Simple Trading, Using The PPT

A few years back I demonstrated, using a spec account, how I used The PPT‘s algorithms in trading a $100k account into a million, in less than a year. I was using leverage, options, and 3x ETFs. Truth be told, I haven’t been trading ETFs in more than a year, for reasons unbeknownst to me.

2013 has been a great year for the buy and hold types. But it’s not always gonna be this easy. The very best part of The PPT is the Hybrid Oversold signal. To sum it up in layman’s terms, the oversold/overbought signals measure stress points and predicts areas of exact inflection– using fundamentals, technicals, bonds, forex and commodity inputs. The scores are processed and a reading is given, using history as a reference point. My theory, from the beginning, was that markets always behave in the same manner. The bubbles and swoons might have different labels, but the price action is the same. I’ve proven this to be true, at an 80% accuracy rate, ever since we launched The PPT in 2008.

Using only the Hybrid OS signal, TNA as a vehicle, and a holding period of 10 days, you would have made over 100% on your money during 2013. This is an especially good number because risk is considerably less than simply buying and holding. An investor would’ve made just 10 buys/ 9 sales (TNA buy is active since 12/11), being exposed to the market for no more than 100 days.

Here are the results.

$10k to $21k in one year, with less than 100 days invested.

A good start to what is going to be a fine week.

I was frozen solid today, continuing a streak of more than a month of doing little to nothing. I own lots of GMCR, GIMO, RBCN and BALT. Things went well today and I made 1.6% for the session. It was a good day, but not nearly as good as Carl “give me three seats on your God damn board” Icahn, who punched Bill Ackman in the face one final time with HLF.

When I get to be 150 years old, I want to be just like Carl.

http://www.youtube.com/watch?v=Ypvn3kbY6-o

One last shomp before the year ends.

As predicted, to the day, The PPT nailed the inflection point with precision, as all harmonious mathematical models should.

This was The PPT post on 12/11

And here are the scores leading up to the event.

I hope you banked a little coin off it.

As you all know by now, as men considered to be “in the know”, S&P futures are plunging this evening, like homosexual v neck sweaters, which started off with a very large trade. Why bore you with all of the gory details, when you are all “in the know” anyways?

Precisely.

A car jacking/bullet shot to the head routine traveled from parts unknown to the decadent nest of the Short Hills Mall, a place where The Fly has been known to parlay, as well as the indomitable ChessnWine. This, as well as other small particulars, is the reason why futures are lower this evening. Let’s also not forget that Homeland was on tonight and it did not bode well for some main characters.

A certain doom and gloom carries over the market this evening. Any tarriance on behalf of the sellers will only offer temporary respite for the doomed lodgers, long at the Summit top of this tape. If you are able to escape with 10% of your money, by the end of 2014, you should consider yourself “a fortunate man”, a person with 10,000 guardian angels fighting devils by your side.

Sleep tight, cellar dwellers of the olde school, for you will be taught a very harsh lesson, indeed, in regard to the new order of things tomorrow.

This is it folks (extra Denninger). We’re either going into the cesspool of hell or hopping aboard the “deathsled” to bestow a great pain and misery, a final blow of sorts, to the childish morons who continuously short this market.

Last week the tape was weak; but you wouldn’t know it by reading iBankCoin. The Option Addict pulled off one final “epic trade” for the ages, getting long massive quantities of TWTR December 50 calls, all done under $1. Some of his members, inside of After Hours with Option Addict, got in sub .20 (+6,500+). Do you know where said options are trading now?

Almost $10.

Jeff bought a house with the proceeds, literally.

Just to put this trade into perspective, had you dropped $5k into the TWTR calls when he suggested, those same calls would be worth over $65,000 today.

Isn’t this what we’re here for? How many of you made over 1,000% on this trade?

Congratulations to all of those who participated in this trade (tips hat).

As for my BALT position: I believe the Morgan Stanley analyst has it all wrong when he says GNK is an overhang on BALT, keeping the shares down due to uncertainty. I believe GNK is negotiating a pre-packaged bankruptcy and such an event will not affect BALT equity holders. Why else would Centerbridge take a 14% stake in BALT, just last month? They are most likely working with GNK on the bankruptcy details.

At any rate, I expect trading to be thin and volatile, as most hedge fund managers move to cash to lock in great gains. After all, these gents would like to get paid their $100 million bonuses. Any hedge fund related sell off in December will most likely result in a January boom, so hang tight and pick your battles carefully.

I bought MOAR BALT, as it lags behind the ripping hot shipping sector because I am Shabba Ranks.

They must read me.

Shipping is at the start of a two- year rally, led by advancing rates to haul coal, iron ore and grains, as fleet growth slows and China’s strengthening economy boosts cargoes, Morgan Stanley said.

