Some Observations

Watched the VIX index go into a steady downtrend while the Q's were also working its way into a downtrend. At about 6:50am PST I went short because I saw the markets breaking down and getting weak. What I did was I went long DXD which I believe is a Dow short fund. Such a stupid idea. Why would I short the Dow when I'm watching the Q's? lol, so I bailed out of that one for a tiny loss after I realized what the hell I did. I had the right idea to short the market I just chose the wrong vehicle to take me there.

 

I've been taking some multi vitamins and some Omega 3 vitamins which I used to take a lot when I was lifting and remembered how great I felt. I stopped for some reasons and started taking them again for the heightened sense of being which I'm hoping will ease the slight fear/anxiety I have sometimes when watching the markets right at the open. I did notice a change already, maybe it's a placebo effect but I do feel better overall. Maybe these helped make my decision to go short? I felt confident, calm, had a healthy dose of fear but not enough to debilitate me, leaned back in my chair for about 5 minutes and said out loud, "I'm going short, it's perfect".

 

I'm still keeping an eye on the correlation between the VIX index and QQQQ to see if there's any significant patterns between the two. Last week I did spot a significant situation between the two that have been yielding my momentum stocks. VIX has to be in a downtrend while the Q's are in a steady up trend. Today we had the VIX in a downtrend in the morning but the Q's were also in a downtrend. So, like I said, I'll need to keep an eye on these and see what happens.

Pattern Examples

I probably shouldn't be posting these to the public but since this is a public blog and I use it to post my thoughts and progress and I'll do it anyway.

 

The charts below are examples of what it is I'm looking for. All these charts were from today's action. One thing I noticed which I blogged about earlier is that the wicks are very long on almost all of my losers. For the most part the candles below in my examples from today are tight and concise in a steady trend. Volume and momentum are both increasing. My PRGO trade today had a pretty crazy quick trend which I mistakenly took as a pattern I thought would work out. It had some pretty long wicks. So anyway I wanted to post this so I can come back and get a refresher on what it is I'm looking for.

 

Below is VDSI

 

Below is SCON

 

Below is TIVO

 

Below is INCY

PSS- Failed Pattern

Saw a pattern on PSS that I've made some decent cash on so I took the opportunity and bought in at 18.79 It was making higher lows and then blew through resistance and shot up which I've seen before waited for it to dip and then got in. It struggled to keep the momentum and died just before it fell hard. My stop was at 18.69 but didn't get filled until 18.66 which caused a 1.3R loss. Which isn't too bad but not ideal. Worst case scenario I can handle about 5 2R losses in a row but ideally I want to see them under 1R.

 

Looks to be rallying now that the Q's are starting to take off as well. There's always tomorrow.