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Daily Newsletter, Monday, 04/22/2002

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The Option Investor Newsletter                   Monday 04-22-2002
Copyright 2001, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


Posted online for subscribers at http://www.OptionInvestor.com
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MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
      04-22-2002          High     Low     Volume Advance/Decline
DJIA    10136.43 -120.68 10256.00 10109.24  1.17 bln   1199/1970
NASDAQ   1738.68 - 38.15  1779.18  1747.65  1.70 bln   1247/2331
S&P 100   550.04 -  9.75   559.79   548.91   Totals    2446/4301
S&P 500  1107.83 - 17.34  1125.17  1105.62             
RUS 2000  510.93 -  6.47   517.40   510.50
DJ TRANS 2723.22 - 73.65  2796.14  2717.24
VIX        21.72 +  1.42    21.72    21.57
VXN        39.07 -  0.28    39.07    39.07
TRIN        1.99
PUT/CALL    0.68
*******************************************************************
Don't Worry, Be Happy
By Buzz Lynn
buzz@OptionInvestor.com

Stock market crater in the Earth
Why'd you have to wreck my mirth?

The simple answer is (as Gordon Gecko told Bud Fox in the '80's 
Wall Street classic movie, "Wall Street"), "because it's 
wreckable!" (if you are a bull)  

So what is mirth, anyway?  The dictionary defines it as 
"joyfulness or gaiety, especially with laughter".  And as traders, 
we don't care from which direction our mirth comes - bullish or 
bearish.  We're joyful when we are making money based on 
successful trades, up or down.  It's "buy and hold" INVESTORS that 
are no longer experiencing their mirth since March of 2000.  

Contrary to popular belief still held by an unimaginable number of 
fund managers and investors, stock values can and do go down or 
trades sideways, which is a big mirth-wrecker for bovine 
investors.  They have learned that "buy and hold" is way to get 
rich and that stocks "always come back".  Well, it just isn't so.

As traders, if we can divorce that Pavlovian idea from our head 
and learn to synaptically link "movement up or down equals 
profits", then we will be on our way to profitable trading in the 
equity markets, and restoring our mirth.  We should learn to be 
HAPPY when markets fall.  It means potential to make money just as 
it did when markets went up!

Leaving psychology for now, where are markets headed?  Wish I 
knew.  But a whole bunch of hedge fund managers have set record 
short positions on NYSE traded stocks over the last month.  LU, 
NT, HWP, PFE, GE, KO, CA, CNC, XOM, GPS, MO, LOR, HD, and PEP top 
the percentage increases.  Keep in mind, these are the pros at 
work and they are usually correct.  They've been shorting out some 
pretty big names including some overpriced defensive issues.  I 
find that interesting.  Aside from a short squeeze in these 
issues, which I doubt will be all that dramatic given the huge 
floats of most, KO, MO, and GE are getting the "thumbs down".

But more to the point for the traders among us, the futures were 
looking pretty weak this morning in the wake of weekend 
disappointments from WCOM and ERICY.  WCOM announced it would come 
in at the low end of revenues at $21-$21.5 bln vs. estimates of 
$22 bln, and that it would be 15% light in the earnings department 
- oh, and that's EBITDA at that.  So earnings after all the bad 
stuff might even amount to a loss.  The geniuses at Solly 
downgraded the stock today as the price fell 30% to $4.02.  
Goldman Sachs still has a "market perform" rating on WCOM.  Three 
others chimed in with downgrades too, including S&P who cut WCOM's 
debt rating to BBB.  Nice work, analysts.  I have some livestock 
that has escaped the barn.  Could you lock the doors behind them, 
please?  CSFB issued the first "sell" rating I've ever seen 
outside of Prudential - truth in advertising award for them!

Ericsson also did its part to help squash the futures by 
announcing it sees a full year loss and expects no second half 
turnaround.  It will cut 20% of its work force and raise $2 bln 
through stock sales.  Let's see, at a current $2.73 per share, 
quick math tells us that ERICY will need to sell about three 
quarters of a billion shares, which ought to dilute the 
outstanding shares by 9% and increase the shares in float by 40%.  
If the earnings don't get you, management will.  It just shows how 
desperate management is to raise money and shareholders don't 
matter.  Telecom, as Austin pointed out perhaps 4-5 mos. ago is 
going to see a lot of pain, and it isn't over yet.

