter side. my chickens just started paying dividends. We got our first brown egg this past Sunday. I checked in with the board of directors late last night and they were all cooped up burning the midnight oil. Every producer in her own cubicle. the buzz in the office was electric. 60 watts to be exact.

"That dog dont hunt"

2008-09-19T07:25:00.004-06:00

I'm not even going to get started on a rant about elastic money supply and just how far gone the banking system in this country is... Just read the press release yourself and figure it out on your own. But hey the Indicies are going to open strong because of these snot nosed apes at the Federal Reserve Board.

The Dow. Hmmmm.

2008-09-18T00:30:00.003-06:00

I will admit that it feels good to be on the right side of this market. Its been a rough year so far. I have been short the Dow for several days now. (DXD) I just cant stop trading those ETFs. Trust me, I'm not getting a big head here. I am still down on the year as a whole because I got into some garbage Iron Condor trading a while back. Keep you eyes open traders. The Dow Jones 30 ETF "DIA" closed at a 3 year low yesterday. we may see some temporary support at these levels, but don't count on it.
Also- I noticed after some research that Gold had its biggest single day upside move in history. Many are calling gold the only safe haven; but it may not be so simple. Right now I am feeling like there is no safe haven. The Banking system as we knew it is a fast fading memory... Not that I am complaining. I have never liked banks. (sorry bankers. Its not personal)
I had a quick conversation with an old trader buddy of mine 2 days ago. we were talking about bearish search tools when he cut me off and said "why search, just buy puts on anything and you will make money" of course he was making a bigger point, but his wise crack was not that far from the truth.
My conscience keeps telling me that "Wheat in the granary, taters in the cellar and peaches in mason jars are about the only real safe haven that makes sense. So while the market plunged today I went and cut fire-wood to be stored for possible dark times that may (almost certainly) materialize in the coming months. No living trees were harmed in the process. Just dead and down trunks and limbs. That's actually a good way to look at the market right now. "Dead and Down" We have to make room for new seeds to sprout and take root.
Good luck to all, and just stick to the plan.

Patriot Day for "We the People" here in the U.S.

2008-09-11T06:47:00.003-06:00

I was an Order Entry Monkey (OEM) at fidelity investments 7 years ago. I had just been dropped off at work on sep/11/2001 when a friend of mine said; "did you hear the news?" I replied, yes M.J. is going to play basketball again! Well Jordan did come back, but the towers fell. I sat in silence and took a phone call per hour; mostly just people asking if they could get my help in tracking down a friend of theirs that worked for Fidelity. It took about 8 hours for me to realize what had really happend... Dow Jones News Wire was only giving small bits of news. I was not allowed to leave my desk unless I was on a break. I saw the first replay of the tower collapse on my afternoon or lunch break.

I felt (as most americans did) a wide range of emotions that day. Fear,anger,sympathy and hope. Since then I have wondered and asked others the same questions we all have. Why? is the biggest question for me. It is beyond my capacity to understand the reality that there are people somewhere in the world that would kill my entire family as well as themselves for an Idea.

There are a growing number of ordinary (not super freaks with mental problems) people who believe that 9-11 was an inside job... I don't need to expand on why. Go do your own research.

All I know for sure is that I feel like a man who has lost his country. From the White house down to the city council. "We" the people need to be true patriots on this new recognized memorial day. A Freeman once said that "A patriot must always be ready to defend his country against its own government"

God bless this Nation and ALL people of the world.

DD

...

2008-09-09T13:36:00.001-06:00

Below you will see my response to an article from seeking Alpha written by a great pal O mine...

What a mess!!!

Keep in mind people; the end game for this up-scale street match of 3 card Monty is this: Deflation of property values and returning as much real estate to direct ownership of the largest banking cartel in the history of the world, AKA the federal reserve. They learned it from the euro banks over a century ago. Once you are living under an overpass and the land has been made property of the banks again; you will be able to get a loan for a home and the whole damn thing will start over again; but on a larger scale called "ONE WORLD GOVERNMENT"

of course this is all doom and gloom... however 2 hours on the couch with my kids and a viewing of Marry Poppins brought me down out of my sniper nest Sunday morning.

I say give your toppins (lucre, money) to the bird lady and let matters of woe and want be taken care of by your guardian angels...

If you don't take that advice, go read the rise and fall of the 3rd Reich... Just consume responsibly.

My ride's here

2008-09-09T03:12:00.003-06:00

I have been listening to Man Of Truth for a while now... Let me know what you all think.

No slanderization, just "info I can use" as my friend BA would say.

Time to focus...

2008-09-02T10:15:00.005-06:00

I just want to remind all my trading buddies that now is the time to focus.

We are going to be bombarded with election garbage
Christmas is coming
China will continue be a major distraction
Worry of all kinds do and will abound.

Focus on what you see and block out all the noise. Do what works for you. If nothing works for you where trading is concerned; we need to talk. send me an email.

In the mean time; stay away from the circles of confusion. (the news, the water cooler, any trader who talks but cant back up a word of what is professed) a circle of focus on the other hand is a fine point that exists in your trading mind and is influenced by what the market tells it to do...

