Friday, February 23, 2007

Today's Trades: CENX, STLD, RL and LEH

I've had a busy day at work, so I'll have to detail the trades in more depth tonight. I bought 500 shares of STLD at $40.02, 500 shares of CENX $47.64 and 300 shares of RL at $87.10.

I also got stopped out of my 250 shares of LEH at $81.61 (entry at $82.64) for a loss of $257 (-1.3%) . This may sound crazy, but I'm actually happy about this trade. I originally had my stop placed under the 50 day MA at $80.40, but decided a better spot would be at the "fill the gap" point under $82. My thinking was, if the stock can't hold the gap support level, it will likely tumble. A tenant I try to adhere to when placing stops is that price action support is more important than moving average support.

An emailer asked my why I am placing so many long trades when I am short the Nasdaq. Take a look at my trades closely. I am not making any bets on tech. My longs have come from the commodity, broker (bad move) and retail sectors.


Anonymous said...

hi there,
could you perhaps explain why u got into RL?
to me it looks like its headed downwards due to the stochastic, and MACD, but im still learning.

FELIX said...

last week you mention that you like steel. any reasons why you have stay away from USAP?

The Market Speculator said...

you may be correct in being cautious. I've been waiting for an orderly pullback in high end retail stocks, and finally got one. If the stock dips below the breakout point at $86, I won't hesitate to take a small loss. Regarding MACD . . .anytime you buy pullbacks the MACD is going to trend down, unless you wait for the confirmation move.

Felix: USAP has a nice looking pattern, but that stock trades a little too thinly for me. I generally don't trade stocks with less than 300,000 in average volume.