Winners and Stocks to Watch

So, I was wrong about the DOW. It hit 13,135 on May 19th. Now, it is heading down. How far? I can't tell yet. It is at the 50% retracement level from the high on May 19th. You can see the from The chart in Figure 1 that DOW is still in a down trend and could from the pitchfork in blue that it could go back down to the 12,000.

Figure 1.

Did better with the Qs. I was right on target. It hit $50.47 on on May 19th. So, I'm 50% right so far.

Second, let's look at some recent winning trades.

International Game Tech (IGT) - bought 1/10 30.00 on 5/8 and sold it on 5/13 for a 8.79% profit in 5 days.

Western Digital (WDC) - bought 1/10 30.00 on 4/21 and sold it on 5/14 for a 20.93% profit in 24 days.

Coke (KO) - bought on 5/21 the 1/10 55.00 and sold it on 5/23 for a12.16% profit in 2 days.

Next, here are 2 new trades that I have not exited yet. First, Colgate Palmolive (CL) bought the 1/10 70.00 on 5/21.

The other trade is Saint Jude Medical(STJ). Bought the 1/10 40.00 on 5/23. The chart in figure 2 shows that I believe it headed to 45 by the middle of June. Of course, remember using the system I use I don't have to wait until it reaches 45.00 to make my 5% profit so, if I am off on my prediction I can still have a profitable trade.

Figure 2.

Lastly, some stocks I that am watching Johnson & Johnson(JNJ), Baxter International(BAX) and Intel(INTC).

I missed it on the DOW. Qs Still look good.

Fig 1.

It looks like I fell short on my Dow prediction. I predicted that the DOW will reach 13,300 by the middle of May. I did hit 13,132 on the 2nd of May. I could declare victory because I got close but, I won't. If you look at Figure 1, the DOW seems to be starting to trade sideways around the 12,950 level. If the price goes through the lower median line(ML) on the red pitchfork then, the market will continue sideways or it could start to trade down toward support on the lower ML on the purple pitchfork. If the support of the Red ML holds up then, it should reach the target area. For now I won't give any specific numbers, just a general target area.

Also, recently, I added some additional indicators to help make my trading more effective. MACD and SRSI. When the SRSI drops below 15% from the 85% level crossing the positive (green) histogram, I take that as a sell signal. Then, if the price drops below the lower ML of the red pitchfork I read that as confirmation of the sell signals given by the SRSI/MACD. If the confirmation happens then, I believe that we have peaked on the DOW for a while and I will have to re-evaluate where the DOW is going. I will continue to monitor this and see what happens.


The Q's seem to be headed for the target I had predicted $50.50 by the End of May. If the goes over $50.00 I will declare victory as shown in Figure 2.

Fig 2.

Lastly, I wanted to boost about some winning trades IGT and WDC. I bought the Jan 30 call for 9.10 on 5/8 and sold it on 5/13 for 9.10 for a 8.79% profit over a 6 day period. On WDC I bought the Jan 10 30 call on 4/21 for 8.60 and sold it on 5/14 for 10.40. That's a 20.93% return over approx 3 weeks.

I am looking for a new trade haven't found it but when I do I will make a blog entry on it.

Is the DOW on track? How about the Qs?

It looks like the Dow is right on track from my last entry. In my view it has broken out of it trading range and headed higher. I predict that the DOW will reach 13,3000 by the middle of May. If you look at Figure 1. the short, medium and long pitchforks all intersect on 5/13. We will continue to monitor this and see if I am right on this or not.

Fig.1

According to the Pitchfork, the Qs looks to continue right on track to hit the 50.50 dollar mark by the end of May as I predicted last entry as shown in Figure 2. We will continue to monitor the Qs progress to see if I am right or wrong.

Fig 2.

Next, I want to look at 2 trades I went in to last week. The first one is Figure 3, Western Digital(WDC). I bought the Jan 10 30 call for 8.60 It seems to be headed for 34 dollars per Andrews Pitchfork by the first part of May. I should be out of the trade before then with my 5%min. profit and on to next trade before then. We will see.

Fig.3

The other trade I wanted to go is one that is not going the way I predicted. Yamana Gold, (AUY). Look at the chart in figure 4. As you can see the price has dropped and is starting to move the wrong way away from the median line on the pitchfork. The price ihas fallen below the lower line on the pitchfork. If the price breaks the trend line drawn in yellow then the trend is headed down, not up. I will have to start to manage this position by selling call options against my position. So, much for listening to all the experts that say to buy gold related stocks.