Trade Update: QLD and MOS

I went short 400 shares of MOS at $109.11. I highlighted this stock in the blog last night as one of my favorite commidity related shorts. See my last post for the setup. My stop is around $115 with my initial target at $95. This is where I would take partial profits, move my stop up, and let the rest “ride”.

I bought 300 shares of QLD this morning on weakness, at $77.55. I highlighted this setup in last night’s trade report:

There is less confusion in the Qs than SPY. The July accumulation zone was marked by strong volume and positive divergences in RSI and stochastics (we noticed back then and traded it). Q then raced higher and mounted both moving averages before pullback back to support. Thursday it printed a hammer tail at support, which was confirmed on Friday. The pullback created an oversold stochastic that is turned up. This is the type of healthy price movement we want to see in a long setup. I may enter tomorrow.

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