PPT in action

On weak days I've been watching for evidence of the PPT(Plunge Protection Team) getting actively involved.

When things look ready to drop bigtime I watch for a slowing and then upside reversal on low volume. It's exactly what we had today so I bot GS, TNA and shorted FAZ at the same time with the same result. By raising the market enough so that the weak shorts can't take the pain and start to cover it becomes a self fulfilling prophesy.

1st chart shows the QQQQ begin the run up on no volume.

GS long

sold GS

The art of profit taking

Since the markets have stopped their incessant march upwards at the moment, lots of shorting opportunities abound. New lows make newer lows and it's easy to catch some nice profits. The art of profit taking can be easy to apply if you employ a couple basic rules:

1. Have no profit target. Since you or no one else know for sure where a stock will rise or fall to, free your mind to only watch when it and the markets stop the current momentum. And,

2. Take profits when you'd be an bloody idiot not to.

A few examples today:

1st chart is LULU short

2nd chart is LULU profit taking

TNA short

TNA profit taking

VECO short