Meanwhile, these were Jay's calls Monday (the targets are just guidelines, many traders took more and less, timing is respective to the individual trader):

THIS PAGE UPDATES THROUGHOUT THE DAY, MAKE SURE TO REFRESH DURING MARKET AND POST MARKET HOURS. Just testing.

Intraday Trades -
__________________________________________

8:23 - BUY RIMM 126.45, SOLD 126.75, out + .30
9:32 - BUY JASON 23.90, SOLD 24.35, out + .45

Intraday Narrative:

RIMM gapper with premarket 5 min mini pup to clip thrusts as the noodles couldnt crack that 1967 coil resitance triggered stochastics down on all time frames. JASO grinded a trend reversal even in the face of week noodles which was good for a nice ramp from 23.90 to 24.40s stinky 5s levels.


---------------------------------------------------------------------------
Subject: Jay's Notes For May 12-18th, 2008


Hi Gang,

Markets took a downturn last week as exhaustion kicked in to the DIA and QQQQs crossing down the daily stochastics. The DIA is testing the weekly 5 period ma's 127.65 level while the QQQQ's are still holding resilient above its weekly 5 level at 47.02. The Q's are also holding the daily 200 period ma supports at 48.10 so far. Intraday trading has been very tough as there is a LOT of divergence among stocks that normally tend to move together like AAPL and RIMM. They have also been notorious for overshooting the 60 minute 5/15s pretty hard up untli minutes for the hourly close. When in doubt stay out. When the wider time frames like the 60 min set up these mini pups, make sure that you are either scalping with good entries or allocating lighter shares for the wider ranges. Market has been chopping pretty tightly on daily basis, 1917 is weekly 5, 1973 is daily 5 resitance sloping down soa tightening pullback to the daily 15 near 1950 is likely in the cards early this week.

Econ reports this week:
May 12 14:00 Treasury Budget Apr
NA $157.5B $177.7B
May 13 08:30 Export Prices ex-ag. Apr
NA NA 1.2%
May 13 08:30 Import Prices ex-oil Apr
NA NA 1.1%
May 13 08:30 Retail Sales Apr
0.0% 0.0% 0.2%
May 13 08:30 Retail Sales ex-auto Apr
0.5% 0.2% 0.1%
May 13 10:00 Business Inventories Mar
0.3% 0.5% 0.6%
May 14 08:30 Core CPI Apr
0.2% 0.2% 0.2%
May 14 08:30 CPI Apr
0.3% 0.3% 0.3%
May 14 10:30 Crude Inventories 05/10
NA NA 5654K
May 15 08:30 Initial Claims 05/10
365K NA 365K
May 15 08:30 NY Empire State Index May
0.0 1.0 0.6
May 15 09:00 Net Foreign Purchases Mar
NA NA $72.5B
May 15 09:15 Capacity Utilization Apr
80.0% 80.2% 80.3%
May 15 09:15 Industrial Production Apr
-0.4% -0.2% 0.3%
May 15 10:00 Philadelphia Fed May
-20.0 -20.0 -24.9
May 16 08:30 Building Permits Apr
900K 912K 927K
May 16 08:30 Housing Starts Apr
940K 940K 947K
May 16 10:00 Mich Sentiment-Prel. May
65.0 63.0 NA

Earnings reports this week:

Mon: premarket: SIRI, XMSR, JASO, IMAX, PEIX, RDN: postmarket: NUAN, LDK, COGT
Tues: premarket: HOKU, DISH, CSIQ, GIGM: postmarket: ERTS, AMAT, WFMI, PLAB, FLML, MELI, JOBS
Wed: premarket: TTEC, REDF, FRE, REDF: postmarket: BRCD, SINA, CTRP, STV
Thurs: premarket: MLNM, YGE, JCP, BBI: postmarket: CPWR, HPQ, LTXX, GA, ADSK, CRM, FMCN, KONG

Stocks to watch:

MCIO weekly pup breakout @ 2: MCIO formed a nice weekly pup on Fridays close. I have mentioned this one as a long term highly speculative play in the solar/semi conductor as well as mining markets. I updated my blog this weekend, see chart and read here: http://www.themoneyblogs.com/undergroundtrading/my.blog/mcio-update-mcio-next-leg-up-breakout-forming.html

This one is only for risk capital, longer term speculators. It's a thin pink sheet stock, not for intra day players. I will look to add to my position near $2 and looking to hold majority of shares well into next year with ultimate price target in the 10-12 range. Do your research if you decide to play.

YGE long on weekly mini pup: The solar sector has been pretty resilient in the market pullbacks. YGE has a weekly mini pup with support at 22.18. Daily 200 target sits at 24.04. Would look for longs on a pullback test at 22.60 s 22.40 levels with a trail stop on 21.80 breaks for the daily 200 target. This one has earnings release premarket on Thursday.

Ok gang, this is also options expiration week so expect chop and early day on Friday. We should get some nice gapper/dumpers this week with some playable earnings. Hit n run with the green and keep it. Cya in the Pit!

