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Steve's Trading Diary - June 2008


6/30 SWC was not bought on Monday. It opened higher and immediately started trading off. It came back down toward the 20 day moving average. Be ready to buy this if it comes back up through Monday's high at around the $12.57 area. That would tell us the bottoming action is still in progress. Keep this on your list as a buy.

6/19 Bought ROYL on the positive open but it traded lower and came all the way down to the T-line. With this type of signal, we usually give it one more day to see if it opens and starts moving back up. If it opens lower and starts moving down below the T-line, you would want to close out the position. 6/24 Continue to stay long as long as it stays above the T-line. It had a nice breakout on Tuesday. It should be on its next leg up. 6/25 It formed a Bearish Engulfing signal but it's not in the overbought condition yet. It may have merely done some profit-taking. Watch to see if it trades higher on Thursday. Use the T-line at around the $11 area on Thursday as your stop. 6/26 It's still continuing in an uptrend. Continue to hold as long as it stays above the T-line. 6/27 It consolidated and formed a Bearish Engulfing signal but the stochastics are not quite into the overbought area. Continue to hold this as long as it doesn't close below the T-line. 6/30 It didn't sell off. It's just doing sideways consolidation. Continue to hold until it closes back below the T-line at around the $12 range on Tuesday. 7/1 It was closed out. It went in the wrong direction and closed below the T-line. Keep an eye on it though. If it comes back up through the T-line and forms a buy signal, you can buy it back.

6/27 Bought HL on the positive open on Friday after the previous Bullish Harami followed by a gap up through the T-line which had been acting as resistance. It opened higher and immediately started trading higher. Continue to hold. 6/30 It consolidated on Monday but didn't do anything yet to show us that it's turning around. Monday's formation could be a Dark Cloud signal but we're anticipating that the consolidation after the initial strong move will be followed by more upside movement. If it trades back below Friday's open, close out the position and wait for the next buy signal. We'd like to see it open higher and start trading higher. 7/1 It consolidated right on the 50 day moving average. It will probably be a couple of more days before it can get enough juice to move back up through the 50 day moving average. Continue to hold as long as it stays above the T-line. 7/2 It was stopped out on Wednesday as it closed below the T-line.

6/25 Bought ABAT as it traded positive on Wednesday. Even though it closed lower, notice what it's doing, an indecisive sideways motion while waiting for the T-line to catch up. We're still anticipating a good breakout to the upside. 6/26 It broke out like it should have after a series of Doji signals. Continue to hold until you see a sell signal. 6/27 It moved up nicely coming out of the J-Hook type pattern. Continue to hold until you see that it's time to take profits. 6/30 It formed a Bearish Harami. It hasn't told us there is a reversal yet unless it confirms with a close back below the T-line at around the $5.50 area on Tuesday. 7/1 It can be bought aggressively if it opens positive on Wednesday. It's still in a nice strong uptrend. 7/2 It was closed out as it closed below the T-line on Wednesday.

6/18 Bought FPP near the open. It opened higher, consolidated, and then traded higher again. It's forming a nice J-Hook pattern. Continue to hold. 6/19 This could have been bought on the positive open but it closed at the low end of the trading range and formed a Bearish Engulfing signal. The only reason we will give it one more day it's because it's still forming a J-Hook pattern. It may have ended as a Double Top but the stochastics are not yet into the overbought area, so will give it one more day to see if it moves right back up again. If it starts trading down and below the T-line, close out the position. 6/24 It's still staying above the T-line. Continue to hold. We're looking for it to break out to the upside. Continue to hold as long as it closes above the T-line. 6/25 It consolidated but stayed up above the T-line. Continue to hold but if it closes below the T-line, come out of the position and wait for the next buy signal. 6/26 It held up reasonably well in Thursday's market. Continue to hold. 6/27 It didn't do anything great but didn't close below the T-line. Continue to hold. The oils are still acting well. 6/30 It hasn't really formed a sell signal yet but be ready to close it out if it closes lower, which it shouldn't do because the oils are still in an uptrend.  If it does close lower on Tuesday, you may want to close out the position and wait for the next buy signal. 7/1 It did close below the T-line but it stayed above the 20 day moving average, which has been acting as a support level. Give it one more day. If you didn't close it out, stay with it. But if it closes below the 20 day moving average, close out the position. 7/2 It was closed out as it closed below the T-line.

6/17 Bought CSUN on the positive open on Tuesday but it closed just above the 20 day moving average. Continue to hold. It wouldn't be surprising to see this open higher on Wednesday and close higher. We don't want to see it close below the $11.38 level, the halfway point of Monday's bullish candle, which would also coincide with the T-line. 6/18 It came back up a little bit on Wednesday. It bounced off the T-line. Continue to hold. Anticipate this opening higher and trading higher on Thursday. 6/19 It didn't do anything one way or the other. Continue to hold. We're still looking for it to break up into the next level and test the recent highs. 6/24 It was closed out as it closed below the T-line. It formed a little Inverted Hammer right on the 50 day moving average support level. If it opens higher on Wednesday, it can be bought again.

