A good real estate stock

I have been watching Zillow. Traded yestersay and held over night off real estate news. Had E on 10, 5, and 3. And had HRFP on the 55,34, and 21. If you like real estate try testing this one. I really like it.

ZILLOW
10/09/2013 O STC Z NovWk1 83 Put 5 $7.30 $14.95 $3,634.82
10/08/2013 O BTO Z NovWk1 83 Put 5 $5.90 $14.95 ($2,965.11) $669.71
Total Realized Gain/Loss for Z $669.71
Total Realized Gain/Loss $669.71

23% or so in a day is lovely. Congratulations.

Darcy, I just got my workspace set up (I hope correctly) with E charts across the bottom of the screen and GW across the top of varying time periods. I am trying to see the E on this trade. It doesn't appear that the E sets up at precisely the same time for the different time periods.

I see the E on the 3 at 11:30, about 11:05 on the 5, and probably about 12:20 on the 10 minute is when 10 MA crosses the 20 MA.

On the 34 I see the HRFP at 11:46 - about the same time I see red lines over green lines on the 21 (that's the time when the last line crosses the green line)
and probably a FP about to become a HRFP on the next candle on the 55.

Is this about what you see? And would you be concerned about those smallish time differences? The money flow appears to be the strongest on the 10 minute MA chart, so maybe that is some solace.

Any feedback would be much appreciated.

Yesterday was a very, very rare day for me. The market screamed up, but I did not see one trade. I almost pulled the trigger on FOSL, but my "E" did not show me a spread of my fingers-nor was the ADX where it needed to be. It went up, but I am ok with not placing a trade. My mentor made a bundle, but as I told him, "Good for you dude. The market did not show a trade. Rare, but reality". My challenge is/was to find a sector/stock that I typically do not trade, but it moved with my indicators. If I find a stock I can trade, I will practice it, an possible add to my basket, or take out one of those clowns that is not performing. I was a bit disappointed on yesterday. The market screams like it did, and I did not find a trade? Pretty puzzling for me, but patience and discipline kept me sitting on the fence. Take what the markets gives-no more!

Rookie - I'm glad I'm not the only one! I entered 2 trades yesterday, NFLX and LNKD. NFLX hit the 8 and 20 on the daily, so even though E was present on the small charts, it didn't work. It made enough to pay commissions only. LNKD hit the bottom of the gap on the daily (Aug 1-2) so perhaps this was why it stopped where it did?

Did anyone make any money yesterday??

While I did not "make" any money. I was smart enough to not lose any money:-)

It is good to know that I am not alone. I was thinking that I missed SOMETHING! Today could be flat, but it would be nice to pop a decent trade to end the week.

Good luck today- Take only what it gives you!

hey guys... same here... glad to hear I'm not alone either... everything was up in premarket, so at open all the charts had what my friends and I call 'space candles' just a huge gap up or down where the candle is in space outside of the BB... from there it went the other way or flat, due to most opening on resistance. A few made small gains but nothing worth the stress... this morning was the same... most of the stocks I looked at mostly went flat... don't know if that will change but trading around or after lunch makes me nervous

rookie, can you explain what you look for with the ADX indicator?

Short selling yesterday. Market covering it's backside just in case. I don't like to trade when market sells short. It is a "head fake".

Darcy2 Wrote:
-------------------------------------------------------
> Short selling yesterday. Market covering it's
> backside just in case. I don't like to trade when
> market sells short. It is a "head fake".


Could you explain this further? I don't follow...

I also didn't find a trade yesterday with the market soaring up. Kinda think it was a head fake also with people taking some profits off of the current run down and the hope of the debt ceiling plan.

ChairmanFaust Wrote:
-------------------------------------------------------
> Darcy2 Wrote:
> --------------------------------------------------
> -----
> > Short selling yesterday. Market covering it's
> > backside just in case. I don't like to trade
> when
> > market sells short. It is a "head fake".
>
>
> Could you explain this further? I don't follow...

Are you asking me about short selling?

