Steve's Trading Diary - June 2007
6/29 Bought ALGN. It traded higher most of the day but it came back and closed right on the T-line. We're still anticipating it's forming a cup and handle formation, but we definitely need to see it open higher on Monday. Continue to hold and use a close below the 20 day moving average or $23.80 as your stop. 7/2 It held up above the T-line. The stochastics are starting to come back up. We're looking for it to break out to the upside from the cup and handle type formation. We don't want to see it close below the T-line on Tuesday. 7/3 It's staying up above the T-line. Continue to hold as long as it stays above the T-line. Use a close below $24.10 at the T-line as your stop. At this point, we need to see a breakout coming out of the Fry Pan Bottom/Cup and Handle type pattern. 7/5 It's still in a slow cup and handle process. We're still looking for it to break out through the recent highs to quickly give us another four or five points to the upside. 7/6 It's still in the process of forming a cup and handle type pattern. We'd like to see it break out to the upside very soon. 7/9 It's still trying to form a cup and handle type pattern. Look for a breakout through this level. 7/10 It got a little bit toppy at this level with Tuesday's trading. It closed right on the T-line. It needs to hold this level to keep the cup and handle pattern in progress. 7/11 It finally broke out to the upside. Continue to hold. Use a close below the T-line at around the $24.60 level as your stop. This should now hopefully be coming out of the cup and handle type pattern and moving much higher. 7/12 After its big move on Wednesday it consolidated a little bit. We're hoping that it's still in an uptrend. Use a close below the T-line as your stop. 7/13, 7/16 Continue to hold but watch for profit-taking. 7/17 It made a nice profit since our recommendation. You may take your profit now, or move your stop loss up to the T-line at around $25.47. 7/18 Continue to hold. 7/19 Continue to hold. Use $25.47 as your stop. 7/20 Continue to hold. It's still staying up above the T-line. It's getting a little bit "iffy" but it's still coming out of a long-term Fry Pan Bottom pattern. 7/23 It's moving up nicely in the rounded bottom pattern. Be ready to buy this aggressively on a positive open. 7/24 It traded up most of the day but closed as a Shooting Star signal. If this one opens lower on Wednesday, close out the position immediately. This one needs to open higher and immediately start trading higher to continue to hold. 7/25 It popped up but started selling off. It needs to see consolidation and continued movement to the upside in the next day or so. If it closes weaker on Thursday, especially below Wednesday's low of $26.87, you would probably want to take profits and close out the position. 7/26 It did a Doji type day. Watch for more indecision before it can start moving back up. It's still coming out of a long-term Fry Pan Bottom type pattern. 7/27 It held up reasonably well but if it shows weakness on Monday, you might want to start coming out of the position and wait for the next buy signal. 7/30 It's still trading indecisively. Be ready to buy this aggressively on the next positive trading day. 7/31 It should have been closed out as it closed below the T-line on Tuesday.6/13 Bought WNR on the positive trading. Notice the two Bullish Engulfing signals on the T-line with the stochastics curling up. It's coming out of a Fry Pan Bottom and a J-Hook pattern. Look for this now to pick up some strength and at least test the recent high. If it breaks through that level, it could possibly go up into the $60 to $62 area. 6/14 It moved up a little bit higher with the stochastics coming up. We're anticipating a test of the recent highs with a J-Hook pattern forming. Use a close below the T-line as your stop. If it came back down through that level, it would break the J-Hook type pattern and should be closed out.