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    IMPORTANT : Below is what we're looking at currently, but pay attention to our UPDATES on the side of each page for actual entry/exit times and prices. Refresh pages often! You will witness our winners AND losers; something that is rare in our business.    TO VERIFY ACTUAL PRICES AND TIMES, PLEASE CLICK ON  A TICKER ENTRY TO THE RIGHT.  ALL TRADES, WHEN THEY OCCURED, ARE VIEWABLE.  Whenever possible, we have included the ETF symbol for those who are not experienced trading futures, etc.

    Monday, June 2, 2008

    Time to act

    It took almost the whole weekend to get new computers configured they way I like them when I trade. I believe I'm ready just in time for the fireworks. Readers will know that on Friday I started to accumulate SRS (1 unit), and I'm looking for a short side play in stocks. Recall that I don't "play" news items or economic releases in particular, rather I am alert to them as potential catalysts within my overall plan. Today at 10 am, we get the ISM manufacturing data. I expect that I'll be able to add to a strong position (IYR short via SRS etf long) either this morning, or by Wednesday at the latest. I give myself that window to increase size, as it'll depend on the winds caused by the economic data. I've been patiently waiting for this setup, using expected timeframes, and now it's time to act.

    I discuss position size frequently. Notice how the only option I have in the SRS trade is when to add units, not whether I should book profits or not. In order to consistently pull money out of markets, a trader must identify when they are in a position of strength. The worst thing that can happen in this trade is I get stopped out on 1 unit. As I woke up this morning, I see stock futures down nicely, so I have a cushion and a catalyst. This trade qualifies as a strong situation where I'm looking for the opportunity to get aggressive. It's important that readers understand I don't feel any differently today, it's just that certain events trigger certain responses. If I am stopped out due to unfavorable news, the trade setup is still good through Wednesday, and I'd look to re-enter. This is a low probability outcome, however, and it's more likely that I've added units short by midday. Keep an eye on the ticker next few days, as there should be some action (and profits).

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