Through the thick Michigan overcast a blinding beacon of light hast parted the clouds and shined down upon la casa de Raul.  The gods of the stock market saw fit to order their mortal servants (Goldman Sachs) to upgrade the LED sector, levitating my portfolio to unseen highs.

While the indices diddle more than a Sunday school preacher my book of stocks like VIPS, BALT, AMBA, and MHR are ripping the doors off this market.  Counter trend shorts hiding throughout this market are feeling the cold hand of Raul on their necks just before I choke slam them into margin calls.

I did all of this choke slamming and raised my cash above 20 percent.  I have 20 percent cash on hand ready and willing to deploy into hot charts and the blooming LED industry.

Not a share of CREE or RVLT has been sold.  Instead I hold these bits and bites of numbers attached to letters close to chest, weary of any passer by admiring them.  They’re mine!  The precious…

So yeah, I’m on one.

10% in one day would tell the rational person their eggs are too concentrated.  But I never set out to be rational.  I am on a quest for vanishing edge pools and car stables.  I want to stop eating bullshit meat.  I want my meat to live a happy life…rolling in the grass and soaking up sunrays while raising a family.  Then I want the farmer to give that sweet meat the best meal of its life.  Then, like the mafia, quietly sneak up behind the beast and boom!  Dome them, very clean.  I need to make the monies so I can visit my meat and get to know its quirky lifestyle and name.  My meat will not be imprisoned.

Then I’m going to eat that meat poolside, off a model’s ass, while she lies on the hood of my Tesla Model S.

What I am trying to say is I bought more RVLT.  I had too much money after I scratched AIXG.  NEIN!  Nine times that god damn German ADR head faked higher.  Pathetic.

Before I digress any further—good evening to you.  Let’s do this again tomorrow.

http://youtu.be/8WRj3XZvSqQ

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I added to my RVLT long. Don’t be like me, this is not for the faint of heart. If you buy RVLT because of this post your heart will in fact burst into flames, and you may lose money.

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The words sound sweet to my ears.  The glow they produce, so versatile and clean.  The energy they consume, so small.  LEDs are the TSLA of the lighting industry.

So sure, you could for the same price purchase a decent European luxury car and live in the present.  Or you can buy the TSLA Model S and leap into the future.  You could outfit your home and workplace with CFLs, ugly little pig tail looking devices.  Or grab some soft glow LEDs at your local Home Depot, direct from CREE.

Also politicians, I know you read the Raul blog and I also know you want to save the world, why not outfit your municipal streets with the XSPR street light at only $99 a piece?  Seems like a no brainer.

And if you want to just sit back and let the pros do all the work, why not pick up your phone and call the fine folks at RVLT?  They will be happy to retrofit your business.

Save the world, join us in the future, live the LED lifestyle.

Note: CREE and RVLT are my largest two positions.  I intend to buy more and concentrate my wealth further into this industry.  This is the big one chapos.

Note Two: I sold AIXG. The Germans are failing at the LED game, oddly enough.

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For most of my tenure as a trader stocks have been treated like a singular asset class and thus tightly correlated to other macro instruments like bonds, the US dollar, gold, and oil.  The binary nature drove me to studying futures because if all stocks were hell-bent on moving as one, I might as well trade them all simultaneously with an ass load of leverage.

I love the futures markets.  They are pure order flow with no dependence on a company and their decisions.  But seeing good companies and more importantly good charts succeed even while the market chops around is exciting.

It makes me want to concentrate more funds into stock trading.

I got caught on the wrong side (the long side) of the quick drop this morning.  Even though I preach plan adherence, I deviated and had to take a ton of heat on my trade.  The poor entry, paired with a non-market related event which shall not be mentioned but which has officially created a rule, caused me to shake out of my long—I shit you not—one tick off the morning swing low (about 11am).  No less than five minutes later, what I had expected—a bit of a bounce to cut my loss into—occurred.

This was a huge setback to my futures trading, huge.  I am so sick of setbacks incurred from plan deviation.  They are huge drains on emotional capital.

I went and had some tacos with a friend.  We talked about hunting mushrooms and it was quite the stimulating conversation and helped clear my mind to assess everything.  Trading structure will be restored for tomorrow’s action and it is good to make these mistakes while trading small, believe me.

Focusing so much energy on work and trading futures allows me to think much more slowly about stocks.  The more I learn from the excellent traders and stock pickers here at iBankCoin the better this approach feels.  My book is up 2.5% today while the Big Board chops the UNCH.

RVLT is a big part of the green portfolio, but it is getting plenty of help from IMMR, MHR, YGE, BALT, and FB.  My account is straight crack rock and ripping.

I see a huge consolidation occurring, as if we are waiting for news flow to get this party started.  Bull or bear, a party is near—I can hear the bass rumbles in the distance.  Until this decision is clearly made, I will hold the line, 90% long.