Speaking of not over yet, brokers too are about to get their 
comeuppance.  As I noted two weeks ago, the NY attorney general 
slapped MER with a lawsuit claiming they misled investors with Buy 
recommendations when they, themselves, were selling.  I opined 
then others would get slapped too by perhaps multiple states and 
their brothers joining in.  In fact, courtesy of briefing.com, 
"Deutsche Bank said in a pre-open note that they believe there 
could be more negative catalysts in the next 30-60 days for MER 
and the brokerage group; during their Friday conference call, firm 
says that the emails published by the NY Attorney General were 
damaging and could lead to stricter oversight of several firms; 
expects significant private litigation and believes that other 
firms under investigation may seek an industry-wide settlement."  
My take is that other states will join the fight to milk that cash 
cow for all it's worth.  If you own any brokerage stocks, it might 
be interesting to entertain selling calls against it to buy 
protective puts - just a thought.

OK, on to the charts - all down, all nearing critical levels of 
support and due for a quick bounce over the 60/30/ time frames, 
but weak overall.

Dow Industrial chart - INDU (weekly/daily/60):


 

Quickly, the daily chart 50-dma and 20-dma in addtion to the 
descending trend line are squashing the Down to support at roughly 
10,075.  The wobbly stochastic with very little bullishness in it 
has turned slightly bearish.  In conjunction with the weekly 
chart, the trend still looks down.  But with the 60-min 
stochastics bottomed, there may be a slightly tradable DJX bounce 
for a point or so.

NASDAQ chart - COMPX (weekly/daily/60):


 

Same story here, but even more pronounced - descending trend line 
is intact, daily stochastic has rolled over, but the 60-min has 
poked up from oversold.  Call-buying opportunity?  Not for my 
money, as I suspect any late day buying was merely short covering 
by those not wanting overnight exposure to any earnings "good 
news".

S&P 500 chart - SPX (weekly/daily/60):


 

Yep, same here.  Looking mostly at the daily chart, 20, 50, 200 
dma along with declining resistance is squashing the SPX down to 
support at 1100 +/-.  From there, who knows thanks to the deep 
oversold 60-min chart that might yield a bullish trading gain.  
But the rolled daily stochastic will keep that in check.  

And for tomorrow?  The big picture remains rangebound and down 
with the possibility of bullish swing and daytrades on the Dow and 
SPX.  The buried stochastic on the 60-min has to be good for 
something, right?  A bigger temptation for me is wait for what 
might be a morning pop up, then short the bounce.  Earnings are 
not enough to impress anyone and Fed comments this week will 
likely fall on deaf ears since the Fed isn't likely to shed any 
new light on the economy or raise rates anytime soon.  

The only caveat for the bears is that the semiconductor book/bill 
ratio increased to 1.04, much greater on the order side than 
expected, which could provide some temporary strength in the tech 
sector.  OK, I changed my mind.  Maybe I might take a bullish 
swing trade on the NASDAQ.  Still as with last week, rent 'em, 
trade 'em, don't own 'em at the end of the day. 

See you at the bell.


********************
INDEX TRADER SUMMARY
********************

TECH WRECK, ACT II
by Leigh Stevens

Just when traders thought that maybe tech stocks were going to do 
a little better, tech earnings disappointments crater Nasdaq and 
NYSE based on the fear and loathing that hits a key sector -- 
today it was telecom stocks. Guilt by association spread to most 
of the tech sector and beyond. The DJX, which never broke out of 
its hourly downtrend channel, caught a lot of selling today too. 

The best that can be said about the indices is that the 
oscillators got oversold again. This market has been very 
predictable in that whenever the major indexes get overbought to 
any degree of late, you can take out puts and take the money to 
the bank later. 

As the indexes are probably at the low end of a trading range, a 
play on the call side likely has potential tomorrow or Wed.  
Meanwhile, take the money and run, as the further downside is 
probably not huge.  Wait until the hourly stochastic gets up to 
overbought again and do the whole thing all over again.    

THE CHART PARADE  -  

S&P 500 (SPX): 


 


Back in the (downtrend) Channel again, sung to the tune of "Back 
in the Saddle Again".  MO (momentum) is DOWN but the 1100 area 
is the 10K of the DOW.  Watch for stability and buy this area if 
it develops, especially given the oversold. Is it going to 
continue to be this easy?  Stay tuned!  


