CLV12 - Update for September 7th, 2012

Price analysis for the week of September 7th, 2012:

Market Overview:The little ones are back at school, vacation cottages are closed up and the regular work routine is in the process of re-establishing itself. This transitional process can (and often is) met with some extreme volatility as many different market participants come together all at once. Indeed, this past week saw at least two gut wrenching stop runs only to quickly reverse and move just as violently in the opposite direction. For those nimble enough to take advantage - congrats, I am still in the process of building out my process and unfortunately (like many others) got sucked up into the 'stop running' machine. Looking back over the past week's chart, I am not as sanquine as I was on Friday afternoon as I realise now many other people must have gotten beaten up too in this directionless volatility. 

Weekly highlight: One I would rather forget. While losses themselves were not large, profits were little and personal frustrations showed through the end of the trading week. It is easy to get upset if one trades for a living and we go through periods that just don't make sense. Until we resolve this current trading range ($93 to $98) I think it best to trade one lots and be very conservative....bottom picking can be very costly.

Trading Strategy (1 month): The daily chart continues to point higher and there are still some valid upside targets yet to be hit. So with that said, last post's comments seem to still hold true, I am leaning towards higher, not lower prices. New upside objectives include a small daily bull ab=cd (target of 99.74) as well as a gap that ought to be filled at 99.53. Lastly, we do have a rather noticeable weekly bullish ab=cd currently working which in itself suggests prices want to eventually move towards the 102.50 area (which happens to correspond with the same level as the massive daily bull ab=cd, 102.54).

Trading Plan for this coming week: I am rather disappointed in myself in that I strayed from the trading plan over this past week and trading performance suffered. So like my previous post, my trading plan for the coming week should be as follows: Use 'OTE' setup to identify buying and selling opportunities at key support/resistance levels on the 60m chart outlined above.

Picture everyday my ideal trade....looking for complete washout at or near OTE/HG zones on 1hr/4hr charts. 

b1 aoco (-.21/+.41)....If system is 70% accurate. in 10 trades net ret. = 2835 - 645 = +2190.00

Focus for the week: Stick to the trading plan.....do your research, pick your marks to watch for and act accordingly at those marks...stick to the plan.

That's all for this post,
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
http://www.therationalinvestor.ca
http://crisdaytrading.blogspot.ca/