Incidentally if you shorted at 1790 you may wish to place your stop back to this level. Then you have a trade to nothing don't you?

As I type the NDX100 is straight back down at 1758 this is actually strong support and given the velocity of the move into it we might expect it to hold for the day at least. If you shorted at 1790 you might consider yourself happy with the 30 points. If your in for the long haul then stay short.

I suppose that in fairness I should have anticipated this knowing it was a GDP release date this morning.

Well here is a thing the market is going to gap up to 1790 on "government massaged" GDP figures, for the sake of all those fools who honestly believe we are in an economic recovery. I'll happily take their money as I'm morally certain that this market is in freefall. Let's try a short trade at 1790 with the stop at 1805

well that was another bad day on the NDX100 particularly down at 1760 at one stage managed to get back to 1780 though before settling at 1770. The longer term trade is now very nicely in profit. I fancy there is more immediate downside here probably to the 1650 area. Shall we say be 5th February 2010. Dont have a good entry point at the moment for this one though so for the moment we'll leave it.

score on the doors is now Profit 80 Losses 16. Strategy for the moment is to wait for the next opportunity

Not so 1810 is broken trade closed.

Well Apple has come out with it's earnings report and to no surprise at all the results are fantastic. The NDX futures immediately bolted up to 1811 (our noted area of resistance) and then immediately fell back down like a brick elephant (as low as 1783). This has been the trend over this earnings season. You will recall a similar type of move in Goldman Sachs. It seems that we are on the correct side of the market and that resistance at 1810 will hold. It must have been hit 4 times over the last 36 hours of trading and each time it has held and the market has sold off. I am confident this short will be a successful trade. Nonetheless stops are at 1820 we are looking for 1758.

Well we are now at 1802 the initial support I identified on Friday at 1810 has turned into resistance. We are short looking for 1758. We can have a low risk stop on the trade at 1820 we went short at 1805 so thats a possible 47 points profit for a 15 point loss or approximately 3 to 1 win/loss ratio. we can afford to win just one of 4 trades and we would break-even.

Okay done a little more research over the weekend I feel this market is going down to 1758 then we will rally, probably up to about 1833. We are in a bear market environment.

This is actually turning out to be a pretty horrific day on the markets

okay well there you go didnt hold thats a loser of 6 points. But we have won one and lost one the score on the doors is Profit 80 Loss 6. And that folks is how you trade. Short again now.

I would add that I remain stongly bearish, just looking for a quick few points here. 2010 may well turn out I feel to be a truly catastrophic year for the stock market. As for my confidence in getting these few points, it is not high a nice close stop at 1805. As always should be reiterated those losing trades must be closed! This is long term survival.

Well there you have it we have officially traded at 1810 which means the first of the trades can be closed at a profit of 80 points. This is actually an area of fairly strong support and though this is not the type of trade I am looking to make it may well be worth a long trade to look for a quick 20 or 30 points or so. Especially seemings the SPX is at 1100.

Goldman Sachs incidentally has a capitalisation of $119 Billion. And derivatives to the value of $34 Trillion !! Yes that's trillion. Oh Boy this could be a huge event on the horizon

Now this is turning into a rather interesting days trading, the reason for the sudden sell off is Obama's policy with regard to the banks who are all down heavily on the day. They are going to be banned from Proprietary trading, they are going to be smaller, all of which contributes to why Goldman Sachs is down 6% on the day. All of this I can understand, But an additional little side story on GS just on Bloomberg. GS's Credit Default Swaps are also up massively on the day. Now why should this be? There may be trouble ahead folks.

and Timber !! The Dow is taking a real pounding. down nearly 2%

Incidentally the NDX is currently making a desperate effort to hold 1850 after a sudden morning sell off that saw it plunge from 1880, anyone know if there is a news story behind this sudden plunge? I can't see that it will hold 1850.

I read an article today that suggests that the market cannot head down because 25% or more of new issues were hitting new highs and that bodes well for the market historically. My reply to this would be whether a stock hits new highs or not makes not a jot of difference to its future direction. In my opinion the one technical aspect to look out for in this rally is the degree to which the masses have become bullish and right now this is high. At this point the insiders who have engineered this rally will know they have a nice market to unload on. That time by the way is now.

As I type the Nasdaq 100 is trading at 1863 having sold off to support at 1850 yesterday then rallied as high as 1874 on the futures so the trade is looking good and still stands.

Clearly the market did not take to IBM's earnings report despite it being in line with expectations. NDX100 is now trading at 1873 which would appear to vindicate initial opinion, nonetheless stops will be maintained above 1900 and activated should the market rally to here.

We have rallied now to as high as 1896 the trade remains open, the futures are currently at 1882 so it seems we may gap down at the open. I will make an effort to make at least one post each day.

Okay so we've gapped up to 1874 at the open. I'm confident that we'll sell off, as mentioned the general trend is now downwards.

I also intend to use this blog to experiment on various trading systems, the most important thing for any trading system is that it be disciplined. It is a lack of discipline that causes traders to lose money as they refuse steadfastly to close losing trades. I myself took an age to learn this lesson.

I do believe that just about any trading method will work so long as you close those losing trades.

Please note that 10 years of work have gone into this trading system. I cannot begin to tell you how much work is actually entailed in it. The methodology is based on the work of William Gann and George Bayer.

Welcome to my blog, this is a stockmarket related blog on the Nasdaq 100. I exclusively trade the Nasdaq 100 futures. This will start off rather bare but over time I intend to include trading records for your perusal.

As I type the Nasdaq 100 future for March 2010 is trading at 1868 I am short as at 1893 this market must go lower. There is no further upside. I like to trade with 2 targets the first is at 1810 the 2nd way down at 1444. I think that 1444 will be hit by mid February, so we'll see what we get.

It's always advisable to use stops, I don't actually physically set stops but have them mentally set at 1910 which gives me in effect a 4 to 1 win loss ratio, for the quick trade and something in the region of 22 to 1 on the longer term trade.