First Post

Hi,
I thought for my first chart, it should be meaningful. For starters, I am a bear at heart. That being said, I have learned to set what I want to happen aside from the charts. I am more concerned with account balance than my overall view.

I also have spent the last 14 years writing loans as a mortgage banker. So watching the mortgage industry crumble is most interesting to me. The housing and mortgage industry will be an area of in depth knowledge that I will have stronger opinions on than... semiconductors?

So lets look at a nice Head & Shoulders pattern on RATE (click on any chart to see a bigger version). A trade should have been entered at the close of the market today as a re test of the broken confirmation line is tested with a nice divergence in volume. It traded 1 million plus shares on the way down and just 245,000 on its 1% rise today. That is pathetic!

Risk is low as your "stop" is obvious. I do not see this trade taking longer than 6 weeks so I personally choose the May 30 PUTs for less than a dollar fifty. I am sure Return On Investment will be 100%. If you have trouble with numbers, that's doubling your money.