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Steve's Trading Diary - January 2008


1/31 Shorted TRMB on the weak open on Thursday. It nudged the 20 day moving average but stayed down. Just be careful. With this market being strong, if this stock opens positive and starts trading positive on Friday, close out the position. This one still needs to open lower. It should have more downside movement with the gap down through the moving averages. However, if you see strength, there's no sense in being short in a strong, uptrending market. 2/1 It was closed out as soon as it started trading positive on Friday. That was our concern, especially with the market staying strong, that the Bulls would start coming back into this one.

1/30 Bought BLG. Use a close below $8.07 as your stop. 1/31 It opened lower but opened right on the T-line and immediately started moving up. It's still confirming the J-Hook pattern. It's now in a place where it could break out in big numbers to the upside. 2/1 It had another strong day coming out of the Fry Pan Bottom. Continue to hold. 2/4 It pulled back but didn't change the upward trajectory. Use a close below Monday's low of $6.68 as your stop. If this one is breaking out, it shouldn't close back below that level. 2/5 It opened lower and traded down. It should have been closed out, especially with it closing below Monday's low.

1/28 Bought WNR on the positive open on Monday. Continue to hold. We definitely want to see it trade up above the 20 day moving average in the next day or so. Use the T-line at approximately $19.60 as your stop. 1/30 It came up to the level where it should have been breaking out of the Fry Pan Bottom but it pulled back. If it doesn't show a positive day on Thursday, come back out of it and wait for it to form a Cup and Handle pattern. 1/31 It used the T-line as support. It came down and bounced off of it. Give it another day or so. We don't want to see it close below the T-line. See if it will form a little J-Hook type pattern. 2/1 It looks like it's trying to do a Cup and Handle type set-up. Be ready to buy this on the next positive trading. 2/4 It held up well. It's still moving back toward an uptrend and may form a J-Hook type pattern. Continue to hold and continue to use a close below the T-line as your stop. 2/5 It gapped down. It needed to open higher and start trading higher to fulfill the J-Hook type pattern. The fact that it gapped down should have been a warning and the fact that it closed below the T-line was a definite reason to be closing out this position. It should have been closed out.

1/28 Bought OMG as it came up through the 50 day moving average on Monday. Continue to hold. It closed above the T-line. It should be starting its next uptrend. At this point use the halfway point of Monday's bullish candle, or just below the 50 day moving average, as your stop. 1/30 If it opens lower on Thursday, close out the position. It needs to support on the 200 day moving average. It needs to open higher and start trading higher to continue to hold. 1/31 We had suggested closing out this stock on a lower open but it opened, didn't move for awhile, and moved right back up. If you closed it out, you can still buy it back even though you're having to pay a little bit more for it. This one should still be held. We're looking for it to move up to the $66 area. 2/1 It continued up. Continue to hold. If you aren't in this one, be ready to buy this on a positive open on Monday. 2/4 Unless it has a big up-day on Tuesday, it's going to be in a trend channel to the upside. Continue to hold as long as it doesn't close below its current trend channel at around the $55.50 level. Use $55.50 as your stop. The stochastics are still heading up so it should still be in an uptrending channel. 2/5 It gapped down and closed below the T-line on Tuesday. It should have been closed out.

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