Tuesday, March 25, 2008


OK, I know what you're thinking. Wow, that Waxie dude is Da Man!
And, well, I don't blame you. I am da man fo sure. Having said that, in this business I can only be da man on a day to day da man basis! Why? 'Cause one of my first lessons teaching people about the market and trading was that I could go 50 and 0 and be hailed the greatest thin' since Gunga Din, but if I lose on trade 51...I SUCK! I am the worst and someone, somewhere will write really REALLY nasty things about me! I will say, though, at least for today that I am the absolute freakin' ruler of the world! The nearly 200 clients who came to the TOP 5 Stock and Options class last night are certainly riding high in the saddle, dude and dudess'! We are SMOKIN'! It's a tad late for anyone else to get in the game, so I'll post a few of the big winners here now; COIN (up over 20% intraday), ORCL calls up 3% so far, but higher after hours, AA calls up about 20% from the open, RIMM calls and stock = ROCKING obviously (we sold 1/2 at the high of day today!), MON, well, MON total beast obviously, the list is just doing fantastic, even on a basically flat day.

The market right now should trend higher unless bad news knocks it down. it's unlikely it'll go in a straight line, but I see no real compelling reason for us to get a massive selloff again here near term, baring news (always that damn hedge!). News does RULE, as you all know by now!

I think staying away from banks and brokers this second is a good idea. If we continue to rally they will go along for the ride more than likely, but those groups are much more likely to catch a real beating news wise than anything else.

I'm going to give you guys a little hint. When the market is like this you need to look for LAGGARDS. It's one of the things I think I do better than most traders. It works both ways, meaning we can short laggards (stocks that have been strongest) when we smell blood in the streets coming as well. COIN is a perfect example. Yesterday it was up (I liked it SUnday night, so its up like 30% in two days), but our entry was super duper delicious. Why COIN? Well, Ag stocks figured to get a nice bounce after last weeks selloff, even on Friday when the tape was rocking higher. Once I saw that those stocks were primed to bounce, COIN is automatically on my radar screen. My laggard meter is on hyper alert and it's time to look for stocks that are a little smaller that can move in a big % manner. COIN fit the bill perfectly.

I think I may have another one for tomorrow, an under $10 stock that looks primed to get a nice big move potentially.

Sector rotation works like this as well. The hottest stocks all bounce, like the solars (check out FSLR and you'll see what I mean since that's the leader in that sector clearly) and in that group you look for laggards (did ya see our SOLF move today! Wowsa!). Then you look for lagging SECTORS for a bounce. Usually thats the weakest bunch of stocks thats lagged the move so far. Timing is everything and if you time it right you pay at a time when the market is ready to reward the patient traders who may have to ride a loser a wee bit before it coils and bounces higher to catch up.It's like the food chain. If you do well in one place its scarier to look elsewhere, but you definately don't want to stay your welcome and you certainly don't want to be so early that you take a big beating before the inevitable catch up stock. Trick is to study the market and a sector or two, and then look at a couple weeks daily charts on each stock. You are quite likely to see some overlapping. That's a very very good thing and one you may want to consider trying on your own.

Tomorrow fading the gap will probably be a good strategy to start the day. From there I will look for breakouts and the like. From there we'll see if I remain DA MAN! or, if I am tossing sald with Emeril!

See ya on the other wise,

Michael "Waxie" Parness


Joe said...


I enjoyed the class yesterday.

Your comments about choosing strike prices alone were worth the cost, even though that wasn't the point of the class.

I couldn't get a good fill on some of the picks (namely Monsanto- it never pulled back in) but the ones I'm in are up.

I think we could all sense your frustration that you wished you had done the class on Sunday rather than Monday but it was still worth it.

Keep up the good work. Thanks again.

Disillusioned said...

Not sure why you are touting Monsanto (MON) as such a big winner for those of us who attended your class? All but a very risky point or two were left by the time the market opened Tuesday. Since the class was Monday after market close there was no time get in on any of this move.

I trade options, so those were the positions I took from your class.

Results so far: GE (slightly down on these calls), AA (flat - stock price up but didn't enter at lowest possible point past 2 days so calls haven't gained any), RIMM (stock never pulled back to discussed entry point so I didn't get any calls), HUM (didn't enter a position as you referred to this as being a riskier pick), and your final option pick was ORCL (got crushed upon reporting earnings after market close - this was an earnings play so even an exit prior to close would have resulted in a $.20 loss per call based on bid price of $2.25).