6/17 Bought HERO as it traded positive on Tuesday. It held up well. It can still be bought if it starts trading to the upside. We don't want to see it close below Tuesday's low of $35.30. That would show that the Bears are in control and it wasn't going to break up into new high territory. 6/18 It's having a tough time getting through the recent high levels. The stochastics are just into the overbought area but not with enough conviction yet to hinder a breakout to the upside. Continue to hold. Remember, the two previous gap ups told us the buyers were trying to get into the position with great enthusiasm. 6/19 It's still getting a little bit toppy right at the same level where it topped out before. The oil stocks should still be doing well but there might be some profit-taking going on. If this opens lower on Friday, come back out of it and wait to see if it supports on the T-line. 6/24 It was closed out on Tuesday as it closed below the T-line. It's forming a Double Top at this level.

6/12 Bought ALVR. 6/13 It should be bought aggressively on any trading above $8.00. 6/16 It could have been bought again on Monday as it traded up above the 20 day moving average. This told us the consolidation was over. This should move up toward the 200 day moving average. 6/17 It held up well. It can still be bought on positive trading on Wednesday, especially if it comes up through Tuesday's high at the $8.25 level. 6/18 It consolidated back to the T-line but closed positive. It's still in an uptrend. Continue to hold. 6/19 It's still in a slow uptrend. It's using the T-line as support. Continue to hold. At this point, if it closes below $8.00, you will want to close out the position. 6/24 It was closed out on Monday as it closed below the T-line.

6/11 Bought INWK as it traded higher on Wednesday. It did run into the 20 day moving average again. For the Cradle pattern to be confirmed, we need to see a positive trading day on Thursday and an eventual move up through the 20 day moving average. If it trades below the T-line or the halfway point of Tuesday's candle, you should come back out of it. 6/24 It was closed out on Monday as it opened below the T-line after the Bearish Harami.

6/19 Bought MYGN on the positive open and now it has closed up above the recent high. Continue to hold. It should be starting its next leg up. 6/24 It should have been closed out as it closed below the T-line after a Hanging Man signal.

6/25 GEOY was not bought on Wednesday because it didn't trade higher. But it's still in a Rounded Bottom mode and is staying above the T-line. Be ready to buy this on any positive trading on Thursday.

6/25 TLB was not shorted because it opened positive. It's now actually in the process of forming a J-Hook pattern. This can probably now be bought on a positive open on Thursday.

6/26 GRO was not bought. This is exactly the reason why you should wait for confirmation to see if the Bulls are in control. They had an announcement which made it open much lower. It would not have been executed.

6/26 ENOC was not bought. It started trading down with the morning futures down dramatically. There would not have been any reason to jump into this position.

6/6 Bought UCBI on Thursday but it was stopped out on Friday. It obviously did not hold up with enough strength after the big pullback.

6/6 Bought STE on Thursday and it held up reasonably well on Friday. Continue to hold. Use a close below the halfway point of Thursday's large bullish candle at around $32.45 as your stop. There is still a good J-Hook pattern in progress. 6/9 It was stopped out on Monday, which means it's now likely to come back to test the T-line and bounce back up. But as of now, it should've been closed out with it closing more than halfway down Thursday's bullish candle. Now keep an eye on it and see if it will form a new pattern.

6/2 Bought OMG on the positive trading on Monday. It consolidated nicely and closed up nicely on Monday. The first target should be at the 20 day moving average. The next targets should be the 50 day and 200 day moving averages. We don't want to see it close back below the $43.50 level. 6/3 It moved up a little bit on Tuesday and acted well. It stayed above the T-line. Continue to hold as long as it stays above the $43.75 level. 6/4 It came back down and closed just below the T-line. If it opens lower on Thursday, close it out. It needs to open higher and trade higher to continue to hold. 6/6 It needs to stay above the T-line on Monday. It needs to open higher and trade higher or at least trade relatively flat. If it trades lower on Monday, close out the position and wait to see if it's going to form a Double Bottom type pattern. 6/9 It was closed out on Monday as it closed below the T-line. We need to see another buy signal before getting back into this position.

6/10 NG was not bought on Tuesday. It opened lower and traded down. It needed to open relatively flat and trade higher.

6/3 Bought ATPG as it traded up on Tuesday. It closed lower but still closed above the T-line. It's in the process of forming a J-Hook pattern. However, if it closes back below the 200 day moving average at the $42.60 level, close out the position. That would be negating the J-Hook pattern set-up. 6/4 It closed right on the T-line. It needs to show a positive open on Thursday to continue to hold. Otherwise, it may trade flat for a few more days. 6/6 It has held up well over the last couple of days. Continue to hold. It's still in a perfect J-Hook type pattern. 6/9 It's forming a nice J-Hook pattern. Continue to hold with the expectation that it will break out to the upside. 6/10 It failed at this level. It was closed out on Tuesday. It needed to trade higher and break out through the upper level.

6/11 VVUS was not bought. Even though it opened higher on Wednesday, it wasn't bought because the market immediately headed down. It pulled back all day so it wasn't executed. It can still be bought if it comes back up through Wednesday's high at the $7.40 area. That would tell us the uptrend was still in progress.

6/2 DCP was not bought on Monday but it didn't do anything to show a drastic change in the influence of the Belt Hold signal. This should still be bought aggressively if it comes up through Monday's high of $17.14. This can be bought at $17.15 or higher. That would show us the Bulls were still there and the potential to move up to the 200 day moving average would be very good.

6/4 COIN was not bought on Wednesday. It traded lower most of the day but closed at the top end of the trading range. If it trades up above $7.20 on Thursday, you can start buying it. That would tell us the Bulls are still there for another possible big day to the upside. Buy it immediately on a positive open.

 

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