Wednesday, May 02, 2007

Today's Trade: DXPE and TSL

I bought 350 shares of DXPE at $47.55. This is a breakout-pullback play. The stock broke out and is pulling back on diminished volume. I will likely place a stop at $44, and my initial target is $52.50, making for a 3:5 risk to reward ratio.

Note that I've been going with smaller positions sized of late. Most of the indices are hitting the top of their trend channels, so I am expecting a pullback in the near future. Specific to DXPE, it's in the midst of it's second breakout from it's base, causing me to be a little more cautious.

I sold 250 shares of TSL at $55.47 (entry at $51.07) for an $850 gain (+6.6%). My initial target was $60, but I'm not happy with the volume on the upmove. This leads me to believe this move is a dead cat bounce that will continue to breakdown, rather than a reversal upswing.

2 comments: said...

If you don't mind me asking, what do you use for a stock screener?


The Market Speculator said...

I find my candidates a number of different ways. Here are a few:

sector analysis: look at top performing sectors and view indivdual stock charts.

high volume gainers: I look at stocks that made big volume gains, and narrow list to stocks that moved past resistance levels.

Percentage gainers, price: Same as above, looking for stocks pushing past resistance

Earnings and Upgrades: Look for stocks making moves based on earnings and upgrades. These are good breakout-pullback candidates.