Renewed Vigor

Ok - so I haven't posted anything in a year but with the studying I've been doing and the success I've been having, it's almost time to change the name of the blog altogether.  So, starting last January, I went pro on taking Astrology Horary questions and have had a pretty successful run.  I'd say I'm about 70% accurate.  This year, starting in January, I've been studying the Elliott Wave Theory and a great e-book called The New Elliott Wave Rule.  Google it.  It makes so much sense.  As a result of that book, I've formalized a trading plan with penny stocks (anything under $7). 

Here's the basics:

I run my scan on www.finviz.com with the following requisites. 

The Average Volume must be over 1 million. 

The Current Volume must also be over 1 million.

The Price must be under $7

The Average True Range must be over 0.25.

I'm looking for each chart that I invest in to return at least $0.15. 

Go to www.freestockcharts.com and pull up the chart.  You'll want the following drawing tools - Fibonacci Retracement, Lines, Text and Moving Average.

Follow the counting guidelines of the Elliott Wave Theory and don't forget about the New Rule.  This is essential to determining where a chart is in the wave format.  Don't worry about every chart that you look at.  If the one you're examining gets too confusing - move on to another chart.  You WILL find one that is easy to count.

Once you have what you think is the proper count, use your Fibonacci Retracement tool on the last completed wave.  This will help you gain an idea of the next swing point.

To confirm this, you'll want to use a 10 day Simple Moving Average and 30 day Exponential Moving Average.  Follow the entrance strategy found at www.swing-trade-stocks.com. 

This is my trading strategy.  You may have a different system or find that my system is either not clear enough for you or that it doesn't seem to work for you.  That's fine.  This is not a guaranteed system and anyone who says they have a guaranteed system - STAY CLEAR!

So we have an entrance - here's my exit.  The good thing about penny stocks at over 1 million in volume and an ATR over 0.25 is the volitility.  When they go up, they can go up big.  That also means the go down big too.  I'm looking for a return of $0.15, so if my loss on the first day is $0.15 I'm going to bail.  This helps minimize your losses.

Now you can do one of two things.  If your return the first day is $0.15 and you think from your analysis that the stock is going to continue to go up - hang on to it and follow the exit plan outlined at www.swing-trade-stocks.com.  It's a good exit strategy.  I've used it but it's too safe for me.  I'm looking for quick returns.  So, if I've hit the lottery on a chart and it goes to $0.15 or above - I'm selling it by 3:40pm to collect my winnings.  If it only goes up a nickel and still looks like a viable stock, I'll hang on to it until I get my $0.15 return.  However, if it looks like it's going to trade sideways for the next week - it's gone.  I have other charts that I'm looking at and don't have time to waste my money on the hope that it might go up.

Simple and sweet.

Here's another catch.  The SEC does not consider swing trading as day trading.  They consider it investing.  They define day trading as buying and selling the same stock within a single day four or more times per week if those four trades account for 60% of your trades.  So if you have all of your eggs in one basket, and you buy/sell the same stock in one day - you can only do this three times in any one week, otherwise you have to have a margin account of $20k or more.  I don't like margin accounts.  If I loose my money and the margin, I'm in twice as much trouble. 

My advice is stay away from margin trading unless you want to begin shorting stocks - also a viable way of making good money with the Elliott Wave Theory.  In order to short stocks - you MUST have a margin account with $20k.  Most people reading blogs don't tend to have that king of cash, so for the time being - don't do it. 

Perfect the long position trading and then get into more complicated stuff.  Me?  I'm good with never shorting stocks.  There are literally thousands of stocks traded per day and at least one of them is on an uptrend. 

Good luck!

Falling Whistles

I happened across a concept that I feel really needs more attention.

http://www.fallingwhistles.com/about/

Apparently the war in the Congo is more deadly to children than their adult counterparts.  I was so disgusted by the actions of the two warring factions of sending children to the front lines of their war with nothing but a whistle.

Please take the time to view the website of the Falling Whistles.

Stock UCFC

OK - so I know I've been putting a lot of focus on stock trading, but I think that anyone interested in pursuing the Hermetic Sciences full time will need some sort of monetary spring - hence the swing trading.  Now - I put my order in on Sunday and it executed on Tuesday (Monday was a bank Holiday due to Martin Luther King Day).  When I put the order in, the stock was at $1.21, so I put in for 404 shares.  This would give me a total purchase of $488.84.  A $10 commission would bring me just shy of $500. 