J


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Swings/Overnights 2008/2007---

1/13 - BUY SEED 11 avg,1/16- STOPPED 9, out - 2
1/13 - BUY CAGC 3.25, STOPPED 2.60, out - .65
1/04 - BUY TIVO 7.43 add, avg 7.93, 1/08- STOPPED 7, out - .93
12/26 - BUY TIVO 8.43 avg,
12/17 - BUY WCG 42.70, overnight very LIGHT, 12/18- SOLD 44.50 premarket, out + 1.80
12/10 - BUY WCG 45 SWING/ADD, PARED 47, out + 2, PARED 48, out + 3
12/11- BUY WCG 47.30, add 46.30, avg 46.80 overnight, PARED 47.80, out + 1, PARED 48.80, out + 2, SOLD 49.20, out + 2.40
12/7- SOLD ZIXI SWING LONGS avg $3.20, SOLD $5.50, out + 2.30
12/4- BUY WCG 40.50 SWING, PARED 43.50, out + 3
12/4- CFC Jan12.50 puts, SOLD 3.40, out + .40
ZIXI pared 4.30, out + 1.30
11/9 - BUY ZIXI 2.75 add, avg 3.10, SOLD 5.50, out + 2.40
10/22/07 - BUY YHOO 30.20, PARED 30.60, out + .40, swing, 10/25- PARED 30.90, out + .70, PARED 31.50, out + 1.30, 10/26- YHOO PARED 32.70, out + 1.50, 10/29 - SOLD 34.20, out + 4

9/28 - BUY UNTD 15.03 SWING, 10/1- BUY UNTD 15.45add, avg 15.28, 10/26- SOLD 17.68, out + 2.40

10/26- BUY ZIXI 3.45 SWING,10/29- BUY 4 add (avg 3.65)

10/18 - BUY YHOO 29.60, SOLD 29.85, out + .25
9/28 - BUY UNTD 15.03 SWING, 10/1- BUY UNTD 15.45add, avg 15.28
10/8 - BUY AAOJI .35, STOPPED .09, out - .31
10/8 - BUY AAOKV 2.07, 10/12- STOPPED 1/2 1.57, out - .50 (swing the other 1/2)
9/23 - BUY ICOC 14.90, 9/26 - BUY ICOC 14.30, BUY ICOC 13.75, AVG 14.30, STOPPED 12.90, out - 1.50
9/20 - BUY AAPL 141.20, BUY AAPL 140.60 avg 140.90, PARED 142.20, out + 1.20, SOLD 143, out + 1.80
8/31- LONG BIDZ 8.75 SWING, 9/24 - SOLD 12.30, out + 3.55
9/4 - BUY OSTK 23.45, OVERNIGHT STOPED 22.80, out - .65
8/21 - BUY OSTK 21.42, 8/23- SOLD 22.50, out + 1.08
3:49 - BUY AAPL 136.25, OVERNIGHT, STOPPED 135.25, out - 1
7/23 - BUY TTPY 26, 7/27- PARED 26.50, out + .50, 7/31- SOLD 27.40, out + 1.40
7/12- BUY VRSN 32.80, 7/13- SOLD 34.10, out + 1.30
6/28 - BUY LOCM 6.87, 7/2- pared 7.40, out + .53, PARED 8.50, out + 1.47, SOLD 9, out + 2.13
6/6 - BUY STEM 2.44, overnight, SOLD 2.64, out + .20
6/5 - BUY MED 8.86, PARED 9, out + .14, 6/6- PARED 9.16, out + .30
6/5 - BUY AGEN 2.92, PARED 3.12, out + .20, 6/6- SOLD 2.37, out + .45
6/4 - BUY AMZN 70.45, overnight, 6/5- SOLD 71, out + .55
5/23 - BUY MCHX 14.05, 5/24- PARED MCHX 14.85, out + .80, SOLD 15.20, out + 1.15
4/2 - BUY JSDA 22.15, SOLD 22.35, out + .20, overnight, SOLD 23, out + .85
3/20/07 - BUY ARTG 2.34,
3/6 - BUY NVTL 13.90, 3/7- SOLD 14.40, out + .50
12/7 - BUY CHINA 9.41, STOPPED 8.25, out - 1.16
11/21 - BUY SHLD 172.55, 11/22 - SOLD SHLD 179.55, out + 7
11/20 - BUY PALM 16.07, 11/27 - STOPPED 14.27, out - 1.80
11/20 - BUY SOFO 4.04, 12/21 - SOLD 4.54, out + .50
10/26 - BUY RHAT 14.65, PARED 14.95, out + .30, 10/27 - SOLD 15.65, out + 1
10/09 - BUY PALM 14.85, RANGE/SWING, 10/11- SOLD 15.45, out + .60
9/11 - 3:33 - BUY ANGN 8.35, PARED 8.73, out + .38, 9/12- SOLD 9.90, out + 1.55
8/23 - BUY RMBS 13.22, 8/24 - SOLD 13.92, out + .60
8/14 - SHORT OIH 134.72, overnight, pared 134.42 ,out + .30
8/15 - SHORT OIH 136.10, pared 135.50, out + .60, pared 134.90, out + 1.10, out 134.50, out + 1.60
8/7- SHORT NTRI 49.20overnight, 8/8- COVERED 47.20, out + 2
6/23 - LONG QCOM 39.80avg, 6/24- PARED 40, out + .20, SOLD 40.20, out + .40
6/23 - LONG ERUSL (SEPR july 60 puts) 3.70, 6/24 - SOLD 4.60, out + .90
6/20 - BUY AAPL 57.93, 6/21- SOLD 58.53, out + .60
4/25 - 1:27 - BUY QUUQU $3.20 (aapl may 67.50 puts), STOPPED 2.10, out - 1.10
4/24 - BUY PEIX 32.80, 4/25- PARED 33.50 premarket, out + .70, PARED 34, out + 1.20, SOLD 34.50, out + 1.70
4/10 - BUY PEIX 31.25, 4/11 - SOLD 33, out + 1.75
2/13 - BUY TASR 10.62, OVERNIGHT, 2/14- SOLD 11.25, out + .63
2/8- BUY CTDC 11.67 GAPPER, STOPPED 2/9- STOPPED 11.30, out - .37
2/3 - SHORT SNDK 64.35, PARED 62.35, out + 2, 2/4- COVERED 61.50, out + 2.85
2/2- BUY TWPG 20.05, overnight, 2/3 - STOPPED 19.35, out - .70
2/2- BUY CTDC 11.28, PARED 11.98 , out + .70, PARED 12.38, out + 1.10, 2/3- SOLD 14.28, out + 3