Demand for ships will expand at a faster pace than vessels in 2014, the first time in six years that will have happened, New York-based analyst Fotis Giannakoulis said in an e-mailed report today. He upgraded estimates for the industry to “in- line” from “cautious,” and said demand for ships to haul everything from iron ore to grains will benefit most.

The more positive forecast mirrors wider predictions by shipping analysts that the worst of an industry rout is ending. Rates for 10 out of 11 commodity-carrying ships will advance next year, led by a 53% rally for Panamaxes hauling coal and ore, according to the averages of more than 50 analyst estimates compiled by Bloomberg News.

“We see a 12- to 18-month window to play the cycle,” Giannakoulis said. The industry’s recovery will last two years after which vessel supply will quicken again. The rally favors owners and operators including Diana Shipping Inc., Safe Bulkers Inc., Knightsbridge Tankers Ltd., and Star Bulk Carriers Corp., he said.

While China’s economic expansion will slow to 7.5% next year, the weakest since 1990, its growth will still be more than three times the global average, according to economist estimates compiled by Bloomberg.

Fleet growth will decline to less than 5% next year and lower than 4% in 2015, Giannakoulis wrote. That compares with demand expansion of as much as 6.5% in 2014 and 5.5% in 2015, he said.

Source

Indeud.

http://www.youtube.com/watch?v=BVH5ZRtsyAc

One of my largest holdings, GIMO, is having its face punched in today. I much rather not talk about it, in favor of a little chinwagging about the prospects of the dry bulk shippers. However, in an effort to publicly disgorge myself, I think it’s only fair to mention the evils that plague me each and every December.

Last year, around this time, I was beaten like a red headed step child in DECK. I ended up selling the stock, in true cowardly fashion, in the $30’s. Look at her now, in all of her beautiful furry fashion! Today I am being mocked in GIMO.

Now, there isn’t any news, per se. There was an initiation of coverage, and a price target of $28, affixed by some boiler room in NYC. There’s also the expiration of the lock-up period happening today, which lends to the overarching bearish feeling in the stock. But the truth is a little more simplistic.

Let me explain.

The bombastic decline in GIMO, the unexplained and mysterious 9% drubbing in the stock, has occurred because Devils are chasing me, attempting to extract my life force, and by extension, destroy iBankCoin. There isn’t any other rational explanation as to why this is happening today, following my ALJ debacle and subsequent set back in RBCN.

All in all, I am down 13% in GIMO and should be selling it right now. Truth be told, I had limit orders in to sell my entire position yesterday, but never got hit.

HOWEVER, you know, as well as I, the moment I sell the stock will mark the exact and precise bottom–as was the case with ALJ.

Therefore, I am putting you on notice, that I have initiated a brazenly irrational approach to dealing with this fresh setback and cannot be trusted upon for cogent, well though out, considerate advice.

The shipping industry is currently my favorite. In an effort to dispel the notion that my BALT isn’t holding its water, I’ve compiled some statistics, for your fat faces to chew on, while devouring the donuts that litter your filthy desks.

sorted by % away from 52 week high

Sorted by 2 week return

Fannie Mae is the biggest winner of the year, with a YTD gain of 1,000%. Within the small capped universe of grotesque degeneracy, there are numerous triple figure gains. The population is too large to count, frankly, with the SPY +30% for the year. On the downside, once again, are gold and silver stocks. Perhaps they will bounce in 2014.

In an effort to shrink the universe of winners, I screened for stocks with market caps above $5 billion. Here are some of the highlights of 2013.

TSLA +325%
RAD +310%
NFLX +303%
MU +255%
NUS +252%
BBY +247%
ALU +238%
SFUN +196%
INCY +192%
IEP +182%
QIHU +172%

Biotech, casinos, chinese burrito stocks: risk was certainly on in 2013. All of the riskiest names soared, as investors kept climbing the wall of worry. Without a doubt, 2013 belonged to Carl Icahn and his incessant punching of the face of a Mr. Bill Ackman, whose fall from grace was nothing less than hilarious. It’s a mistake to believe the trends of 2013 will be the winners of 2014. Often times the biggest losers turn out to be the biggest winners.

What sector will catch fire? Will biotech continue its run or crash into an FDA jackhammer? My favorite thing about investing in stocks is doing the investigation and fixing on a thesis. Early on in 2013, my thesis was to be long Japan. I was exactly right. At the time I was long SNE around $10. Looking at the list above, I was long NFLX and MU in great quantities, but failed to “hold my butter”; and as a result, I missed out on the run.

For 2014, I am committed towards the procurement of ‘massive winners’, most readily seen in fairy tale books or passed along through cartoons and fictional books. Failure to accomplish this will result in “ultra-violence” being hoisted upon the innocent readers of this site.