THE BEARS ARE HERE

2008-08-20T11:57:00.002-06:00

This is obvious by now, but I will admit I am somewhat Delta Pos- on the whole darn mess. Please enjoy the picture my dad drew back in 66... He inspired my every move.

Still long GLD with some covered calls. Can you believe that? What next?

2008-08-15T01:23:00.007-06:00

Sometimes we need to spend more time deciding what our next trade will be.

Every good trader has an emotional,physical,spiritual and mental place of retreat and reflection. To each his own, be it literal or a place we go in our meditative mind.

If you want to be in the top 3% of all traders you will find yours without my help, but this picture may give you something to get the juices flowing... Best of luck in your trades.

DD

Bobby Wild -N- Cool

2008-08-07T18:16:00.003-06:00

I was on my way to help my brother with some welding this week, and I saw a fella sitting on the side of the road. He was holding up a home made sign that said "Bobby Wild -N- Cool... PRICE". I was only about 45 minutes away from price, and I was all alone, so I thought- "what the heck"

I turned around and picked him up. He introduced himself as Bobby, and showed me his Arizona D.L. I introduced myself and showed him that I had a loaded pistol in the compartment behind the passenger chair. In other words, we had an accord. I agreed to take him as far as the local mission in Helper Ut.

I am glad I stopped; B.W.N.C. and myself had a great time riding through the canyon. He told me of his travels and I shared a few of my own. He told me that he has been a "traveler on a mission" for the last 3 years. He said that recently he has noticed that people have become more friendly toward hitchhikers. He explained that more people take the time to be nice and talk to him.

He told me that he hitched his first ride (in price canyon) back in 1978 - I told him I was a 5 year old baby boy sleeping in my bed, about 2 miles away- as the crow goes...

As I reflect on it now, he may have been my Guardian Angel?

He did look a bit like the LORD as I picture him... tan skin, brown hair that hit his shoulders, a kind smile, and a clear pair of eyes that looked as clean as pure blown glass; like they had been dipped from the oceans of heaven...

And one more thing... At one point in the ride, he took a moment to show me a fresh wound in his right palm that he got while roofing in Arizona 2 days back...

After thinking about it, I thought of the hymn "A poor wayfaring man of grief"...

I swear before the god that made me, every word I have printed here is true...

what a good drive that was... A little spooky too.

DD

Time is runnin out...

2008-08-04T18:05:00.005-06:00

"Let's Roll"

If you have never listened to Neil Young's 911 tribute song, you need a good kick in the pants!

just click the link above.

In recent weeks I have realized that "We" the people had better wake up to the reality that our country is in serious trouble. So I am starting with me... Allow me to explain. I have lived in NSL for almost 7 years; in that time I have been the victim of only one crime. A compound miter saw was stolen from my back yard. Many times I have allowed myself to think- "this place is going down hill, and I want to move to a better place."

As I mentioned above; my eyes are now open and I know that this is my home (for now or forever) and I will need to stand my ground. Everyone I have talked to in my neighborhood has had at least one crime of theft committed against them.

The time has come America... "Lets Roll for Freedom, lets roll for love; we are going after Satan on the wings of a dove"

As Neil puts it in his song... You gotta turn on evil and when it tries to hide; you gotta go in after it, and never be denied!" time is running out...

OK that's all fun and poetic but how do we start?

Call your city council and get involved.
Take a walk at 2:00 AM and bring a big stick and a cell phone
start a neighborhood watch
teach your kids everything you can about how criminals behave (so they can report, not become criminals)
serve your fellow man
go on a ride along with a cop on patrol in your town.
Report all crimes
Obey the law yourself- I know that includes me. No more trips to Phantom Fireworks :)

I hope this helps people. We have a country of our own, lets keep it.

I told you so... I have fire wood to keep my kids warm this winter.

2008-07-23T19:08:00.004-06:00

I got a call from the guy down the road after my having left a note that said I would be happy to take his wood if he wanted help... He called. I went and together we filled my pup trailer with green wood that will cook up nice in the fire place this January. I made a great new friend too. we had a nice chat about life and such and settled it all over a smile and a hand shake. He offered me a beer but I told him I can never have just one... So I better not. Thank you Jesus.

And one more thing... Go buy APH and GLD so my position will be propped up... :)

YOU GET WHAT YOU FOCUS ON

2008-07-23T10:31:00.008-06:00

With news like this; what else can you expect, but more news that hurts your mind and spirit...

for good news I have this... Here in North Salt Lake a rain storm produced a tree limb that fell to the storm. I have a fire place and very little fire wood... so lets bring the broken wood to the hungry fire of unemployment...

I better be careful or I will get my hand stuck to the Gospel plow...

For more Good News, and Good Times go see http://www.briankeithanderson.com

Big Head

2008-07-22T17:09:00.001-06:00

Andy would be proud

2008-07-12T20:49:00.003-06:00

Understanding the word Friend

2008-07-05T14:21:00.004-06:00

Watch the video on BKAs website before reading this article. Sorry its long but you must...

