Wednesday, November 14, 2007

Trade Notes

I exited DCO at 42 (entry at$38.10) for a $1170 gain (+10.1%) . The setup was an earnings breakout-pullback. I will re-enter on a pullback to $40.

I exited 200 shares of NOV at $67.35 (entry at $63.74) for a $722 gain (+5.7%) . This was an oversold bounce play that now looks like a good deat cat bounce short. I may short it later today.

I exited OII at $67.04 (entry at $62.50) for a $908 gain (+7.5%). Same setup as NOV.

I covered my VMW short at $94.46 (short at $89.10) for a 1072 loss (-6.1%). I still like this as a short. Volume on upmove is low. It's just bouncing more than I expected.

I am short another 200 shares of QID at $38.75.

I am short another 200 shares of TOL at $22.44.

3 comments:

walter said...

was $42 a target set on DCO ahead of time? i ask because it was strong all day, had good volume and closed near the high of day. today, the volume is high and the daily range narrow. i interpret the narrow range as of 12:15pm est as people selling to take profit being balanced out by newcomers preparing for the next leg up, given the recent show of strength. that being said, i am thinking that pullback to 40 may never come...

The Market Speculator said...

Walter,
My reason for exiting is were twofold:

1- I am uncertain about the market, so am more quick than usual to take profits

2- I had a 10 percent gain.

I waited until today instead of exiting yesterday when it closed at $42 in case there was a upside pop at the open. When it failed to do so, I exited.

It may very well never pullback to $40. If so, I'm satisfied with my 10 percent gain.

If I had my normal position size, I would have played it differently. With 500-600 shares, I would have sold half and let the rest ride with a stop at $40. However, in this market I am going with smaller positions that are not conducive to taking partial profits.

walter said...

sounds good - and thanks for the insight... cant argue with 10% guarantee in this environment.

that being said, how do you interpret a day like this: narrow range, holding gains, nice volume?

like you, i am very much into price/volume mechanics.

under what conditions, if any, would you re-enter a position w/o a pullback to $40?

thanks!