25 March Update

With the large sell-off, I got stopped out of my DD trade.  Yes, I took a loss, but it was negligible for two reasons:  1. My position was small.  2.  I mitigated my risk by getting into the trade near support and thus use a tight stop.  DD continued to plummet past my stop, with my account in tact.  As pointed out yesterday, I am already eying a re-entry for DD assuming that the overall market’s bullish uptrend continues and DD joins in.

Speaking of which, there are a number of stocks that are so very tempting to short.  I say tempting because the overall market’s uptrend is still in tact.  I may take a gamble on a short of a stock that is already in a down trend, such as $UPS.

Other stocks that are temping to short in the near term:  $BAC, $COF, $IP, $JNJ, $JPM.

Again, I would strong encourage anyone to understand the risks of taking a short trade in this current market environment.

That’s all for today.  I don’t expect to post again until the weekend.  Have a great rest of the week and happy trading!

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24 March Update

The markets pulled back further today after yesterday’s sell-off, but the bull-ish trend is still in tact.  I am still cautiously bullish, but there isn’t much that is catching my eye right now.

Real Account Update

$DD

Dupont seems to have broken the upward channel.  I’m a few cents away from my stop but see another opportunity to enter bullishly at $75.00 if my stop is hit.  That being said, the stock closed on it’s 100 SMA, which may prove as support.  Overall my loss will be minimal if I do get stopped out.  At this time, I have no plans to short

DD

Stocks I’m watching:

$AAPL, $LVS, $TWTR, $FSLR, $VLO.

For $AAPL, I’m still looking for the 129.50 entry.  $LVS looks like it’s rolling over.  I’m looking at a potential short trade.  Both $TWTR and $FSLR broke out today.  I am looking at potential continuation patterns.  $VLO, I am still looking for a break out before getting in long.

That’s all I have for tonight.  Happy Trading!

Potential Return

Hello everyone,

It’s been a long time since I’ve posted.  After the mounting frustration of loss after loss, I decided it was time to take a break from trading.  After some time, I slowly started to get back into looking at the market and analyzing a few stocks here and there.  I also took a step back and analyzed my trades and realized I was making some very fundamental mistakes  (i.e. trading against the trend, holding losing trades, trading on a whim, not letting winners run, etc).  While reacquainting myself with the market, I also took time to review old technical analysis course material.  I resumed trading in October, just taking on a couple of trades per week.  I wasn’t coming out in the green, but I also wasn’t losing either.  It was extremely encouraging to me that my account was holding steady.  After the new year, I decided I wanted to get back into trading more frequently, and I am happy to say that since that time, my account has been a positive 2%.  This may not seem like much, but just being in the green over a period of almost 4 months while trading almost daily has been such a great and exciting experience.  I am keeping my losses small and letting my winners run as best I can.  I fully believe that I have improved and taking a step back may have been just what I needed to push forward and become a better trader.

As far as this blog goes, I am not sure how often I will update it.  Probably not daily, at least, not at first, but I certainly want to update at least once per week.  So here is what I’m looking at for Monday’s trading session:

$DD

Dupont has been in a strong uptrend since October of 2014.  There is an ascending trend line that the stock has bounced off three times since the uptrend.  It is now sitting on that trend line for a 4th time.  I see this as an excellent R/R trade.  Approximately 60 cent risk for a potential $10 gain or more. As long as it’s not up more than a dollar at open, I plan on buying a few calls.

DD

$EXPE

Expedia just broke out to an all-time high.  I see this as another good R/R trade.  The risk is ~$1.  Reward is ~$4.  First target is $100.

EXPE

Some other stocks I’m watching: $COF, $AXP, $MA, $AAPL.

As far as $AAPL goes, I am expecting it to go lower, but if it holds at this level, I plan to buy around $130.  Otherwise, I’ll be looking for a bullish entry around $122.

Thanks for reading and happy trading!

Picks for June 17, 2013: $VZ, $AAPL, $DD, $DIS, $FSLR, $HAL, $JCP, $UA

Here we are on the eve of a market on the verge of a breakout (we hope) in either direction.  The hope is that a trend forms so that we can choose a direction.  Let’s see what’s in the works for Monday:

$VZ:  This on looks like it’s on the verge or just beginning a bullish move.  I like a 15min entry on Monday as long as the price movement supports the bullish move.  My targets are  52.37 and 53.58.  Stop is at 50.14.  This is about a 3:1 move at the ultimate target.  Oscillators support the move, but volume has been declining.  Hopefully we get some strong volume tomorrow.

VZ_JUNE_17_2013

$AAPL:  This one looks good bearishly on a close below 428.  The first target would be 416.63; ultimately we could get back to $383.00.  I would not take this bearish trade unless we close strongly below 428 with supporting volume.  Fortunately, oscillators are supporting the bearish move.  Let’s see what Monday brings:

AAPL_JUNE_17_2013

$DD:  This one is a good candidate for a 15min short.  We close well below my entry point of 53.38 on strong volume.  Oscillators are supporting the bearish move.  I think we are good to go down to 51.60 and then 50.90.  Where you place your stop is where you will determine your Risk to Reward (RtR).  As for me, I would put my stop above the 50 EMA.  This gives us a RtR of only 1:1 which is unfortunate.  Based on this, I would probably not take the trade, but if you are a day trader, you may be interested in this one.

DD_JUNE_17_2013

$DIS:  I really like this bracketed trade.  Bullishly, I’d want a close above 65.15.  Bearishly, I’d like a close below 61.98.  Personally, I’d rather see a bullish breakout since it is the path of least resistance.  Notice that volume has been decreasing, which I think will (or should) foreshadow a breakout with solid volume.  Lastly, oscillators are moving bullish, hopefully supporting a bullish breakout.

DIS_JUNE_17_2013

$FSLR:  While I’d be a little careful of a reversal, I think everything is confirming a bearish trend here.  I like a bounce off of 40.90.  Enter this one after the first 15min if price confirms the direction.  Put your stop at least 46.50.

FSLR_JUNE_17_2013

$HAL:  I like an entry on a close above 43.70.  Oscillators are starting to turn upward, but I’d like to see a close over that price level on strong volume to confirm the trend.  Let’s see what happens if/when we get that close.

HAL_JUNE_17_2013

$JCP:  We are approaching a level that I’ve been eyeing for a few weeks now.  If we get a close below 17.11, I am taking this trade bearish down to a target of 15.90.  Oscillators are supporting the move, but I would like to see volume support the move down.  I’m definitely keeping an eye on this one.

JCP_JUNE_17_2013

$UA:  Here is another bracketed trade set-up.  We could be finding support for a bullish reversal, or we may break that support and head low.  Bullishly, I like a close above 60.96 and bearishly I like a close below 58.40.

UA_JUNE_17_2013

Although not posted, keep an eye on the following:

COST: Neutral, but close to choosing a direction.

VALE: Short

AEO:  Short

NKE: breakout from triangle

That about wraps up my picks for tomorrow.  I hope you guys have good luck if you choose to entertain any of these choices.  Just ensure you do your own due diligence before taking any real money trades.  Good night!