Friday, December 22, 2006

Trades and Time Management

I bought 500 shares of GLD at $61.40. In all honesty, the stock is a mixed bag technically. On the positive side, we have the 50 day crossing the 200 day moving average, MACD is improving and the stock held up at it's gap point. Negatives include a power spike to the downside earlier this week with a low volume rise (dead cat bounce?) and weak RSI. What I like about the trade is that I can use a low risk entry, with a stop placed just under the 200 day MA at $61, which also happens to be where price action would dictate placing a stop. The upside target is $64, which would give me a 10:1 risk/reward, losing $.40 to try to gain $4.00. Not bad.

Those of you in need of some time management help, read what Steve Pavlina has to say about triage.


walter said...

have you been following the REIT stocks lately: IYR, ARE, SPG?

very weak relative to moving averages, decent volume

The Market Speculator said...

I haven't been watching any REIT stocks lately. I pulled up IYR. I don't like the fact that volume has been pretty hard on the downturn, it didn't hold the "gap up" point, and it crossed below the 50 day MA. I wouldn't touch it unless it bounced back above the 50 day on strong volume.