Trades 10/July/2008

Watchlist:
ACH,CBY,CY,DVA,FNM,HIG,HUM,IDCC,JCI,JCP,JWN,MAR,
PGR,SGR,TSO,WFR,WYNN

Not much going on today. Just two charts to look at.

ACH (gap up)

Strong first candle thru the prev day's high. We have a look at the OR but then the 3rd is weak. This is followed by recovery and consolidation above the OR. Candles 5 thru 9 stay above the OR confirming it as support. The 10th is bullish green hammer which bounces off the OR and thru the ema. It also closes strong and is also the 5th successive NR7. This is our long trigger.

The decade $30 is obviously close by and is a factor here. However the previous price action made it worth a try IMO using a 1/2 my normal position size. The entry price was above the $30 level rather than a the normal 3c or 4c from trigger candle.

Entry: 30.08 Stop:29.70
Fib Ext:30.71

Unfortunately it didn't follow thru and we were stopped out for a loss.

DVA (gap up)

This is a entry I have never had consistency with. But today luckily it worked out well.
The first candle is green but with longish wick. We then trend down to the ema where we gain support. The 8th candle is a green bullish hammer and off the ema. It is also 50% Fib retracement from prev day's high to OR high. This is our long trigger. Again I used half my normal position size.

Entry: 54.82 Stop: 54.50
Fib Ext:57.22
1R=55.14 2R=55.46 3R=55.78

After entry, it didn't really look good, but then gained some good momentum later in the day. I closed towards the end of the day for a nice gain. I didn't partial out as I was only using half my position size. As I said before, I think my success rate with these types of trades is less than 50%. And if my watchlist had been larger I probably would not have traded it at all.

Overall, a choppy day. Just two trades. I did have a order in for TSO but it never triggered. DRYS was a nice mover, but I just couldn't get an entry for it. JCI and PGR looked promising but their Fib Ext was too close, and there wasn't really a good entry setup beyond the Fib Ext.