First off, thanks to TK for allowing me to post on his top notch blog.
My name is Jeff Patterson I have been trading for 7 years now. My philosophy is to keep it simple in my analysis of charts. What you see on my charts are all the indicators I use. I do use daily, weekly and monthly time frames to filter out the volatility and noise. I will elaborate more thoroughly about my T/A later. I do not want to bore readers to death with my first chance to post.
I wanted to post my analysis of UUP. I do not recommend trading the options for this equity, they trade very poorly. I use it mainly for direction in gold equities. I did buy March puts, but more importantly at the same time I bought call options in AU and GG. If you look at the charts of AU, GG at the time I entered the puts you can see those equities were testing the bottom of their trend lines. Voilà, they produced nice spikes which I sold into for reasons I will spare you at the moment, but I have been dialled into these stocks for months now. By the way I am still holding those puts, just waiting for a test of the lows to sell them.
On the chart there are some things I left out as far as further confirmations that it was just another spike up in my estimation and not a bottom, but I did not want to clutter the chart up too much.
Also UNG has a chart much like UUP that any time it tests its upper ranges it's nothing more than a spike and begs to be shorted.
