Enter: SKF

Today I bought 2,200 shares of SKF for 102.74. Yesterday it was in the 96 region, but unfortunately my broker (vanguard) would not let me buy it yesterday until my DDM sell trade "settled". I'm probably going to ride SKF for another sub-intermediate five waves down.

This will be my largest trade yet. SKF re-traced its entire third wave, so it has a long, long way down to go.

I started reading a book on options, so I may be employing these if I find a good entry point (before the thrid wave). But I'm not going to use them until I fully understand then -- so time to get reading!

Trade #2: Success (Stop)

I sold all my shares of DDM today at 76.48. Originally I had a limit order in to sell my 2,730 shares at 79.00. Guess what happened? Last Friday DDM went just past 78 to its peak -- so my guess of 79 was very close. Unfortunately, the limit didn't kick in and so today I put a stop in a 76.50, which was hit. So in a way my trade was a failure in that it didn't go as expected, but I made money anyway, so I'm marking this as a success (noting that it was a stop).

It looks like SKF has retraced its third wave -- which means I'm SUPER bullish on SKF right now (conversely, super-bearish on the financials). So tomorrow I'm buying back into SKF. I may/ may not decide to buy put options on the DOW or financial index. I'm not sure if I'm ready to trade options yet, but this is surely a great time to buy puts.

I will keep you posted.