Delta Trade of the Week
Last Updated: Thursday, 6/12/2008
Delta timing solutions continually hit the mark with advance warning of significant market moves. These are recent examples. Bookmark this page and check back each week for current updates.
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I just wanted to take a minute and say thank you for all the work that you guys do. My trading would not be the same without the Delta perspective. It is truly amazing how the markets come back in line with Delta timing points. As an options trader, trading the long term cts turning points with the trend and the commitment of traders has let me forget the daily volatility. My success would not be there without you. Your insight to the markets is greatly appreciated. You are going to be there for another 50 years.J.B. - Friday, June 16, 2006
Commodity Trade of the Week
Cotton
Short Trade on Cotton by Kirby Cooper, Commodity Division Director
Box numbers are Long Term Delta Points in light blue Circle numbers are Medium term Delta Points in dark blue Red numbers are Intermediate Delta Points in red
On April 4th I told the members of the Delta Society to look to the short side on Cotton. The market moved down to the M-4 low after the L-4, M-3 high came in. Cotton was range bound moving sideways to the M-5 high. Would Cotton move up in price or down in price? Delta Timing suggested looking to the short side for the trade, trading down to the L-5 low at M-6. I-9 high was in, when we had this bar develop on April 4th. I suggested selling at the low of that bar. Notice to the right of I-9 starts the inversion time window where Delta Timing says large moves take place. The Inversion Time window is at point 1 in any time frame.
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Our sale came a few days later on April 9th. Once in the trade we put our stop above the high bar at I-9. We have now moved down to the I-2 low. I posted last night to place a stop at the down sloping trend line or us the Parabolic Stop the green dot. You might be asking why we don't just stop out at the I-2 low.
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The reason is the inversion time window, many times I-2 will invert to a high where the market will continue to trend down to I-3 where M-6 is due. Look at the chart below, I inverted the I-2.
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We have a trailing stop in the market either way. The weekly chart below shows we are at support. Some traders take profit at these levels with a limit order; others let the market take them out with a trailing stop.
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This is an example of how I trade with Delta Timing. I post trades daily on our support site trade-delta.com as I see Delta Timing defining them. Remember, great tools mean more profit.
Trade Well,
Kirby Cooper
Stock Trade of the Week
Dollar Tree Stores
DLTR Short Position Trade
On June 5, 2008 a signal to enter a short position trade in DLTR developed using the Delta turning points, Elliott wave principle and the technical indicators. A market order was immediately placed to "sell short" 2500 shares of DLTR and that order was filled at $37.20. Although I didn't physically place a "buy to cover" order for protection, I was at my computer following movement in this stock with the intention of exiting the trade on a rise above $37.37. This identified my risk on this trade at .18 cents per share. Considering the fact this was a trade taken on a corrective move against the primary direction of the trend I watched closely for any signals of strength returning to this stock. These signals materialized on June 10th and I exited the market on that date at $35.60. There may be more downside ahead before this corrective move completes but I am not one to test the extent of a corrective move. Therefore I choose to exit this trade and take profits. This allows me to analyze future market movement with a clear mind, profits in hand, and free of the emotional stress of trying to determine market direction while profits disappear. This trade produced a profit of $1.60 per share on 2500 shares in three trading days and produced a total profit of $4,000.00. I began trading this stock on May 23rd and this trade represents trade #3. The total profits of these three trades over a period of 12 trading days is $6,475.00.
To take advantage of future profitable trades go to www.deltasociety.com/stockletter.aspx and subscribe to the Wisotzkey Stock Trading Newsletter.
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This report contains stocks I personally trade. Market conditions, timing, and trading skills all affect the outcome of stock trades. Trade with money you can afford to lose and trade at your own risk. Past performance is not necessarily indicative of future results.
Good Trading,
Dick Wisotzkey