S&P 100 (OEX) hourly chart:


 


Do we slip below 545-547 even though oversold?  We're back into 
the downtrend channel.  Is a downswing to the 540 area ahead?  I 
want to go with prior support if it appears to hold, given the 
oversold readings. This market has been pretty predicable in 
regards to these two-sided trading swings, but path of least 
resistance has also been down.  Buy puts again when we're reading 
overbought again.  

Dow (DJX) chart:


 

The only major index NOT oversold yet.  Support implied by the 
prior lows, is at 100.5-100,8.  I was suggesting that this was 
the area to buy calls again and exit put positions. Now I would 
watch for an oversold, as we could be heading to new lows in the 
Dow and thereby work lower into the channel. I am more bearish on 
the DJX currently than the others.  Keep any puts, watch for an 
oversold again and see what happens.  A move down to the 100 area 
would likely be a buy as the institutions will support the market 
there -- at least once I think.   



 

QQQ: 

What's with the Q's!!??  The little turn up in the last hour, 
what's with that you might ask.  Also, occurring from support 
implied by the top end of the previous downtrend channel.  Take a 
flyer and buy QQQ if 33.00 holds as support.  Take any put 
profits and take a bear to lunch. You both deserve it! 

33 or a bit above, continues to look like it may hold up as 
support -- it's been the low end of our trading range for awhile 
now.  Looks like bottoming action here OR the shorts decided to 
put the put profits in the bank and go to dinner instead. 


Long/Call Positions:
Long QQQ at 34.30 
Stop: 32.50.  
Objective: 38.00  

STILL HOLDING THIS QQQ POSITION, KEEPING ONE TOE IN THE BULL 
WATERS IN RECOGNITION OF CURRENT LEVELS BEING AT THE LOW END OF A 
LIKELY TRADING RANGE.


Leigh Stevens
Chief Market Strategist 
lstevens@OptionInvestor.com 


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***********************
INDEX TRADER GAME PLANS
***********************

THE SECTOR BEAT - 4/22
by Leigh Stevens


NEW TRADE PLAYS and GUIDELINES:

Revisiting the Pharmaceutical sector index ($DRG.X) discussed in 
my last Sector Trader column -- DRG is at the low end of trading 
range and has gotten oversold in the process as suggested by the 
13-week RSI.  



 

One of the stocks, Merck (MRK) appeared to reach the low end of 
its current downtrend channel, at its recent (intraday) low 
around $51.  This low may be at least a temporary bottom.  On a 
longer-term weekly chart basis, MRK has completed a 50% 
retracement the last big advance of the stock, per the weekly 
chart highlight in the last Sector Trader (4/21). 



 

I believe, that given the oversold condition of the stock, the 
fact that MRK is a Dow stock with the attention that that brings 
to the recent minor rebound and is also perceived as a 
"defensive" stock, will result in enough buying to bring the 
stock back up toward or to the upper boundary of its price 
channel.  The May 60 calls (MRK EL) are relatively cheap at the 
moment and offer a good way to play some further upside in Merck.  

I would purchase the May 60 calls on any further pullback in the 
stock, such as back to near support in the 54-55 area.   


LONG/CALL TRADES, PREVIOUSLY RECOMMENDED:

>> XAU (PHLX Gold & Silver Index)
Reiterated purchase of the May 65 puts for Friday 4/19
Trade was from 1.20 to .65 
STOP: Exit puts if XAU moves to new closing high above 72.33
Objective: XAU to 60.50, where it has support

4/22 NOTE: Gold bullion on a per ounce basis is holding above 
$300 an ounce, but also appears to have stiff resistance in the 
$307 area. While gold is hanging up there on political and oil 
price uncertainties, I would hang in on this position.  



  

This trade is based on the above chart pattern that appears as a 
possible top.  Moreover, on the weekly chart, XAU has completed a 
62% retracement of the last big decline, which is a supporting 
factor to the possible top pattern that is being seen on the 
daily chart.   

>> Internet Sector index ($INX.X) - 4/17 Sector Trader suggestion:
OPTION play: $INX sector stock, JNPR (Juniper Networks)
Buying the May 15 Call (JUX EC) at 4/18 opening was suggested.  
4/18 open: .35; JNPR objective: to $18



 

The stock has gotten hit recently, along with tech stocks in 
general, but suggest staying with the calls already purchased and 
perhaps further purchases as long as the stock does not retreat 
much below it's trendline, which, on a closing basis, is 
intersects in the 10.30-10.60 area.  