My slow money is in AIXG, LO, RVLT, MJNA, FB, O, F, and CREE

My fast money is in AMBA, IMMR, MHR, YGE, BALT, RBCN, and CLF

I still hold a sharp edge in the futures market and my win/loss ratio shows it.  The p/l however does not yet because of setbacks.  This isn’t over until I win which is simply a matter of time, not if.  This week however, my stock gains are casting a bright glow on my futures losses.

Pro Tip:  Like any business, be sure you are sufficiently capitalized.  Better yet, have other revenue streams so this learning process doesn’t come with the added stress of keeping a roof over your head.

http://youtu.be/cJT1xvDOMB0

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Revolution Lighting rolled out disclosed their presentation slides for the Craig-Hallum’s 4th Alpha Select Conference.  It is a bit wordy, but otherwise a solid presentation.

Check it out:

http://www.sec.gov/Archives/edgar/data/917523/000119312513379178/d603647dex991.htm

“LEDs, FTW”

FD: I am long in decent size and underwater.  I want more shares but my chart brain is making it a tricky endeavor.  Stupid chart brain…

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Blocking out the news flow is difficult but the blissful ignorance that comes from it is worth the effort.  Remember if something is important, my well curated twitter stream will tell me.  Better yet, the professionals inhabiting the many rooms of iBankCoin will tell me.  Anything local will be filtered to me via family, colleagues, and friends.  This frees my mind to focus on order flow and sustaining and growing my revenues.

Some days however, often after eating too heavy of a lunch, my attention span degrades by the minute.  For that reason I mostly do not trade futures in the afternoon.  Instead I usually read, stare out the window, or look at Tina Fey nip slip pics.  Nip slips always get my a.d.d. all worked up.

Anyhow, today I closed green by 1.25% even though I was up a rock star 3% intraday.  I scaled off a bit of YGE.  I could afford to do so because I timed my entry perfectly. The market provided me 7% gains, you see, by the time we reached swing high.  I will book that bread any day of the week.  I now have a lower cost basis and as close to a risk free trade as you can get in the markets.

How about that AMBA?  I couldn’t be happier about tossing my Zillow shares in the dumpster to fund my AMBA purchase.  The old me would still be in Zillow. The dead fish action would result in me drawing faces on lemons with a sharpie and then tossing said lemons into my Blendtec emotionlessly.  The house would smell lovely as I died on the inside.

Zillow speaks to the selective nature of our market.  ChessNwine has been keeping this thought at the forefront of our trading mindset in his Weekly Strategy Sessions.  As a matter of fact, he brought my attention back to AMBA too.  I mean, it never left my watch list, and I am a total GoPro fanboy, but the reminder was a nudge on the shoulder if you will.

This AMBA trade has taken conviction.  I am glad to see mine coming back online.

Earlier I said this is all an appetizer, so you may be asking yourself, “What’s for dinner?”  Well my friends, LEDs are for dinner…and sloppy joes.  2013 is the year of the LED, they simply took the 3^rd quarter off.  I have been financing these sleepy laggards with high level SHOMPPERY and 12631 magnificence, but it is high time they come online.  My top picks into the fourth quarter are CREE, RVLT, OESX, LYTS, RBCN, VECO, GTAT, and AIXG.

I like CREE the best as a company, RVLT the best as a young man’s speculative investment, and AIXG for their Germanic tribal nature.   I am long the trinity and will buy more of both after I spank a few more trades for stand up doubles.

I joined Le Doctour in BALT today.  I really just like the chart picture, you know me.  He does all the macro stuff.

Everyone is complaining about the way /ES traded today, but I had one of my better days.  When you have an idea of the context we are in, bobbing along the bottom with no conviction, you know to get the laser sight out and get damn good entries to allow you to get out before the things stalls and reverses.  We are learning over here and making a little bit of money while we do so.  From the high win rate comes larger position sizing and eventually scaling.  Then we make the big bucks.

Ah yes, I nearly forgot the point of this post—Everything you see is fake.  The dog and pony show in Washington over Obamacare and debt ceilings is all fake, jack ass es.  Do you really think any of this really matters, really?  I does not.  The terror threat elevation right at about 3:50pm?  Yes, fake.  Syria, real and sad, but so is every third world where cavemen kill each other for the best poppy fields.  Making noise about them is fake.  I have nightmares about a war on our land all the time because of these pundits and the terror threat bullshit. Even some nip slips are fake. I know, horrible times we live in..

Fear mongering from the glass half empty crowd is dangerous.  Avoid the losers who can’t drop it.

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There was an interesting occurrence this morning right before we printed the low of the day.  Price traded down to the overnight lows and then completely stalled.  This was right about when the POTUS took to the podium.  Then, as I had suggested may occur, we breached the overnight (yesterday) low briefly, the flow of stop losses created a temporary oversold condition, buyers reacted to seeing the weak sellers and a sharp buying tail printed on the /ES market profile. We also snapped the following trend line lower, finally:

I bought the YGE full sized amidst all this.  It was very lovely execution that brings a little sparkle to Raul’s eye.

The velocity of the move was enough to put plenty of shorts in the hole.  It should make for an interesting afternoon as value is being set higher then I expected in my scenario 1 balance hypothesis.

