tag:blogger.com,1999:blog-41638742496874031062011-11-27T16:14:02.045-08:00This is a blog about a stock trading strategy known as trend following. Using a variety of stock scanners, I will identify securities that are in major trends, trends that can be ideal for either the buyer or short seller. In time, this blog will show investors that it is possible to make money in the market without needing to predict the future, or having to conduct any sort of fundamental analysis.Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.comBlogger2951100tag:blogger.com,1999:blog-4163874249687403106.post-40196943677396429422010-04-09T16:34:00.000-07:002010-08-24T20:43:52.378-07:00

About six months ago it became apparent, to the few readers of this site, that I had stopped blogging. The reason for this is that in September I had decided to move to China to teach English as a second language. Little did I know that after entering the mainland, the Chinese government would block my blog (along with many other sites).Therefore, during this time, I have not been able to edit

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com1tag:blogger.com,1999:blog-4163874249687403106.post-40225578584143372512009-09-18T02:34:00.000-07:002009-09-18T02:59:58.401-07:00

Here is a stock that came up on one of my new scans. I may buy this stock today, but only if it is able take out it's previous day's high.I've been posting a lot of long candidates recently, and very few short candidates. This is because my long positions that I have are doing very well, and the short positions I have are going against me, or are going sideways.The fact that longs are rising,

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com5tag:blogger.com,1999:blog-4163874249687403106.post-34849447975120197042009-09-17T03:17:00.001-07:002009-09-17T03:20:27.626-07:00

Notice the new 20 day high on this one:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-83386784172006654962009-09-17T03:17:00.000-07:002009-09-17T03:19:17.606-07:00

This stock went up a lot today:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-6632212576872223842009-09-17T03:14:00.000-07:002009-09-17T03:16:46.923-07:00

This stock is going up at this particular moment in time:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-9767605571042302772009-09-12T16:02:00.000-07:002009-09-12T13:05:43.922-07:00

The following is a clip from Michael Covel's new documentary, Broke: The New American Dream. The amount of wisdom compressed into a 1 minute and 16 second clip is amazing:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-37415107934875266862009-09-12T08:51:00.000-07:002009-09-12T08:53:55.570-07:00

Psychologically, I know, it is difficult to buy a stock after it has already risen 30%, but I have learned that your entry price is actually not a particularly important piece of information:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-84974430829616340332009-09-12T08:50:00.000-07:002009-09-12T08:51:45.184-07:00

Unless something dramatic happens on the open Monday, I will buy this stock:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-11996092195108231672009-09-12T08:49:00.000-07:002009-09-12T08:50:40.409-07:00

This stock's price made a new high:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-66769339414228578282009-09-12T08:36:00.000-07:002009-09-12T08:49:46.162-07:00

This stock exhibited favourable price action on Friday:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-2989125311464767002009-09-11T06:56:00.000-07:002009-09-11T07:01:48.128-07:00

Here's a stock that I find interesting. Notice how this stock is continuing to fall even though the general market is now up for a 6th straight day. This stock is, therefore, very weak on a relative strength basis.This stock was taken from my public chart list:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-861685548564782362009-09-11T06:33:00.000-07:002009-09-11T06:48:32.905-07:00

Last weekend, I stumbled upon an interesting interview of Jack Schwager by the Financial Sense News Hour. Jack Schwager is, of course, the author of the Market Wizards series of books, which I consider absolutely essential reading.One great dilemma I find when it comes to trading books is that the traders that are the most successful, tend to be the least likely to bother to take the time to

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-82973449915723459942009-09-09T10:35:00.000-07:002009-09-09T10:45:35.405-07:00

Here is a new stock that came up on one of my scans. I find this stock appealing due to it being in an uptrend, and also because it is forming a 20-day breakout.I bought this stock $6.23, which was the high for the day at the time. My rationale for buying a new high for the day is that, in my experience, if a stock puts in a fresh high, then it will usually make another high later on. If this

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-87496700068543539442009-09-08T13:24:00.000-07:002009-09-08T13:25:16.829-07:00