>> Telecom ($XTC.X) index - 4/15 Sector Trader suggestion:
OPTION play: Sector stock, Level 3 Communications (LVLT)-
1)June 5 Call (HGY FA) suggested: 4/16 open: .60
2)LVLT outright purchase, with stock under $5, also suggested: 
4/6 open: 4.16; Objective on LVLT stock: to 5.5/6.



 

The Telecom sector took quite a hit today, but to keep it in 
perspective, the prior lows have not been exceeded at this point.  
The stock we chose to play in this sector is holding up quite 
well, so we will wait and see how the stock (Level 3 - LVLT) 
continues to behave.

>> Semiconductor Index ($SOX.X) - 4/15 Sector Trader suggestion:
Most active OTM May 650 calls (SOW EJ): 4/16 opening: 14.30
NOTE: May 650 call closed at 4.60 on 4/12.
Individual Semiconductor stocks were a better play 



 

Still like the SOX if it holds its up trendline -- next 1-2 days 
ought to tell the story.

>> Cyclical sector ($CYC.X) - 4/15 Sector Trader suggestion:
1.) iShares Cyclical Trust (IYC)  - 4/16 open: 56.95
Objective: new high above 63.00
2.) OPTION play: CYC Sector stock, - Alcoa (AA) 
May 40 calls (AA EH) - 4/16 open: .60  

NOTE: WOULD NOT BUY ANY FUTHER CALLS IN ALCOA, AS THE STOCK HAS 
BROKEN TECHNICAH SUPPORT. 



  

>> Airline sector ($XAL.X) - 4/15 Sector Trader suggestion:
OPTION PLAY: XAL sector stock Southwest Airlines (LUV) 
Sept. 20 (LUV ID) call suggested - 4/16 open: 1.25  
OBJECTIVE: $22 near-term in the stock; $24, longer-term. 



 

HOLD ONLY -- NO NEW POSITIONS AS WE WAIT TO SEE IF STOCK WILL 
HOLD SUPPORT AND THE LOW END OF ITS UP TRENDLINE CHANNEL

>> Utilities Index - Holders trust shares (AMEX: UTH) 
Long at 95.25 
Stop: 91.00; Longer-term objective: 105 

OPEN SHORTS/PUT PLAYS:

>> RTH (AMEX: Retail sector trust stock)
SHORT at 99.00 
Objective: 90; Stop: 102 

>> XAU (PHLX Gold & Silver Index)
Bought May 65 puts at 1.80; also, recommended May 60 Puts  
STOP: Exit puts if XAU moves to new closing high above 72.33
Objective: XAU to 60.50, where it has support


NOTE: RISK to REWARD guidelines -  
Determining an objective is important, even if it is a moving 
target, as this is the reward potential.   Determining reward 
potential is critical to establishing whether a stop that makes 
“sense” (e.g., a sell stop that was placed under a key support 
level) would, if triggered, result in a dollar loss that is in 
proportion to profit potential; e.g., 1/3 of it.  (On occasion, 
when the purchase price of call or put is equal to 1/3 or less of 
the estimated reward potential, there may not be a specific exit 
suggestion, as the cost of the option is equal to the amount that 
is being risked.)   


Leigh Stevens
Chief Market Strategist
lstevens@OptionInvestor.com


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The Option Investor Newsletter                   Monday 04-22-2002
Copyright 2001, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


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*****************
STOP-LOSS UPDATES
*****************

RYL - call
Adjust from $96.75 up to $99.50

BGEN - put
Adjust from $47 down to $45.25

EBAY - put
Adjust from $56 down to $55.10

MXIM - put
Adjust from $57 down to $56

VRSN - put
Adjust from $27.50 down to $25


*************
DROPPED CALLS
*************

LH $99.10 -1.50 (-1.50) After one last surge to just above $101
this morning, shares of LH drifted lower into the closing bell
and the company's earnings report due out after the close.
Harvesting profits on the morning ramp would have been the smart
move, and all positions should have been closed out prior to the
closing bell.  Announcing earnings a penny ahead of estimates
along with a 2-1 split, shares of LH could see a pop in the
morning.  Use any strength at the open to gain a more favorable
exit from the play and count yourself lucky if you gritted your
teeth and held over the announcement.


