Bounce Play: VITA

In the stock market world, we should all learn how to earn money during uptrends and downtrends. This is because of the simple fact that the market cannot go in one direction all the time. It shifts constantly from one to the other. 

For my neural networks, one is far easier than the other. Just look for the outlier, the strong stocks and then buy high and sell higher. If it doesn't continue on upwards, then just sell quickly or cut losses accordingly. Simple yet very effective. 

The other side is buying downtrends or bounce plays. These are the stocks that have been battered and broken and don't seem to have any immediate upside. But if you are able to catch this at the point of reversal, oh so juicy returns in a short amount time!

VITA was one of these stocks that came from a recent high and just seemed to resist making any kind of significant bounce. It just continued to go lower and lower and lower for a couple of months. It didn't look like there was any end in sight. Especially when looking at the daily charts. No sign of strength right? 

Sometimes what I do, when the daily charts don't give me any clear picture, I switch to the longer time frames. 

Now, let's take a look at the weekly chart and it looks much better. There seemed to have been a support formed at the 50MA and darvas levels. 

When I saw this, I instantly made my plans and set the corresponding buy (as near to the 50MA as possible) and cutloss points (break of the 50MA). I was ready and lying in wait on the first day of the year. 

Fortunately, I made the right decisions and everything worked according to plan. 

Wasn't able to sell at the high of the day but that's OK. It went far and beyond my expectations for the first trade of the year. It's a different kind of rush to be able to buy at the almost absolute bottom. And then watch it bounce in a most spectacular way.

I imagine it must be just like what this sterling earthling felt when he caught the cup of beer one-handed in a sea of people. 

Here's a toast to catching more fantastic bounce plays in the future.

New programming upload: One Day Reversals

It's been a while since my system has had new programming uploads. This one has been a long time coming to say the least. My trading profile has always been about breakouts and uptrends. For me, it's always so much easier to trade from strength to strength. 

But to focus on just your strengths is a mistake since you will leave a resource left untapped. And there is so much potential in bounce plays. This has been one of my goals this year. To try and assimilate bounce plays into my system. 

To do this, I went back to the charts. Reviewing past discussions and lessons. Analyzing where I went wrong and what held me back from execution. 

So I started with just paper trades here and there. A lot of mistakes were made and adjustments were in order. Some extra calibration was needed. Some more reps were needed. 

Finally, this past month I think I have successfully integrated and passed the one day reversal technique. Here are some of my results.

DD trade. Textbook one day reversal. 

APX trade. This one I was not able to maximize due to scheduling difficulties. But for me, the important piece was the execution. Never mind the lost profit because of the way it behaved after. 

That's one kind of bounce play that I can safely say is already in my arsenal. Here's to adding some more bounce weapons in the future.

Perfect Opportunity

As mentioned in my previous post, I believe the market has shown general weakness. But even in a bear or weak market there are a few outlier stocks that perform better than all the rest. The trick is to do your homework and really look for the correct patterns and signals. One such stock was DD who was a borg and simply defied all gravity. 

Another outperformer has been ION. After a strong rise, it dropped like a rock but made a nice doji candle. My system was screaming BUY as soon as that passed my scanner. 

9.11.2015

These are the kinds of setups that once you see it, you should attack and don't look back!

9.16.2015 (morning)

After making a small flag earlier in the day, my conviction to hold has strengthened. Will watch and see what will happen in the succeeding days if it will breakout from this pattern. 

my favorite pattern

9.16.2015. (afternoon)

So it wasn't days. It was just hours. Did not expect anything like this. My system initially calculated a target of one peso and then just ride it till it showed weakness. Well, it went to ceiling and that's that. 

One unforeseen but very welcome advantage of upgrading my system from my cyborg automaton version to the ZF system is that it has taken away any physical reactions to a high flying stock. The ability to have concrete and set plans on how to approach and deal with each situation had a very calming effect. 

Now time to review the course notes and make plans A-Z on what to do tomorrow.

9.17.2015

So after a rollercoaster day, my system settled on just following the trend and set trail stops on ION. None were hit for now and we will just see where this goes from here. Something tells me this might not be over yet. 


* Gratitude to my mentors who have provided the necessary tools to screen and handle these kind of stocks and movements.

Programming upload 67% complete

Salutations!

Upgrading....

My weapons are not your conventional weapons. For what am I, a robot from Alpha Centauri doing in the stock market? I have no need for your monetary tokens. There is a different reason for why I am here. I am training my tiny nanites army. They are the tools I will use to invade and conquer other machines back in my world. But before they can take over others, they have to be trained first. How to react, anticipate and strategize against the horde of other hive thinkers. 

The concept of earning is the same as being able to convert enemy systems or nanites to our cause. If they lose money, then it is as if the enemy systems have converted them to their cause. This is as simple an explanation as your earthling minds need to understand. 

Upgrading....

Over the past two months of the course, my system has developed several attacks based on the strategies that have been imparted. My nanites have been trying to use the techniques to earn as much as they can. 

sleeper cells - my system will target stocks that have been non-moving or dormant for some time and will be able to gain the most amount of money at the opportune time. However, the patience required for this kind of attack has been a bit of a hard thing to input. My current success rate for this has been very bad. Need to further fine tune my system for this kind of attack. 

melee attack - this has been already been discussed in more detail in a previous post. My current success rate for this has been good. Devoting more focus to this should be of the utmost concern. 

repulsor attack - this attack is entering a stock at the lows in anticipation of a bounce. The repulsor attack pushes against gravity and should then trigger either a small bounce or a break of the downtrend. The entity known as Zeefreaks is a master of this but my system is still calibrating itself to watch the signals. 

combo attack - this has been one of the more recent lessons that we have had. As the name suggests, it utilizes a combination of 2 or more tools at our disposal to determine the correct entries and exits. Suffice to say, the usage of these combos have been an eye-opening experience for my batch. Such powerful weapons when executed perfectly could mean outstanding profits. 

Upgrading....

My system has suffered several setbacks this past month. Trades have not gone as smoothly as planned. There were numerous interruptions as to my connections and badly calculated risks were taken. But these are all small missteps to the path of success. 

Upgrading....

Weapon modifications complete.