I've had a busy day at work, so I'll have to detail the trades in more depth tonight. I bought 500 shares of STLD at $40.02, 500 shares of CENX $47.64 and 300 shares of RL at $87.10.
I also got stopped out of my 250 shares of LEH at $81.61 (entry at $82.64) for a loss of $257 (-1.3%) . This may sound crazy, but I'm actually happy about this trade. I originally had my stop placed under the 50 day MA at $80.40, but decided a better spot would be at the "fill the gap" point under $82. My thinking was, if the stock can't hold the gap support level, it will likely tumble. A tenant I try to adhere to when placing stops is that price action support is more important than moving average support.
An emailer asked my why I am placing so many long trades when I am short the Nasdaq. Take a look at my trades closely. I am not making any bets on tech. My longs have come from the commodity, broker (bad move) and retail sectors.
Showing posts with label RL. Show all posts
Showing posts with label RL. Show all posts
Friday, February 23, 2007
Thursday, February 22, 2007
Today's Trades: EWZ and QID
I sold 700 shares of EWZ at $49.74 (entry at $48.44) for a $910 gain (+2.7%). I originally entered this trade as more of a long term swing trade. However, I didn't trust the gap up this morning, since it wasn't on tremendous volume. If I can enter again at support within the next few days, I will. Otherwise, I'm happy with the gain and will move on.
I bought 600 shares of QID at $49.85. QID is a leveraged ETF, which is basically the same as double shorting the Nasdaq ETF. As you can see from the chart below, QID is extremely oversold and at a key support area. The ETF has generally been kind to those who enter at this point, as shown by the arrows on the chart. As you can surmise, I am not confident that the Nasdaq is going to breakout to new highs. However, if it does, this is still a low risk trade. I will place a stop at about $48.85, ensuring that I lose no more than one point if things go bad on this trade.
BTW, I like the pullback in high end retail stocks such as RL, TIF and COH. I'm still not ready to enter, but will be watching closely over the next few days.
I bought 600 shares of QID at $49.85. QID is a leveraged ETF, which is basically the same as double shorting the Nasdaq ETF. As you can see from the chart below, QID is extremely oversold and at a key support area. The ETF has generally been kind to those who enter at this point, as shown by the arrows on the chart. As you can surmise, I am not confident that the Nasdaq is going to breakout to new highs. However, if it does, this is still a low risk trade. I will place a stop at about $48.85, ensuring that I lose no more than one point if things go bad on this trade.
BTW, I like the pullback in high end retail stocks such as RL, TIF and COH. I'm still not ready to enter, but will be watching closely over the next few days.
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