Trades 06/May/2008

Watchlist:
APC,ARG,ARM,AU,BBD,CRK,DWA,EMR,HES,JNY,LAZ,LEH,LEN,LM
MCK,MER,NYX,PFG,PRGO,RF,SE,SHPGY,SMG,SUN,SWIR,TAP,
TDG,TKLC,UBS,XEC

ARM (gap up)

The first candle is bullish. Then after a look outside the OR we trend sideways in upper part of the OR. The 6th is green bullish candle which breaks out of OR and bounces off ema and closes strong itself. This is our long trigger.

Entry: 16.90 Stop: 16.60
Fib Ext: 17.28
1R=17.20 2R=17.50 3R=17.80

Things are promising after entry as we hold the OR as support. But subsequently there is no follow thru and we don't reach the Fib Ext. The price falls and we close our position for a loss when we close back inside the OR.

SUN (gap down)

The first candle is red and weak. This is followed by choppy action along the OR low. The 8thbar is red and breaks the OR off the ema and closes weak itself. This is our short trigger.

Entry: 44.47 Stop: 44.85
Fib Ext: 43.92
1R= 44.09 2R= 43.71 3R= 43.33

The price falls after entry and we eventually reach the Fib Ext where we take partial profits. Later the stock recovers and we are stopped out at break even on the remainder of our position.

Overall, the gainer made a bit more than the loser, so we can't complain too much. The stock which would have done well is NYX. I was watching it, but just couldn't find an entry which I was happy with.