Swings/Overnights 2005---

12/9 - BUY SIFY 8.15, PARED 9.40, out + 1.25, 12/13- SOLD 10, out + 1.85
11/16 - BUY GOOG 397.80, 11/17- PARED 401.80, out + 4, SOLD 403.30, out + 5.70
11/16 - BUY GOPTK 2.50 (goog nov 400 calls), PARED 4, out + 1.50, SOLD, out + 2.50
11/16 - BUY ADBE 33.18, SOLD 33.58, out + .40
11/16 - BUY SNDK 57.10, PARED 57.38, out + .28, PARED 57.60, out + .50, 11/17- SOLD 58, out + .90

10/25 - SHORT PLAY 21.50, PARED 21.28, out + .22, PARED 20.70, out + .80, 10/26 - PARED 20.25, out + 1.25
10/25 - BUY PQPWX 2.15 (nov 2.50 puts on Play), PARED 2.70, out + .55, 10/26 - PARED 3.70, out + 1.55
10/20 - BUY LEXR 7.35 OVERNIGHT, PARED 7.61, out + .26, PARED 7.80, out + .45, SOLD 7.90, out + .55
9/7 - BUY MSO 33.17, 9/8- SOLD 33.47, out + .30
9/7 - BUY ERTS 56.55, 9/8- PARED 56.77, out + .22, PARED 57.15, out + .60, SOLD 57.35, out + .80
8/4 - 10:26 - BUY AMGN 83.10, PARED 83.60, out + .50, SOLD 83.90, out + .80
8/3 - BUY AMGN 82.75, OVERNIGHT, STOPPED 82.50, out -.25
8/3 - BUY WFMI 136.35, PARED 136.70, out + .35, SOLD 136.85, out + .50, OVERNIGHT, 8/5- SOLD 138.80, out + 1.45
8/1- BUY EBAY 43.84, PARED 44.24, out + .40, PARED 44.50, out + .66, SOLD 44.60, out + .76
7/12 - BUY NDAQ 20.65, overnight, 7/18 - SOLD 21.15, out + .50
7/11 - BUY DIA 104.90, PARED 105.30, out + .40, OVERNIGHT,7/12 - PARED 105.60, out + .70, 7/13 - SOLD 106.15, out + 1.25
6/7 - SHORT KLAC 45.33, OVERNIGHT, 6/8- STOPPED 45.46, out - .13
5/31 - BUY IMAX 9.44, PARED 9.60, out + .16, PARED 9.95, out + .51, 6/2- SOLD 10.15, out + .71
5/31 - SHORT BRCM 35.77, COVERED 35.51, out + .26
5/27 - SHORT BRCM 35.86avg, 5/31- STOPPED 35.96, out - .10
5/17 - BUY DIA 103.39, overnight, 5/18- PARED 103.90, out + .51, PARED 104.39, out + 1, PARED 104.80, out + 1.41, SOLD 105, out + 1.61
5/5 - BUY LGF 10.20, PARED 10.28, out + .08, 5/9 - PARED 10.48, out + .28
4/27 - SHORT AAPL 35.88, overnight on daily and 60 min inverse pups, 4/28 -PARED 35.58, out + .30, COVERED 35.28, out + .60
4/26 - 3:44 - SHORT CTSH 40.95, overnight swing daily inv pup, 4/27 - PARED 39.75, out + 1.20, COVERED 38.75, out + 2.20 weeee
4/26 - SHORT EBAY 30.90 and 31.29, avg price (31.11) overnight on daily inverse pup, 4/27 - STOPPED 31.40, out - .29
3/31 - SHORT NUE 57.72, PARED 57.42, out + .30, 4/1- STOPPED 57.85, out - .13
3/28 - BUY SYNA 24.05, overnight, 3/19 - STOPPED 23.90, out - .15
3/28 - SHORT LEXR 5.59, PARED 5.43, out + .16, PARED 5.20, out + .39, overnight, 3/29 - COVERED 5.02, out + .57
2:35 - BUY SYNA 24.05, overnight, STOPPED 23.90, out - .15