Tears are in my eyes as I see this video. A lot of people will use this as a moment to blame George Bush and so on...

The thing that separates Mike (a real hero) is that he understands the meaning of the word Loyalty.

As one of my war heroes said to his brother before giving up the NFL for the Military... "I feel that I must be tested in battle" He was only trying to prove to himself that he could become more that what he already was. No greater sacrifice can be made than one that is made for a friend. The LORD himself set down this pattern. Pat and Mike knew a job had to be done, and they didn't quibble while others died. They put it all on the alter and stayed side by side until the end.

I enjoy a life of liberty because of ALL WHO DEFEND MY WAY OF LIFE. That is the bottom line. It can be In Iraq or in Bastongne. I don't care. Money and the kind of power that creates false causes that lead to wars- are fleeting and finite.

We owe these men and women our prayers respect and loyalty. In the mean time I want to be like Mike.

Listed below- (My VFW War Heroes) I have many other heroes but that is for a different post

Pat Tillman-Army Afganastan KIA: friendly fire (see link below) http://www.pattillmanfoundation.org/pat_usarmy.php

Mike Monsoor-NAVY Iraq KIA: Jumped on grenade, Saving 2 of his Brothers.

Jack Chiaretta (my maternal grandfather)- Army WW-II Okinawa. Returned Safe but lost 80% of his Company including the highest ranking officer to die in combat for the Pacific; Gen Buckner- KIA artillery round .

John Chiaretta- (Maternal Uncle) ARMY Viet Nam. Alive today but suffered 2 direct hits while driving his APC

Larry Murdock- (maternal uncle husband of Luarie Chiaretta)USMC Viet Nam. Alive today but lost many comrades.

Bob Murdock-USMC Brother of Larry who Joined USMC to support Larry In Viet Nam. Lost both Legs, and passed away in recent years from unrelated illness.

Mervin Davis- (paternal uncle) Navy USS Long Beach Viet Nam. Alive and Well. The Greatest Baseball Dad that ever lived.

R.J. Davis- NAVY Gulf War I USS Stien,Marvin Shields and Flint. Alive and well. The Man who can fix anything, and will do it for fun with no thought of reward. He would fall on a grenade for me as would I for him.

Richard Westwood (paternal great uncle) ARMY WW-II Burma. Alive today in Circleville UT part of the VFW.

Benjamin Wallis (wifes big brother) ARMY Reserve Gulf War II. Now serving in the Airforce Reserve, but sacrificed 18 continuous months in Iraq while his small children grew and his wife toiled as a single mom.

Many others served in many ways and I give thanks to all.

May God Bless This Planet and all his children, and may he destroy those who stand in the way of Liberty and Freedom!

May we all be hero like in our actions wherever we stand.

Patience Pays Off

2008-06-23T10:10:00.002-06:00

I have been with WAB for some time now. I got in at the old 52 week high in late April. I used a nice wide stop and had to ride a big dip, but that's what trend trading is like. So now I scale in.

Geode Fragment

2008-06-14T14:15:00.002-06:00

No new trades lately so I'll just post some pics of recently collected specimens...

The picture is of a geode fragment. The crystals are Gypsum.

Hard Assets

2008-06-12T00:47:00.003-06:00

Hungry? This cookie would break a few teeth...

I recently made a trip to an undisclosed rockhounding locality with my big brother R.J.

Dang that beats sitting in a cubicle for 8 hours. I filled a 5 gallon bucket with little chunks of "grape" Agate. Based on my initial research I probably gathered a days wages in stones like the one pictured here. I took the picture with my camera phone, so I apologize for the fuzzy image. We found a few geodes and other crystals, but most of what I picked up was red or yellow Agate.

Thanks R.J.! I owe you. And Thanks Joey for keeping R.J. in line and helping me fill my bucket.

"You aint no kinda man if you aint got land."

2008-06-04T16:15:00.004-06:00

Wealth, Change and Defining What we are.

I am not a land owner of much consequence. Banks; dang it! foreclosing sons a guns. I have not lost any property to the bank, and plan not to, but I feel for those who have. Yes some folks bring it on themselves, but I'm not here to be the judge.

Delmar O'donnell (O Brother Where Art Thou?) said it best; as the title above states- ownership of tangible assets makes you feel more like you are empowered to take part in the process of producing and making a contribution. I came to the realization a while back that a man is defined by what he produces, and is not defined by what he consumes or wears or owns.

My formative years were spent in part being taught that by my parents and grand parents. True wealth is measured by the number of bed time stories you have heard or have told or the times you made your grandma laugh at something silly you said (like the time I called my Grandpa an "old stogy" I meant old man not cigar but she laughed like she was going to pee her pants) I'm sure you know what I mean. God has blessed me in my life to have an abundance of material wealth as well as relationships that far outweigh any thing that is measured in monetary terms. Have I been through some tough times or hurt those who love me most? Hell yes, and so have you. If you have not you are in a small minority.