With today’s YGE purchase, I am about 85% long, mostly crack rock stocks—stocks like CREE, RVLT, YGE, AMBA, MHR, FB, RBCN, and CLF.

Can you believe I am nearly up 100% on my FB common?  I’m holding steady until at least $100.

The weak-to-strong closing type would be a change of character in the recent market activity and we may be looking at an inflection point.  It is a bit early to tell, but I like my aggressive positioning here.

I intend to use my winnings to finance the purchase of a Tesla Model S, the greatest automobile currently in production.

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The intraday volatility was certainly in place today as risk came off the table.  The S&P printed ten handles of selling with a few healthy rotations to allow short entry.  The Euro dollar via the /6E was confirming risk off too, trading in tandem with the /ES before going flat around noon.

Since around 1pm the market stabilized and balanced out.  The question on every bull’s mind is are we at an inflection point where this countertrend rally comes to an end?  I saw an interesting tweet from @StevenPlace that we have only had four consecutive down days twice this year.  The sellers certainly have been effective in erasing the euphoria that ensued post #NoTaper so perhaps a third data point is on the docket.

I will cover key levels to monitor on the S&P tomorrow morning to gauge sentiment and a potential turn around Tuesday, but as we close I get the feeling we will see overnight rotations and a sizeable gap to manage in the morning.

My portfolio is down a sultry two percent, championed by the broken wings of RVLT.  The weakness in RVLT neither surprises nor upsets as it has been my expectation for weeks.  Hell, I think it prints fresh swing lows to really get people off their rockers.  Ah, the stock market can be so cruel.  I will continue to dollar cost average.

I earned about 50% of what I made last week today trading futures.  It is good to see some intraday life coming back into the market as we enter Fall trading.

I cut off my Zillow loss early on and moved the funds laterally into AMBA.  I may be early to the AMBA party here as it is still consolidating.  Dash cam, FTW.

Top picks into Tuesday’s tape: AMBA and ELLI (no position currently in ELLI #want)

I also want some Miley:

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The market has been unable to compel me into action today.  Instead I have sat here drinking coffee and watching my peers rip the faces off of shorts with supreme ultra-violence.  My goodness, RaginCajun extracts a solid win off of EGLE, passes the baton to Le Fly and here we are, winning the relay.

One of my twitter buds was all over the shippers move too, well done @Apoms24 on the DRYS.

The day after a huge move, overnight or RTH, tends to be tricky intraday.  Therefore, I sat in the bleachers and enjoyed the view.

Book largest-to-smallest: CREE, RVLT, RBCN, AIXG, Z, MHR, FB, CLF, LO, F, IMMR, MJNA, and O

Cash: 20%

Tickers of interest: YGE, FSLR, ONVO, ZNGA, FRO, END, and GMCR

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As per the usual modus operandi (extra redundancy) I navigated today’s trade without media outlets like the teevee and with very little twitter exposure.  Instead the news came through the filter of a well curated group of elite traders in the 12631 trading room.   “No taper” they said, the exploding /ES and /6E charts told me the rest—risk rush on.

Reacting is a dangerous beast unless your reactions are decisions contemplated hours and days in advance from the war room (home office).  I took SKF off first, as I rehearsed in my mind last night.  Then I took a wish list of stocks and picked two: CLF and Z.  Zillow was an obvious buy because I love the company and housing will quickly become the catch up play as we dash to Xmas. CLF was a pure chart buy that could play catch up. Then I dove back into the big wave riding competition in the green lit halls of globex.  Futures good friends, I held my own with the big kahunas.

I’ve had 2k days on sessions like this.  Today was much more modest, but much less stressful and a hell of a lot more precise.  When November rolls around and I’m trading the size I want to deploy my scaling system, these will be 2k days again.  I ran before walking, fell quite a bit, decided to start walking, and soon I will run again.

6 trades: 5 long – 1 short, 6 winners.

Seeing as RBCN was my largest position going into today’s tape, yes, I did have a good day…thank you.  What would have made it only better but without it I still high watermarked would have been holding onto EXK which I regretfully cut this morning.  Regrets, I’ve had a few as Sinatra says.  It ripped the tits off and looks ready to continue ripping the tits off this week.  Now I feel like I am missing the action, therefore I am.  I will revisit the miners this weekend.

Oddly yet amusingly enough, RVLT paired up with IMMR, smoked entirely too much MJNA and enrolled in Clown College. Due to their heavy course load, 7 credit hours, they will be too busy to participate in this ramp up. They will instead focus on balloon animals, banana cream pies, and terrifying children.

The question that should be at the front of each of your minds is, “Is this euphoria?”  Because, I can tell you I feel a bit euphoric.  I will be breaking down the days leading up to this moment, all the blogs, all the behind the scenes homework, and psychoanalyzing this win ship to find repeatable strengths.

The work load only increases when you are winning, you must love the process as much (if not more) than the outcome.

Get some rest and come back early tomorrow, for today is only Wednesday.

http://youtu.be/nhflmIbyHbg

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