3/23 - BUY CHKP 20.75, OVERNIGHT TOPS and daily hammer, 3/24 - SOLD 20.98, out + .23
3/21 - BUY SYNC 3.27, GAPPER, 3/22 -STOPPED 3.25, out - .02
3/9 - SHORT PLMO 22.50, overnight, 3/10 -PARED 22.35, out + .15, COVERED 22.10, out + .40
3/8 - SHORT QLGC 42.21, overnight, 3/9- STOPPED 42.71, out - .50
3/4 - BUY SMH 34.10, overnight, 3/7 - SOLD 34.50, out + .40
3/4 - BUY QQQQ 37.62, overnight, 3/7 - STOPPED 37.58, out - .04
3/3 - BUY QQQQ 37.45, PARED BUY 37.15 (avg 37.30), 3/4 - PARED QQQQ 37.57, out + .27, SOLD 37.62, out + .32
3/3 - BUY DIA 107.77 (avg 108.05), 3/4 - PARED 108.80, out + .75, PARED 108.96, + .81, SOLD 109.10, out + 1.05
3/1 - BUY DIA 108.40, 3/2- PARED BUY LONG 108.03,
2/25 - BUY AAPL 45.57, GAPPER, 2/28 - STOPPED 45.40, out - .17
2/18 - SHORT QQQQ 37.37, 2/22- PARED 37.05, out + .32, COVERED 37.10, out + .27
2/17 - SHORT AAPL 88.40, PARED 88.20, out + .20, PARED 87.90, out + .50, overnight gapper down, 2/18 - COVERED 88, out + .40
2/16 - BUY AAPL 89.95, PARED 90.15, out + .20 overnight gapper, 2/17- SOLD 90.70, out + .75
2/14 - BUY BRCM 33.15, gapper, STOPPED 33.09, out - .06
2/14 - BUY AAPL 84.70, gapper, 2/15- PARED 86.10, out + 1.40, PARED 86.50, out + 1.70, SOLD 86.80, out + 2.10
2/11 - BUY AAPL 81.40, OVERNIGHT, 2/14- PARED 82.25, out + .85, SOLD 82.60, out + 1.20
2/9 - SHORT ATVI 20.28, overnight, COVERED 19.70, out + .58
2/8 - SHORT GOOG 197.60 avg., STOPP 200, out - 2.40
2/7 - SHORT QCOM 36.07, PARED 36.90, out + .17, OVERNIGHT, COVERED 35.47, out + .60
1/19 - SHORT QQQQ 38.10, overnight, PARED 37.90, out + .20, COVERED 37.65, out + .45 (postmarket)
1/18 - BUY ASTM 3.19, PARED 3.27, out + .08, PARED 3.33, out + .14, 1/19- SOLD 3.60, out + .41
1/10 - BUY GOOG 198, BUY 196.50, BUY GOOG 195.20, avg 196.20, 1/11 - PARED 197.40, out + 1.30, 1/11 - STOPPED 194, out - 2.20

Swings/Overnights 2004---

12/16 - BUY TASR 27.67, STOPPED 27, out - .67
12/13 - BUY MSO 26.62, PARED 26.85, out + .23, 12/14- PARED 27.20, out + .58, PARED 27.62, out + 1, SOLD 28.12, out + 1.50
12/7 - BUY WIND 14, PARED 14.50, out + .50, SOLD 14.20, out + .20
12/2 - PARED ROXI 10.10, out + .85, SOLD 10.25, out + 1
11/24 - BUY EBAY 112, 11/29- PARED 112.70, out + .70, PARTIAL STOP 111.65, out - .35, 11/30 - PARED 113.25, out + 1.25, STOPPED 112
11/22 - BUY ROXI 9.25, 11/29 - PARED 9.65, out + .40
10/19 - SHORT SBUX 50.17 avg, 10/20- STOPPED 50.25, out - . 08
10/14 - BUY TTWO 34.73, 10/19 - PARED 35.46, out + .73, SOLD 34.95, out + .22
9/30 - BOT ROXI 5.04, 10/21- PARED 5.84, out + .80, 10/22 - SOLD ROXI 6.05, out + 1.01
8/30 - BOT NQ 1382 (rehedge), SOLD 1381, out - 1, BOT 1376, STOPPED 1374, out - 2
8/27 - PARED DIA short 102.06/102.18, avg (101.26), PARED QQQ 34.56 (avg 33.79), SOLD NQ 1388.50, out + 32.50, STOPPED DIA, QQQ, YHOO, VZ
8/19 - BOT NQ 1356 (hedge)
8/18 - SHORT DIA 100.58 avg, SHORT YHOO 28.14 avg, SHORT QQQ 33.55, SHORT VZ 38.75
7/29 - BOT AMZN 38.83, 8/2- STOPPED 38.15, out - .68
6/29 - STOPPED CNET 10.97, out - .14, SOLD CMVT 19.55, out + .25, STOPPED BORL 8.48, out - .27
6/28 - BUY BORL 8.75, BUY CMVT 19.30, BUY CNET 11.11
5/24 - STOPPED REST OF DIA SHORT 100.15, out - .08
5/18 - COVERED QCOM 63.23, out + .20 (locked), PARE COVERED DIA 99.85, out + .22, COVERED ERTS 50.33, out + .29, COVERED ERTS 49.91, out + .68
5/17 - PARE COVERED QCOM 62.01, out + 1.42
5/14 - SHOT DIA 100.81 (avg 100.07), PARED COVER JNPR 21.18, out + .80, 21.01, out + .97, COVERED 20.89, out + 1.09
5/12 - SHORT JNPR 21.98, ERTS 50.62, QCOM 63.43, SHORT DIA 99.89
5/4 - PARED YHOO SHORT 53.80 (avg 52.70), PARED DIA SHORT 103.90 (avg 103.40)- 5/12 - COVERED DIA 100.40, out + 3, COVERED YHOO 52.20, out + .40
5/3 - SHORT YHOO 51.60, COVERED out pared shorts ^^
4/30 - SHORT DIA 103.13, pared 102.61, out + .52