My family and friends have all been contending with our own share of worry and care, but as I see the way we all treat each other when times get tough, it makes any dread I feel for what the future may hold, look less like an obstacle and more like a milestone.

If you have read (and are with me) this far- you know that I am no longer employed with Investools. ;) I want to thank EVERYONE that I have know as a result of my association with SWIM. I wish you all the VERY BEST and hope to see most of you again. Being with you over the past several years has been a great time for me, and like all other things in life it had its down side. Like we all chant to each other- "ride that trend til it ends" this was a good play and I would probably take it again if the set up was right for me, but like many stocks I trade, now that I am out of the position I wont be looking to force any kind of re entry.

Tail Lights...

Nobody in here except us Chickens...

2008-05-13T16:21:00.005-06:00

If I was a Chicken and had the brain power to think about anything aside from eating and roosting I would be pissed about the word chicken being used as a word for being afraid. For an animal with a brain the size of Maria Bartiromo's they are fairly instinctive, which is more than I can say about the average trader.

One of the most Ironic things about fear is that it keeps you out of the market at the time you should be getting in and gets you in exactly when you should be out.

So I took crash course in poultry farming and bought some yard birds for to entertain my punk kids. Here is the lean too I built for them.

This is not really about trading at all. Its about having a life and letting people who have not realized how unimportant they are do all the blogging about trading.

“Red neck noise dude; that’s all it is. Makes about as much sense as you do.”

2008-03-15T08:40:00.002-06:00

The markets were interesting this past week; however we find ourselves at the end of the week scratching our heads. The Fed, CPI, Bear Stearns and all the other infinite factors that converge on and aggregate pricing of assets each day. In my view we have been ringside for nothing more than market noise. The S&P was nearly unchanged for the week in spite of all that has gone on.

It does look like the ADM set up is drawing its self into a longer term ascending triangle. It may not break out to the upside while agricultural futures are pulling back. Time will tell. For those who were to lazy to look into it for themselves ADM is a food service firm that produced corn and wheat flour as well as things like cake mixes for your easy bake oven. Don’t take my word on the easy bake oven remark, and don’t even deny having an easy bake oven. Hell I have 3 of them myself and I am damn proud of it.

Gold is almost at its long awaited target of one thousand bucks per oz. (actually, based on the March min for gold we are there; see chart below) let’s watch it this week and see if it becomes a pivot point or a ceiling. Your guess is as good as mine.

Supermarket to the whole damn world? How can I go wrong?

2008-03-05T07:29:00.005-07:00

Here we have a good fundamental set up with a possible bullish breakout. I like the stock for a nice momentum trade if and when we see a breakout above recent resistance.

***

I only have 3 things to say

2008-03-03T16:16:00.003-07:00

GLD DBC DBA

*

Sub Par Asset Class?

2008-02-27T11:46:00.003-07:00

I cant believe what I am hearing. I just listened to some jack weed on CNBC call Commodities a "sub par asset class" Let me ask you a question America- If hard assets like wheat and soy beans are sub par, what is at or above par? US govt Bonds, New York City Municipal Bonds, US Dollars, Real estate... The list could go on for days. I am telling you right now, there may be volatility in futures, but actual holdings or basket ETFs on Commodities that are denominated in us dollars are among the few methods of hedging against super inflation. As I speak Uncle Ben is talking about cutting rates again. Rates get cut and the dollar gets weaker. Why is gold trading north of $940 and ounce? People are worried. Go do your own research, but If I have a choice between a 50 lbs sack of wheat and 50 bucks hidden in my closet. I will take the wheat.

The Dollar?

2008-01-25T16:55:00.000-07:00

After I went off on the fed and the inevitable disaster we are in store for, lets just take a look at what these chuckle-heads did just 2 days after my last post....In light of Tuesday's announcement that reduced rates early and in a bigger than expected chunk...

NEED I SAY MORE?

Why is the Greenback doomed?

2008-01-19T10:13:00.001-07:00

$9,190,163,041,479.34

Let’s start with the over 9 trillion reasons above. Click the link above to get some interesting yet startling facts related to the U.S. National Debt. Recent months have shown us what happens when consumers borrow too much and behave like teenagers; so what should stop me from thinking that the United States will be boarding up the windows soon and moving in with the in laws?

OK in all seriousness I am not a doomsday kind of guy, but let’s face the facts people. The Green back won't last under this kind of strain. Paper money is just that. It works well up to a point but a damn will break if water levels exceed the parameters for which the structure was engineered. Sure you may be able to cheat and exceed those parameters for a while, but as time passes redundancies fail and complacencies multiply... you get the Idea. Well fellow traders the US monetary system could easily be at a breaking point; and just like in the cartoons, it may only take the weight of one little bird as it lands on the top of the damn, and BAM! It’s all gone.

5 years ago people balked at the notion that the US Dollar may soon be at parity with the Canadian Dollar. Well here we are, and the scoffers are paying attention. Now imagine the Mexican Peso 5 years from now... My biggest fear is that the US will one day loose its ability to service debt, and unfortunately we may already be there. Congress passes new laws regularly to raise the limit on the legal total deficit that we as a country can incur. That is more or less the equivalent of your bank giving you permission to increase your credit limit to take cash advances every month, all the while you are making the minimum payment. At some point they would put the breaks on you. So far I don't see any slowing in the rate at which money is printed....