************
DROPPED PUTS
************

IGT $54.17 +0.42 (+0.42) With earnings set to be released tomorrow
morning before the opening bell, it's time to close our put play
on IGT.  Traders that faded Monday's morning rally that managed
to harvest one more quick gain as the stock fell back sharply in
the final hour of trade to close just above $54.  Our IGT play has
been good to us over the past week, but prudence demands that we
step aside until after the earnings results are known.  With the
stock's solid downtrend in place, we could be looking at a fresh
downside play in the not-so-distant future.


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*********************
PLAY OF THE DAY - PUT
*********************

RYL – The Ryland Group $103.64 +4.14 (+4.14 this week)

The Ryland Group is a homebuilder and mortgage-finance company
that has built more than 175,000 homes.  Additionally, the
Ryland Mortgage Company (RMC) has provided mortgage financing
and related services for more than 155,000 homebuyers.
Currently, Ryland homes are available in more than 260
communities in 21 markets across the United States.

Most Recent Write-Up

As the consolidation in shares of RYL continues, the $97 level
keeps attracting buyers, who are looking for the stock to lead
the Home Construction sector ($DJUSHB) higher.  Rebounding from
support on Thursday afternoon, the stock gave us a brief dip near
that level again Friday morning before going on to post a solid
gain by the closing bell.  It is interesting to note that the
stock closed just below the $100 level on expiration Friday.
That's not likely to be a coincidence, now is it?  We're still
waiting for the DJUSHB index to push back through resistance
($363), but given the strength in RYL, it looks like that could
come early next week.  We want to keep using the consolidation
range to establish new positions, either on a renewed bounce
from support, or a breakout over resistance.  Near resistance is
$100, but a true breakout will occur on a trade above the recent
highs at $102.25.  We're leaving our stop in place at $96.75.
Make a note of the fact that the company is set to release Q1
earnings on Wednesday after the close, and we'll want to have
all positions closed by that time.

Comments

The trading range in the Home Construction index ($DJUSHB) broke
to the upside on Monday and in a big way.  Shooting through
resistance for a 2.8% gain on the day, the sector was led by
breakouts in several names, among them our play on RYL.  RYL
tacked on better than 4% to post a fresh all-time high.  With the
sector still looking strong and RYL's string of higher lows and
higher highs intact, we're looking for the stock to have perhaps
one more spurt higher ahead of the company's earnings report due
out Wednesday after the closing bell.  A dip and bounce near the
$102-102.50 level would be a good place to take an entry.
Otherwise look to play the continuing strength, entering new
positions on a rally through the $103.75 level.  We are raising
our stop tonight to $99.50.

BUY CALL MAY-100 RYL-ET OI= 88 at $6.50 SL=4.50
BUY CALL MAY-105*RYL-EA OI= 94 at $3.50 SL=1.75
BUY CALL JUN-105 RYL-FA OI=  0 at $6.20 SL=4.00

Average Daily Volume = 569 K



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**************
TRADERS CORNER
**************

Get Your House In Order
By Mark Phillips
mphillips@OptionInvestor.com

Last week we talked in a fair amount of detail about how to break
the chains of unsuccessful/unprofitable trading, with a reference
to Buzz Lynn's article on Slump Busting.  But I left out one very
critical ingredient to the plan, and thankfully one of my
long-time readers "Gumby" took the time to point it out to me.
It is of such vital importance to trading success, that I feel it
deserves an article all its own.

While it isn't truly a 4-letter word, "Distractions" should be
viewed that way by traders, as they can have a devastating effect
on one's account.  Distractions come in all shapes and sizes,
from an unproductive work environment to poor health to major
family issues.  So let's list a few of the usual suspects, so you
can decide for yourself whether any of them are issues in your
day-to-day trading.

1. Cluttered workspace - Is your workspace organized?  Can you
find what you need in a timely manner, or is it a bit of a
"treasure hunt" when you need to find that one critical piece of
information?  Remember that this can refer to the traditional
workspace on your desktop, or the workspace on your computer.
Everyone has different work habits and levels of neatness that
they require to perform at or near their peak efficiency.

2. Health - How is your health?  Are you eating right?  Getting
enough exercise?  Don't think I'm telling you how to live your
life, but I can speak from personal experience here -- my mind
is clearer and my trading results better when I'm giving it the
proper fuel and stimulation to run smoothly.