Swings 2003---

12/27 - BUY NANX 7.04, 12/29 - PARED 8.60, out + 1.56, PARED 9.04, out + 2, 1/6- SOLD 11.50, out + 4.46
12/5 - BUY NGEN 6.16, 12/27 - PARED 7.25, out + 1.05, 12/29 - pared 8.20, out + 2.04, PARED 9.16, pared + 3, PARED 10.16, out + 4, 1/02 - PARED NGEN 10.90, out + 4.86, PARED 11.70, out + 5.54
12/1 - BUY NVLS 43.35, 12/3 - PARED 43.92, out + .57, STOPPED 41, ouT - 2.35
12/1 - BUY DIA 99, 12/3 - PARED 99.53, out + .53, 12/9 - PARED 99.80, out + .80. 12/10 - SOLD 100, out + 1
11/17 - SHORT EBAY 53.85, PARED SHORT 54.35 (avg 54.10), PARED profits 52.70, out + 1.40, 11/18- PARED 52.20, out + 1.90, PARED 51.65, out + 2.45, COVERED 51.20, out + 2.90
8/4 - BUY MUSE 8.51, 8.5 - PARED 8.83, out + .32, 8/9 - SOLD 9.05, out + .54
8/4 - BUY EBAY 102.80, 103.80, 104.40 and 105.10, 8/5- SOLD 104.10, out + 1.30, + 30, out -.03 and - 1
7/14 - BUY LOOK 3.95, pared 4.25, out + .30, 7/28 - pared out 4.60, out + .65
7/11 - SHORT DIA avg pared 91.20, 7/14 SHORT DIA 92.65, avg cost 91.90, 7/15- PARED 91.15, out + .5, 7/16 - PARED 90.70, out + 1.20
7/9 - BUY QAVTF 1.15, 7/10 - PARED 1.50, out + .35
6/23 - BUY DAVTJ 1.50 (dia aug 88 puts), 7/1 - PARED $2, out + .50
6/18 - BUY LOOK 2.73, 6/19 - PARED 3.13, out + .40, 7/2 - SOLD 3.90, out + 1.17
6/6 - BUY ATYT 8.35, SOLD 8.75, out + .40
6/6 - BUY BRCD 7.64, 6/10 - STOPPED 6.90, out - .74
6/6 - BUY SSTI 5, 6/13 - STOPPED 4.30, out - .70
6/2 - BUY CSCO 16.89, PARED 17.19, out + .30, 6/4 - SOLD 17.45, out + .66
5/30 - BUY MSFT 24.78, 6/4 - PARED 25.20, out + .42
5/29 - BUY DIA june 90 calls .60, 6/2 - pared 1.25, out + .65, 6/4 - pared 1.80, out + 1.20, 6/6- Pared $3, out + 2.40 (+350%)
5/27 - BUY TECD june 30 calls .20, BUY TECD june 22.50 puts .15, straddle for earnings, 5/29= SOLD TECD puts at .40, out + .20
5/15 - BUY DAVGG 4.20 (dow july 85 call, 5/27 - STOPPED 2.60, out - 1.80
5/12 - BUY MSFT 26.22, 5/28 - STOPPED 24.60, out - 1.62
4/29 - BUY DIA 85.10 (avg cost), 5/6- SOLD 86.50, out + 1.40, 5/12 - SOLD 87.50, out + 2.40
4/21 - BUY UBET 3.25, 7/29 - PARED 4.40, out + 1.25
3/31 - BUY HNZ 29.30, 4/15 - sold 30, out + .70
3/31 - BUY OEX 430 (april 430 calls), target hit 447, out + 17
3/29 - SHORT MSFT 24,85, COVERED 24.10, out + .75
3/29 - SHORT QQQ 26.29, 3/31 - COVERRED 25.29, out + 1
3/29 - SHORT DIA 81.90 (avg cost), 3/31 - COVERED 79.50, out + 2.40
3/26 - BUY DAVPE 2.70, 3/27- PARED 3.20, out + .50, 3/31- COVERED 4, out + 1.30
3/13 - BUY CSCO 13.17, SOLD april 12.50 calls + 1.25, 4/21 - out covered calls + .58 on spread premium
3/12 - BUY DAVDW 3.40, 3/13- SOLD 4.70, out + 1.30
3/12 - BUY SMH 22.32, 3/13 - SOLD 24.20, out 1.88
2/26 - SHORT VRTS 16.93, 3/3- PARED 16.48, out + .45, 3/4- PARED 16, out + .93, 3/5 COVERED 15.70, out + 1.23
2/25 - BUY NQ 978, SOLD 1001, out + 23
2/11 - BUY LVLT 5.34, target $6-6.50 range, STOPPED 4.94, out - .40
2/11 - BUY ASKJ 6.15, target $9.50-12 range, 2/19- SOLD PARTIAL June 7.50 calls @ .90, 2/20 - PARED 7, out + .85, 2/21- PARED 7.35, out + 1.20
1/27 - SHORT IBM 79.05 pared, pared 77.70, out + 1.35, 1/31 COVERED 77.10, out + 1.95
1/9/03 - BUY SYQBI 3 (symc feb 45 calls), SYMC 45, target 50-52 range, 1/10/03 - PARED 4, out + 1, PARED SYMC 46.70, out + 1.70 1/13- PARED 4.30 out + 1.30, PARED 47.30, out + 2.30 1/15- postmarket, SOLD 48, out + 3


We are now posting illustrations throughout the DAY of setups, these update automatically and can be seen here click here make sure to hit the refresh button

*** be SURE to check out Luke's e-minis futures alerts and updates off the briefing section ***

Can money be made in this market? YES. Click here to read our 2002 Roundtable session where several of our successful members share their stories on the journey through the learning curve
click here

*New* deadzone seminar for all newbies
click here

*** exits are subjective to the trader, the basic rule of thumb is to always pare or clip the .10 OVERSHOOTS especially near 2.50 support/resistances, whole numbers and 200pd 1/3min support/resistances ***

** we now have audio Voice post market Debriefing in the Pit :)

Underground Manifesto:


We want to graciously thank our members for their support throughout the years as undergroundtrader.com kicks off its 8th year of service. Last years resolution for every member was to stick to the basket method of trading. This year, we hope more and more traders will come to see the light and embrace this method. The advent of decimalization poured salt on the wound as stock prices deflated with the volume providing the toughest trading terrain possible in 2001 as stocks seemed to float in a range on light volume only to panic and then resume ranges. Throughout this period, the theme "that which does not kill you makes you stronger seemed to emanate daily". As much as clean victories with the least amount of resistance is what every trader wants to attain following in the lines of Sun Tzu, these conditions are not always present and thus a different type of battle emerges, one that can best be summed up as a war of attrition. Throughout this year, we have learned that one trade nor one day nor one drawdown week is not the end. It is but a blip in your trading career. We learned to grow a tougher and thicker skin and to reach down inside and pick ourselves back up when a probable setup does the improbable because in the end, it is all a numbers game... a game of probability. The GOAL of the game is to recognize and ACT on the TRANSPARENCY before it becomes TOO TRANSPARENT at which point the window of profitability shrinks. We learned to play the lightest volume with windows of opportunity that were the size of keyholes in an effort to train ourselves to to be better than the next trader. To be able to count the stitches on a fastball. While others whined and moaned, we sat and watched and watched and watched 8 hours a day in front of those monitors making ourselves better, more aware, able to anticipate, REACT and give us the EDGE. What may seem like a dead market at time is a test of discipline and patience to us. We learned to ease up on the gas pedal and tap the brakes to adapt to the rhythm as volume slows down. We learned that the best liquidity is to sell into the buyers and cover from the sellers and that PANIC is a gift in any situation so long as we are not on the tail end of it. Early entries, sweet spots and late entries make up your trades and we learned in light volume the late entry is a mistake. The early entries imply more risk but is proportionate to the reward. The sweet spot is the ideal entry to get in just in time for the panic pump and be out into the buyers or sellers.

Looking back in your own career as a daytrader. Remember when you first got into this game. Remember when you owned shares in your 'investment' account of a stock perhaps it was AMAT. You were always told that stocks are the company and fundamentals drive stock prices up and down. However, there was a fallacy with that explanation. If AMAT some material news? Then why did AMAT trade in a 2pt range from 42.50 to 44.50 ? Was there some news that I didn't hear? What makes AMAT move like it does throughout the day? Surely, it can't only move on news and fundamentals... and what if I could just buy AMAT at 42.70 and dump it above 43.50?? Wouldn't that be more prudent than sitting through all these moves up and down?

Remember, asking your broker "why is AMAT up and down throughout the day?" and getting some response like "well, we are only thinking long term here so don't sweat it". This is when the hunger for knowledge started to grow as your curiousity is not only piqued but now becomes an obsession. The circle of knowledge was incomplete and you set out to LEARN what makes stocks move intraday if it isn't news or fundamentals. This is the first step to daytrading.

Throughout your quest, you asked yourself how can anyone know when someone is going to put in a buy or a sell order. It seems completely random? How on earth can anyone track the buys and sells and anticipate when they will happen? This is pure gambling. There is just no way to know what each shareholder is doing at any point in time.

You read books. You visited many websites. You got a browser based broker account. You got realtime quotes. But there were many MISSING pieces and you struggled to get a clear answer. Perhaps, you got your feet wet and dipped your toes in this game early on and lost a leg. Perhaps you made money piling into a novelty stock or a internet stock in 2000 and thought that THIS is DAYTRADING, I love it and then got clawed by the bear only to resume your search to find out WHY?

One reason or another, your path lead you to the undergroundtrader.com trading pit. Your first day in the Pit, you were overwhelmed with the terminology "noodles" "pups" "cranks" "overshoots", what language are they speaking?!? But interestingly, stocks seemed to move as they were called and in most instances they foreshadowed a lot of the moves and from that point on... your eyes were opened. Finally, it starts to make sense. Every day it gets hammered into your head:

STOCKS ARE NOT THE COMPANY. Stocks are a 4 letter word that move according to the futures. As the futures rise, stocks will bid up and as they fall stocks will bid down. As stocks move higher in price, their floats get thinner and stocks tend to move faster. As stocks get cheaper in price, their floats grow and they move slower. The market moves top down from the futures then the tier 1 generals in each sector and then the tier 2's and tier 3's and so forth. It's MAKING SENSE! If AMAT moves up, then NVLS and KLAC follow. Wow. Tier synergy! Eventually for each need, you learn another tool to follow.

At first you just start with Nasdaq level 2 and see those large sizes on the bid pop a stock for a few seconds and then see the stock panic back down and vice versa. You spot one market maker but can't read his motives. Its very confusing. The need arises where you ask yourself, how can i make sense of these sporadic Nasdaq Level 2 movements. You learn a tool called a stochastics chart. This chart is composed of a grid from 0 to 100 and two lines called stochastics oscillators %d and %dslow. You learn that this chart measures overbought and oversold conditions. When the stochastics lines are under 20 band they are oversold, when they are above the 80 band the stoch is overbought. Makes sense and as you watch nothing but Level 2 and the 1 min stochastics chart, it fills in a piece of the puzzle. Basicaly buy signals are when the %d cross the %dslow up through the 20 band and vice versa down through the 80 band on short signals. All this makes sense.... until you see that the 1 min stochastics sitting under the 20 band cross back up and slip again. You start to lose faith in the tool as it is not 100%. You ask yourself why is it that sometimes AMAT will be trading at 43.05 near its highs and wiggle to 42.90 as the 1 minute stochastics slips under the 90 band ready to cross the 80 band and then AMAT pops to 43.20 as the 1 min stochastics resumes to bounce back up through the 90 band?!? Stochastics ain't telling me enough here. Why is it sometimes stocks will sit near its highs and the stochastics doesnt drop for like 30 minutes? Or stock will hold near its highs and the stochastics will make a full oscillation? You quest continues to fill in the pieces of the puzzle.

