subscriber mid-day update 05-13-11

8/6/2019 Subscriber Mid-Day Update 05-13-11

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Mid-Day Update

May 13, 2011

Thank God Its Friday! Why? With the sloppy choppy and YES SOME TOPPY in

individual names we are seeing we can't wait to get to the end of the day.

I will say this, when you look at the indexes you see one thing, however when you lookunder the surface we are starting to get a picture of something else, namely a lot ofleaders breaking down. We have a saying around here, when the leaders startbreaking down the rest of the market isnt far behind.

Look at the china leaders- SINA,SOHU,BIDU,and YOKU. All are getting destroyed.Then there is PANL,OPEN ,SLV, PAY,CXO,CLR and you also see destroyed chartaction. Then there is Energy, this sector too has been having a really hard time as oflate. So you see a lot of key themes and names have all been rolling over in here.

I must say I see a lot more sloppy , choppy and toppy names than I see that look wellon the long side. Im sure this weekend I will have a ton of names for you that ALL showtopping patterns developing. Remember this is how the markets talk to us- In chartpattern recognition form. Pay Attention ! Suffice it to say in all the broken names ALLRALLIES ARE SHORTABLE but wait for the rally because we dont chase buses hereon the short side AFTER they have already fallen apart, think SINA currently.

We will definitely talk more about all of this over the weekend.

Below are your 60 minute index charts


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Yesterday we said and will probably be the theme for the next few weeks aroundhere:

On one hand we are still following the ABC Pullback Off Highs (POH) script with onemore move higher potentially coming. Why? because we are still in a clearly defineduptrend and simply pulling back off highs in the indexes to trend channel support.

On the other hand we are also seeing leadership and individual names biting the dustand topping right here. Most of those are shown below in the short side comingattractions section and have already staged the first shot across the bow in first thrustdown form.

So even if we are still following the script and we make one more move higher all thesenames will do is complete snapback rallies AND potential Right Shoulders of Head And


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Shoulders tops. Its those names that we'll want to consider shorting when the timecomes, in the meantime with those names its all about watching the patterns develop soas to be prepared in advance. The phrase that comes to mind is: "Its A Market OfStocks"

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INDEX ACTION AND GAME PLAN FOR THE WEEK Of 5-9 through 5-13

For the last 2 weeks we said and still stands today:

"As you can see in both index charts we have a lot of structure. First off we havethe current wave count of 4 waves with us in wave 4. If we are going to complete5 waves up then we still have work to do with a pullback to boot (5-12 Which weare still in). What's interesting is that any pullback ought to be contained to thegreen trend channel support and the neck line support of the head and shouldersbottom. So you see we have a floor baring any unforeseen events.

Remember this potential pullback is healthy and allows stocks to digest therecent thrust up. If we are going to continue to follow the 5 waves up script thenwe have one more swing higher after a buy the dips pullback. We want to beprepared for that as it's going to set up a lot of names all in the realm of PullbacksOff Highs (POH) with a lot of names already doing so that could go at any time."

5-12 Should we get a retest of the highs we will also be watching the action in theleadership that has bit the dust for shorting purposes so you see we got bothsides covered for the most part all the while not getting too cute on either side.

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Short Side Coming Attractions -- The First Thrust Down

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Recently we talked about us highlighting first thrusts down, snapback rally and thenbombs away to the downside. We will try to keep showing that pattern as we see themso as to get you mentally prepared for it from a visual standpoint.

5-13 Now we'll start to focus upon another topping pattern or shall we say a change intrend pattern commonly referred to as a double top. We bring this up because we see aton of then building and actually a lot that have broken them to the downside. Suffice itto say we'll try to spend more time on them this weekend.

But first look at XEC below.

One could even say CVX had that look before it tanked, as well as CLF too.

CVX


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See the double top, then a break of the green uptrend channel? Now take a look at thetwo charts below.

ARMHNEW NAME


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OTEXNEW NAME


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IBMNEW NAME


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MAKONEW NAME


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SRCLNEW NAME


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In the process of carving out a double top?

PANLNEW NAME


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5-12 Should this issue rally back up to the 50 day I know what I'll be thinkingabout doing as the 50 day is now resistance.

WWW


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OPEN


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AAPL

5-12 As you can see its still in the channel, for the day trading face of fear trader, theopen in the 342 range was your trade. Now we see this issue having rallied right backup to resistance within the channel as shown below.

IBM


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Gets moved to the short sell watch list above. Why? Its got a double top just like wetalked about yesterday. Come to think of it, CMG and NFLX may also be in the processof doing the same thing.

CAT

5-13 If the markets keep pulling back and this name tags that prior low in the 103 rangeI might be tempted to go long for a quick trade. But the market makes that call not us.

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FEATURED BUT NOT TRADE TRIGGERED BY US

This is where names that we have on our watch list that have triggered but for whatever


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GLD

RVBD


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NFLX


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5-12 Both RVBD and NFLX just go to show you its a market of stocks, even withthe markets pulling back these two issues opted to trade to the beat of they'reown drum.

SINA


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All About Options In The World According To All About Trends

NOTE: The exchanges recently started WEEKLY EXPIRATIONS of options. Goingforward, make sure that you check to see which ones you are buying. Let's stay withtraditional options expirations which are the ones that expire the 3rd Saturday of everymonth.

Options W atch List

ALL JUNE Expiration from here on out folks

5-13 NONE- This weekend we will have some to highlight. I have a sneakysuspicion they will all be PUT OPTIONS!


