Outside the Bristol Zoo, in England , there is a parking lot for 150
cars and 8 coaches, or buses. It was manned by a very pleasant
attendant with a ticket machine charging cars £1 (about $1.40) and
Coaches £5 (about $7). This parking attendant worked there solid
for 25 years. Then, one day, he just didn't turn up for work.
"Oh, well", said Bristol Zoo Management - "We'd better phone up the City
Council and get them to send a new parking attendant . . .. "
"Err . . . No", said the Council, "That parking lot is your
responsibility."
"Err . . . No", said Bristol Zoo Management, "the attendant was employed
by the City Council, wasn't He?"
"Err . . . No!" insisted the Council.
Sitting in his villa somewhere on the coast of Spain (presumably), is a
man who had been taking the parking-lot fees, estimated at £400 (about
$560) per day at Bristol Zoo for the last 25 years. Assuming seven days
a week, this amounts to just over £3.6 million ($7 million - or
$280,000 every year for 25 years)!
And no one even knows his name!

Owning a stock and using a collar trade is a way to profit. Prior to earning announcements, always use a protective put. Also use RSI and MACD confirmation.

Only use puts when you need them. At a level of resistance there is no reason not to buy a put.

Don’t take a bearish position when at level of support. Don’t take a bullish position when at a level of resistance.

Remember, earnings are the only thing that pushes stocks past resistance and changes market sentiment. It’s important to protect yourself prior to earnings announcements.

As long as a stock has volatility and momentum you have a good chance to make money on the collar trade.

Finding The Big Trends in Stocks (notes from the seminar 11/1/07 with Price Headley)

1.       Look for FEAR and GREED at the extremes using

2.       CBOE Equity Put/Call Ratio

3.       CBOE Volatility Index (VIX)

4.       Williams %R using efficiency ratios and 100% above 200-day moving averages

 

CBOE Volatility Index — VIX plots average “implied volatility” for put and call options

In put and call options at the extremes, these market expectations often create signal for a reversal

1.       Puts increase in value when a stock declines

2.       Calls decrease in value when a stock declines

3.       Calls increase in value when a stock rises

4.       Puts decrease in value when a stock rises

 

VIXs with Bollinger bands with 2 deviations

Implies 95% of action should be within those bands.  When you see spikes in the upper or lower band it shows things are overdone.

-          If on the fifth day the indicator is not working, that is a reason for concern.

-          November, December and January are the most bullish months of the year.

 

CPOE Equity Put/Call Ratio (off cboptions  Chicago Board) Great indicator of direction

A measure of how many puts are traded relative to the number of calls traded on any given day

1.       High up volume, relative to call volume indicates bearish sentiment

2.       High call volume, relative to put volume indicates bullish sentiment

Bollinger Band with 2 deviations  (good for non-trending markets)

 

Acceleration Bands

These band  should encompass 95% of the price action. Look to trade the other 5% of the price events outside the acceleration bands

Lower Part of Band When gets too close to lower part of band means the market is too optimistic.  Anything within 10% of the lower band … means too much optimism

Top of Band Shows too much fear.

Acceleration find trends that are starting to speed up for faster profits

Most start trading with moving averages but noticed that the best stocks never come back to test major moving averages. Acceleration Bands should encompass 95% of price action (adaptive bands of Keltner and 20 bar acceleration band

—-you man prefer to trade the other 5% of the price events outdid of the Acceleration Bands

George Soros stated that these unexpected substantial moves, known as the “fat Tails” where he usually made the most money with these acceleration bands.

Willimas %R Method

Similar to Stochastics in measuring overbought and oversold levels — the traditional scare is from 0 to 100 … While most use a 10 or 14 bar setting try to use a 30 bar setting – smoother but still responsive

BULL TRENDS — look for overbought reading above -20 followed by a close above that bar’s high low (action should be within 5 bars)

BEAR TRENDS: Look for oversold reading below -80, followed by a close below that bar’s low (action should be within 5 bars)

 

Money Strategy

>>> takes HALF of your position profits at 100% or more.

Allows you to release the fear of giving up profits as you recoup you initial investments and guarantee at least a breakeven.

‘’’’’’If inter-day noise gets you stopped out too often use a stop at the end of a given bar.  

For a daily closing stop , use the price 15 minutes before the end of the day.  If stop is violated, place a market order to exit the position. 

looks for triple play efficiency ratio (on last 20 days for 5 bars(if daily five days)) percent R
some kind of moving average with upper and lower bands

Easy Relative Strength Measure:

Stocks that reach 100% or more above their 200 day MA surprising result is that stocks tend to go up much more from there.

 

Percent Above 200-Day Indicator

 

• BigTrends went back and studied stocks that reached100% above their 200-day MA

• Surprising result: These stocks tend to go up much more from there – Lift off into orbit

• Rules: Once a stock goes 100% or more above 200-day, then we must see a Close above that day’s high to generate confirmation of a new buy. Cross back under

the 100% line sets new stop at that low.

BigTrends Home Study 15 Hour Course for just $499

 

www.bigtrends.com

 

http://bturl.com/dvdos/

 

Would you pay 5 million dollars for a business that makes only $100,000 a year? That's what a 50:1 P/E Ratio is about. Take Google (GOOG), the number one search engine that carries that heavy ratio. Are you willing to wait 50 years to break even? Do you have a crystal ball that ensures some competitor doesn't diminish market share or that technologies will not change?

Google is not unique. There are many other companies in the marketplace with these huge P/E Ratios. When the economy goes thru its cycle and slows down, will the premium hold up? Most will not want to pay that premium me thinks from past experiences.

When the economy slows down how do you protect your portfolio? One answer is dividend paying low P/E  stocks. These companies have strong balance sheets and make continuous dividend payments.

 

Forex Currency Trading is one of the fastest growing industry’s in the world with a Daily Turnover of 2.5 Trillion Dollars which comes to 24 Million dollars a second its easy to understand why.

Learn to trade from a proven method. The Peter Bain Video Forex Course is video course is a complete trading solution and is packed with 6 hours of live instructions on DVDs from Peter himself. In addition, there are an additional 6 hours of instruction on CDs, a 150 page "Trade Currencies the Way the Big Dogs Do" User’s Manual and 1 year access to the Forexmentor Membership website.

In the world of Forex, a currency trader only has to think about the 4 major currency pairs – and pure technical analysis. The average daily range of 104 pips for all four pairs far surpasses that of any other stock trading market. Peter will show you the techniques and secrets used by the commercial institutions and banks. Read what others have to say. This is the real deal!! http://www.tradepegs.com/forex.htm

 

 

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