Enter the 3 minute simple moving averages chart. This chart composed of a simple 5 period moving average and a 15 period moving average. They paint the direction of the TREND as well as proving supports and resistance levels. You learn firsthand the power of a consolidation breakout and a PUP breakout. Interestingly, you also learn that most breakouts start at a high band 1 minute stochastics reading because they all start off as minor short squeezes. Market makers are heding constantly in a stock with the noodles and if the noodles or the stock maintains a high band stochastics long enough, they are forced to hedge back to the longside thereby forcing a short squeeze. It then trigger real buyers and traders to step in and a snowball effect happens. Wow. Makes sense once again. You notice an uncanny phenomenon. When you click the 5 and 15 period lines, you notice how well the stock tends to coil off the 5 period when its breaking out. This is an ACTIVE uptrend making higher highs (ala 5 period) and higher lows (ala 15 period). This is an uptrend and an active uptrend will always trade higher than the 5 period simple moving average and thereby allows you to keep a profit stop when that 5 period breaks. You learn what a PUP breakout out is as Jay explains that the 5 period acts as a resistance by the shorts/sellers yet the 15 period is a the quiet buyers slowing lifting their bid prices, the classic immovable object versus the unstoppable force situation. When the 5 period gets penetrated, the buyers charge and the barabarians break down the gates as market makers trampled over each other to hedge long and a dynamic breakout or breakdown can occur. You see this happen in REAL time and you are amazed.

Finally, you ask yourself, how can I get a heads up on the movemets of the stochastics or a potential breakout? Simple. You chart the nasdaq 100 futures (aka noodles) on a 1 and 3 minute stochastics chart. The 1 minute noodles is the lead indicator that triggers the 3 minute noodles and all your other tools. Truly a synergistic effect.

"I can see!" said the blind man. Everyday you learn something. You learn that inidividual buy and sell trades don't affect the market. The big boys which are the institutions and funds move the markets. Stock can move without a single share being traded because market makers adjust spreads to the futures. YOu learn that the game is to REACT and not predict. However, we used the charts to track the footprints of the big boys. YOu learn what a buyside and sellside fade is and the effects of cranks and crosslocks. You learn about the rhythm of your stocks, the tier synergy effects the nuances. The no brainer setups like a low of the day at a high band 3 min noodles inv pup formation as a short and vice versa for a long. You learn to put a lot of emphasis on the futures as they are the HAND THAT holds the puppet strings to your stocks. You learn about the ovetrshoot panics and the 2.50 support/resistance lines and about adapting everything into the context of the noodles.

You learned the rules to the GAME. No one can predict WHERE stock prices will go. However, knowing the trend, the support and resistance levels from different time periods, you can gauge where a stocks resistance will be and be prepared to sell into those buyers and vice versa on shorts. In essence, you learn what the true probabilities are... and the real game is to react not to predict... to take ACTION on TRANSPARENCY BEFORE it BECOMES TRANSPARENT. You learned the GAME.

What seemed like an ocean of confusion in the beginning has now to shrunk to a few 20inch monitors on your desk, your terrain... your opportunity to make or lose money. People from across the globe all focused at any given moment in time at one point... in an effort to take your money or you to take their money. It's beautiful. Poetry in motion. Welcome to the greatest speculator sport in the world and you are a player... a trader. You have arrived. :)


The journey doesnt end there. Once you have the tools and the basket stocks, you battle with consistency. But you grow with each new battle. The markets constantly shift paradigms. You learn to adapt, anticipate and pull the trigger. You grow.... with us... together. Many of us spend more time in the Pit than our own family and in a sense we are a FAMILY. We share in triumphs and the greatest highs and also the defeats and the greatest lows from 8:30am to 4:30pm every trading day. We sit in the trenches as snipers and wait for the next trade patiently, methodically and decisively. The journey is the reward.





Respectfully,


Jay



Basket Trading Methodology:

The dart throwing BULL market came to an end and those traders and investors who were simply lucky... fell through the cracks. This year was one of major contrast and truly was the best training environment to any trader who really wants to learn this game from the trenches. If you survived this market, you can survive and excel in any market. If you didn't survive this market, chin up. A hiatus is the best medicine to regain clarity.

We learned many things this year as clarity and FOCUS was the theme. The lack of these two qualities lead most traders to failure.

As we have preached daily about the importance of trading basket stocks, many have listened and exceled in the worst market conditions. These BASKET STOCKS are your source of income, bread and butter, personal ATM machine. If you have not picked out BASKET stocks, we ask that you take this pledge for the new year 2001:

I WILL PICK ONE BASKET STOCK AND FOLLOW IT ALL DAY, EVERYDAY WITH THE TOOLS. I WOULD RATHER BE BORED THAN BROKE.

^--- Post that on a sticky note and tape it to your MONITOR and read that everyday to yourself.

Now that we have that straight, let's get deeper. As is our style, substance is what you need... not just fancy cliches and textbook metaphors. Please print these steps out and tape them to your Monitor-- follow these steps daily until you turn blue in the face from boredom.

1) PICK A BASKET STOCK
These are some good candidates:

1) MSFT - Moves with the noodles and dow. Good volume, good volatility and oscillations, channels can get tight in lighter volume so be careful not to overtrade light volume.

2) KLAC - leader of the semi makers and thus sox.x. moves with the noodles. the naz can't move much in a direction without the support of the semi makers. therefore when noodles are rising but klac is sell fading likely, the noodles will give and reverse ....