Remember, my total account is $544.  $38 profit from the first trade and an additional $6 from the second (if I had sold when I should have i.e. the first day).

So when my order executed on Tuesday, the total cost of my shares actually went to $505, add $10 commission to that, and I'm dipping even further into my profits.

On review of this chart, I should have noticed two things - first I wanted it to be worthwhile, so I deluded myself on the Horary chart and convinced myself is was worth buying.  After looking at the stock chart, I should have also paid attention to the volume.  I know that on Craig's website, he doesn't put much stake in the volume - but, volume basically tells you the amount of interest in a stock.  If there's no interest, there's little movement either way.  I'm once again getting dragged through the mud.

So I'm putting my sale order in now.  If UCFC's first open price hits $1.30 then I will have made $0.20 on this trade.  Not what I was looking at.

I promise I will start concentrating more on the rest of what this blog is about, from here on out.  Stay tuned for the rest of the How To Predict series, a pictorial on preparing an alchemical elixir and tips for hypnotic techniques in the weeks to come.

January 15th Stock Pick of the Week

Ok - so I screwed up.

Here's the deal.  I thought I should buy into CHRS back on Monday, which I did.  And because it didn't give me that profit I was looking for on day one, I figured I would hold onto it and follow the trailing stop loss strategy found at Swing Trade Stocks.com.  It's a good strategy.  The problem is that it basically dragged me through the mud, trudging and slowly drowning me.  My original get out price was $4.55 since I got in at $4.70.  And granted the stock hasn't dipped that low (it's only at $4.65) but it's been an entire trading week, and that's just not swing trading.  That's bordering on buy and hold investing (bit of an exageration).  What I should have done was sold on Monday.  The stock went up the first day.  I was excited.  If I had put my sell order in that night, my trade would have executed at about $4.95 - it's opening price on Tuesday.  This would have given me the $6 profit after trade commissions that I was looking for.  But did I listen to my astrological chart, wherein I predicted I woul be profitable if I entered the trade on Monday?  Nooooooooo.  I had to get all analytical on myself, over think the situation and say "Well the chart didn't say that I would lose money if I stayed in longer than a day". 

That'll teach me. 

In any event - on with this week's pick.

I figure now would be a good a time as any to explain how I search for stocks.  I use FinViz.com's stock screener.  First I choose the Descriptive screen for price.  I'm looking for anything under $5.  Risky, I know but I'm only dealing with $500 right now so I can't really expect to turn a profit on $50 stocks.  Then under the technical screens, I want the price to show below the 20 Day SMA, but above the 50 and 200 Day SMA.  This should limit the stocks to a single page.  I then take a closer look at these stocks by running free charts on stockcharts.com.  The technical analysis tools I'm using at this site right now are Williams %R with a parameter of 3 instead of 14 (the default), as well as Volume, Full stochastics, a 10 and 200 Day SMA, and 30 Day EMA.  If you're following this and want to do the same, let me know if I'm not being clear on the directions.

The stock this week is UCFC.  The price is really low.  It has sold off pretty strong for a couple of days, the Williams %R is well below -80, it's the first pull back into the TAZ after a breakaway (mid December) and should be ripe to move into an upwave.  This is going to be a scalper, like the last two.  I think I'm going to buy Monday morning and sell Monday night but we'll see how it performs before making that final decision.

I'm going to cheat on this game.  I'm going to pretend that I actually made the righ decision to sell CHRS.  otherwise I won't have the money to buy into this next stock and ride this wave.  In the real world, obviously I wouldn't be able to do that.  I'd have to wait until my sell order for CHRS places before putting in my buy order for UCFC, but since I'm only playing a game with virtual money - it's really not that bad.  C'mon, I'm learning here, and isn't that more important?


The reason for the scalper position I'm taking on this one is mainly based on the Horary Reading I just did.  Virgo rises, ruled by Mercury who is in Capricorn, peregrine and moving to combustion.  His only beneficial aspect right now is Venus - ruler of my second house (money), and he's even separating from that.  Notice here that Mercury also rules my 10th (career).  And while he is accidentally strong by being angular in the 4th, he is greatly debilitated and has no essential dignity.  Look at Mars, peregrine and conjunct the Ascendant.  This does not bode well for the Querent (me).  Nor does the Moon (my consignificator) have any real strength in Libra and moving to a square of a peregrine Sun. The malefic Moon and Saturn both in my second house afflict the matters of my second house.
 
