Saturday, 29 March 2008

Trades 28/March/2008

Watchlist:
ANF,APOL,ARO,AUY,BBBY,BBY,CCU,DV,DVA,ESI,GG,HLF,JCP,JWN,KBH,
KSS,LIZ,M,RHT,RL,TIF,TJX,WLP

LIZ (gap down)

Gap down was followed by sideways action for 3 candles before we test the OR low. The 5th candle is red hanging man which stays below the OR. It is also a Nr3 and NR7. This is our short trigger.

Entry: 18.21 Stop: 18.40
Fib Ext: 17.62
1R=18.02 2R=17.83 3R=17.64

We fall nicely after entry, but it bounces up strongly and we are stopped out for a loss.

DV (gap down)

Gap down is followed by a weak red wide range bar. We then have sideways action in lower third of this OR and also narrowing candles as we get near the EMA. The black arrow indicates a possible trigger on a weak candle which bounces down from ema. However we are still within the OR, so I decided against an entry here. The 11th candle is a red hanging man type which closes below the OR and with ema resistance overhead. This is our short trigger.

Entry: 42.11 Stop: 42.85
Fib Ext: 40.64
1R=41.37 2R=40.63 3R=39.89

A very nice fall after entry takes us to the Fib Ext where we close 1/2 our position and move stop to breakeven. The rest is left to run and continues to trend down with ema. We close the remainder of our position at eod of day for a nice gain.

ESI (gap down)

A weak first candle then we have 2 inside bars before the 4th candle breaks thru the OR low. The 5th is red gravestone doji type with longish wick and bounces down from OR low. This is our trigger for short.

Entry: 43.13 Stop: 43.75
Fib Ext: 41.01
1R=42.51 2R=41.89 3R=41.27

Price falls nicely down to the 1R where we move stop to breakeven. Unfortunately, it then bounces up quickly to stop us out.

2 comments:

Victor said...

ESI and DV have very wide spread. Did you use market order for entries and stops?

TraderAm said...

Victor

I always use STOP LMT orders for entry. And allow for 4c to 5c slippage on stocks with a wider spread. Sometimes this means that I miss out on trades if it moves really quickly. That's just the way it goes sometimes.

For STOPS I use a standard STOP Market order.

Thanks