3. Noise -  What is the noise level in your office?  Is it a
distraction?  I personally need a very quiet work environment
to concentrate -- even Stock TV (CNBC) is on mute unless there
is an interesting story coming up that I want to watch.  Other
traders I know have a much higher tolerance for background noise
and commotion.  The point is to evaluate the noise level in your
office according to your own needs.

4. Family Expansion - Is there a new baby on the way, or already
in the house?  If so, how many times during the normal trading
day are your thoughts on the new bundle of joy, and not on the
market?  Let me be clear -- with this sort of addition to your
family, your thoughts should be on your new child.  The point is
that it is detrimental to try and trade through the necessary
transition.  I can't speak from personal experience on this score,
but I have it on very good authority (Thanks Gumby!) that having
a baby can be a huge disruption to your normal trading routine.
Do yourself a huge favor and take some time to adjust to the new
routine before diving back into the markets.  Trust me, they'll
still be there when you are ready...and so will your account!

5. Family Turmoil - Unrest in the home, trouble with your teen-age
son, a death in the family; all of these are important factors in
our lives at some point.  We must devote the necessary attention
to these issues in the absence of the constant noise of the
market.  I personally tried to trade during the process of a VERY
amicable divorce a few years ago.  It was an unqualified DISASTER!
While the process of the divorce was very straightforward and my
ex-wife and I remain on friendly terms to this day, the process
demanded a huge amount of my mental focus.  My trading results
were abysmal.  I closed out the broker's window and didn't re-open
it for almost 4 months.  When I returned with the proper focus, my
results returned to where they had been before the process began.
Don't try to trade through a major life event like this.  It is a
recipe for disaster.

6. Trouble at Work - Whether it is a new boss, a new job,
interviewing for a new job, or working on a demanding project, if
your mind is on work issues, even when you aren't at the office,
trading is likely to be a hit and miss affair.  Trading
successfully and consistently requires hard work and focus.  If
there are work-related issues demanding your attention, then give
them the attention you deserve.  Once resolved, you can return to
business of trading.  I appreciate the cushy trading environment
I currently enjoy (working at home, with nary a distraction that
is not of my own choosing), as I recall what it was like when I
worked for NASA and tried to squeeze my trading in around my
normal work day.  Whether by dumb luck or deliberate action, I
managed to trade successfully by using end-of-day charts,
entering in the morning and taking profits by setting sell orders
that evening.  Keep in mind that this was 1998-99, a far easier
market to trade.  Make sure to take into account your level of
job stress when formulating or amending your trading plan.

7. Getting Married - Regardless of your level of involvement in
the preparation for the big event, it will demand a portion of
your focus before, during (especially!) and immediately after
the blessed event.  As many of you know, I got married last
October and owing to my past experiences with distractions, I
refrained from ANY trading for 6-weeks before and 6-weeks after
my wedding.  While that may seem a bit extreme, that is what I
knew I needed.  As I've said many times before, everyone needs
to decide what is right for you.  If you're on the way to the
altar, pay attention to what you are thinking about while you
are trading.  If you are having a hard time focusing on the
business (trading) at hand, then give it a rest until the
excitement that is demanding your attention has passed.

8. Going on Vacation - Summer is coming and we're all
contemplating where we're going to go this year.  Vacation
planning is a fairly low-level effort and shouldn't interfere
with normal trading activity.  But do yourself a favor and exit
the market before leaving for that week or two of much-needed
R&R.  There will be no risk to your account while you are absent
and equally important, you will be able to fully enjoy yourself
without worrying about what the market is doing and whether you
are making or losing money.

There's no logic to the order in which I've listed these issues
that we likely will all face at some point in our trading
careers.  I just wrote them down as they came to me.
Unfortunately there is no hard-and-fast rule for how much
distraction is too much for any one individual.  We all need to
evaluate our own situation make our decisions/changes
accordingly.  My intent here is to round out last week's article
by highlighting some additional factors that need to be
considered if our trading results aren't up to par.  By now you
should be well underway with getting your trading journal
started.  Answering or at least addressing each of the issues
listed above (in writing, in the journal) should get you off to
a good start on getting your trading back on track.

I hope this has been helpful!  Next week, we'll return to our
tutorial on interpreting Candlestick chart patterns.

Have a great week!


Mark


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