Money Making Book: An Investor's Guide to Options Trading
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August 28, 2007

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There is a risk of loss in all trading. Past results are not necessarily indicative of future results. Results shown here should be considered hypothetical. Hypothetical results do not correspond to actual profits or losses.

Trade Alert, our entry trigger was reached!

Update #646  May 16, 2007      PRINTABLE VERSION

Wednesday May 16, 2007 

Trade Alert!

The Dow jumped higher on the open and pushed above 13,430 reaching a high of 13,440. It has since fallen below our short entry trigger of 13,371, and with that we have gone short.

We are Short.

  • The Dow was 13,369.45
  • The DIA was trading at about: 133.90
  • The June 07 Future was trading at about: 13405
  • The DDM (ProShares Ultra Dow 30) was trading at about: 93.75
  • The DXD (ProShares UltraShort 2x) was trading at: 50.60
  • The DOG (ProShares Short Dow 30) traded at 59.23

The stop price is 13,475. If the Dow falls below 13,340 then lower the stop to 13,440, and on a break of 13,280 lower the stop to 13,380.

If the Dow falls below 13,310 this will be the largest pullback since the rally began in late March. Such a development will be highly encouraging and help confirm our position

Jim Patterson



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The Dow Double Diamond system was designed for trading the Dow Diamonds (symbol DIA). Some investors may choose to use the system with Dow or Dow Diamond futures or even options. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

There is risk of loss in all trading. Past results are not necessarily indicative of future results.
Results are hypothetical. Hypothetical results do not correspond to actual profits or losses.

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