One of the things I need to get into the habit of doing for consistent trading success is keeping a trading journal. Perhaps that’s what I’ll use this blog for. I can make notes to it from anywhere that I have an internet connection.

Each day I need to track the broad market activity by checking on the main indices and futures. The markets in general have been pretty quiet and staying within a fairly narrow range for the past month. Today was a mildly positive day with the DOW, S&P500 and NASDAQ100 all showing less than 2% gain. Oil futures were also positive.

Since making the 2% gain on Friday, GLD has slid down into another bull flag. My imaginary stop limit is on at $86.50, and it’s still above that. I hadn’t noticed when I tried to place the trade that it was actually at a major resistance level of $90, hence why it’s pulling back so soon.

I’m still holding onto 200 shares of Ford (F) stock. I’m thinking of selling one $3 June covered call, which would bring in $0.24 per share. That would bring the averaged cost of the 200 shares down to $1.96, when commissions are factored in. That’s exactly where Ford closed today. Considering that I paid $2.41 for the first 100, and $2.50 for the second 100, the calls and puts I’ve sold have drawn down the cost nicely. Now if only Ford would climb back over $3!

For my flag practice trading, I’m focusing on the following core stocks and ETFs:

  • Amazon (AMZN)
  • Coca-Cola (KO)
  • Diamonds Trust (DIA)
  • Hansen Natural (HANS)
  • IBM (IBM)
  • Kellogg Co (K)
  • McDonald’s (MCD)
  • Powershares Exchange (QQQQ)
  • Proshares Trust (TBT)
  • Spider Gold Shares (GLD)
  • Spider S&P 500 (SPY)
  • US Oil Fund (USO)

The main reason for picking them is because they all have fairly high volume and they’re featured pretty consistently by the coaches doing the training.

Amazon is on a nice uptrend since announcing favourable earnings last Friday, when it broke through a support level around $57. It will be interesting to see how long it takes to pull back, and if that support level will hold.

Coke can’t seem to get out of the $40 – $47 sideways channel it’s been in since its first big drop back in October. Once earnings has passed on February 12, I should test an iron condor on it. Kellogg is coming out with earnings on Thursday this week; it has bounced off resistance at $46 three times in January. It remains to be seen if it can break through that barrier, but the triple top may bode well.

McDonald’s just bounced off support around $57 for the third time.

Note to self: Investigate TBT. Figure out how it factors into the bond market. Currently on a nice uptrend but what exactly does that mean?

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