What does all of this have to do with trading? Not a whole lot for me, however I can't just let my cash get pummeled by inflation either. Here’s my basic game plan for the next few months:

1- trade small
2- hedge with gold
3- hedge with holdings in other currencies
4- divest into real estate
5- don't borrow money
(stealing is ok but don’t get caught. Terms of restitution are a lot steeper than credit card rates)

The Power of Effortless Trading

2007-12-02T19:54:00.001-07:00

Hi Einstein's,

Okay, who really wants to learn to trade? Why is it so damn hard? Why aren't u making any money? Why are you at best breaking even? Stay tuned....

For those who think its easy to become a great trader, please remember these famous poets and their devine words...

2007-11-17T11:38:00.000-07:00

It surely is a long way to the top...

the reason I bring this up? I have been out of service for a couple of weeks and dealing with matters of a personal nature... No I am not in rehab. (that's for quitters) But I will be on sabbatical for several weeks. I don't know that I will have capacity to do much "blogtification" but I will check in from time to time to see if anyone new is posting or reading.

please enjoy the number 1 rock video of all time.

also for those who may have been interested- I did finish most of my sons Halloween costume so here is a picture of him doing his best to Bring honor to our family and the Emperor.

Hard Times Flush the Chumps.

2007-10-20T10:02:00.000-06:00

I would consider the last 5 trading days as an indication that the markets are going to crash next week...If I was a chump. Since I am in the non chump classification I will simply chalk up recent price action to "distribution" or noise. In reality its only hindsight bias that ever really gives us a clear enough picture of history. We humans like to make sense of everything and have it all figured out. Why? So we can sleep at night, so we can feel smarter than we really are. I do know this; panic over Gold, Oil, China and the toys little Johnny gets in his Christmas stalking this year has not paid off for the bears in the past 4 years. So why get excited about a little sell off? Its like my friend St. Thomas says; "Price is King"

Kenesis Aequus Rex

2007-10-18T16:17:00.000-06:00

She's been a swimmer since the flood... What's wrong with you?

2007-10-14T13:18:00.001-06:00

Trade What You See...

2007-10-13T19:55:00.001-06:00

I'm done talking to you people! Just look at the chart and do what you are told. Stop listening to mad money and wasting your time reading the wall street journal. Just find a nice 5 year break out like this one and take a position. It is that simple.

My bear market trading plans have gone up in smoke....for now that is.

2007-10-02T21:57:00.001-06:00

Climbing Jacobs Ladder

2007-09-26T13:37:00.001-06:00

Yesterday I talked about the advice that was given me by my 6 year old son, Jacob. He told me that it was time to start looking into Biotechnology and the like. So what did I do? I did what any trader would do with the advice he was given by a 1st grader... I laughed and posted something on my blog. But then I decided to be teachable, and avoid making the mistakes my parents made with me. I sifted through Bio-Pharma stocks all morning. I will share with you the one I like best. Please notice that the chart below is a screen shot that I took this morning. If you look at the stock price right now it is already up about 5% from the point I decided to watch it for a break out. As far as I am concerned this is about as good a breakout as one could expect. Check out VIVO. I am looking for a close above $29.50

Never send a monster to do the work of an evil scientist

2007-09-25T00:22:00.000-06:00

My son has developed an interest in chemistry. I asked him why he was constantly trying to detonate various home made explosives in his bedroom... He just responded by telling me that he didn't have time to explain things to a novice. He did tell me that he thinks Biotechnology investments look good for a tactical addition to my current allocation in equities. Well since he has had 573 good trades in a row I decided I would follow his lead. So tomorrow I am going to be looking for some good prospects. Help me people- what looks good in Bio-pharma stocks right now? I don't have time to search on my own and my son charges me $100 bucks per stock he advises me on. What can I say? I taught him well.

Who will blink first?

2007-09-17T00:39:00.000-06:00

Well I must admit I am a little nervous about the Fed meeting tomorrow. I honestly can't say I see overwhelming conviction behind the movement of the major markets. I have learned that I really don't need to understand the driving force behind any move. Yes I am still short the Dow using the ETF known as the "Ultra short" DXD

DOW Below 12500 before Oct 1st 2008

2007-08-28T12:37:00.000-06:00

I never call my shots but if I did I would say that the DOW is just starting its next big push to the down side. I drew a nice little channel that uses the last 3 tops we have had for its upper extreme. I see us creating that 3rd high today. I can't help it but I am bearish for the short term. even though I always say that day to day movement is nothing but noise. I can hear a growl behind the din and it's coming from the bears. If you don't see it that way I want to know why. what is it that makes you so intent on being wrong? Talk to me America!

