Thursday, 13 March 2008

Trades 13/Mar/2008

Watchlist:
AIG,ASML,BBD,BG,BSC,ABX,AEM,GCO,IBN,INFY,JWN,LEH,KGC,MW,
PBR, PNC,PPDI,RF,SIGM,SLM,TROW,UBS,UL,UN,WB,XL,ZION

A nothing day today, not much caught my eye from the watchlist.

UN (gap up)

After a weak first candle we have sideways price action below the OR high. The 7th and 8th candles take us past the OR, but the 9th and 10th candles pullback to inside the OR. The 11th candle is strong, it rises above the ema and closes above the OR. Also it closes strong. This is our trigger for long.

Entry: 32.79 Stop:32.58
Fib Ext: 33.08
1R=33.00 2R=33.21 3R=33.42

The price doesn't really do much. We stay in the positon since there is no close back inside the OR. The price never reaches the Fib Ext, so we close at eod for close to a 1R gain.

IBN (gap down)

A bearish red first candle. Then we have sideways action for next few candles. The 4th is red hammer with long tail which is also a NR3. This is our trigger for short.

Entry: 40.69 Stop:41.20
Fib Ext: 39.36
1R= 40.18 2R= 39.67 3R=39.16

We get a good fall on the next candle, but there is no follow thru beyond 1R. The stock bounces back with the general market and we are stopped out for breakeven.

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