This stock made a new 20-day high on extremely heavy volume:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-27917141899529825262009-09-08T13:23:00.000-07:002009-09-08T13:24:12.033-07:00

This stock is making a new high:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-35290454426562102462009-09-05T14:28:00.000-07:002009-09-05T14:30:35.601-07:00

Out of the approximately 6,000 stocks my scans go through, here are 3 that look good:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-14125062398098431622009-09-05T14:27:00.000-07:002009-09-05T14:28:54.331-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-66721982291886911612009-09-05T14:26:00.000-07:002009-09-05T14:27:21.016-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-24487959771811567102009-09-03T13:05:00.000-07:002009-09-03T13:52:45.211-07:00

This stock is currently in an uptrend. On top of that, it also has a very favourable chart formation:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-1356060194898568012009-09-02T11:41:00.000-07:002009-09-02T12:58:48.231-07:00

I have seen a ton of failed breakouts this summer, but I still think this breakout has potential. The reasons I think this breakout has potential are as follows:Breakout occurring on strong volumeMost other commodities and commodity currencies are falling, so gold is doing well on a relative strength basis. For example, yesterday, stocks were down, oil was down, natural gas was down, the

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-88679876455156965942009-09-02T11:39:00.000-07:002009-09-02T11:46:08.373-07:00

This ETF, which follows the price of Sugar, is currently in a strong uptrend. The ETF is a bit illiquid though:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-45889131764522062182009-09-01T13:51:00.004-07:002009-09-01T14:13:10.569-07:00

There is a lot of talk about this correction signaling the top of this rally. This is entirely possible, but I really do not know what the market will do next, personally. My game plan is if the market continues to decline, then I will replace the weakest longs with new shorts. On the other hand, if the market resumes its uptrend, I will hang tight.Below are some stocks that my scans picked

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-32894820824207057152009-09-01T13:51:00.003-07:002009-09-01T13:51:51.656-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-19747643227683872382009-09-01T13:51:00.001-07:002009-09-01T13:51:27.626-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-37261738550508363002009-09-01T13:50:00.001-07:002009-09-01T13:50:58.624-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-62515498938975512732009-08-31T08:01:00.000-07:002009-08-31T08:03:30.627-07:00

Here is a stock that is behaving well this morning:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-56909237555348974392009-08-29T15:06:00.000-07:002009-08-29T15:08:11.932-07:00

This stock is currently in a strong uptrend:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-78876888967753122632009-08-29T14:09:00.000-07:002009-08-29T14:11:04.959-07:00

This stock had a strong week. I'll be keeping my eye on this one.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-55565321872603912002009-08-29T10:48:00.000-07:002009-08-29T10:49:43.625-07:00

Friday's close looks constructive. This stock is still in an uptrend:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-51420455463040076292009-08-29T10:47:00.002-07:002009-08-29T10:48:33.188-07:00

This stock is showing significant relative weakness:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-60758991260985566392009-08-29T10:47:00.001-07:002009-08-29T10:50:20.332-07:00

Just looks weak:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-51116705072342535362009-08-29T10:45:00.000-07:002009-08-29T10:47:03.401-07:00

This stock is making a new 20-day low:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-63837735700445957072009-08-27T05:56:00.000-07:002009-08-27T06:01:02.485-07:00

I have developed several new scans that I am very excited about. I am hoping that these new scans, along with some other minor tweaks to my system, will help improve performance, which has not been great over the last 2 months:If you are like me, and have not been trading well lately, then I recommend reading this superb post by the Art of Trading. This guy is truly a professional.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-48568437024994208882009-08-27T05:55:00.001-07:002009-08-27T05:56:09.609-07:00

I will be keeping my eye on this for a potential short:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-7259970248001552782009-08-27T05:53:00.001-07:002009-08-27T05:54:58.220-07:00

This stock is up 5 days in a row. Will it make it a 6th?

