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January
2, 2005 Commentary (weekend edition)-
Well, it's
good to be back. Not that I didn't enjoy my time off, but I can only have so
much fun if I'm not involved with the market. It's hard to believe it's another
year already. This means that the Kane Trading website is now in its third
calendar year of operation. That's hard to believe, as it seems like yesterday
that I started the books and all this began to unfold.
Before I move
on I'd like to thank all those that made purchases while I was gone. I was
pleasantly surprised when I 'got back' with the sales that came in. I will be
shipping those out tomorrow. I also want to thank everyone who has followed
along here at Kane Trading and become a 'regular'. I've had a chance to 'meet'
and help a vast assortment of really interesting people through this website. I
hope it continues to be as much fun for me as it has been up to this
point.
As I mentioned before I left I had a lot of ideas rattling around
in my head, and I pondered over many of them during my respite. Some I have
started to implement, and some I may get going on soon. The biggest idea is a
new offering that I decided to launch today. It is a variation of sorts on the
mentorship program. It is actually a private Kane Trading course. I now
have the page up, so click on the link and take a look at that. The reasoning
behind this new offering is explained on the page.
I gave some
thought to the membership section and have decided that I want to think on that
a bit more before I ask for input. I just have a concern about the amount of
time it may take, and time is always in short supply for me. As soon as I
hammer out some possible layouts (if they seem feasible in terms of time) I
will put up a feedback page.
I've also been tossing around the idea of creating a
beginners website. I have a lot of people contact me and the level of material
I offer here is just too much for them at this point in their education. They
like the methodology, style, and how I present things, they just can't bridge
the gap from where they are to what I show here. For me, again, it's a time
issue.
If I could put something up, pull together some of my notes and
create some articles, and do it all in a reasonably short time, I might
consider it. There are a lot of things I could do if I had the time. The more I
try to do, though, the more it takes my focus off my own trading (that's not
acceptable) and the more time it takes away from the little I have with my
family (that's also not acceptable). It's just an idea that came to me, in
response to some e-mail inquiries. If you have any thoughts on this, feel free
to send them to me. I suspect I'm going to get more than a few 'Forget the
beginners; I want my member's section. Concentrate on us!' We'll see.
I also am
thinking about two, and perhaps three, new eArticles. I'm not supposed to be
writing any more, but I just have these great patterns and ideas, and I'd love
to share them. Two are ABCD variations that I have come up with and use
extensively in my trading, and one is a gap variation on A Pattern Trade Entry Technique.
I can't say when or even if I will do these, but they are all written up in
notes already, and I probably could get them into article format fairly easily
(or so I've convinced myself).
Lastly, I've had a very interesting offer
come my way. I was asked if I wanted to be a partner in a very large, new hedge
fund (not large perhaps compared to the biggest hedge funds, but
massively larger than being a private trader). This is still being
discussed, but would likely require a big lifestyle change. I like what I am
working on right now, but it does take up all my time.
If I went
down the hedge fund route I would likely have little time for the Kane Trading
website or any private trading. On the other hand, it would likely mean less
hours and a lot, lot more money. Don't panic and send me e-mails telling me you
need the site, and me, and that I shouldn't do it. This is in the early stages,
but it's set to unfold pretty rapidly. If I have anything more to say on this
you'll see it here. Interesting, huh?
I'll gradually discuss what I am doing with
regard to all these ideas as things unfold.
I'll finish
with a little follow up of some plays from before the break, and then I'll see
what comes up this week that I might be able to discuss in the next commentary.
I'll start with ATG.


The arrow points to where the 4-Point Continuation Pattern came
together. ATG really took off from there, pulled back, and then set a new high.
Most of the management variations I use still have this trade partially
open.
Next, let's look at CME.


CME really came off that ABCD pattern. What
the status of the trade would be now depends on the management style. What was
the move that was being targeted? Again, most of the variations that I discuss
in Kane Trading on: Trailing
Stops and Kane Trading on:
Trade Management still have part of this trade open.
Lastly, I'll
show QLGC.


QLGC did a strong move off the pattern, and
is now pulling back more significantly that any of the previous pullbacks. It
has also reacted to an alternate ABCD pattern several days back. Would you have
closed the trade? Reentered? It would depend on the management style chosen,
the traded timeframe, what the trade premise was, and so on. There isn't one
answer. It would depend on the entire structure of the trade. This is a big
part of what I try to lay out in the books.
The next
commentary will be next week's weekend edition, as I am now posting once per
week. I will post that by Sunday night.
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