Trade Entry: POT

I entered POT today as a bounce play at $125.10. As I have been preaching, postion size is small. Reasons for entry:1. Stochastics oversold2. Extreme weakness today3. Positive divergences in RSI and OBV (indicators are making higher lows while price is a lower low).Risks:1. Continuation of downtrend2. Negative market reaction to tonights bailout plan.

Trade Update

I took partial profits in DUG today for a big gain at two points, $40 and $42. I am still holding a position. I exited AAPL for a big loss.I was stopped out of USD for a very small loss.I was stopped out of X for a small loss.I bought SSO at an average price... Continue Reading →

Trade Entries: KSS, ARO and LOW

Retail stocks are nearing my entry levels. However, the negative retail report could pull them down further. For this reason, I am taking small position sizes in my retail trades and using tight stops--KSS, ARO and LOW.I bought 150 shares of KSS at $50.44I bought 150 shares of ARO at $34.02I bought 200 shares of... Continue Reading →

Trades: POT and CAT

I am short 100 shares of POT at $208.77. This trade is similar to the failed trade I made in HAL. Basically, I set a short-limit order to go short at $208 this morning. The idea is the stock is so extended that a strong open would likely pull back. Considering the market is also... Continue Reading →

Pioneer Trade: HAL

I usually do not short extended stocks unless I see a major divergence signal or at least one distrubution day. However, I decided to take a small short position in HAL today.Technically, the stock still looks great and there are no major divergences. The 52 week high in price is confirmed by RSI, OBV and... Continue Reading →

Today’s Entry: CSX, DZZ and MTL

I bought 100 shares of MTL at $143.46. The strong broke out over $140 yesterday on strong volume. It's one of the strongest stocks in a strong sector showing loads of accumulation. I may be a bit early on entry (I usually don't enter at overbought stochastic levels), as the stock could pullback to $140.... Continue Reading →

Saturday Review: Shorting Momentum Stocks

This post from August 2007 offers some timely advice on shorting momentum stocks:Those of you familiar with my trading style know I rarely short high flying stocks. While it seems logical to go against a stock that is overextended, this type of trade generally takes on too much risk. Stocks tend to trend longer than... Continue Reading →

Market Notes and a Trade

There has been some confusion that I would like to clear up. Some of you think that I am bullish on the market because I am making long play on the S&P 500. Nothing could be further from the truth. This is a short term bounce play within a downtrending market. Until the indexes can... Continue Reading →

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