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-60002481751427727762009-08-27T05:50:00.000-07:002009-08-27T05:53:00.175-07:00

I think this stock has the potential to go higher. Getting stopped out at $6.97 says I'm wrong:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-35865835474133456872009-08-25T06:01:00.000-07:002009-08-25T06:03:06.052-07:00

Here is a highly volatile stock that may have potential. To me, higher volatility means smaller positions:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-54613179302400880732009-08-25T06:00:00.000-07:002009-08-25T06:01:44.363-07:00

I bought this stock recently. I like how it is making a new 26-week high:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-19882625160774559642009-08-25T05:59:00.000-07:002009-08-25T06:00:57.572-07:00

Because the general market is strong, I am mostly long stocks. But I shorted this stock anyway, as it is doing much more poorly than the general market, and was making a new low.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-77674148831723170842009-08-21T06:00:00.000-07:002009-08-21T06:03:01.156-07:00

This stock is up over 700% since its bottom in October. But who knows when the trend will end...

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-10921942801420938262009-08-21T05:59:00.000-07:002009-08-21T06:00:27.499-07:00

This stock is currently in an uptrend:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-52179035105777493502009-08-21T05:58:00.000-07:002009-08-21T05:59:38.940-07:00

This stock is extremely weak relative to the general market

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-88730637713784095482009-08-21T05:57:00.000-07:002009-08-21T05:58:53.091-07:00

I don't have a position in this one, but I think it looks rather weak. Notice the bearish upper shadow on today's candle:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-51014253787874406032009-08-21T05:55:00.000-07:002009-08-21T05:57:27.257-07:00

I shorted this stock on Monday. I shorted it because a long was stopped out, and also because the stock made a new 20-day breakdown:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-9317847472583597602009-08-15T06:53:00.001-07:002009-08-15T19:30:33.364-07:00

Here is an ETF that made a new 52 week low yesterday. This ETF follows the price of Natural Gas, and what I find interesting is that it is now down over 98% from its highs made last summer.Over the last year, I have listened to various fundamental and technical rationalizations as to why Natural Gas was a good buy at various points in time. Some of these arguments included:RSI being "deeply

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-88052562146402841362009-08-14T05:50:00.000-07:002009-08-14T12:36:05.826-07:00

I developed a new scan that seeks out stocks that are making fresh 20 day highs/lows. I felt motivated to do so after re-reading Michael Covel's The Complete Turtle Trader, which, I have to say, is probably my favorite market related book.In my opinion, there are certain advantages and disadvantages associated with using a 20 day breakout. The advantage is that, if a trend does emerge, you are

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-38918759643753375602009-08-14T05:49:00.000-07:002009-08-14T05:50:08.671-07:00

This stock is making a new 20 day low:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-87799717251812754462009-08-14T05:47:00.000-07:002009-08-14T05:49:27.782-07:00

This stock, which used to be stellar performer, is now looking rather weak. I will only short this stock if the general market proves weak:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-42623558379832460032009-08-09T06:15:00.001-07:002009-08-09T06:58:57.386-07:00

I did these trades this week:Covered SUN (Stop hit)Bought VITASold ROST (Stop hit)Shorted GENZBought IFNSold VITA (Stock got crushed) I was on track to make money this week, as most of my longs are performing well, until VITA gapped down 30% on Friday morning. I think VITA was a good bet that happened to result in a bad outcome.In the future, if a stock has the same chart pattern and strength as

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-23697453191566784422009-08-09T06:13:00.000-07:002009-08-09T06:14:57.530-07:00

This stock is showing signs of relative weakness:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-5373996854086082742009-08-09T06:12:00.000-07:002009-08-09T06:13:55.944-07:00

This stock is making a new 20 day low, and may be shorted by me if the general market proves weak:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-68951273832426353792009-08-09T06:11:00.000-07:002009-08-09T06:12:45.285-07:00

This stock is currently in an uptrend:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-33540778045812981082009-08-05T13:58:00.000-07:002009-08-05T14:02:10.228-07:00

