Boy it is funny, I want to go long at such poor times. I work on getting better at directional trading, follow the charts not my emotions. I have a few nice trades that benefit greatly from this market’s selloff. I am mildly kicking myself for selling off MER from last week, KBH, and IWM. I made a little money on those but sheesh.
Now this is what I like to hear. Imagine my trading gains to be free of tax.
I was looking at getting long XLB and MTW, but XLB’s trend has broken hard. Sell signals have been flashing for the past 3 days, the channel charts I put up on the weekend told the story. Rather than taking long entries on my real accts, I satisfied my need to trade and placed them in my Paper Trading acct. It has saved me lots of real money. Fortunately, my calendars are working very well. I have been up all but 1 day in the past 17 and today is of no exception.
I am disappointed in USB. Come on already spread, open up. I am sitting on a powder keg of possibility. I am stalking some nice new entries as well, but at this point nothing. I did make a few nice trade entries and exits on Tuesday:
MEDX – 4 unit of the Jan/Feb 15p for .15. Nice profit. I still have 1 unit.
PPCO – 3 units of Dec/Jan 10p for .10. I wanted out because the underlying dropped to 7.70. I didn’t want to risk assignment. the Jan 10p only had .10 of premium left in it. I was happy to get out with a .20profit.
UTHR – 70p calendar, entered and exited 1 unit for a quick .30 profit. I noticed whoever bought with me a few days back is trying to get out of a remaining 20 contracts, he sold 10 with me when I exited a few days back.
PGH – Bought 200 sh @ 18.56 (entry position). Making an entry can be such a chore for me. I did use some daytrading techniques to establish my entry. Namely, channels and Level 2 depth. But the real reason for adding the stock to my portfolio was two fold: 1) PGH is a trust levered to Natural Gas, and I believe we are in early stages of a breakout there. and 2) The dividend is 14.6%, which it has been paying at those levels since 2005. I am going to do my best to not even follow this daily. It can be so difficult for me.
PGH weekly chart. Does it look like a Gartley Pattern?
Natural Gas 1 yr daily chart
Predictions: This is nothing but an chartist guess. DOW 13,500 gaining support of the 50MA
SPX – 1520, which is the mid point of the current channel.
Isn’t it something how a few days ago the media is so incredibly bullish, and now the Subprime redux is here. Which side are you on?
The China FXI blasted to new highs again.