Friday, 19 December 2008

Trades 19/Dec/2008

Initial Watchlist:
AEM,AGU,AMAG,CAN,CTAS,DRI,ENER,FII,FLR,HBC,IPI,
JCI,KIM,LLY,POT,PRU,RIMM,SII,SWN,SYY,WAG,WMI

JCI (gap up) (Fade)

This was a gap up stock but a bearish first candle which couldn't hold the previous day's high. The subsequent price action was weak relative to the market and sideways consolidation at low end of OR. This was our reasoning for a short trade.

Entry: 17.70 Stop:18.00
1R=17.40 2R=17.10 3R=16.80

We covered 1/2 at -0.5R as it showed some strength despite the market going down and left the rest to run. However it didn't do anything for rest of the day and we closed out at breakeven.
So overall a -0.5R result.

FLR (gap down)

Standard gap down which showed weak price action as we consolidated at lower end of the OR. The 5th is hanging man candle remaining below the OR. This coupled with market downturn was the trigger for our short on the next candle.

Entry: 44.76 Stop:45.35
1R=44.17 2R=43.58 3R=42.99

We took partial at 1R and then at 2R as it fell nicely with the ema. Overall a 1.5R gainer.


------ Trades ------------------------------

6 comments:

Z said...

Hi TraderAm,

Nice trade on the second one, but why did you take the trade on the first one since the EMA was too flat to judge the direction of the trade?

niki said...

why you decided the far stop (18)
for jci according to which bar?

Anonymous said...

you didnt afraid from the long tail in the 5 bar (flr)

TraderAm said...

Z.
The ema didn't enter my thinking on JEC. It was more the weak price action relative to the market.

Thanks

TraderAm said...

niki.

More to do with whole number rather than specific candle.

TraderAm said...

anon.

FLR long tail was overidden IMO on weak price action relative to market.