08/26/2011 Trading Signals

THE SHORT-TERM TREND IS UP, I HOLD BOTH LONG (TRAPPED) AND SHORT (TRAPPED) OVER THE WEEKEND

The bottom line, more likely more up ahead but bulls need show more strength to prove that a new bull market has started otherwise I’m afraid the Aug 9 lows will be revisited.

I don’t expect a huge up Monday if not red, because TICK closed above 1,000 again. It’s rare to up more than 1% the next day and we had an exception just a few days ago, so the chances for another exception is low (yeah yeah, I know I don’t understand the very basic theory of possibility blah blah blah, but please pay attention to my wording: I said low not lower, OK?).

Those who follow Cobra Impulse System, the long position got stopped out today.

Enjoy your weekend!

MECHANICAL TRADING SIGNALS

SPY SYSTEM ENTRY STOP LOSS Current 2*ATR(10) value: SSO=13%; SDS=13%; UPRO=20%;SPXU=20% Non-Stop 08/25 L N/A Long is risky when long term signals are on the sell side. Cobra Impulse 08/23 L breakeven *Stopped out of long on 08/26 flat.

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 08/19/2011 $26.70 100 $23.17 Hold until the 1st failure, not because it’s safe. SDS 08/18/2011 $25.52 100 $22.46 08/19/2011 $26.81 129.00   SSO 08/17/2011 $42.60 50 $37.49 Not a new setup, just a buyback of 08/16 longs. SSO 08/16/2011 $42.82 50 $35.54 08/17/2011 $43.40 29.00   SSO 08/15/2011 $42.86 50 $35.14 08/15/2011 $43.26 20.00   SSO 08/11/2011 $40.16 50 $32.93 08/11/2011 $41.53 68.50 Position too small to split, could hold overnight. SDS 08/08/2011 $25.94 100 $23.61 08/08/2011 $26.58 64.00 Had to leave earlier today so sold too soon. SDS 08/04/2011 $23.13 100 $21.51 08/09/2011 $28.35 522.00   SDS 08/04/2011 $23.13 100 $21.51 08/04/2011 $24.00 87.00   LAST   2248.50   SUM   3159.00

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