GLD Entry and Trade Report

In the Monday morning edition of the Trade Report, I mentioned that I was bullish on the gold sector and was waiting for a pullback. A few readers wanted to know at what levels I would consider entering.

Let's take a look at the GLD chart. When looking for support and resistance levels, I want them to jump out at me. The first thing that jumps out at me is the two failed attempts to really past $94, followed by the current gap up over that level. This is where I define the new support level. If we get a nice orderly pullback into the $94-95 range, I will enter. However, if the pullback is on a large bar and many of the gold related stocks are declining on heavy volume, I will skip the trade.



Trade Report:

In the free Wednesday edition of the Trade Report, I discuss:

My QLD entry, this crazy market and relative strength

A few recent positions, X, ILMN and JOYG

Bearish engulfing and flag setups

The Weekly Watchlist

Diversification by way of setups.

Tuesday Report

Monday Report

6 Stock to Buy on a Dip

The market is now in extremely overbought territory, which is why I actually deployed a short today (DHI- a housing stock at the top of it's downward trend channel). It's seems like ages since I've shorted a stock, and believe it or not, I love shorting!

Along with my primary long watchlist, which consists of weaker support levels that are close to current price, I'm making a list of stocks to buy on deeper dips to stronger support levels.

Six stocks on this list (with entry points) include VDSI (36), CPLA (57), VIP (26), PCU (115), AAPL (150) and BRCM (37).

I just missed out on a $1400 gain! (and NOV trade)

This morning I placed a buy stop for 100 shares of BIDU at $305, using my "buy the weakness" strategy for the stock. As you can see from the chart below, the stock dipped to $306 before rocketing to $318.



Trading can be a frustrating game. I'm going to have to put this miss in the rearview mirror and focus.

I did buy 400 shares of NOV at an average price of $71.84.

Today's Trade (FWLT), Market Notes and Off-Topic

I bought 100 shares of FWLT at $129.26. This is a small feeler position and I will buy more on a pullback into the $125-126 range. To the upside, I will buy more on a break of $135. Note that this is a position trade with a longer time frame than some of my recent trades.

I am glad we finally received a day of consolidation (although many stocks I follow are still on fire, ala BHP and GRMN). Hopefully we'll get a few more days like this, which will be great for trend-pullback plays.



Off-Topic:
This weekend I received more non-trading e-mails than usual. This is probably due to the links post and the new site design.

I'm still tinkering with the site design. By the end of the week it may look completely different. I welcome e-mails and feedback on the design.

I received and appreciated all of the tv show suggestions. It looks like I'm going to have to put some new shows on my Netflix list. As for new fall shows, tonight I'm going to sample Big Bang Theory and Chuck. Of course, I can't wait for the new Heroes episode.

Great weekend for NFL QBs. A ton of 300 yard games. Patriots win the Super Bowl. Anybody want to bet against me?

20 Stocks to Buy on the Dip

The following 20 stocks are at the top of this week's watchlist. I plan to remain patient and only buy on dips close to support levels.

JASO, LULU, DRYS, NILE, CF, FSLR, FCX, EXM, BHP, CMI, AGU, SINA, CTRP, PCU, EWZ, FDG, SID, LIFC, FLR AND CPHD.

Six Stocks to Buy on the Dip

Of the 100 stocks on my focus list, I've identified 40 that I like as buy the dip plays. Here are six of them:

Gotta Love the Dip

Today's dip was exactly the type of day a pullback trader loves. It's been tough the past few days having to chase stocks. We needed a light volume pullback, and that's exactly what we got. It's a good time to start thinking about entering some small probing positions on momentum stocks that pulled back on low volume.

In the spirit of buying on the dip, check out this article by Alan Farley.

And while your at it, here are some of my previous trend-pullback posts, and every post that has the word pullback it.

Trades: EWZ and JOYG

I am posting yesterday's trades a day late due to computer problems.

I bought 500 shares of JOYG at 62.04. As I noted on Monday, I was looking for a breakout with better than average volume above $62.



I bought 500 shares of EWZ at $64.25. For quite some time, EWZ has been the perfect "buy the dip" stock. The Brazilian ETF is not to be missed on dips.

Today's Trade: EWZ

I took a small nible in EWZ at the close yesterday, with a 300 share position $60.35. I've placed a mental stop just under $60, with an initial target at the recent all time high, around $63. I'll look to add more if it can break into new high territory.

If you look at the trend on the chart below, you'll see that the "Brazil trade" has been to aggresively buy dips and breakouts. Nothing too complicated here, just buy on any dip and set a low risk stop. While I have no empirical evidence, I have a gut feeling this will continue until we reach $100. As usual, I'll continue with what has worked until it stops working.

at $60.

Can You Say "Buy the Dip"

This charts of the Dow makes it painfully obvious that, over the past six months, dips reaching the mid bollinger band (the 20 day moving average) are to be bought. I will probably become very aggressive once we pullback again, possibly using a leveraged ETF such as DDM.