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.

Today's Trade: NCTY

I bought 500 shares of NCTY at $36.15. This stock was originally on my "breakout" list, with $38 as the potential entry point. However, upon further review, I decided that it would make an even better pullback entry. Note that the stock has been a buy whenever it pulls back to the middle bollinger band (20 day MA). I also like the fact that RSI has been strong and a pullback buy, and oversold stochastic crossovers have been successful as entry points. These are all signs of a strong, trending stock. While the stock has not completely pulled back the the 20 day moving average ($35.51), I decided to enter now because the $36 level was the most recent breakout point and we've already had the oversold stochastic crossover. My stop will be placed just under the 20 day MA, probably around $35.25.


I am an AGLOCO member!