Position update from the Trade Report:
I made two trades today, both involving POT. As noted yesterday, I was surprised it did not bounce, so I exited at my entry level today. When it dropped down to $125, it was too good to pass up as an oversold bounce play, so I entered. By the close, I was very happy with the trade. It closed at $128 and had reached up over $129.
Then the MOS earnings news hit and POT went down with it after hours. I believe it closed after hours trading around $118 (my entry $125.10). My original stop was going to be at $120, but I'm going to lower it. I expect there will be a big gap down at the open, then some buyers will step in and give me a better exit. I'll have my initial stop placed below the gap down.
SSO held up well and closed above $49 (entry at $46.11). We'll see how the S&P reacts to the Senate approval of the bailout plan. There still are some jitters about how the House will vote, which is why futures didn't pop after the news.
DUG is still hanging in there above $39. My stop is at my entry level around $36. This is a partial position after taking profits at $40 and $42.
After a summer and early fall of great success trading the "rubber band" oversold bounce setup, I've had two hiccups in a row (AAPL and POT). Fortunately these two trades (along with all my current trades) were taken with very small position sizes, and were balanced by successful trades like DUG, and SSO if it continues upward. This is a good example of how important trade management is to your trading.