I bought this stock on Monday at $6.74. So far I am down, but I think today's candle looks constructive. If the stock declines to my stop, then it will be sold. Otherwise, I will keep holding it for as long as the trend persists:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-30371448158968177872009-08-05T13:57:00.000-07:002009-08-05T16:46:48.410-07:00

This stock recently made a new 20 day low, and looks weak (especially on a relative strength basis):If the general market remains strong, then, in all odds, I will not be taking a (short) position in this stock.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com3tag:blogger.com,1999:blog-4163874249687403106.post-70960507990516917212009-08-05T13:55:00.000-07:002009-08-05T14:06:21.766-07:00

Because the general market is strong, my account is mostly long stocks. Nonetheless, I decided to short this stock below:Now that I am holding this stock, it is now reflected in my public chart list. The reason I have decided to organize my list in this way is that it allows me to quickly check the status of my holdings from any computer without having to log in.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-31695052562203385812009-08-05T13:54:00.000-07:002009-08-05T13:55:10.274-07:00

I continue to think that this stock has a constructive looking daily chart:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-72150399344245631772009-08-01T13:27:00.000-07:002009-08-16T07:36:56.840-07:00

I've thought of a new strategy for trading stocks, and will be experimenting with this strategy in my retirement account. My small retirement account formerly held investments that (I thought) had strong fundamentals, such as natural gas, and oil.Last year, I read about a dozen books on a theory known as 'Peak Oil', and I really do think that the theory is based on a sound foundation. However,

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-52518716096653789092009-08-01T08:27:00.000-07:002009-08-01T08:50:57.241-07:00

I did these trades this week:Covered VLO (crossed 50dma)Bought MV (Being stopped out of a short must mean the market is strong)Covered ELYCovered ASBCBought HGGCovered NPBCBought API.to (see below)The market continued its ascent this week. Most of my shorts were squeezed quite badly, and were stopped out. It almost every case, being stopped out was the best thing that could have happened.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-23109515326085849942009-08-01T08:26:00.002-07:002009-08-01T08:27:52.163-07:00

A lot of gold stocks look like they are heating up. Perhaps this is due to the USD breaking down (not shown):

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-40557540332158080832009-08-01T08:26:00.001-07:002009-08-01T08:26:25.214-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-8234398391566111052009-08-01T08:25:00.000-07:002009-08-01T08:26:07.949-07:00

This stock also has a very constructive weekly chart:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-76353084304644681172009-07-28T14:58:00.004-07:002009-07-28T15:08:26.567-07:00

I'm not sure what the market will do for the remainder of the week, but I am sure that there are a lot of great looking longs out there.I tried to find longs that were making new 52-week highs, as well as having constructive looking weekly and daily charts.I recently added this stock, MV, shown below to my account. This addition, which replaces a freshly squeezed short, now makes my account

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-55779654203699381262009-07-28T14:58:00.003-07:002009-07-28T14:58:46.376-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-55861094792951630302009-07-28T14:58:00.001-07:002009-08-01T08:51:09.407-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-89803562480150903182009-07-28T14:57:00.002-07:002009-07-28T14:58:13.296-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-8272097611357240162009-07-28T14:57:00.001-07:002009-07-28T14:57:57.276-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-56150697188800565332009-07-25T08:45:00.000-07:002009-07-25T08:46:33.438-07:00

This stock has broken out of its box, and looks strong:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-44807527165293815322009-07-25T08:44:00.001-07:002009-07-25T08:45:30.309-07:00

This stock looks strong. Notice the new 52 week high:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-67627478367103343742009-07-25T08:29:00.000-07:002009-07-25T08:44:28.315-07:00

This stock looks weak. A break below $8.00 makes this stock highly shortable, in my opinion:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-65903378110284711902009-07-22T15:37:00.001-07:002009-07-22T16:28:08.569-07:00

Over the past 4 years, I have opened 4 currency trading accounts with various brokers. My first 2 currency trading accounts imploded due to me not knowing what I was doing, the third account I broke even at (but closed it due to the sleep deprivation it caused), while the fourth account I have been trading actively since May.In my opinion, currency trading seems to offer many advantages over