The one saving grace to my money is that Saturn is a noble malefic being in his exaltation.  Clearly, any long term investing in this stock spells disaster for my money.

But here's the good thing.  Jupiter is the natural significator of money.  He and Venus are in mutual reception of each other by rulership and just beginning to separate from an easy sextile aspect.  Jupiter is in the house of my partner's money (8th house).  Venus, my money, is in the house of my servants (6th).  I'm trying to get my money to work for me by investing in my partner (UCFC).  Jupiter is also the ruler of the 4th (resolutions).  Now, my conclusion to this is that because these planets rule the houses that they're in by exaltation and are in mutual reception by rulership, the goodness that they promise will be supernaturally strong.  Basically, the power that they have right now will not last but it will be a good thing. 

It's confirmed by the fact that they are separating.  Frawley might say that according to the stars, this slight separation is the stars way of saying that the plan is already set in motion.  Indeed, I seem to have already made up my mind on this stock before consulting the stars.

Maybe I'm just deluding myself, but the last horary chart confirmed when to invest.  It was my own ignorance that kept me in the stock.  This current chart is also telling me to jump in and then jump right out.  Hopefully I have the guts to do it.  Here we go...

CHRS: Still the Stock pick of the week

I just wanted to ensure that I was posting on a daily basis while testing this theory about using horary and stock screening to pick a time when to enter a stock.  If I had a couple thousand dollars to throw at this stock I would have put a sell order in last night (Monday, January 9th).  This would have gotten me out with a hefty profit since it went up 20 cents in one day then opened really high this morning.  But since I don't have that much money, I'm following my exit strategy. 

If I lose $15 on the total invested amount, I'm out.  This will help me keep my loss to a total of $35 after trade commissions.  So, today we're up by 11 cents.  I got in yesterday at $4.70 per share and now it's at $4.81, down 9 cents from yesterday's close but still more than when I got in.  This is to be expected, which is why swing trading tends to be a buy and hold for two to three days. 

The last trade was just pure luck based on the previous day's volume.  If I had more confidence in that other stock I would have hung on to it, but as was seen there was no point since it dropped right after I sold it.

I'll keep posting this week on this particular chart until I sell.  Next week, I'll screen for another stock - showing you exactly how I find the stock and then I'll cast another horary chart to see when to enter.  If I like the way both charts look we can test the hypothesis again.  If not, I'll keep trying until I find the right method.

Stay tuned....

Stock of the Week: CHRS

So we're still looking at CHRS.  I recommend you go to http://www.freestockcharts.com/ and pull up a chart on CHRS.  Add some technical indicators such as Williams %R (make sure to edit the span from 14 to 3).  You can also add the EMA and SMA.  EMA should be 30 and SMA should be 10.  Make sure you change the chart pattern to candlestick.  On freestockcharts.com you can switch between daily and minutes.  If you are looking at daily, you will notice that the stock has now dipped into the TAZ as defined by Craig on his Swing Trade Stocks.com site.  The Williams %R indicator has dropped to below -80 and it has sold off for at least two days.

Looking at the Elliott Wave and Craigs 4 wave system, we see that the chart must be getting ready to head back up.

I apologize for not writing more in the past week.  This week I have been studying horary charts and professionally giving delineations so I've been consumed with astrology.  Notice that I did run a chart and posted it as my last blog post.  My prediction was that the CHRS chart would be ripe to invest in about 5 days.  I'm going to take the plunge.  My fears with this chart are that the volume is still relatively low, but Craig doesn't put a lot of stock in volume unless there is a major spike in both volume and price. 

There are no earnings reports coming out for this company right now so all of the basic indications that this is a worthwhile chart are there, and manifested five days after the horary question was asked.

So here we go: I take $500 and invest $490.  Right now the price quote is $4.69 per share.  I'm going to buy 104 shares.  That puts my total investment at $487.76 plus a $10 commission.  I need the stock to jump up about 25 cents in order to make a $6 profit after buy/sale commissions.  Pretty reasonable considering that we're hitting a former resistance as well as former support level.

Crossing my fingers, trusting my delineation and looking at the stock chart...

