Thursday, June 07, 2007

Today's Trade: STLD, and SPX

I went short 500 shares of STLD at $45.70. I had a short set just under the 50 day MA, which of course triggered today.

I was also stopped out of my 300 share long position in STLD at $45.90 (entry at $47.70) for a 540 loss (-3.7 %).

Note that the 50 day MA on the S&P 500 is 1487. This level is crucial for the market, and could lead to a correction down to the 1450-60 level, where there is tons of support. If we do get a drop down to this level, I will load up on SSO (long 2 x SPX) since I expect a bounce at this level.

2 comments:

MillionDollarJourney.com said...

Did you get stopped out of TMX also? Or did you move your stop loss?

The Market Speculator said...

HI MDJ. I was stopped out. I thought about reversing and going short, as I did with STLD, but decided not to get heavily short yet (especially since TMX did not break it's 50 day MA, as STLD did). TMX still looks good if it can find support at the 50 day MA.

I'll update my positions tomorrow.