Trade: BA

I entered BA today post breakout from a triangle pattern. The stock seems to be forming a Tight Flag post breakout.

I am also short IOC, SPY and RL

I am looking to enter ACI

Coal, and ACI, have been on fire of late. It's tough to find a good entry, so I may just enter on today's break of a bull-flag pullback.

Another Coal/Solar Trade Candidate

The chart speaks for itself. Ideal entry is at the bottom of the trading range.

Today's Trade: PCX

I entered 400 shares of PCX at an average price of $8.66.  My stop is around $7.40 and my initial target is $10.50.  This gives me a 2:1 reward to risk ratio.  

As noted in the blog and report last night, the coal sector looks great and PCX shows strong accumulation and a bull flag setup.

Those looking to enter can do so at this level or better yet, on a slight dip.

Sector Watch: Coal

Coal is currently one of my favorite sectors for long trades. Among coal stocks, PCX has one of my favorite patterns. Entry at the bottom of the bullish flag consolidation range is ideal.

Trade Entry: TRA

I bought 500 shares of TRA at $53.12.

Setup: A combo platter of a breakout and trend-pullback and entering within a forming high and tight flag. I expect a continuation of the trend. Great volume pattern and RSI and stochastics confirm price highs. The stock is under accumulated here.

Risk: My intial target is the recent high at $60. My stop is just under the forming consolidation area.

Concerns: No doubt, the stock (and sector) is overbought. However, momentum and volume are so strong that I'm betting the trend will continue.

Today's Trade: EWZ

I bought 200 shares of EWZ, the Brazil ETF, at $91.61.

Setup: Bullish Flag post Breakout-Breakout Pullback. The stock pulled back to the top of the breakout level, which is also where it broke resistance. Recent volume pattern is strong and obv has increased as stock has pulled back from breakout. As a plus, all things Brazil have been on fire.

Risk: My initial target is the old high around $95. I will either take full or partial profits at this level. If I feel the stock is ready to breakout to another new high, I'll keep a position. My stop is just under price support and the 20 day moving average, in the $88-89 range. This only gives me an intial risk of about 1:1 reward to risk, but I feel the probability of the setup is strong. Also note this is the "initial risk". If I decide to stay in for a breakout of $95, my target will be higher.

Concerns: Stochastic not yet oversold, but still is under 50. U.S market could pull down strong region like Brazil. Still, Brazil has great relative strenght compared to S&P 500.

Today's Entry: CSX, DZZ and MTL

I bought 100 shares of MTL at $143.46. The strong broke out over $140 yesterday on strong volume. It's one of the strongest stocks in a strong sector showing loads of accumulation. I may be a bit early on entry (I usually don't enter at overbought stochastic levels), as the stock could pullback to $140. That's why I went with a small position size and may buy more at $140.



I bought 300 shares of CSX at $56.10. Another strong stock from a strong sector at the bottom of a high tight flag pattern.



I bought 500 shares of DZZ at $26.55. This ETF is 2X short gold. Gold has setup nicely as a broken momo that is retracing weekly to resistance levels.

Today's Trades: DXPE, STLD and LFC

I bought 500 shares of LFC at $50.09. This is purely a breakout play. I am not waiting for the pullback. My intital target is the late 2006 high at $56.

I bought 500 shares of DXPE at $$47.40. This is a breakout-pullback play. My initial target is the recent high at $52.50, and a stop will be placed at $44.90.

I bought 300 shares of STLD at $47.70. It looks like a high, tight flag is forming off of the recent breakout.

While all three involve different variations of breakout setups (breakout with high and tight flag, breakout-pullback and pure breakout), a common theme is that they have all been trending higher and under heavy accumulation.

Today's Trade: SMSI and TZOO

I sold my remaining 500 share of SMSI at $17.98 (entry at for a $15.96) for a $1,010 gain (+12.6%). I entered on an NR7 pullback to the breakout point. My exit was timed at recent highs, although I do think this stock has the potential to breakout to new highs.


I also bought 500 shares of TZOO at $37.72. I originally was looking to enter on a slightly deeper pullback, around the breakout point at $36. However, it looks like a high and tight flag pattern is forming, so I'm willing to get in early.

Chart: NVL

NVL is setting up nicely with a high, tight flag after a breakout. An aggressive trader could enter now using a stop just under the flag formation, but I will likely wait for a breakout over $38 on high volume.


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