This is how a military pilot says "Extreem peril is imminent"

2007-08-18T00:31:00.000-06:00

If this Air Force Jockey were a Central Bank Chairman it would look similar but the radio transmission would read back something like this...
The Federal Reserve Board on Friday approved actions by the Boards of Directors of the Federal Reserve Banks...decreasing the discount rate at the Banks from 6-1/4 percent to 5-3/4 percent, effective immediately.
In reality the message is the same from both the Pilot and the Banker... What is that message you may ask? I think you get the point but it’s probably something like the following… "Hey everyone; don't look now but we are about to take it up the tail pipe! Repeatedly!"

Needless to say but I am still Bearish on the broad market. Sure next week might turn out more bull than I think, but thats a big part of being a good trader (being wrong, sometimes the majority of the time) Eventually we get on the right side of the market and have the nerve to stick it out. until then we shut down the loosing trades as fast as is realistic.

It's Friday, I'm short the dow and I will now do the happy dance... In true tech geek fashion!!!

2007-08-10T08:39:00.000-06:00

Thanks to the Market and John Raker!

Game over man game over!

2007-08-07T20:25:00.000-06:00

After today's fed decision to leave rates alone for six more weeks it was any ones guess as to what Uncle Ben and the boys really think. I know that the last thing you need is one more egg head telling you what to think... But here I go anyway. The Fed is lost. They don't know what to do. everyone wants to ignore the fact that there is no way in hell the US government can meet its current debt obligations and we can't go on printing money forever. The credit crunch that started with NEW and a bunch of its loan shark competition capitulating is just getting into full swing. Ben can't admit it because he doesn't want to fuel the fire. He knows where the bodies are buried but won't own up to the harsh reality of the American self destruction cycle and the role that all his big time banking ass pals had in our walk down the primrose path. I am ready to short this market right now! In fact I reentered my new favorite ETF today DXD. Could I be wrong? Yes. If there is one thing I have learned about the market is that it can not be reasoned with. So like always my stops are in place and I am still looking for the next bull market.

If you don't know what the picture has to do with this post; you need a smartbomb of a different kind. But for the one person who reads this blog... click on the post heading and the sound byte will jar what’s left of your barely sentient consciousness into recall.

Grin and Bear it...

2007-07-27T18:08:00.000-06:00

You may have felt like you were listening to an alien when I was writing about flight to safety and asset allocation… I’ll admit that even as I was doing it I was feeling a little cowardly. But now I am pleased with my choice. With the Dow giving back all of its recent gains this week most of us are a bit shocked.

Right now my only active trade is a position I took on Wednesday. Here it is. I went long a few shares of the Proshares Ultra short ETF for the Dow. Symbol DXD. This is an ETF that seeks 2 times the negative performance of the DJIA. In 2 days I am looking at a modest gain of about 7% Not bad.
That’s it for now… Lets see where next week takes us.

Flight to Safety

2007-07-10T19:56:00.000-06:00

It is official. I have no trades going. All my money is safely earning 5% or well allocated in a diversified mix that even Harry Markowitz would be proud of. I'm still looking for good trades so please everyone chime in here and give me some ideas.

Bubble, or no Bubble?

2007-06-19T10:11:00.000-06:00

There are a lot of people calling this market a bubble. I for one don't think it is. Let me tell you why. EARNINGS. in the tech bubble of the 90s we had stocks that had never turned a dime of profit trading at 60 70 or even 100 dollars per share. that is not a good thing for long term holdings. In today's markets we have a lot of things going for us that we didn't back then. In the end I am going to keep it simple. looking for companies who have a one year earnings growth rate that exceeds the P/E Ratio. I.e. if a stock has a P/E of 100 and a earnings growth rate of 100% in the last year I am OK. If corporate earnings are less or nonexistent, I am hot water when the market turns. Remember earnings drive prices and when we don't see earnings it is something else driving that demand. If we enter a bear market the company with no earnings will crater as smart money moves to value. so watch for good earnings on your bullish trades and stick to proper position sizing.

Summer Time Rolls

2007-05-13T17:09:00.000-06:00

Well now. In most circles that are replete with neophytes of trading there is always this expectation that the summer time is the time that all the slack jaws in the market just loaf and wait for fall to roll around. For all my fans that are wondering; I am long and not doubting myself. Stops are in place and I give the overbought condition of the indices no thought. You may remember ABM from a few posts back. Yes I am long and pleased with the trade. when I last looked I was up about 10%. A rain maker? No. A good trade? yes! I also went long BTU about a month ago. I like coal for future upside... Why? Most of the electricity in the USA comes form coal fired power plants. If I am wrong; oh darn. I bought again on a later breakout; thus doubling in. I opt for a doubling method when I scale in to stock trades' unless I can't come up with the needed money. If any body has questions...Reply to this post and we can shoot the breeze. Good luck this week in the capital markets... Oh and one more thing. You are not smart enough to match brain pans with the market; so don't try. Just trade with confidence and let time tell the story! Your pal- DD

If you are coming here to learn something...

