DaviesTown.com/blog

I DID!!! HURRAY!!~~

**On May 16th, 2008, Davies Town receives his Bloomberg Equity Certificate.**

Time to focus on my next thing.. Hmmmm… What should it be.. PETER LYNCH, ONE UP ON WALLSTREET!

I’ll keep this post short.

Have I mentioned how much I LOVE Bloomberg (red stands for love)? Well, now that I recently found out there’s a Bloombert Certification program, I’m going to strive to get certified ASAP! ..Cuz I love it that much.

New changes to my website www.DaviesTown.com. Very cool changes IMO. Features like “My Busy Hours,” “Stored Resources,” “Photo Galleries,” and a few others… I think.

Mmm what else… I exited HAL since it wasn’t going my way. I need to remind myself that the trend is my friend… but crude oil is exhibiting such strength that I can’t believe it. Oh well. =P

Mmm what else… Not many more posts will be coming out as I have been disconnected from my market feed for quite some time now. I’ve been focusing on (1) my website, (2) school, and now.. Bloomberg Certification program!! On top of that, there’s a plethora of investment books I need to read. PLUS, there’s the Canadian Securities Course. Oy. Sounds like a plan. =)

Ever heard of the term Work-Life Balance?

Well, for me, it’s more like University-Stocks Balance.. in that order. University is work and stocks is life.

I know what you’re thinking… Don’t look down on me like that. I’m not that narrow minded. When I say stocks, I don’t just mean equity. I mean EVERYTHING that has to do with the capital markets! I used ’stocks’ because most people don’t know what capital markets are.

Anyways, that is what’s going on with me right now. The question, “Which takes precedence: Work or Life?” Well, if you can’t afford to get fired by your boss, then you better have work come before life.

Similarly, University or Stocks? Well, since I can’t afford to get kicked out by poor grades, I better have University come before Stocks.

And that, my friends, is why I’m going to be putting the markets in the backseat until I get those three midterms out of the way. Last midterm on March 14th. Also, between March 10th to 14th, I’ll be participating in a “raising awareness for homeless youth” cause so I’ll be busy being homeless too. More info @ www.5days.ca/vancouver if you’re interested.

Until then.

Sometimes I hate Fridays. Why? Why else? THE MARKETS ARE CLOSED FOR THE WEEKEND! It’s like being blind for two days. The comfort of constant market valuations and liquidity being taken away from you!

Imagine this. It’s Saturday. You shorted ABC stock on the close Friday due to excellent technicals and poor fundamentals. Now imagine how gittery you would feel if Warren Buffett, out to get you, announces that he thinks ABC’s industry is the next best thing. Boy, that’d suck. One thing’s for sure, ABC is going up. The question is.. by how much? You would start to wonder . . . How much value does his announcement have? How do other traders/investors see this news? How many other traders were short on Friday? How many will cover? How many new buyers will there be? At what price did the majority of people buy above Friday’s close? In other words, where are major resistances? What should you do next?

Sometimes I love Fridays. Why? Why else? It’s the weekend! That’s all I have to say about that.

I was trading NOV today.. An amazing stock. Today, it closely it followed the Fibonacci Retracements drawn out from a few days back. Here’s the chart: NOV_20080222 - Fibonacci Retracements. Pull it out to follow my analysis:

If we draw the Fibonacci Retracement from the low on last Friday to the high on this Thursday’s opening, we get the “magic” support/resistance lines! As we follow the stock on Thursday (yesterday), it bounces off the 50% line right before closing. NOV gaps higher on Friday, above the 38.2% line, but fails to maintain its price as selling pressure becomes too great. There was added downward pressure from declining markets as well. Consequently, the price flies by the 61.8% line and then bounces off the 76.4% line. It rests there; blowing off the rest of the selling pressures. As the price moves above the 9d-SMA, we see a LARGE candlestick penetrating and closing above the 61.8% line. This reversal is confirmed when the price bounces off the line in the follow periods. We also witness a 9d-SMA bullish crossover, further confirming the reversal. The next few hours, it incredibly trends between the 61.8% and 50% lines before making a break above the 50% line (with support from the 9d-SMA and 20d-SMA following the price closely).

NOV finally closes right below the 23.6% line, as shown in this picture. NOV_20080222 - Fibonacci Retracements (Closed)

Hopefully, you were able to follow all that. Amazing isn’t it? Of course, these lines don’t always work so perfectly. This is just an excellent example of how Fibonacci Retracements can be applied to real life!

**As a side note, NOV was able to fill the gap made from Tuesday’s open. Coincidently, the 76.4% line is EXACTLY on Friday, February, 15th’s close.

***I am planning to add a whole bunch of stuff to this blog in the months to come. There’s just too much to do with too little time.***

I have this strong urge to get my website up and running as soon as possible… It’s been another sleepless night in front of the computer screen today. Unlike last time, I stayed awake until the markets closed! And as I sit here eating my dinner, typing away on this blog, I am constantly reminded to wrap up the website. Currently, I’m trying to set up a public ftp server that allows anyone to upload their files onto the website, hassle free. Expect this to be up by the end of the day. More information can be found here (for now anyways).

The markets were great today. A mid-day rally, even with oil reaching record highs, and closing positive. Unfortunately, since DaviesTown.com has taken up around 10 hours a day since Sunday (the same day that I purchased the domain name and hosting services), I haven’t been reading up on the markets.

Here’s a picture of me working hard on the website with my very delicious dinner! Mmm Mmm good.

How sad.. Or happy?

I finally finished loading and configuring WordPress (this blog). It looks good. I’m happy. Too bad it’s 6:15am. The markets are going to open in 15 minutes and I’m going to sleep!! That’s sad.

From the looks of it, pre-market trading seems like the market is ready to open strong.

This is a fine day to publish my first post on my first blog. Good night..