Trades 10/April/2008

Watchlist:
ADI,AMGN,APOG,BBBY,CAH,FCSX,FMCN,HAL,IMCL,LEH,LOGI,MEOH, NSM,ONXX,PDCO,PTRY,ROST,SMTC,TJX,TWB,WLK,XRAY,YHOO

Sometimes a trade comes along and really surprises you. See PTRY later.

ROST (gap up)

After the gap up we have a bearish first candle. A strong bounce on the second confirms support of the previous days high. The 3rd is also bullish, then this is followed by narrowing consolidation. The 6th bar is very bullish. It opens at its low and closes at its high and at the OR. This is our trigger candle.

Entry: 31.79 Stop:31.45
Fib Ext: 32.77
1R=32.13 2R=32.47 3R=32.81

After entry the price action looks good as we continue climbing. But a reversal occurs soon after and we fail to hold the whole number at $32.00. We are stopped out at breakeven.

PTRY (gap down)

After the gap down, the 1st candle is green but has a longish wick. Then we trend down to the OR. The 4th is NR7 and is weak, but since we are still in OR, I decided to wait to see what the next candle would do. The 5th is a red hammer like candle which breaks thru the OR and the ema is close above providing cover. This is our trigger.

Entry: 15.01 Stop: 15.38
Fib Ext: 13.44
1R= 14.64 2R=14.27 3R=13.90

The candle after entry is indecisive and is the key as to what will happen next. I.E. will we recover or fall further. The 7th provides the answer. After that its all downhill big time. We take partial profits at the Fib Ext (which is 3.5R) and leave the rest to run. At no time after that did it close above the ema, so stay disciplined and don't close it too early. We finally close at the end of the day for a big win. One of my best ever. This is the sort of move which makes your day and if you can capture one of these even just once a month it makes a big difference to the P/L figures. And it occurred while the market was strong.

SMTC (gap up)

The first is bullish and then we retrace on the 2nd. The 3rd is strong and bounces off the ema while breaking out of OR. It also closes strong. This is our trigger.

Entry: 15.93 Stop: 15.52
Fib Ext: 16.12
1R=16.34 2R=16.75 3R=17.16

The candle after entry is good as it holds the OR adding confidence to our trade. We then move up slowly. I thought it would strengthen later, but it never followed thru and ended up going sideways pretty much. We never reached the 1R, and so at the end of day we close for a minor gain.

Overall a very good day, but all due to one big mover. Sometimes you miss them and sometimes you get them.