2007-04-17T22:16:00.000-06:00

Beware of the man who works hard to learn something, learns it, and finds himself no wiser than before. Kurt Vonnegut

Trade Like a Ninja

2007-03-24T18:46:00.000-06:00

Don't let recent movement in the market detour you in your quest. A Trading Ninja is always confident in his plan. Pounce on the enemy, and eliminate doubt. Who is the enemy? You can find the answer to that question by looking in the mirror, or on Mad Money. Don't give in to the temptation to think that something needs to change in the market before we can begin making money.

THE MARKET NEVER CHANGES. The only thing that changes is how we perceive the market, hence our beliefs about the expected outcome of our actions will change. Stick to what makes you money. As traders we can not afford to fall prey to self doubt. YOU are the best judge of the market concerning your trades, and your money.

Stop and Smell the Roses

2007-03-12T16:34:00.000-06:00

While the market makes up its mind; check out this tasty lick. I am looking at FLWS for an ascending triangle breakout above 2 year highs. The breakout needs to happen on volume but you can make the call on your own.

Got Shorts?

2007-03-03T12:33:00.000-07:00

Well we have had quite the week. I have talked to lots of traders about what is going on and most of us agree that the market has most definately moved. What I can't believe is that nobody told me it was going to be to the downside.

If you are going into Monday short, be careful and willing to admit you were wrong. Its one thing to say the market is bearish now because of deep pull back. It is quite another thing to make money on that belief short term.

I am still in some bullish positions after all this but I am not treating them any differently than I would if the market was still in the calm seas of the last 6 months or so. Right now I am doing 3 important things...

Stick to my plan
Search for the new bull sectors to emerge
Be patient and enjoy life

That is all for now...

The Market Reveals its Remorseless Fang

2007-02-28T00:02:00.000-07:00

Greenspan is a Jack Ass! Wow! How intelligent do you have to be to know that a recession is coming? if the world doesn't get hit by a comet we will have a recession at some point in the future. Alan- just go back to your can of Vienna sausage and leave the public commentary to Uncle Ben.

China's Government... Communist Market Manipulation. Yo East side!

The market is a lot of fun. Lets talk more after the week is over. And if you are wondering...I wasn't stopped out of anything yesterday. More on that later.

Did you all see the VIX today? that was pretty impressive. If it gets up to a 52 week high today you may as well go jump off of your balcony... Not really. NO please don't!

Strong Stocks Near Bullish Breakouts for continuation.

2007-02-20T23:08:00.000-07:00

Here they are, no frills or smart ass commentary. Bullish stocks with my price alerts for new high breakouts. Plain and simple. If any of these breaks the following price points on good volume- I am in as long as the new high is confirmed on the day after the new high is set. These are "position trade" set ups in the classic fashion.

AMR Alert @ $41.06

NCTY Alert @ $40.00

FTEK Alert @ $30.00

DLB Alert @ $35.00

COL Alert @ $70.00

DFR Alert @ $17.00

Set your alerts and watch for the emails to roll in. If they don't, they don't. I can say no more.

Have a nice day.

Presidents Day = Nice Break From Trading

2007-02-19T21:38:00.000-07:00

Today was a welcome holiday from monitoring my active trades. If you found frustration with the lack of market activity, you should seek professional help. I promise the markets will take their pound of flesh by and by. However, if you found your self enjoying life today, there may be hope for you and your future as a trader.

One final note for anyone who may read this post from foreign soil- I wish you a hardy "piss off!" from all the dead presidents of the US and A- Go eat some French jungle rot AKA Brie cheese

Damons Prefered Trading Strategies

2007-02-15T18:54:00.000-07:00

I am often asked what I trade. "Are options better, or are stocks?" You can answer that question for your self. If you want to know how a pro does it, I will break it down and give you a sense of what makes the Smart Bomb tick...

I normally have between 5 and 10 active trades in a single account at any given time. The break down looks a little something like this.

• 5 long stock positions
• 3 synthetic long stock positions – 6 to12 months away from expiration
• 2 short term option plays. Usually single leg (directional) straddle, strangle, ratio spread or spread that I have legged in to.

I have found that this fits my style the best. The belief that one strategy is superior to another is simply not true. I used to think that I had to trade nothing but options to crank out superior returns. I tend to shift my thinking a little from time to time, but what you see here is a reflection of my style. I personally have associates that produce stellar returns using options only. I also have seen others replicate those returns by simply buying and selling stock.

This may come as a shock to some, but I have never seen one shred of evidence that would substantiate a claim that “option traders make more money than stock traders”

The best traders find a good mix that matches their own “Inner Holy Grail” and go with that. My holy grail is to trade stocks primarily- with options as a supplement.

BAM! There you have it.

The recent trade on ABM and the topic of 2 previous posts was a plain and simple long stock position (I bought shares) and I will buy more when it pops again. Here in the big time we call that a "scale in." That's a different subject all together.

The Super Bowl Indicator

2007-02-08T22:09:00.000-07:00

OK- I realize that I am a bit of a Jonny come lately with my commentary on the outcome of the super bowl. For those who don’t know what I am talking about, please go buy a copy of Barron’s Dictionary of Financial Terms and look up the Super Bowl Indicator. Sorry, I don’t have time to explain it.

