09/29/2011 Trading Signals

SHORT-TERM MODEL THINKS THE TREND IS DOWN BUT UNCONFIRMED, HOLDING BOTH TRAPPED LONG AND SHORT OVERNIGHT

I have no idea about tomorrow, the feeling is not bearish though.

So far this week, we had 4 gap up open in a row and 3 of them are almost 20 SPX points gap. The question is, will SPX gaps up again tomorrow morning with another 20 points? I don’t know. I just know:

1. For the past 2 years, all bulls need are imagination and I’ve seen 6 consecutive up gaps (from 12/18/2009 to 12/28/2009), so really 4 consecutive up gaps really are nothing.
2. And we had 3 consecutive 16+ points SPX gap up from 03/17 /2011 to 03/21/2011, so again the 4th 20 SPX points gap up tomorrow is not entirely impossible.

Well, hope you’ve got my sarcasm despite my beautiful Chenglish. Put all the emotional stuff aside, despite I’m not yet ready to give up the forecast that the Aug 9 lows will be revisited but if the market really wants to go up from here, then so be it, I won’t argue a single word (well, I mean aloud, I would still be murmuring…).

Those who follow Cobra Impulse System, the short setup not confirmed and no longer valid and the long position got stopped out today. I think I’ve made it very clear it’s up to you to decide when to take partial profits so don’t blame me for keep getting stopped out… LOL.

MECHANICAL TRADING SIGNALS

SPY SYSTEM ENTRY STOP LOSS Current 2*ATR(10) value: SSO=12%; SDS=11%; UPRO=18%;SPXU=17% Non-Stop 09/23 S N/A   Cobra Impulse 09/26 L  Breakeven *Stopped out of long position on 09/29 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 09/29/2011 $24.47 100 $21.78   SDS 09/29/2011 $24.47 100 $21.78 09/29/2011 $24.97 50.00   SSO 09/29/2011 $40.89 50 $35.98 Only half as another buy stop not triggered. SDS 09/28/2011 $24.32 200 $21.64 09/28/2011 $24.69 74.00   SSO 09/27/2011 $41.84 100 $37.24 09/27/2011 $42.03 19.00 It’s average sell price. SDS 09/23/2011 $25.44 100 $22.90 09/27/2011 $22.90 254.00 New strategy, half positioned for risk $500 max. SSO 09/20/2011 $43.68 50 $39.31 09/20/2011 $44.06 19.00   SSO 09/15/2011 $43.00 50 $38.27 09/15/2011 $43.53 26.50   SSO 09/14/2011 $41.45 50 $39.31 09/22/2011 $38.09 -168.00  Gap down, manual stop loss used. SSO 09/13/2011 $40.51 50 $35.65 09/13/2011 $40.88 18.50   SDS 09/13/2011 $24.03 100 $21.39 09/22/2011 $26.25   222.00   SDS 09/02/2011 $24.35 100 $21.43 09/13/2011 $23.48 3.00   SDS 09/01/2011 $22.94 100 $19.96 09/01/2011 $23.01 7.00   SSO 08/30/2011 $44.09 50 $38.69 09/12/2011 $38.69 -270.00 Gap down, manual stop loss used. LAST   2935.00   SUM   2682.00

$500 max loss allowed per trade. For fun only. LAST = Year to the last month balance. SUM = Year to date realized gains/losses.