Steve's Trading Diary - May 2007
5/29 Bought MDTL immediately as it opened higher on Tuesday. It traded up nicely and almost touched the 50 day moving average. It should still have some upside potential. It should at least close somewhere near the 50 day moving average in the next day or so. If it breaks through that level, look for it to move to the 200 day moving average area. We don't want to see it close back below Tuesday's open of $14.08. 5/30 It touched the 50 day moving average for the first time lately and formed a Bearish Harami. It may consolidate for a day or so, but still anticipate that it will move up and break through the 50 day moving average, making the 200 day moving average the next target. Use a close below the T-line at $14 as your stop. 5/31 It needs to show some positive trading on Friday. We want to see it come up through the 50 day moving average. A lower close on Friday would warrant closing out the position. 6/1 It has consolidated. Notice the indecisive trading. If it opens higher and starts trading higher on Monday, you can start buying it aggressively. If it breaks through the 50 day moving average, look for it to move up to the 200 day moving average. 6/4 It can be bought aggressively on a positive open on Tuesday. It traded slightly higher after it bounced off the T-line on Friday. Look for it to break up through the 50 day moving average and come up and test the 200 day moving average. 6/5 It had a Doji type day where it touched the T-line again. It needs to show some strength immediately on Wednesday to continue the J-Hook type pattern and move up through the 50 day moving average. If it closes below the T-line, close out the position. 6/6 It closed right on the T-line. Be ready to close this one out if it shows weakness on Thursday. The only way to hold it is to see it open higher and immediately start trading higher. 6/7 It formed a bullish candle on Thursday off the T-line. It was up nicely in a bad market. Continue to look for a breakout through the 50 day moving average. If it closes back below Thursday's open of $14.15, close out the position. This one should start moving higher based on Thursday's trading, especially in this very weak market. 6/8 It backed off but came back up and closed at the high end of the trading range, confirming the rounded bottom pattern. Continue to hold and use a close below Friday's low of $14.40 as your stop. If it comes back down through that level, it tells us the Bears are in control. 6/11 It traded up most of the day, touched the 50 day moving average, and closed right on the T-line. It sold off in the last 30 minutes of trading. If this one opens lower on Tuesday, close out the position. It needs to stay above the T-line to complete the rounded bottom pattern. 6/12 It's running out of steam but it's still maintaining its recent flat trading area. If it doesn't do anything positive on Wednesday, you may want to close the position and use the money somewhere else. 6/13 It needs to pop to the upside to get the trend moving. It resisted at the 50 day moving average. It needs to break through that level to start heading up to the 200 day moving average. 6/14 Be prepared to close it out if it doesn't make a move on Friday. It traded flat and it may trade flat for a while. You can close it out and put your money somewhere else. The next time it should be bought is when it comes up through the 50 day moving average. 6/15 It's still not showing any strength. This one should have been closed out on Friday after it didn't trade up any farther. It can always be bought back as soon as it forms a new buy signal.
5/24 Bought TRGL. It formed a Shooting Star right at the 50 day moving average on Wednesday. It traded weaker on Thursday. If it opens lower on Friday, close out the position. It needs to open flat and start trading back up to re-test the 50 day moving average. 5/25 It formed a Bullish Harami on Friday on indecisive trading. It doesn't seem to be going anywhere. At this point, use a close below the low of Friday at $15.56 at your stop. This one should open higher and trade higher to continue to hold.