Well Traders, some new plays came to me today; BTU, CLF and TIE. I have been lying in wait for these to come back to their Ascending Channel supports before buying them, and today was the day. Hopefully, my patience will pay off as well as I think it can. Here are the charts:
BTU
CLF
TIE
You'll notice that all three of them are at the bottom of their channels setting up for a timely bounce up to the tops of their channels at which point I will either sell the stock, or sell a Covered Call.
A real benefit of the position of these buys is that I am using the lows as my support level, and placing my Stop-Loss prices 2% below them, so not much downside. The upside is that if these do run up in their channels as predicted, the risk/reward for these trades is really good.
By the way, I only keep a limited amount stocks in my watch lists and just keep looking at the same ones over and over again. You'll recognize patterns and become very well aquainted with the companies the longer you look at them. If you have enough from diversified sectors, then there will always be something in your pipeline that will be ready to trade. Let it come to you.
Happy Trading!
Well Traders, an interesting thing happened to ANDE last week. I mentioned the "bounce" that was expected after it took me out at my stop-loss. Well, on Thursday, boy did it ever bounce. This was primarily due to an upgrade by Bank of America.
However, after an initial gap up of $2.15 at the open, the stock fell the rest of the day. This set up an interesting conundrum. Would the stock continue to rise, or try to fill the gap?
On Friday, we see that there was a little indecision, and ANDE actually tried to close the gap. Today, ANDE is up over $0.80 at the time of this writing. We'll see if Friday's action was the "gap close" attempt which is now over, and ANDE should run bullish from here.
Happy Trading!
Well Traders, as I mentioned in my earlier post, ANDE bit me in the behind. I am not that upset because I planned my trade, and traded my plan, and based upon the signals, I needed to get out when I did. That is just the way it goes sometimes. ANDE ended up skyrocketing late in the day which may indicate that today was the bottom, and the upturn truly begins tomorrow with another up day. Here is the daily intraday chart...look at that late-day movement!
Now, look at my revised ANDE chart below in which I eliminated the Ascending Channel, and instead reformed it to just be diagonal support and diagonal resistance. You'll notice that as soon as it hit that support line, the stock springboarded up the rest of the day. Kind of an amazing thing to see really.
So now what? Well, the fact of the matter is, the original play is still intact. In fact, if tomorrow is another up day on ANDE, I'll get in again and ride it up to the first target price indicated on the chart. I'll then tighten up my stop-loss to capture profits. If it races towards my second target price and my STO and MACD are indicating weakness, I may sell a Covered Call, or just close the position and take my profits...then wait for the fall and bounce and snatch it up again.
Happy Trading!
Well Traders, sometimes I believe the market is out to get me. Today ANDE was down pretty good on light volume. This was the second day in a row in which the stock was down a sizeable amount on light volume. According to my trade plan, I was to get out if the stock reached $37, which is did around 10:30 AM. I called my broker and placed my sell order which was executed and swear to God, not 10 seconds after my shares sold, the stock soared $1.20 in 45 minutes! Just CRAZY! Here is the 3 minute Intra-day chart:
That is just amazing! I could not have timed my exit any worse. When I see things like this it just makes me nuts! That being said, the stock did bounce off the support line in it Ascending Channel and if it goes up more tomorrow, I'll get back in since there is still $5-$6 left in a run-up. I do hate unnecessary losses, but I planned my trade, and traded my plan, so even though it is a loss, I did what I was supposed to do. Let's see if we can get in tomorrow (assuming it is up) and make back what I lost?
Happy Trading!
I hate down days when I am Long. I hate them even more when the losses are "big" and the volume is small. Such was the case today as several of my positions were hit with nice-sized "losses" on light volume. I know the Fed announcement (yawn...they did nothing...again) kept most everyone on the sidelines, and when they got the news they expected, there was a little pop, until folks realized nothing really changed from before, and the market lost ground again. Anyway, my positions in ANDE, BHP, and CROX got beat up pretty good. My position in CLF got hammered, but may not be such a bad thing since I have a $45 Covered Call expiring this Friday. I would not mind having the stock finish below $45 and being able to maintain my position in it since it is heading toward the bottom of a nice Asecending Channel. I could wait for a bounce, ride it to the top of the Channel, and sell another Covered Call. We'll have to wait and see.
I am looking at TIE and BTU to come down to their support levels in their Ascending Channels, and then I'll snatch up some shares.
Happy Trading!
Hey Traders...I have been gone from this blog for awhile, primarily concentrating on my other blog: iron-condor.blogspot.com. That discusses another method for trading, one you may find interesting, so check it out!
I recently made an excellent trade on KMX, here is the chart:
As you will see on the chart where I entered, and where I exited, it made for some very nice returns. I will wait for this to slide back in its Ascending Channel and pick up some more shares once it reaches support again, and take it for another ride. That is the beauty of a channeling stock like this. Buy it low, let it run, sell it high, rinse and repeat!
Today, I entered a new trade: ANDE
As you will see from the chart, the stock is bouncing off the bottom of a well-formed Ascending Channel, and the MACD and STO are perfectly positioned to indicate a bounce is imminent. Since the channel is over $6 tall, this could generate a nice return for me should it follow the channel like it has in the past. My stop-loss is 3% below the most recent bounce two days ago.
That is all I see today that may be worth trading, the key to trading I have found is PATIENCE! Remember, YOU are the HUNTER, and good hunters lie in wait for their prey...do the same!
By the way, I encourage any readers to submit their own ideas for trades through the comments section.
Happy Trading!
