Steve's Trading Diary - February 2007
2/28 LSS was not bought because it did not come up through the level that we wanted it to. Be ready to buy this on Thursday if it comes up through the $48 area. That would show that the Belt Hold signal was in effect, and it should start moving back up.
2/28 PCU was not shorted. It opened higher. We would not be shorting this unless it closes back below the 20 day moving average. Right now, the mining stocks may be picking up strength and moving back up after the initial selloff on Tuesday.
2/22 Bought ABBI. It's forming a Scoop pattern and was up nicely on Thursday. It came up through the $26 area and the "handle" area. Now look for it to climb up and test the 50 day moving average. If it breaks through the 50 day moving average, there should be a good steady uptrend. 2/23 It consolidated but stayed above the 200 day moving average, continue to hold. Anticipate a test of the 50 day moving average. Notice that there is probably a Scoop pattern in progress. 2/26 It did break out of the "handle" area, continue to hold. It might do a little profit-taking at this level for the next day or so but should be in a nice uptrend. 2/27 It came all the way down and tested the 20 day moving average, then came back up and closed right near the 50 day moving average. It may be turning over. We need to give it one more day to see if it can stay above the 50 day moving average. If it closes lower on Wednesday, close out the position. 2/28 It opened lower. If it was closed out, be ready to buy it back if it comes up through the 50 day moving average. Even though it closed lower, noticed that it formed a Hammer / Doji-type signal right in between the moving averages with its top right at the 50 day moving average. If this breaks out through the 50 day moving average, the uptrend will still be in progress.
2/23 ASIA was not bought. It opened and immediately started selling off. This one would not have been executed. However, still be ready to buy it if it comes back up through the $8.60 area. That would tell us the Bulls are still in this Fry Pan Bottom pattern that is forming.
2/23 XIDE was not bought. It opened and immediately started selling off. When you see it open, and there isn't any follow-through buying, you don't want to be in the position. It's better to pay more for it rather than buying it right on the open, especially if the morning futures are lackadaisical in the markets. If it opens higher and you see that the futures are selling off, there is no hurry to get into the position. It's better to pay a few cents more, knowing that it is going in the right direction, than trying to buy it immediately on the open.
2/22 Bought PWAV as it opened higher on Thursday. It pulled back but notice it came right back down to the 20 day moving average and bounced back up. Still be a buyer on any positive trading on Friday, especially if it comes up through Thursday's high at the $6.00 area. If it does that, buy it aggressively. This would be confirmation of the Belt Hold/Bullish Engulfing signal, as well as somewhat of a large Scoop pattern that is setting up. 2/23 If you owned it, you should have closed it out as it came more than halfway down the Belt Hold candle, as well as seeing it move below the T-line. This one should have been closed out.