The Trader Talk Think Tank

Announcing an unprecedented opportunity to learn…

We are visiting Chicago and Philadelphia!

Keystone Trading Concepts presents the

Trader Talk Think Tank

Each month in our NYC office Keystone Trading hosts and moderates a two hour networking event that empowers our attendees to:

· Discover how to assess market conditions like a professional for the upcoming quarter

· Gain insight into which sectors have the lowest risk opportunities

· Discuss ideas you have previously traded and new ideas you are considering

· Review of previous Game Plans and how Keystone’s proprietary traders and students executed those ideas with real money

· Get a glimpse into the Keystone Trading Plan and how we plan to attack the markets in the coming week

Additional topics on the schedule include:

· The most common and (most costly) stock trading mistake and how to avoid it

· How to eliminate the anxiety caused by reading your brokerage statement

· The difference between a risk only trade versus a trade with a high probability to earn money

· How to qualify to trade firm capital for Keystone (remotely)

On Wednesday October 27th at 7:00pm EDT Keystone Trading Concepts will be hosting a preview webinar for the next Trader Talk Think Tank to be held in Chicago at the Sofitel hotel on Monday, November 8th 2010.

During the Preview Webinar we will be discussing the top 5 reasons why attending the Chicago

Trader Talk Think Tank on November 8th will stimulate new ideas for you, learn how a professional trading firm allocates capital to scenarios and most likely develop some great new friendships.

Think Tank attendance has no fee with pre-registration however we normally have standing room only so there is a $75 fee at the door for those without an entrance ticket.

We strongly encourage registering with a friend or spouse!

Once again the preview webinar for the Chicago Think Tank is this Wednesday , October 27th at 7:00pm EDT, (6pm in Chicago) .

Please call 212-594-8900 to Reserve your spot Today!

Greece: One More Foot in the Grave.

And the hits keep coming for Greece. Today, Ratings agency Moody’s downgraded Greece’s sovereign credit rating from A2 to A3. They also placed it on review for further downgrades.
The Euro sank to 11 month lows breaking and then bouncing off an important support level. It made it as low as $1.3258 and in the last month has held this level. I will be watching for this level to break and hold to see a continuation of it’s down move and possibly a significant pullback in the US markets.

EUR/USD breifly broke support level after Moody's downgrade.

Eurostat, The European Union’s statistics agency, pushed up it’s estimates of Greece’s 2009 deficit to 13.6% of GDP from Greece’s earlier projection of 12.7%. Eurostat said they had concerns of Greece’s budget data.
Meanwhile in Athens, the streets are still filled with protesters and riots after police recently killed a 15 year old boy during the clashes. Window’s to shops are being broken and molotov cocktails being thrown as protestors express there outrage over the government proposed cuts of government jobs.
Now, I am all for a good protest. Having wages cut and welfare reform in an economy with 9% unemployment is definitely something to get the citizens roused. My question is, don’t they know that if these cuts aren’t made, there country will go even more bankrupt? So whatever wages they are fighting for will be moot, when the country no longer has money to pay them at all.
The truth is these measures should have been done a long time ago, before Greece got to the point of financial extinction. The proposed $45 billion bailout from the Eurozone members and the IMF is supposed to help them from going under. However, they are going to have to balance the budget at some point, so I’m not sure why they keep destroying their own city.
Even if they can get this $45 billion bailout, CreditSights (a independent fixed income research company), said the bailout may not be enough to save Greece from its debt problems.
Today’s market seemed to shrug off Greece’s woes and after a period of selling in the morning, reversed. As I write this, the SPY just turned positive on the day.

2 Day Rally

Keystone Trading Group -Market Update The market continued it’s 2 day rally today. The Dow closed up 111.32, and the $SPX up over 14 points closing at 1103.82.The $SPX has been pushed back up near its 20MA at 1109. The volume over the last 2 days has been unimpressive and makes us believe that we have more room to go to the downside.The up volume was almost 100 million less per day than the volume that we had last week on Thursday and Friday. Apple, (AAPL) and Amazon (AMZN), the two strongest stocks over the last year have also been showing signs of relative weakness. AAPL traded down .05 from the open today and AMZN was down .63 from the open. These stocks led the way up and could very well be telling us that we have not completed the correction. The Financial sector was a pillar of strength today as many have seen opportunity as these stocks had pulled back hard and that the chance of Obama plan to put further restraints on them looks like it is dimming. Golman Sachs(GS) and JP Morgan (JPM) were the strongest of the bunch, yet both are still trading below their 50 and 200 day MA. We will continue to trade both sides of the market, however, the order flow still remains to the downside. Therefore, our expectations for follow through are minimal to the upside and will look to book profits sooner on our long positions and will look to build short positions into this rally.

