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Steve's Trading Diary - October 2007


10/22 Bought NAVI as it came up through Friday's close. It formed a nice bullish candle. It's right at the breakout point of a J-Hook pattern. Be ready to buy this one aggressively if it opens up higher on Tuesday. 10/23 It broke out but formed a Gravestone Doji. This one needs to open higher and start trading up on Wednesday. If it opens lower, anticipate that it will come back down to test the T-line. Traders would probably want to come out of it on a lower open on Wednesday. 10/24 It backed off. If you were nimble, you were out on the first signs of weakness. If you still held onto it, as long as it closed up above the T-line it's all right. Now it needs to show upward trading. A close below the T-line what have us out of the position. 10/25 It was looking a little bit "iffy". It was near the T-line on the close. Continue to hold it but if it closes below the T-line, come out of the position. It should hold at this level and trade up on Friday to continue to stay in the position. 10/26 It came back up and closed well above the T-line. It's still in an uptrend. Be ready to buy this aggressively on a positive open. 10/29 It traded higher on Monday. It's still maintaining the uptrend. Each day it opens lower and comes back up. Is showing good strength. Continue to hold. 10/30 It's still in a nice uptrend after it opened lower. It formed a "Three White Soldiers" pattern. Continue to hold. Use a close below the T-line has your stop. 10/31 It formed a Shooting Star on Wednesday, which was not good. Be ready to take some profits on this one, at least half the position, if it opens lower on Thursday. It needs to open higher and trade higher to continue to stay long. 11/1 It opened lower but immediately started trading up. If you didn't close it on the open, continue to hold. 11/2 It closed much lower and closed below the T-line. To continue to hold, it needs to close above the T-line on Monday. If it closes lower, close out the position. 11/5 It formed an Inverted Hammer type signal. It makes the decision very simple. Continue to hold but it needs to show a stronger open and close up above the T-line on Tuesday. If it trades back below the recent lows at around $10.21 on Tuesday, close out the position. 11/6 Even though it opened higher and traded up, it closed back below the previous Inverted Hammer signal. It should have been closed out.

10/26 Bought XING on the open because it gapped up. However, it did come down through our stop at $7.71 so this one is closed out. Any time you see a stock open up that high and then come all the way back down into the previous day's trading, it shows you the Bears are coming in and you should get back out of it and watch for the next buy signal.

10/26 Bought ASTI on a positive open but it should have been closed out on the close. Not that this one is a bad trade, it just didn't show any strength on a strong day. Keep watching for a buy signal before coming back into this one.

10/29 PPCO was not bought on Monday. It opened flat and immediately started trading down, which meant that the 20 day moving average was probably acting as resistance. This one should not be considered until it closes back up above the bullish candle that told us the Cradle pattern was forming, and the 20 day moving average.

10/16 Shorted SEH on the slight weakness but it closed back above the T-line. Be ready to close this one out on any positive trading, especially if it comes up through the high of $19.21. At that point it should be closed out immediately. 10/17 It confirmed to the downside. It barely touched the 20 day moving average. Stay short. We'd like to see it break through the 20 day moving average. If it fails at that level, it will come back down and test<

 

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