Tuesday 4 November 2008

Trades 04/Nov/2008

Watchlist:
ABX,ACAS,ADM,AEM,BG,BHP,CAL,DF,EXPD,FWLT,GG,HLF,
IBN,LDK,MBT,MGA,MOS,MT,MVL,PRU,TRA,UAUA,UDR


MVL (gap down)

Gap down is followed by weak candles before we retrace back into the OR. We trend up to the OR high but this is rejected on a weak candle (6th). This price action and the indication that the market was overbought was our trigger for a short trade.

Entry: 29.68 Stop: 30.10
Fib Ext: 26.39
1R=29.26 2R=28.84 3R=28.42

We take partial near whole number for 1.5R and leave rest to run. This was stopped out at breakeven.

HLF (gap down)

Gap down is followed by weak candles before we retrace back into the OR. We trend up to the ema, which is acting as resistance. This price action and the indication that the market was turning down was our trigger for a short trade.

Entry: 19.33 Stop: 19.80
Fib Ext: 14.58
1R=18.86 2R=18.39 3R=17.92

The initial price action is promising, but there is some support at whole number $19, so we move out stop closer to entry. This is where we are stopped out for around a loss of 0.5R.

GG (gap up)

Gap up is followed by trending up action. I missed the two hammer pullback on 8th and 9th candles. But in the last session I entered long for a scalp as the market made a short term bottom and headed up into the close.

Entry: 21.89 Stop: 21.58
Fib Ext: 21.13 (already passed)
1R=22.20 2R=22.51 3R=22.82

This was just a quick scalp type of trade and so I closed out once 1R had been reached.

Overall ok today. I did have an entry for EXPD but it was never triggered. Other than that, no setups that stood out for me.

9 comments:

Tyler said...

AM,

Good work today. I am glad to see you made some cash shorting while the market was up.

Tyler

TraderAm said...

Thanks Tyler.

Andrew said...

Hi AM,

Top work with your trading and blogging, I'm really enjoying reading.

With your MVL trade you mentioned oversold, yet I see the Dow,ES,NQ all as being in uptrends at that point. I'm interested in any pointers you care to share about defining general market trend as it seems to be a key factor in some of your trading now.

Regards,
Andrew.

TraderAm said...

Andrew.
I think I mentioned Overbought rather than Oversold ? Yes the market was uptrending. But if you follow market cycles then they did indicate an OB status.

Have a look at some oscillators (e.g CCI, detending osc, cog etc)from your charting software and apply these to a DOW index chart. See what they indicated at the time I took the MVL trade. Also see how they looked on different timeframes.

Then see how the stocks you watch behaved at these points.

Thanks

Anonymous said...

in the mvl trade
your enter bar wos the 6 and is low was 29.20 and high was 29.83 .
haw you get your entrs

Andrew said...

AM,

Thanks, that explains it. I did mean overbought, sleep deprived mistake by me.

I think your feel for the market is excellent, I'm working on mine but it's sadly lacking, more often fadeable than not!

Andrew.

TraderAm said...

anon.

The entry was based on market direction and OB/OS status during that candle.

Thanks

StockHunter said...

Nice trades, kudos for doing your day job and trading at the same time.

TraderAm said...

Thanks Stockhunter