I have seen all kinds of chatter this year from people who know the legend and those who don’t. Anyhow, here is the bottom line: It doesn’t matter!!! Are all the talking heads listening? IT DOESN’T MATTER!!! The funniest thing is that if you know the indicator and all the lore that surrounds it, you also know that according to the legend, the Super Bowl didn’t determine the posture for the coming year. When the semifinals were over, the fate of the market was sealed. Both teams that played in the big game last Sunday are teams that, if victorious, will cause the market to rise in 2007. So again, it doesn’t matter. Oh, and even if it did matter, it still doesn’t matter. Indicators are right until they are wrong.

Nothing takes the place of price trend in the major indices! I will not apologize for it. Watch the market move and trade accordingly. I am so very tired of listening to people pontificate on market internals. Moreover, it means nothing - or did I say that already?

Listen! Dwellers of the Trade-o-sphere! When all of my bullish trades get stopped out, I will rethink my posture. For now, let us just relax and ignore the noise.

ABM Breakout Continued...

2007-02-03T00:22:00.000-07:00

As it turns out, ABM did confirm the "nearly perfect breakout" from Monday. Any time a stock hits a new 52 week high on good volume I give it one additional day to confirm. I actually purchased this stock on Tuesday morning. I like to keep it simple and give my self plenty of room to retrace. I bought in at $25.38 and I placed my sell stop at $23.75

What is the next step? In most cases I am looking to own the stock for as long as the trend holds up. I am not using a trailing stop loss. I always adjust my stop loss orders after market close. I don’t anticipate an adjustment of my stop in this case for a few days or even weeks. When the stock bounces off of a new level of support I will raise my stop loss. Until then I will keep my initial stop in place.

A Nearly Perfect Breakout in ABM

2007-01-29T22:32:00.000-07:00

I mentioned this stock over the weekend as a possible candidate.

ABM is technically exhibiting all that I look for in an entry. If we observe the increase in volume since the company last reported earnings and combine that with a new fifty two week high; we are looking at a perfect set up for the entry tomorrow.

I am simply looking for confirmation of this new high in the first hour of trading and I will take a long position in this stock. Buy high to go higher.

Smart Trader, Smart Rules and Smart Results

2007-01-27T17:27:00.000-07:00

As my first official entry on the topic of trading I wanted to do a little explaining. I have no intention of being exhaustive in this entry, but I want readers to understand a little more about me and my style. I think the first thing that needs to be explained is the name of this blog. A "Smart Bomb" is a very destructive weapon in the world of firepower, but I live in the world of trading. So I guess you could say that a "Trading Smart Bomb" is a metaphor for a trader who is strategic, accurate, effective and most importantly can hit the target. The amazing thing is not what happens when the bomb hits its target... It is the amount of planning, cooperation and discipline that it takes to get in a position to drop the bomb in the first place. I could go on for hours but lets just say that I consider trading a lot like combat. So then, a smart trader has smart rules, smart habits and smart routines. Do all this and you get "smart" results.

If you have not guessed by now I was born in 1973 hence the "73"

As far as rules go lets keep it simple for now. I certainly didn't create the guidelines I am about to present, but any trader who has been around the block a few times can tell you that being a great trader is not about reinventing the wheel. The governing principles of my trading are time tested and proven to be vital to staying in the game not to mention making money. Here are 5 rules you can't break for long (and still make money) any more than you can disprove the law of gravity without breaking your neck.

Trade with the TREND- Trade what you see on the graph not what you wish you saw.
Size your position appropriately
NEVER add to a looser. NEVER! NEVER! NEVER!
Take 100% responsibility for your trades, and trust your own judgment. Don't expect to trade like me. Only I can do that, and only you can trade like you.
Don't argue with the market. If you are shown a loss- take it and be glad it wasn't bigger. The winning trades are out there but you cant get in them if you are too stubborn to change your posture. The market is never wrong.

If this list is confusing you are in denial and probably need to stop trading for a while. I will elaborate in much greater detail as time goes on, but for now let those 5 rules be a foundation.

* * * NEXT WEEK * * *

I am in a holding pattern for Monday. I don't have any reservation about taking new trades but I don't see myself entering anything until later in the week when I can see what kind of confirmation I get on this bullish long term trend we have enjoyed since things turned up last summer. Now if things do pop to the upside... Here are some stocks that I think are ready to bounce off support or break resistance.

IFF-EV-COH-AMG-MLHR DAVE-URBN-ADSK-ATHR FTEK-ABM-PVH-VTIV-COL

If the market stays flat going into Monday and Tuesday I don’t expect a lot of buy signals from these picks. Either way I think they are all fit for adding to a watch list. Good Trading

Smart Bomb 101

2007-01-27T13:57:00.000-07:00

I really enjoy talking about the markets, economy, finance and most of all trading stocks and options. If you are a reader of this blog and you would also like to participate by posting opinions or asking questions, please follow a few simple guidelines...

Be polite
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A little irreverence is good once in a while