It is not to late to purchase the ET 101 course and receive 2 weeks in our Private mentor room for the discounted rate of $895. Offer expires February 3rd. To purchase the course CLICK HERE , A Savings of $1300

 Dear Trader, Over the last year, we have seen some of the most dramatic changes in global markets in decades. Traders who use proven trading strategies and combine outstanding risk management techniques with superior analytic and execution tools have profited handsomely from today’s market environment. Both beginning and experienced traders who attend The Traders Expo in New York, February 14-17, 2010, at the Marriott Marquis, will find the tools, education, strategies, and insight necessary to profit in any market environment. Register FREE today! During the Expo, you can choose from over 125 free presentations that cover nearly every trading related topic, plus a select offering of optional, paid intensive events. See live, “hands-on” demonstrations of the latest software and trading tools, and visit us in the Exhibit Hall, located at booth #5203, to meet face-to-face with our company representatives! We would like to invite you to be our guest at The Traders Expo in New York, where you will meet and learn from me and other trading experts such as Linda Raschke, Alexander Elder, Rob Booker, John Carter, and more than 50 others! View the Schedule Learn More Register Free! Discover complete Expo details, learn how to attend, and register for free online! Or call 800/970-4355 and mention priority code 017084. We hope that you will join us in New York for this exciting and timely conference. See you at the Expo! Sincerely, Keystone Trading Concepts P.S. Be sure to attend this year’s New York Traders Expo, February 14-17, 2010, where you will hear hundreds of varying viewpoints on nearly every trading topic. In these market conditions, you can’t afford to miss this event. Learn specific strategies and techniques that will help you profit! Register FREE online or call 800/970-4355 and mention priority code 017084.

Keystone Trading Group

www.keystonetradinggroup.com

 212-594-8900

how to identify your trading style

One of the biggest misconceptions about trading is believing you can trade every market condition consistently. Traders who make money specialize. To take it one step further, they specialize in a style of trading that suits their personality. You only need one technique or signal to make a living; you don’t need all of them.

Trading styles: which describes you? If you want to keep your losses close to the vest and small, this means your profits will also be small. Your trades would normally have a 1-1 risk reward ratio, you will make many trades intra day. You would be a scalper / momentum trader.

If you would prefer not to make many small trades but would rather have a longer term intra day focus, you are a position trader. Scalping: Main focus is small losses and small profits, get ideas from reading the tape. Position trader: Focus is longer term, from one hour to one month. Get your ideas from price charts.

Which style of trading best matches your personality to run your trading business? If you choose a style that you are not comfortable with, you will be fighting the trading signals all day.

Spend some time reviewing your trading day. Do you like to make many quick decisions or do you like to put the pieces of the whole market puzzle together before you make a trade. I can tell you from experience, if you try to implement both trading styles, you will master none. You will mix styles in the middle of a trade.

Be definite as to your style and your “ideas” will be much more decisive. Until next time, have a great trading week. http://keystonetradinggroup.com/

End of the Quarter$

So ends the 3rd quarter of the year! The rally over the last 3 months has been more than impressive. The shorts have been bruised and batter and for the most part gave up. Today, we sold off fairly hard in the morning on poor manufacturing numbers only to rally in the mid afternoon and then late in the day , a bit of selling pressure entered the market.

So starts the 4th quarter and historically the worst month of the year, OCTOBER. It really is hard to make a prediction of what will happen, but we know one thing. The market has been strong with virtually no pullbacks. So initially we will be looking to get long and buy the pullbacks. However, we do believe that the markets rebound may be a bit overdone in the short term. We will continue to be diligent in our stock selection and will be involved in both sides of the market, long and short. We will keep an eye on the volume on the moves down as well as the moves up. If the market continues to consolidate as it has for the last 2 weeks or so, we will be patient to pick our spots and have lower trade expectations