EXP was a trade I have been waiting on and today we got the "bounce" I was looking for. Here is the chart:
As you will see on the chart, I am looking for a run-up to resistance at which point I will sell a Covered Call. This is a TREND trade so I hope to be in this for some time. I plan on Selling Covered Calls and capturing (paper) profits on the way up until such a point that either A) the Trend is no longer my friend or 2) I get taken out of a Covered Call.STLD was another stock I was looking into that seemed to break my way. The chart shows a bounce today and I have estimated the movement of the stock. Here is a chart:
By looking further back, you'll see that the stock is near a 52-week split-adjusted high. What this means is, if it breaks above the most recent top, this could go a LONG way. Here's a look back at a longer chart:
As you can imagine, I am in this as a TREND trade hoping to see if this can regain its pre-split level of $60. It may take awhile, but again, I'll sell some Covered Calls to pay for my patience and see what becomes of this trade.One That Got Away - CLF
Darn. Sometimes a waiting Lion gets passed by a quick Gazelle. I have mentioned CLF recently (I have done VERY well with this stock in the past) and today, I got a premature (for me anyway) pop. Take a look:
You'll see it bounced off the Median line which is fine, except for me. I wanted it to head to the bottom of the Ascending Channel, THEN bounce. Today's action made the Reward/Risk undesirable for me, so I will have to wait again for another opportunity to enter this trade. In the meantime, it will remain on my Watch List until the Gazelle feels brave enough to pass by the Lion again.Happy Trading!
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