Excellent Day

I ended up having the strongest day I've had in months thanks to a few nice moves in small caps and the oils services sector. It was strange to have such a good day when the markets didn't really make a major move, especially considering I had it spread out across several stocks, but I'll take it.

I am gonna call it a week here, as I didn't like the close and options expiration has been problematic for me in the past. I have some open positions that I will manage but I will wait till next week before initiating any new positions. I'll take this chance to go over one of the techniques I use to help time my entries and exits.

I tend to track the Q's and IWM on hourly charts in combination with S&P futures and Tick/Trin. I look for regression moves from the outer bollinger bands to the mean. I tend to be more aggressive if I see a reversal in the Q's at the lower band and lean to taking profits as it rides the upper band. I use the Q's and IWM because they tend to lead the markets in both directions. Here is an hourly chart of the Q's with some arrows showing where the Q's reversed off the upper bands.
It looks like it will pull back to the 9ema and probably 20sma before moving higher.

Here are a few quick links:

• Great T2W article on a trader we will call Jack courtesy of Mike
• Great Jokes from Wall Street Fighter
• Hard core bears like Tim are frustrated and throwing in the towel
  
• Traderfeed with an interesting way of using TICK to help identify reversion to mean.
  

For those lacking in Fighter Pilot dexterity like Ugly or Circle avoiding prowess like yours truly, I offer up another silly game. This game involves timing and technique. Here is a screen shot of my high score, which I think can be beat by anyone having enough patience to stick with it. The winner gets his score posted here with a screen shot and any words they wish to include. You can send your screen shots via email.
Good Luck,


DT