Friday, October 2, 2009

Friday Notes - The Riverdance

It's getting tougher again to hide.

As many long-term followers know, I chose to go "off the grid" a few years ago to buckle down on my own trading. Then came the diary-turned-blog. Then came the run. A record one. Then came the personal wall & burnout. Then came the concept of doing something new and imaginative -- something big (do I ever do anything small?) to reignite not only my own enthusiasm, but that of others. 20 others. And thus the Jellies were born. And then 20 became 40. And now the 40 are maturing before our very eyes.

And now media and broker inquiries are becoming the norm, with yesterday's ADA press release hitting the wires, TradingMarkets joining the list of those picking up the story in tonight's edition, and my receiving a note from one Jellie broker thanking me for helping teach his client to trade the E-Minis profitably and asking what he can do to further help the team.

And yes, I can see where this is going with the skeptics. Yet as history often predicts the future, it may be helpful to first do a quick history lesson.

Last year, some laughed at my personal one-year million dollar trading goal at the age of 47 in an age dominated by computers, algorithms, and Goldman Sachs bullies. Hell, forget "laughed" ... make that "scoffed". Yet my resolve remained firm, and I didn't waver. Ironically, it turned out "they" were right ... I couldn't make $1 Million in a year's time. I underestimated the goal by 60% to finish at $1.6M.

Then some laughed ... er, I mean scoffed ... at the concept of the Jellies. "He can't trade anymore, so he's trying to teach. What a rip-off!" Oh you should have seen some of the emails and attacks I received. And even to this day, some lamebrains insist the Jellie concept is one giant marketing gimmick, and that one can't make money scalping the E-Minis unless one has virtually free commissions and trades hundreds of contracts at a time.

btw, to that point, let's put that ridiculous myth to rest once and for all, as I received a note from a member of the second team today -- after only his first week in the tank --indicating he'd strung together five consecutive four-figure days for the first time ever, on only 20% of the number of contracts he'd traded in the past. I'd say myth busted. Congrats Marco.

Thankfully, the vast majority of the financial community, along with 20 traders, thought otherwise, seeing the blue wall as, well, blue. And then another 20, most of whom had been exposed to the Jellie Study Sessions, convinced me to do a second effort. And now -- and pardon the pun -- the Jellies are Gellin'. And yes, Don Miller -- the same guy who burned himself out in May and was looking for a reason to trade again -- managed to preserve his capital and is again back to his old 2008 & early '09 self with five figure days.

Last year and earlier this year, I danced the solo market dance of all time. Now, we're dancing a collective Riverdance, as evidenced by the team's trading during today's monster MATD which we prefaced in last night's post where we were in lockstep with the market's beat all morning long, buying the bottom and selling the top of each oscillation as they unfolded, until we stopped just before noon to simply watch everyone else fight for the table scraps in the remaining day's chop.

Some won't believe it and will continue to fight it.

Yet here's one word of caution for the skeptics.

I wouldn't short the Jellies.

It's an emerging breakout pattern, and I'm going long.