My strategy over the past few months has been to be patient and wait for extreme conditions to surface before making both long and short entries. A good example of this type of trade is the SKF position I entered yesterday (detailed in the trade report). Here are my entry notes with chart:I took one... Continue Reading →
As long as the lows hold, the bottoming thesis is in effect. I have focused on more short term 3-6 month charts lately, but here is a two year chart showing the power of the oversold RSI, even in a longer term down trending "topping" market.
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.
Today I entered AAPL at $124.92. I like the way the stock has handled the retest of the recent low, holding the level and printing positive divergences in a few indicators. While the primary trend is down, I expect that resistance will be tested. The range marked on the chart below provides a good idea... Continue Reading →
I took two long positions today, AAPL (124.92) and X ($85.53). Both are oversold and will do well if the market bounces.
Wow, what a morning. As I noted in the Trade Report last night, it is not the time to make any big bets. However, today's reaction may provide some good opportunities.I came into today with very few setups. One was to buy USD on weakness based on the oversold bounce idea (though it is a... Continue Reading →
update (11:57am): typos fixed. Thanks to those who pointed them out.I exited what was left of my POT position at $159.89. The final details of the trade.100 shares of POT bought at $139.22Exit 50 shares at $150.04Exit 50 shares at $160.06Average exit $155 for 11.3% gain.Total Profit : $1583 Recent POT and commodity related posts:Commodity... Continue Reading →
Today I received an insightful comment about commodity stocks and my recent bounce plays:This market is nasty. The commodity stocks you point out had a little bounce yesterday but are down again today. The selling seems indiscriminate. I have only been studying the market for about 8 year so I lived through the tech bust.... Continue Reading →
Commodities are bouncing off of yesterday's lows. I entered three trades on weakness today. I bought:100 shares of POT at $139.22150 DIG at $63.85100 X at $96.36My strategy going into the trading day was to only buy when the stocks were in the red. I don't want to chase the bounces, especially when they may... Continue Reading →