Delta Trade of the Week
Last Updated: Friday, 4/25/2008
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
Career Education Corp.
CEC0 - Long Position
On 2/28/2008 a signal to enter a long position in this stock was produced using the Delta turning points, Elliott wave principle, and the technical indicators. After going public in January of 1998 this stock spent the better part of two years forming an accumulation base. In October of 1999 this stock began a near five year climb that matured at a double-top in April and June of 2004 and identified the completion of an Elliott five wave count at that Delta L-5 high. The strong initial price moves down from there suggested this corrective move could prove to be sizeable. A signal to enter a long position in this stock was given on 2/28/08 and was filled on two separate entries of 2,500 shares each at an average price of $15.45. This daily chart shows the price move up from 11.57 at the Delta L-4, M-4, and I-3 low on 3/17/08 to the recent I-6 high on 4/18/08 could qualify as either the completion of a three wave corrective move or wave 3 of a new direction in the trend. The price action of this stock on the morning of 4/18/08 strongly suggested the Delta I-6 had arrived on time and a corrective move down was beginning. An order to exit this trade was placed and filled at $17.22, producing a profit of $1.77 per share in thirty-six trading days with a total profit of $8,850.00. Future chart patterns along with readings in the technical indicators as price approaches the Delta I-7 low will determine whether another trade can be activated in this stock. 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
