Trades 11/Mar/2008

Watchlist:
ACLI,AET,AGP,BBY,BX,CI,CNC,COF,CS,CVH,HBC,HNT,HUM,LFC,
LULU,NOK,OKS,RF,STP,UBS,UNH,WCG,WFC,WLP

The market never ceases to amaze me. It gapped up strongly at start and was very strong thru the day pretty much. Looking on the long side didn't give me anything to enter on, but on the short side all my trades went really well.

CI (gap down)

A bearish WRB first candle. Then we have sideways consol at the lows of the OR. The 4th is a NR3 doji type candle with ema providing cover above and a longish wick indicating bearishness. This is our trigger for short entry.

Entry: 38.62 Stop:39.10
Fib Ext: 36.39
1R=38.14 2R=37.66 3R=37.18

We watch the next candle closely in case it bounces and closes back above the OR low. But the price moves nicely in our direction and trends down with the ema. We take partial at $1 gain (at 37.62) which is near the 2R. Price never reaches the Fib Ext but we close after 17th candle as it moved above the ema on a closing basis. Nice rewards on this trade.

CNC (gap down)

A bearish start as the price moves below the OR. It then forms a shallow retracement and heads back to the OR low. The 10th candle is the key. It is red and bounces off the OR low from below. It also closes weak itself. This is our trigger.

Entry: 15.74 Stop:16.05
Fib Ext: 15.14
1R=15.43 2R=15.12 3R=14.81

The price moves nicely in our favour. It trends down with ema, but never reaches the Fib Ext. Nevertheless we close towards the end of the day for a reasonable gain as the price closes above the ema.

HNT (gap down)

A bearish first candle is followed by a very tidy shallow retracement within the OR. We start trending down with the ema. Candle 8 is red NR7 with EMA just above and also it closes weak below the whole number. This is our trigger for short.

Entry: 36.80 Stop: 37.20
Fib Ext: 33.98
1R= 36.40 2R=36.00 3R=35.60

After entry, we have picture perfect price action as it falls heavily thru the oR low. We take partial profits at the Fib Ext and then close the rest near the end of day on candle closing above EMA.

NOK (gap down)

After gap down, we have a bullish firstbar. This is negated however by the bearish second bar. After we move past the OR low, the 4th is a red NR7 which fails to get back above the OR. This is our trigger.

Entry: 31.47 Stop: 31.70
Fib Ext: 31.01
1R=31.24 2R= 31.01 3R=30.78

After entry the price actions looks great as we fall heavily. However the bounce near the whole number comes back and stops us out at breakeven.

UNH (gap down)

Another nice chart here. After gap down, we have sideways consolidation with narrowing bars. Eventually we reach the 10th candle which is a red hanging man closing with the EMA above. This is our short trigger.

Entry: 40.29 Stop:40.55
Fib Ext: 37.82
1R=40.03 2R=39.77 3R=9.51

Again we have picture perfect price action as we trend down with the EMA. We close partial after a $1 gain (at 39.29) and then close the rest at Fib Ext which is reached towards end of the day.

Another very good day. Maybe just my perception but perhaps the current market conditions are good for this type of trading. I know when I was doing 6 months paper trading there were some weeks with slim pickings. Anway, make the most it is what I should be saying to myself :-)