Good morning, my name is Ugly, and I am a loser. I have it in me to do serious financial damage to my account.

Dear Diary,
Based on yesterday’s trading, the following stocks are worth noting:

OMNI	Basic Materials	Oil & Gas Equipment & Services
FMCN	Services	Advertising Agencies
KEYW	Services	Technical Services
SNDA	Technology	Internet Software & Services
DIVX	Technology	Multimedia & Graphics Software

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Russian hackers have been sending you lots of stock spam via a 73,000 computer peer-to-peer botnet seeded with the SpamThru Trojan.

Stewart said about 20 small investment and financial news sites have been breached for the express purpose of downloading user databases with e-mail addresses matched to names and other site registration data…

“They’re breaking into sites that are somewhat related to the stock market and stealing e-mail address from those databases. The thinking is, if they get an e-mail address for someone reading stock market and investment news, that’s a perfect target for these penny stock scams,” Stewart said in an interview with eWEEK.

And they are also sending you penis enlargement spam at the rate of over a billion per day:

“It’s a very enterprising operation and it’s interesting that they’re only doing pump-and-dump and penis enlargement spam. That’s probably because those are the most lucrative,” he added.

With a botnet of this size, the group is theoretically capable of sending a billion spam e-mails in a single day. “This number assumes one recipient per message, [but] in reality, most spams are delivered in a single message with multiple recipients at the same domain, so the actual number of separate spams landing in different inboxes could be even higher,” Stewart said.

Since day trading is a lot about recognizing the patterns in charts, I have decided to post a chart every day that would have resulted in a profitable dummy trade. I will post these in the dummy-a-day category which you can simply click to review for practice. The chart will be displayed as it looked when the trade should have been executed, and when you move your mouse over the image, it will show how the trade would have resulted.
Here is one I missed from today, CLS:

If you shorted CLS when it broke below its 10 and 10:30 candle at $9.47 with a stop above it at $9.52, you would only risk 5 cents. Waiting to cover until the end of the day would have given you about 20 cents for every share you were short, or 4 times your risk.

As you can see from the chart, the two 30-min candles combine to form a makeshift 60-min candle. The longer the period of time that the support holds, the harder it seems to break.

“It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.” - William O’Neil

Symbol	Price	Volume	Avg. Volume	% Vol. Increase
SFLK	0.115	2378565	902791	%163.46
MZ	0.69	570600	132684	%330.04
GSAT	13.2	443952	0	%N/A
STG	0.18	348000	307492	%13.17
NINE	4.37	255190	86005	%196.71

– Click here for today’s full list –

“It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.” - William O’Neil

Symbol	Price	Volume	Avg. Volume	% Vol. Increase	High Alpha
AAPL	91.81	36993544	23398100	%58.10
AEM	42.65	2871000	2161110	%32.84	*
DIVX	31.36	2595877	0	%N/A
CSLR	10.44	2518665	884	%284816.85
RA	49.11	2398300	2039980	%17.56

– Click here for today’s full list –

If anyone is interested in turning their urine blue in support of the blue paperclip project, here are some nice instructions. I am still accepting offers for the 1-year subscription to trade-ideas.com. Email me if you are interested.
It is as simple as just eating some Methylene blue:

A common prank amongst biochemists is to add small amounts of methylene blue (generally a few drops of a stain solution will suffice) to coffee, cola, or another dark beverage. The stain’s color will be masked by the beverage, and its taste is fairly faint. Within a few hours, the methylene blue will have been removed by the prank victim’s kidneys, causing his urine to change color. The urine may become green if little methylene blue was added; larger amounts create a deep blue color.

I really like trading off of the daily charts on a day like today. When the market is choppy, it is important to be careful and patient and wait for the best setups, otherwise you can get chopped to pieces. The market wasn’t really moving and I only made a couple of trades.
I noticed that FTO made a new 6-day high with some extra volume after holding its 50-day moving average, so I got into it just after 10am. When it quickly shot up to $30.60, I took half of my profits. Oil was strong, but oil sometimes trades sloppy.

I didn’t like the feel of it so I sold the other half at $30.65. So far it seems like this was a lucky thing to do, but at the time I thought it was a mistake. I usually like to hold at least half into the close. Maybe I should allow myself to break this rule on choppy days like today. It is something to think about.

Good morning, my name is Ugly, and I am a loser. I have it in me to do serious financial damage to my account.

Dear Diary,
Based on yesterday’s trading, the following stocks are worth noting:

(none)

Support uglychart.com by becoming a sponsor!

Since day trading is a lot about recognizing the patterns in charts, I have decided to post a chart every day that would have resulted in a profitable dummy trade. I will post these in the dummy-a-day category which you can simply click to review for practice. The chart will be displayed as it looked when the trade should have been executed, and when you move your mouse over the image, it will show how the trade would have resulted.
Here is one I missed from today, PRXL:

If you shorted PRXL when it broke below its 10:30 candle at $28.78 with a stop above it at $29.01, you would only risk 23 cents. Waiting to cover until the end of the day would have given you about 100 cents for every share you were short, or over 4 times your risk.

I’ve been trading off of the daily charts so I wasn’t really able to profit from today’s nice down trend, which is disappointing. There were a lot of dummy trade opportunities that I didn’t take advantage of. There were even some stocks on my list that set up for a low-risk short trade, but I didn’t make the trade because I had the stock on my list to go long. I really like only taking trades that set up nicely on the daily chart, and I enjoy not overtrading, but I’d also like to be able to take advantage of any nice trending day the market can give me. The best way to balance all of these things is something I will have to think about.
I made a mistake and went long AEOS this morning, even though the tone of the market was weak, and was stopped out. Not wanting to be left out of the creamage of the market, I shorted the DIA when it set up at 11:

Some more chump insurance that paid off.
Howard linked to a recent article in the NYT about Kurzweil and using computers to trade. I thought it was pretty interesting.
We have been testing our black box system for a few days and it has been doing pretty well. Today it was up over 8R. I even watched it make some trades and I thought, “I don’t know, man - seems kind of risky.” So I didn’t take them - I wish I had. It’s biggest winner was a short of GOOG.