All the "news" in and aroud the market has been negative (market goes down). We are also in October. By the end of Oct mutuals MUST sell their losers (GW info about Oct) That gives more downward pressure to the market. Also many investors stay clear of Oct until a few days before Oct is over because most stocks hit an all time low by then. (More GW info) So why would the market go way up like it did?

Short selling...When an investor (this is usually big brokers) thinks the market is going down they are expecting the share price of stocks to fall. So they sell a stock they do not own. Now what hapens is if the stock falls lower than where you bought it you buy it back and make a profit but if the stock rises you lose money and have to buy it back at the higher price.

Now you noticed that the market and stocks rose big but as "DASH" pointed out to Rookie 30... "I entered 2 trades yesterday, NFLX and LNKD. NFLX hit the 8 and 20 on the daily, so even though E was present on the small charts, it didn't work. It made enough to pay commissions only.".

Short sellers borrow the stock their broker has already bought. In turn they sell these shares actually expecting the shares to fall whereby they will buy the shares back at a lower price making money on the borrowed shares. But when these shares start to rise the short seller has to buy back the shares thus losing money but driving up the stock. The stock rises but not off more selling of stock but because short sellers are buying back borroed stock. This causes the options not to move because more stock is not being bought even though the stock is rising.


Hum.....

When the big cats do short selling they do it for 2 reasons. They either speculate or hedge.

Oct is according to GW a scary time in the market because most crashes happen in Oct. therefore expect the big guys to hedge their positions especially in Oct. By hedging they are protecting their long positions. When they have hedged short and the market starts to rise they begin to lose money so as they see the market rising and going higher they are more likely to buy back their short positions making the stock rise more but not the option.

We are not taught by GW to use Delta in options. We are taught to buy one or two strike prices out of the money. But remember stock prices move buy supply and demand. Buying back your short sell does not increase the suppy nor the demand. There is no increase in the Delta. You are not having more folks buy the stock you are having more people selling their shorts of stock they borrowed. Thus a head fake.

There is a lot to options than what we are taught and to tell the truth I do not use any of the info for options that I have studied. I do not use open interest, Delta, Greek value, Gamma, Vega, Theta all that "stuff". I simply do not need it as GW taught...buy one or two strike prices in the money if you are trading shorter charts and if you are trading long buy one strike price out of the money.

I'll say this...if you see the market openng on a huge pop watch the option on the stock you may want for a few minutes and see if it moves. If it isn't moving well, don't get in chances are you are seeing short sellers panicing.That's what I do when the market starts out $100.00 or more up for no reason. I wait and see.

I hope that helps.



Edited 1 time(s). Last edit at 10/11/2013 03:23PM by Darcy2.

brilliant explanation... ties a lot of things together for me with my limited knowledge, thanks again!

Kars Wrote:
-------------------------------------------------------
> 23% or so in a day is lovely. Congratulations.
>
> Darcy, I just got my workspace set up (I hope
> correctly) with E charts across the bottom of the
> screen and GW across the top of varying time
> periods. I am trying to see the E on this trade.
> It doesn't appear that the E sets up at precisely
> the same time for the different time periods.
>
> I see the E on the 3 at 11:30, about 11:05 on the
> 5, and probably about 12:20 on the 10 minute is
> when 10 MA crosses the 20 MA.
>
> On the 34 I see the HRFP at 11:46 - about the same
> time I see red lines over green lines on the 21
> (that's the time when the last line crosses the
> green line)
> and probably a FP about to become a HRFP on the
> next candle on the 55.
>
> Is this about what you see? And ould you be
> concerned about those smallish time differences?
> The money flow appears to be the strongest on the
> 10 minute MA chart, so maybe that is some solace.
>
> Any feedback would be much appreciated.

Missed your post so sorry....

Look at 20 moving average on 55. It was resistance. 20 moving average on the 34 resistance and 50 moving average on the 21 resistance. Look at the overall market that day a strong down so resistance on these charts indicated a strong down. To be honest I woud not need a HRFP on any chart with that sort of resistance.

HRFP on the 55 happen around 10/2 - 10/3 so pattern was a continuation. I didn't make that clear...sorry.

I seldom have E set up at the same time on all frames.