Nathaniel Welcomes 2010 (by Nathaniel Goodwin)

I spent Christmas eve with mom and grandma, sipping mimosas and having a great time. I must have had one too many, 'cause I woke up Christmas day at a truck stop on the Ohio turnpike, about 300 miles from where I live. I was able to hitchhike home right before New-Years, only to find my mom's boyfriend moved into my room. I then spent the weekend setting up my trading station in grandma's room. I wasn't able to pay much attention to the market the last week & 1/2 of 2009, but Monday really got me excited.

Call me stupid, but I started shorting the crap out of the RUT on Monday. Here are a couple of charts of IWM and the RUT. Woohoo, we are making new highs Monday and Tuesday!!!! It really doesn't look that bullish to me though, I'm very comfortable shorting here with loose stops. (Disclaimer, I've been on the wrong side of most trades since July).

  

I know there is a lot of Elliott Wave bashing going on lately, so I haven't posted many EW counts. I usually don't count 1min charts either, but today's count gave me a huge boner right in front of grandma, very embarrassing. If we have a big drop wed or thursday, I'll print this chart out and hang it next to grandma's home-sweet-home cross stitch.

 

One last thing about stops... They are certainly hunting for them, all obvious stops (for bulls and bears) are being hit. I hate saying I have "mental stops" cause that sort of makes me move them up or down, and usually I would have been better off if I just set them and let them be taken out. Right now I'm looking at obvious stops and placing my real stops at an odd % below or above them. A place that may make the "obvious" stop price a place that would become support or resistance in opposite direction. Does that make sense? Maybe I've had one too many mimosas again tonight...