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Current Holdings

DANG (We are now long 3 May 21 call options to open at 3.10)

As we post they are currently at 1.10

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CURRENT POSITIONS

"Let Your Stocks Tell You What To Do By The Action They Exhibit"

LONG SIDE POSITIONS

IRBT (We are LONG 300 shares at 32.15 as of 5-5-11)


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5-11 Any break of the May lows and we stop out of this issue none the worse for wear.

INFA (We are LONG 200 shares at 51.44 as of 5-5-11)


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5-12 Gosh, another day like today and we'll consider locking down some gains on thisone.

5-11 Any break of the blue line and we stop out of this issue none the worse for wear.DANG (We are LONG 300 shares at 23.51 as of 4-28-11)


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5-11 Any break below the double bottom lows and we stop out of this issue.

5-13 For the most part all of our remaining positions are holding their own in here. IRBTand INFA both make me wonder if they are going to pull an IBM or SRCL in here.

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To our NEW SUBSCRIBERS

What we've tried to do is break our watch list down into chart pattern recognitionstructure from a visual standpoint. Learn the patterns and the components of patternsand you'll blow those Wall Street MBAs away. You don't need a $3,000 softwareprogram either. All you need is a BURNING DESIRE to be the best that you can be and


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we're here to help.

We have a lot of new folks here and we thank you! We want you to take it easy, get toknow how the routine works around here for awhile and to feel comfortable.

We hope you all aren't here because you are chasing performance. For us it's moreabout educating and making you the best you that you can be first (that's what we focusupon!). Like many of our long time subscribers they have all found out that they haveno use for traditional Wall Street (and we don't blame them) and it's our hope that overtime you'll have acquired enough knowledge from us to say the same with conviction.

One of the most important things we want to stress is that of RISK MANAGEMENT viaPOSITION SIZING. You don't need to stack your account with just a few big positionsas we've seen it time and time again that those who get into trouble are the ones who

take large positions and do not employ any risk management system IE shoot for thefences. Those are the people who live on the fringes of extremes and yes ultimately getburned.

As a guideline a good initial system is that of the following example.

Let's say you have a $100,000 portfolio and let's say that as a guide you never placemore than 10% ($10,000) into any one position. Now let's say that one day news drivenevent hits (over which you have no control over anyway) and one of the positions tanks20%. On its own that position is sporting a $2,000 loss, while that may seemdevastating on its own its really no big deal overall.

Why? Simple its all about risk management being properly employed. What is theimpact of a $2,000 loss to the TOTAL VALUE of the portfolio in this example.

Answer: A whopping 2% LOSS. Now you know why we say no big deal.

We can also tell you new people here that you will get stopped out of names and youwill take hits. There is nobody on the planet living that has ever hit 18 holes in one andthere never will be. We'd rather get you grounded in reality right away vs. talking aboutpie in the sky all the time like a lot of other sites. In so doing your head is screwed onstraight from the start and when those days happen (and they will) mentally it won't

mean a thing to you. To us that's what's most important is YOUR state of mind asit's your most important asset. We hope you appreciate our honesty.

We have a very good retention rate here at All About Trends and a lot of greatoutstanding people here. We like to think that a part of that is being upfront about whatcan happen (in both directions). Verses those up 500%, I turned $50,000 into $3 millionor some other absurd number to get you to bite. That's not who we are.

WELCOME ABOARD!


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Lastly with regards to taking any trade:

Remember the moment you take a trade you are at the mercy of the market and haveno control except when to sell. If you are not willing to take the risk and are not willing topay that price do not take the trade. We are willing to take that risk knowing full well theend result could be a loss. That said make sure that portfolio management trade size isused accordingly. With any position you may take make sure that should something goawry the amount of total impact to your account does not devastate your acct. Try tostick to a 5% position That's the key to portfolio management, not biting off more thanyou can chew.

Remember the mechanics of reality with regards to the stock market states a stock canonly do one of three things: Up, Down, Nowhere. The moment you hit the enter buttonyou are at the mercy of the market therefore the only control you have is when tosell/cover. You can't manage your gains as you have none to manage initially. Knowingthis in advance it allows you to stay in outcome, that being you will either:

1. Make a gain2. Wash3. Get stopped out at a loss

Remember the market IS the boss. IT is going to do what IT wants to do.

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SUBSCRIBER ONLY WEB SITE

Don't forget you can view updates in the middle and the end of each trading daycomplete with current charts, along with our current performance at our subscriber onlyweb site.

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THESE ARE NOT BUY RECOMMENDATIONS! Comments contained in the body ofthis report are technical opinions only. The material herein has been obtained fromsources believed to be reliable and accurate, however, its accuracy and completenesscannot be guaranteed. All About Trends reserves the right to refuse service to anyoneat anytime for any reason. Allabouttrends.net is not an investment advisor, hence itdoes not endorse or recommend any securities or other investments. Anyrecommendation contained in this report may not be suitable for all investors and it isnot to be deemed an offer or solicitation on our part with respect to the purchase or saleof any securities. All trademarks, service marks and trade names appearing in thisreport are the property of their respective owners, and are likewise used for


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identification purposes only. The member/subscriber agrees that he/she alone bearscomplete responsibility for his/her own investment/trading decisions. Allabouttrends.netshall not be liable to anyone for any loss, injury or damage resulting from the use of anyinformation. Trade at you're own risk, this information is strictly for educational andinformational purposes only. Allabouttrends.net assumes NO responsibility whatsoeverfor any losses experienced by anyone who uses its educational materials to makefinancial decisions. All charts courtesy of stockcharts.com.Want to know more? Visit our web site. Have you enjoyed good results from ournewsletter or have a comment or question? Contact us [email protected]. We'd love to hear from you. If you enjoy thesenewsletters, tell a friend!

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subscriber mid-day update 05-13-11

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