WSNW Alerts are reminders that the market conditions have met either TIME and/or PRICE targets of Wall Street, Next Week.
These time/price entries represent high probability, superior risk/reward trading opportunities. We do NOT issue the exit (profit/loss) which varies according to portfolio objectives. My personal ones will be outlined in my forthcoming TRADING BY THE STARS (pub 2000). If you are not an experienced trader, you should work with a broker who is.
Again, WSNW Alerts are simply reminders that time/price objectives given
earlier in WSNW have been or are likely to be met that day or next.
1. PRACTICE FIRST
2. HAVE ENOUGH MONEY TO TRADE
3. EMPHASIZE HIGHEST PROABILITY TRADES: WSNW ALERTS, PLANNED TRADES
4. CONFIRM TRADES FROM MULTIPLE SCREENS/SOURCES
5. CHOOSE INSTRUMENT CAREFULLY - USE APPROPRIATE RISK/REWARD PARAMETERS
6. TAKE LOSSES QUICKLY WHEN THE MARKET TELLS YOU ARE WRONG
7. WHEN IN DOUBT, DON'Ttrading, please note the following 7 points:
One Buy or Sell for short term traders
Two Buy or Sell for intermediate term traders
Three Buy or Sell for long term traders or investors
V = Volatility V3 highest e.g. market expiration or Full Moons and Eclipses
OB = Or Better
GTC = Good till Cancel
YTD = Year to date
MOC = Market on Close; EOD = End of Day; MIT = Market if Touched.
Note: In Futures MOC is 4:15 pm, while EOD is 4pm
OCO = Order Cancel Order i.e. whichever comes first do it and cancel the other.
"circa" = "in the area of", in contrast to a precise pricing target.
HR2= High Risk 2X, i,e. VERY High Risk
P1 First Price Target, P2 Second Price Target P3 Third Price Target
S1 Minor Support S2 Intermediate Support S3 Major Support
R1 Minor Resistance S2 Intermediate Resistance S3 Major Resistance
Pivot is the price area to buy or sell around.
Attractor is the price the market is attracted to.
DJIA = Dow Jones Industrials Industrial Averages
SPX - Cash S.& P. 500; SPH = March SP Futures; SPM =June SP Futures; SPU = September SP Futures; SPZ = December SP Futures.
Note: P1 P2 P3 First second and third price targets given on a closing basis. However, as traders, clearly there are clearly better entries and exits during the day.
Market Marker Day. In our system that means "in the absence of other
influences, astrological and news", that is how the market is likely
to act over the next market cycle
TAKE NO PRISONERS
IT MEANS THE MARKET IS GOING DOWN DOWN DOWN-- show no mercy!
KEEP YOUR POWDER DRY
BE READY TO FIRE YOUR TRADING ORDERS
DONT GO TO THE BATHROOM
THE MARKET ARE READY TO EXPLODE TO THE UPSIDE/DOWNSIDE ANY MINUTE
A. TRADING RULE ONE: NEVER PLAY AGAINST YOUR SELF! Use WSNW Alerts as a
second opinion or signal confirmation of your trading system.
Note 1: If you break Rule A, do it only for one day ( and night), unless the trend is your friend.
Note 2: If you believe our views are counter trend, don't play or play only P2 and/or P3 positions to reduce risk of loss. Similarly, buy options only at P2 or P3, while futures or stock buying and selling can be done at P1 using appropriate risk/reward parameters and money management.
B. PLAN AND IMPLEMENT PRECISE ENTRANCE AND EXIT STRATEGIES
Note: I may personally recommend a position long term like Korea (KF) and hold it in our UIT, while simultaneously selling Korea or the KF at a trading top in our Global Opportunity Hedge fund. We may advise a day trader to exit put options, while suggesting an intermediate term trader add to his/her short positions.
C. Break rule 2 ONLY when market conditions justify it, and ONLY if you
can afford the additional possible losses.
A: Ideally both, however either is valid. However, combined with a time
or price of your own or another trading system, should give the very best
results i.e. more profits and smaller losses.
