07/18/2011 Trading Signals

THE SHORT-TERM TREND IS DOWN, I HOLD PARTIAL SHORT POSITION OVERNIGHT

A little bullish biased toward tomorrow because 40 out of 62 times (65%) a green day after a Major Distribution Day (NYSE Down Volume : NYSE Up Volume >= 9). A little bit longer term than tomorrow, although we might see a rebound of some kind but chances are little little little little bit higher that the selling isn’t over yet. I’ll as usual, present my witness in tonight’s report.

Those who follow Cobra Impulse System, there’s a potential short setup for tomorrow, see table below for detailed instructions. Please note the short is for aggressive traders only as the winning rate was only 69% for the past 2,000 trading days.

MECHANICAL TRADING SIGNALS

SPY SYSTEM ENTRY STOP LOSS Current 2*ATR(10) value: SSO=6%; SDS=5%; UPRO=8%;SPXU=8% Non-Stop 07/15 S N/A Short is for aggressive traders only. Cobra Impulse *Short if breakdown below 07/18 low tomorrow and close in red. *The stop loss will be 2*ATR(10).

DEMO ACCOUNT FOR SHORT-TERM MODEL (Attention: This is not part of Cobra Impulse System)

TICKER Entry Date Entry Share Stop Loss Exit Date Exit Profit Comment SDS 07/14/2011 $20.65 300 $19.62 07/14/2011 $20.94 87.00   SDS 07/13/2011 $20.50 200 $19.27 07/13/2011 $20.63 26.00   SDS 07/11/2011 $20.37 100 $19.62   SDS 07/11/2011 $20.37 100 $19.15 07/11/2011 $20.60 23.00   SSO 07/08/2011 $54.84 50 $52.10 07/14/2011 $52.10 137.00 Speculation play, half positioned. SSO 07/07/2011 $55.46 100 $52.69 07/07/2011 $55.76 30.00   SSO 07/06/2011 $54.22 100 $51.51 07/06/2011 $54.34 12.00   SSO 07/01/2011 $53.90 100 $51.21 07/01/2011 $54.50 60.00 New stop loss strategy: 2*ATR(10) used. SSO 06/22/2011 $50.30 50 $52.69 07/11/2011 $53.42 156.00   LAST   1905.00   SUM   2162.00

$300 max loss allowed per trade. For fun only. LAST = Year to the last month balance. SUM = Year to date realized gains/losses.