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com4tag:blogger.com,1999:blog-4163874249687403106.post-23030891174574522592009-07-18T05:57:00.000-07:002009-07-18T07:55:16.212-07:00

I did these trades this week:Covered FULT (hard stop hit)Covered ELY (second lot only, original position still being held)Bought IVNSold IVN (hard stop hit)Shorted NPBC (added to existing position)I went into this week being almost entirely short, so the fact that the market rose every day this week was not beneficial. I lost less than 10% of my account equity this week, which is actually

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-86720684383739764622009-07-18T05:05:00.000-07:002009-07-18T15:32:07.980-07:00

Here is a stock taken from The Tischendorf Letter. The chart below shows that the stock is currently in a strong uptrend, which is evidenced by the alignment of all of the moving averages, and also by the numerous gaps up.I may consider placing a buy stop around the $1.75 area, as I think a breakthrough there could be favourable.Also, readers of this blog may notice that I rarely buy stocks

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-15552550480672736462009-07-18T05:02:00.000-07:002009-07-18T05:05:40.551-07:00

Here is a stock that has just made a new 52 week high. Stocks like this provide me with 'ammunition' in the event that the market rallies, and shorts are stopped out.

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-3829300585120364072009-07-18T05:00:00.000-07:002009-07-18T05:02:33.453-07:00

This stock has recently made a new 26 week low. A break below $10.00 would really prove to me that the bears are in control:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-22991632139216342262009-07-14T06:08:00.000-07:002009-07-14T06:52:32.180-07:00

I lost quite a bit of money with yesterdays rally. Although most of my shorts rose, none were stopped out. As I am writing this, the market opens in 20 minutes, and any strength at the open will likely stop out at least one position. If this happens, I will replace stopped out shorts with one of the following longs. Unfortunately, it appears that I may be in the process of getting

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-23264503116424818142009-07-14T06:07:00.001-07:002009-07-14T06:08:21.837-07:00

This stock is making a new 26 week high:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-63428020152623174802009-07-14T06:06:00.001-07:002009-07-14T08:38:27.877-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-46433619990580502312009-07-14T06:05:00.000-07:002009-07-14T06:06:10.176-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-80058575659950619082009-07-11T11:14:00.002-07:002009-07-11T19:22:52.685-07:00

I did these trades this week:Sold EWAShorted HANSSold OCNShorted CEPH (see below) As I suggested last week, the market fell this week, and more longs were stopped out. OCN was stopped out for a 24% profit, while EWA only for about 1%.I am only selling my longs because they are breaching their 50 day moving averages. I am not selling them because I believe the market is going to decline. I

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-11667409256905183242009-07-11T11:14:00.001-07:002009-07-11T11:14:23.185-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-89316042442016118722009-07-11T11:13:00.000-07:002009-07-11T11:14:04.329-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-60742911569686003182009-07-11T11:12:00.001-07:002009-07-11T11:12:50.695-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-2130306037504537732009-07-11T11:11:00.004-07:002009-07-11T11:12:22.313-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-21490427029243868582009-07-11T11:11:00.003-07:002009-07-11T11:11:56.913-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-62760435525513925122009-07-11T11:11:00.001-07:002009-07-11T11:11:36.343-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-55643326969717095472009-07-11T11:07:00.000-07:002009-07-11T11:11:08.042-07:00

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-22354883012004145372009-07-07T14:22:00.000-07:002009-07-07T14:28:34.564-07:00

A new stock came up in my 26 week low scan today, and it is a stock I have mentioned on this site before. On May 30, I got rid of my long position in HANS, and mentioned that the stock was "seriously weak". I originally bought HANS because it was in an uptrend at the time, and sold it several months later after it broke its 50 day moving average, signaling to me that the trend had come to an end

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-74947191007853120352009-07-04T06:28:00.000-07:002009-07-04T07:44:57.459-07:00

