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.

MTL at Support

I still like MTL here. The stock has not broke support and down volume has been lighter than previous up volume. The 50 day moving average has been a good entry point.

What to do about steel and energy stocks

Those that have missed out on the steel and energy run are in a frustrating position. There is the fear of being left out as the stocks continue to run. However, there is also the fear of "chasing" an overbought stock that's ready for reversal. Which "fear" should you listen to?

I'm listening to the latter. As we all know, stocks don't go up in a straight line. Even the best of them pullback, and that's what a prudent trader will look for here.

Take a look at CLF and pay attention to the stochastic readings after the stock has made big runs. In every case, the stock pulled back to a better entry point. I am looking at the 130-135 range, as this is where the stock broke out and we see price support.

5 Profitable Energy Charts

Here are 5 interesting energy stocks. I've included longer term charts. Each has a slightly different pattern and can be played in multiple ways.

RIG (Transocean, Inc.) is looking good right now. We've got a support converging at both the breakout point and the 50 day moving average. My only concern is there doesn't look to be heavy accumulation right now. Still, it might be a good low risk play here.



SWN (Southwestern Energy Co.) has been trending and shows a nice accumulation pattern.



DNR (Denbury Resources, Inc.) is the most "iffy" of the group. The trend has been up and down, but if you can catch the right bounce, it has been profitable. It's pulling back to the 50 day moving average.



APA (Apache Corp.) has been trending along the 50 day moving average and shows decent accumulation.



ARD has been digesting some major gains, but could be a nice play around the 50 day moving average.



I see some low risk, high reward plays here, as long as the entry is timed correctly.

Today's Trade: PCU

I bought 100 shares of PCU at $133.20.

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.

Today's Trades: RIMM and RS

I bought 500 shares of RIMM at $82.71. This is a short term trend-pullback play. My intitial target is the high at $85, with a stop at $81.

I covered the RS short, 500 shares at $54.05 (entry at $53.16) for a $445 loss (-1.6%).



I am still holding GMRC, SDS and LFC.

Today's Trade: FLR

I bought 500 shares of FLR at $120.20. The stock has been on my primary watchlist since the July breakout and has been a great trend pullback trade. I recently set an entry of $117-120, and the stocked dipped down to $119 yesterday. However, I decided to take a wait an see approach because of yesterdays overall market weakness and uptick in negative volume. Today's strength quashed my fears, and I was willing to buy a little above my entry range.

Along with price support, RSI is at a strong support level (50). I also like the fact that stochastics and OBV have made higher highs.

My initial target is $125, with a stop under the 50 day moving average, at $116.

Today's Trades: NOV (and Steel comment)

I bought 300 shares of NOV at $114.35. Buying this stock on pullbacks has become a go to move for me, like Allen Iverson's crossover. This is one of those "keep doing it until it ceases to work" trades, akin to feeding a hot three point shooter. Okay, that's it with the NBA references . . .



Steel is looking ugly as ever, but as I said in last night's post, I'm hesitant to short until we get a bounce to the 200 day moving average.

Trades: AAPL and NOV

I sold 150 shares of AAPL at $125.84 (entry at $121.75) for a $613.50 gain (+3.3%). I noted the exit in the comments section of my last post.

At the close, I sold 200 shares of NOV at $116.11 (entry at $109.64) for a $1294 gain (+6.0%).

Both trades were pullback plays off of extreme weakness. While buying on this type of weakness can be risky, I felt they were low risk, high reward trades. When I bought the stocks, they had fallen right into very strong support areas. If you look at the charts below, you will see that price could not help but to bounce.

Note that these were extremely short term plays. AAPL actually looks like a good short candidate for my normal swing trading style, and is on my primary short watchlist. However, it was obvious the stock was a good long day trade, due to the support level.



NOV is still a good long candidate, as long as the 50 day moving average holds and OBV remains strong.

Today's Trades: OII, HEI and MT

Today I took positions in three of the six stocks that I posted on my primary watchlist last night. All three are pullback plays in trending stocks. Due to the current nature of the market, I cut my normal position size in half for these trades.

I bought 250 shares of OII at $51.14.

I bought 250 shares of HEI at $42.18.

I bought 250 shares of MT at $61.35

Today's Trades: ZOLT, FUL, TSL

As mentioned in comments yesterday, I sold:

250 shares of ZOLT at $31.80 (entry at $32.30) for a $125 loss (1.6%).

500 shares of FUL at $26.14 (entry at $27.22) for a $540 loss (4.1%). I am upset at myself over this trade because I did not pay attention to earnings. I did not even check the earnings schedule. I rarely hold pullback plays into earnings. Bonehead move on my part.

Well, after 24 straight wins, 3 of my last 4 round trip trades have been losers. Luckily, they have been small losses.

I bought 250 shares of TSL at $51.07. This stock has pulled back to the 50 day moving average and has not broke any major trendlines, although the pullback has been fairly hard. The stock has reacted well to these types of pullbacks in the past, but I still decided to go with a small position size and will place my stop under the 50 day moving average.

Amazing Chart: SBGI

I've been holding SBGI for about a week now. My original post was more focused on recent price action. However, if we back the chart up to the last 6 months, we will see one of the most beautiful looking charts one could ever hope to find.

The stock started its uptrend in October. Since that time, it has rarely fallen below the 10 day moving average. That's insane. Even the big correction couldn't slow this bad boy down. SBGI is like Kobe Bryant: you can't stop it, you can only hope to contain it.

I'm looking to add more on any tags of the 10 day moving average. I'm following the theory of my post correction QID trades: keep on doing it until it until it no longer works.

Today's Trade: EWZ, AKAM and RATE

I sold 500 shares of RATE at $43.44 (entry at $42.53)for a $455 gain (+2.1%).

I sold AKAM at $56.90 (entry at $55.63) for a $508 gain (2.2%).

I bought 700 shares of EWZ at $48.44.

Over the past six months EWZ has been in a solid uptrend with the 20 day MA providing support. There have been a few blips, however the 50 day MA has provided additional support, and the stock has always rebounded well above the 20 day MA. Therefore, my stop will be placed just under the 50 day MA, at $46.20. This is what I call a "trend trade". I am basically ignoring the indicators (RSI looks good but stochastics say overbought) and just following the trend.

I probably could have waited for a slightly deeper pullback, say all the way to the 20 day MA ($47.82). However, when playing a trend with a longer holding time, I don't feel the need to quibble over 50 cents.