Net result is a loss! Expect me to be holding you to the price guarantee.

-- Disillusioned

Waxie said...

Disillusioned, sorry you are upset, you CLEARLY did not pay attention to the class or the rules of entry.

The list is ROCKSTAR city, you out of your freakin' mind, dude, sorry.

RIMM was about a DOUBLE. That's what I made and I got them same time as you did, or should or could have. Perhaps next time you will listen closer.

ORCL - an alert was sent out and it was said in class to sell BEFORE earnigngs come.

Man o man, some people love to complain. That's ok, we got a ton of emails thanking us, including my man joe above ya.

In the meantime, I've personally made SICK money on these calls. MON? So, you didn't get MON. So what?

What about the #1 play = COIN? I suppose you didn't get that one either. I made about $25,000 on that stock and got it at same price as you or anyone else and I still own 5000 shares.

Refudnd? Yeah, ok, sorry dude, cashier is closed. List is a rock solid absolute Ka-chingo to the max!

If you like, I can send you a link to go listen to the class again.

It's 1 am, I am cranky and I don't like whiners.

Oh, and AA not a winner? Please, just stop, the calls are up about 30% already, but you got a "late fill"? Yeah, ok, righto.

Man o man alive. RRRRRG


Waxie said...


Thanks for rocking out! MON you are right, not an easy entry. I think a few people said they bought it afterhours during the class. Otherwise, yes, no way to get in to make much, or anything on it. RIMM clearly was a monster beast call, and COIN sick, and AA awesome. ORCL was breakeven. I said during class $2.20 entry and it closed right there, and we don't hold over earnings.

I'm out of most of the list for huge gain overall. COIN is sick and was the #1 play. that play alone was worth the price of the list X's 10.

Education is where it's at. Learn to earn!


Disillusioned said...

"The list is ROCKSTAR city, you out of your freakin' mind, dude, sorry."

"Refudnd? Yeah, ok, sorry dude, cashier is closed."

At no time did I personally insult or mock you. It is distressing that the head of the company I paid over $10,000 to take classes from would respond with such a condescending tone.

I pointed out my lack of successes with the options, but at no point did I insult you while doing so. If you don't want to hear about my results...hey, that's your right afforded for living in a free country. If you don't want to hear that you were able to enter your positions on the Monday...that's your right. If you don't want to provide the guarantee...once more that's your right.

You want to suggest that I "CLEARLY did not pay attention to the class or the rules of entry"...that's your right too. You are incorrect, but it is your right to speak of me in that way if you so choose. Feel free to quiz me on what was said during the class though. For someone who "CLEARLY did not pay attention", I did somehow write down your comments for the official 7 stock/option plays you brought up, and even the unofficial 8th play (ETFC - which was a buy if it dropped back to $3.80 or less before the end of this week). I also noted that at no point was it mentioned that attendees were required to enter every stock and option play discussed in order to qualify for the guarantee.

In regards to the price I paid for the ORCL options, it was said that if the stock gapped up Tuesday morning then use the 10am rule (it gapped up to 21.05 at open). The 10am rule was explained in the chat window as meaning that at any time after 10am if the stock breaks to a new high for that day that this is the entry point. Using this meaning, ORCL hit a new day high at 10:09, hitting $21.08 on the 1-minute chart. So this was my entry point for the April $19 Calls, which costed $2.45/Contract.

Did I completely botch the entry strategy? Hey, I'm as imperfect as the next person, and could've misunderstood the instructions. I'm more than willing to acknowledge this fact, and will go back and listen to those couple of minutes to confirm for myself.

I would suggest that you maybe give it a listen too, but based on the manner and tone you chose to respond to me it would appear that you believe I am obviously 100% in the wrong and you are 100% in the right...Hey, that's your right to think so.

In the end, I am a consumer and as one it is my dollars that do the best talking of all. I had been on the fence as to whether or not to spend the additional money right now to take the advanced classes given directly by you. While another $10,000 or so from me is of no real monetary consequence to you, it is the best way as a consumer that I know how to to voice displeasure.

So thanks are in order. Thank you for making it a 'no-brainer' not to give another penny to you or any other service you are affiliated with.