3) QLGC - fast mover, leads the sans sector. good oscillator moves well with the 1 min stochastics, be careful on the open as they love to crank and lean this one.

4) INTC/CSCO/ORCL - very thick former tier 1's. look more for the trending moves rather than scalps since they move so slow.
2) WATCH YOUR BASKET STOCK WITH YOUR INDICATORS
a) Watch how stock MOVES with the 1 and 3 min noodles
b) Watch 3 min ma trend- 5pd resistance, 15 pd support
c) Watch the BEAUTIFUL synergy with 1 min stoch, the 1 min stochastics chart is only useful for the extreme overbought and oversold reversals that means under 20 band oversold reversal back through 20 band for longs and over 80 band reversal back under for shorts
d) note the wider time frames for foreshadowing effects 8/13/60 min on noodles and stocks
e) Put it all together and see the synergies--- NEWS means nada. Stocks move in ranges because market makers adjust prices to the futures thereby the noodles are your lead indicator! When futures move UP and stock doesnt, then it may be FADING into the buying aka a SELLSIDE BIAS and vice versa on a buyside bias.

3) PLAY ONLY 1 MINUTE STOCHASTICS REVERSALS ON PAPER!
a) Best long setups for scalps? 1 minute stochastics reversal through 20 band back up coupled with 1 minute noodles stochastics-- and 3 minute noodles uptrend emergence. Vice versa 80 band reversals for the short.
b) On a PANIC or MOMENTUM breakout, the shorts can be measured to the 5 period and 15 period for full 3 min noodles oscillations down.
c) On a PANIC or MOMENTUM breakdown, the upside on the long reversal can be measured to the 5 period and 15 period. Eg: CIEN panics down from 93 to 90-1/4 as noodles take a pullback. 1 min stochastics tries to reverse back UP and 1 min noodles turning back up through the 20 band 3 min noodles stall. CIEN 3 min ma chart shows 5 period at 92-1/4 and 15 period at 92-3/4, so a stochastics bounce entry here at 90-1/4 x 90-1/2 tells me my upside is 92 x 92-1/2 range so that is the proverbial MEAT between the bones.

*** important! Be patient and papertrade or use a simulator. Dont worry about gains, worry about clips. 1/4 to 1/2 is ALL you need in the beginning, never kickyouself for getting out too soon *** Stochastics WORKS! You don't believe me? Pull up any stock on a 1 minute stochastics chart with an adjoining tick price chart and see how 7 out of 10 times the oscillations proved to be effective in the PRICE of the stock-- the proof is before your eyes.

4) GET YOUR SCALPS PROFITABLE 7 OUT OF 10 TIMES ON PAPER
a) This will be boring waiting for formations to emerge, but you should be hitting 70-80% success rate on your entries for scalps. The amount of the scalp DOESNT matter at first, only that you got a good entry with little wiggle and got an exit. This is your foothold and foundation you need in the beginning with a Basket stock.

5) TRADE CASH FOR ONLY 100 SHARES OF YOUR BASKET STOCK
a) 100 shares is NOT TO MAKE MONEY. it is to try to DUPLICATE your paper results to real life. This means you take 1/4 to 1/2 scalps with 100 shares to hone skills in real life WITHOUT sweating the Money, this allows you to focus on TECHNIQUE. The money will come later. DO NOT FOR A SECOND DELAY TAKING PROFITS BECAUSE YOU ARE ONLY PLAYING 100 shares. YOU ARE NOT LOOKING TO MAKE $$. YOU ARE LOOKING TO PERFECT TECHNIQUE!!
b) Once you can duplicate paper results to cash, hitting 70-80% success rate, then you are ready to increase your share load-- now you are ready to make $.

6) INCREASE SHARELOAD INCREMENTALLY
a) from 100, to 200, to 300, to 400, to 500, etc..
b) You should go SLOWLY so that you dont shake your equilibrium as far as your comfort level when in the trade. start with 100/200 shares and EARN the right to play more shares. only after 4 of 5 days green up shars by 100 shares evry 2 weeks. if you slip to 2/3 days green drop down by 100 shares for a week.
c) You will KNOW when you are taking too many shares because you will FEEL ANXIETY <-- NOT GOOD. Drop share load back DOWN when this happens.

7) DON'T OVERTRADE WEAK SIGNALS!
a) Deadzone and consolidations on light volume a no no

8) LEARN TO PARE SHARES INTO 3 MIN NOODLES UPTRENDS
a) This is the highest level when you have got scalps down pat, now you are playing larger shares to be able to PARE into sellers on rising 3 minute noodles even though 1 minute noodles may stall. The reason behind paring is to take some money off the table to give you cushion on the wiggles prior to a greater move.

9) BE CONSISTENT!
a) You should be hitting green on a daily basis-- understand oscillation days are best for stochastics moves and trend days are best for 3 min ma breakout/down patterns. Do not overtrade light volume

10) PICK ANOTHER BASKET STOCK (GO BACK TO STEP 1)


Phew! Thats a mouthful for you to swallow, BUT IT WORKS! Ask anyone in the Pit who is making steady consistent GREEN daily and they will tell you, the basket stock trading method is the ONLY way to go! We just touched on the basics here but START with these steps. You need a FOOTHOLD before you can climb a mountain. The above takes FOCUS and discipline to implement. It works. The question is do you have the CONTROL to implement the above?











Undergroundtrader.com

ps: if you have not gotten a copy of the NEW undergroundtrader handbook from mcgraw hill, here is a link to order

click here

Respectfully,

Jay Yu
Head trader
The UndergroundTrader

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