Q: What’s the difference between Cadbury #'s and the Wall Street Alerts info? Who has a better track record?
A: This is mixing apples and oranges. Cadbury #'s tracks money flows and option premiums which are extremely important short and intermediate term market indicators. Wall Street Alerts on the other hand are demonstrations of both astrological global stock selection and market timing. I recommend reading both. Where they disagree, note the severity of difference. For example, if Chris were to be mildly bullish next week, while I am very bearish I wouldn't go long. On the other hand if Chris were extremely bullish as per last week, and I am just wearing non-prescription Bear glasses, you could make money on either (or both) the short and long side as on Friday.
Q: I notice that in WSNW alerts, you often said sell the market. Do you mean to short blue chips like those consist of the DJIA? Or it can also mean to buy put options for index like S&P 500?
A: Today I am forecasting at least a 200 (formerly 100) down move in a sell alert, the choice of instrument is yours. Alerts can be played any number of ways depending on your risk/reward parameters. Just remember to book your profits and cut your losses if you wish to survive and prosper in the game of Wall Street.
Q: Please tell me more about your Daily Market Commentary?
A: WSNW Alerts are issued primarily for forecasts of short term market
moves of at least 200 DJIA points (20 SP handles, or nearby out-of-the-money
option doubles). Traders please note the following: ALERT NUMBERING: Alerts
A, B are potential second and third entries.
PRICING is given either for DJIA or SP futures (not SPX).
TIMES are ET (Eastern Time).
FREQUENCY are daily for open WSNW alerts pre-market opening (before 9:30am).
A Day trading example: 8/13/98:
We gave a SPU range of 1058 to 1092. If we were bears, we could go short
circa 1092 or cover (close stop) near 1092. Conversely, we could cover (close)
stop circa 1058 or buy there if bullish.
Of course depending on the day's volatility, we must allow 1-5 SP point wiggling.
For example: 8/13/98. the market first rose to 1097 before retreating end
of day to below 1080.
While an Aries would have shorted at 1092 ahead of 1097, a Capricorn might have preferred to short at 1092 after 1097 (with the winds behind his/her sails). Ironically, while they both could have made 30-100% depending on the trading instrument chosen, the Capricorn trader did it in less time. :)
-Where do I find the SP numbers described in the helpful hints page?
Any good Internet data information provider gives SPX numbers free and SP futures free 15 minute delayed or current for a fee. Email data provider if you wish to know the one we are currently using.
-What do the colors on the calendar signify (right now they are red, orange
RED means a down day, Green is an up day, Yellow is volatile potential danger to either longs or shorts, Orange is a volatile day with a downwards bias but bear traps are possible. Blue is just our background color-no special meaning.
-What is the difference between the multiple listings for some of the stocks
on the Star Picks and Pans? (Yahoo.)
P1, P2 and P3 are a first, second and third potential price entry. If you are in agreement with the trend (either up or down), join at P1. If you have a contrary position, put in a stop at either P2 or exit at P3. Alternately, if you agree, you can add at P2 and P3 depending on your trading system.
-Would you please explain how to use the field of green at the bottom of the page just before the daily comment. There is a zero next to "SPH Longs" which suggests to me that it cannot be an SP number. It means we are not recommending NEW long positions (except special situations).
Q: What are your thoughts on reentering if one was stopped out?
A: SOMETIMES YES, SOMETIMES NO. It depends on your trading system. Was the stop primarily because of money management or because it invalidated the trade? Every day, each trade should be reviewed freshly as whether you wish to be in it or not. If the R/R and probability meet your system requirements, then why not reenter: It is a new trade!
Q: You mentioned that a primary purpose of stops was for money management.
Do you use certain percentages of your trading capital or a dollar amount?
Or is it simply the point on a chart that sets the stop regardless of trading
gains or losses?
A. I most often use the classic 3/1 profit target. In an extremely high probability trade, it can be 2/1 or less. If we do not like the stop at that price point, i.e., it does not invalidate the trade according to our system, then we do not enter the trade. All trades involve a certain percentage of trading capital. If a short term trade, we use a dollar amount, while if intermediate term a percentage of trading capital.
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