I did one trade this week:Shorted more ELY (see below)The market continued to show weakness this week. In my trading account, my shorts are starting to flourish, while longs are barely getting by. If the market shows any additional weakness in the next few days, then my EWA position will almost certainly be cut, but since I am net short, this would be a desirable outcome.It is also worth

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-7203362672793309552009-07-04T06:25:00.000-07:002009-07-04T06:28:47.506-07:00

If I make money next week, I may decide to plow margin into this short. My thought pattern is as follows. Because I am net short, making money likely means the market is falling, and if the market is falling, then it only makes sense to go with the flow and continue shorting:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-11432328752365656442009-07-04T06:23:00.000-07:002009-07-04T06:25:48.204-07:00

This stock is currently in an uptrend, and has made a new all time high. I will keep this stock in mind if the market rises again:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-62471342129402237922009-06-28T04:53:00.000-07:002009-06-29T06:50:26.258-07:00

I did these trades this week:Sold BDD (hard stop hit right on Monday morning)Shorted PCBC (right away used margin from BDD to short this one)Sold RHT (stock broke 50dma. Break even trade)Shorted GMESold CAKE (stock broke 50dma)Shorted FULT My system caused my account to become much more exposed to the short side of the market this week. Monday's weakness was the last straw for some longs,

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-88119209422313453912009-06-26T09:01:00.001-07:002009-06-26T12:42:28.681-07:00

As readers of this site might have guessed, I do not have a whole lot of respect for the buy and hold investment mantra.I do not believe in buy and hold investing even after working in the financial services sector for several years (which is built on the foundation of buying and holding), and also graduating from a business college in which students are basically indoctrinated from day one to

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-49039603651652695492009-06-25T07:40:00.000-07:002009-06-25T07:42:52.257-07:00

This stock is currently in a downtrend:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-46112187006311653102009-06-25T07:38:00.000-07:002009-06-25T07:40:27.502-07:00

Although I prefer not to short stocks under $5.00, a break below $3.00 could be bearish:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-43167954805284658152009-06-25T07:32:00.000-07:002009-06-25T08:10:20.698-07:00

I usually have no idea what product or service the companies I post provide. I have some stocks in my trading account that I have been holding for months, and I still don't know what they do. I buy or short them based solely on the chart's characteristics. But I am familiar with this Canadian airliner, WestJet, shown below. From my experience, they seem very well run, very organized, and an all

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-25533527178982688212009-06-20T14:51:00.000-07:002009-06-20T15:04:16.631-07:00

I did 2 trades this week, both in the first few minutes of trading on Monday:Sold ASIA (Hard stop hit, luckily without much skid)Shorted ELYWell, another stock perished as a result of further selling on Monday. Fortunately, I shorted ELY immediately afterward, and this helped to mitigate some of my losses.I now feel that the stock market has entered a sideways trend, and the buyers and

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-49399102278422240732009-06-20T14:26:00.001-07:002009-06-20T15:24:01.471-07:00

This stock put in a bearish engulfing pattern on Friday. To some, a bearish engulfing pattern should come after the stock has run up, and is supposed to indicate that a stock is topping out.In my view, if a stock is making a run up, it should not be shorted; regardless of the candle formation. The way I see it is that a stock in an uptrend means that the buyers are in control, but a bearish

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-14406963098791719102009-06-20T14:24:00.000-07:002009-06-20T14:26:18.821-07:00

I don't know why this stock is doing so poorly, but obviously someone does:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com2tag:blogger.com,1999:blog-4163874249687403106.post-74594157295827400792009-06-20T14:22:00.000-07:002009-06-20T14:24:01.475-07:00

This stock has recently exploded out of its range on very heavy volume:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0tag:blogger.com,1999:blog-4163874249687403106.post-29069539405326667472009-06-20T14:19:00.001-07:002009-06-20T14:22:36.728-07:00

This stock has recently broken out of a box. A perfect Nicholas Darvas type trade:

Danny Merkelhttp://www.blogger.com/profile/14507912794467326858noreply@blogger.com0