Horary of the Stock Pick January 1st

So I had to do the best with what I have and I wanted to post my reading before the stock CHRS does anything this week.  The opening bell for this week is not until tomorrow morning, Tuesday January 3rd.  I said that I wanted to learn how to do Astrology along side picking stocks so here goes.

Horary can't pick a chart for you.  I doubt any branch of real astrology can do that.  What Horary can do is tell you whether or not you're on the right track.  In Warnock's case study book there is an example of a business venture that someone asked.  The question is essentially, "Will I profit from a business partnership with Mr. X?"  I find this to be quite fitting with picking a chart.  Mr. X is the company that I want to buy into - in this case CHRS.

First things first.  The first house represents the Querent, that's me.  The ruler of the 1st house is Venus.  Now, the question was asked around noon time on Sunday and the ruler of the hour was the Sun, so the chart's not radical but like Mr. Warnock's case we can still obtain judgement.

The 7th house is cusp is in Scorpio, ruled by Mars.  He's down in the 5th house having fun, kind of.  See, he's in the sign of Virgo which is ruled by Mercury both by primary and exaltation, and he's in hurting condition but we'll get to that in a minute.

The Moon is in the 12th house which is the weakest of the bunch, so she really can't make anything happen.  Right there we should say to ourselves, "This really isn't going to happen".  But I want to confirm this.

Let's look at some of the other aspects.  Venus, that's me, is in mutual reception with Saturn, who's not in poor zodiacal state.  In fact, being in Libra, he's exalted and it's he has Honor of Triplicity.  So he's pretty strong right now.  The only thing not good for him is being in the Sixth House which is cadent but that's outweighed by his dignities and the mutual reception with the Lord of the Ascendant.  What does that tell us?  Well, Saturn rules both Capricorn and Aquarius, which means he rules both the 10th and 11th houses.  In other words, he rules my job and my salarie.  Saturn being in the 6th (servants) and mutually received by Venus in the 10th, we can say that I want my salarie to work for me and my salarie wants to serve me ( insomuch as it has desires...). 

This would seem to be good but we have to look at my treasury and my partner's treasury to determine whether or not this is wise to put the two together.  My treasury (2nd house) is Gemini, ruled by Mercury.  My partner's treasury, 2nd from the 7th (i.e. my 8th) is ruled by Jupiter.  If you know anything about this at all it really doesn't look good.

First, let's talk about my partner's money and then we'll get to mine.  Jupiter is in Taurus, which is where he is exalted.  Great! But look again.  He's opposed Saturn.  Booo!  And he's in the 12th house (secret enemies).  So not only is he afflicted and weak, but what little promise he had for me was to work against me anyways.  Double booo!

Now let's look at my money.  Mercury rules Gemini, the 2nd house in this chart.  Mercury in this chart is in the 8th house.  The house of death.  Ouch.  To make matter's worse, he's in his detrmiment and afflicted by a square with Mars (my partner).  This indicates obstacles and difficulties between my money and the partner.  And, oh yeah, the South Node of the Moon is in the 2nd.  Mercury would need a lot of help from a really strong benefic planet to come out of this situation smelling halfway decent at all.  But alas, the greater benefic Jupiter (Mercury's dispositor) is also Peregrine, in the 12th and afflicted as we have already seen.  The next one on the list?  The Sun.  Nope. Sorry.  He's also Peregrine.  So we come to Venus.  Venus is actually in great shape and aspects Mercury from a sextile.  This is great!... no, wait.  Mercury direct and fast is moving away from this aspect.  This means my money did work for me not that long ago, but not anymore.  (Which we saw by the 7.7% treasury increase)

Ok fine, but we have one last thing to consider.  The Moon.  We already said she was in the 12th house.  She can't really affect any thing strong.  We could say that there is a translation of light going on.  The Moon separates from a sextile with Venus and her next move is a sextile with Mercury, so the light that Venus once cast onto Mercury can be restored to him by casting it onto the Moon who will then cast it back to Mercury as she moves to a Trine with him in five units of measure.

But wait there's more.  If this wasn't my chart and I was able to give a completely clinical reading, I would say that it's best to wait about five more days from the time of the question before doing anything.  If it will be profitable, then it should manifest around that time.  This puts us at Friday.  Any sooner and my money is gone.

If my astrological reading is correct, it seems to match with my reading of the stock pick to begin with.  So, I'm crossing my fingers and waiting to see how this plays out.