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Steve's Trading Diary - September 2008


9/10 Shorted SLT on the weaker open but it closed at the high end of the trading range. It needs to open lower and trade lower to stay short. If it opens higher, close out the position immediately. 9/11 It's still moving down. Continue to stay short but use any trading above $11 on Friday as your stop. 9/12 It formed a Bullish Engulfing signal on Friday. It should be closed out immediately on Monday if it has a positive open. Then watch to see if it forms a J-Hook type pattern. 9/17 This has been a good short position but it had a Doji type day on Wednesday. Be ready to take some profits on a positive open on Thursday. 9/19 This short position should have been closed out a couple of days ago as the downtrend ended and the uptrend began. 9/22 It was closed out a few days ago but watch it to see if it can be re-shorted on anything below $9.92. Use a stop above $10.24 to close it out. 9/23 It could have been shorted again on the weakness on Tuesday. Now it has formed a Doji right at the T-line. This makes it a very simple trade. If it opens higher on Wednesday, close out the position. If it opens lower, continue to hold the short position. 9/24 It closed at $10.20 and formed a dark candle. It can be shorted again if it comes back down through the $9.90 level at the T-line. 9/25 This can still be shorted if it closes lower on Friday. 9/26 If you shorted this on the open on Friday with it gapping down, continue to stay short but it shouldn't trade back up through the high of Friday at the $9.85 level. If it comes back up through there, close out the position. 9/29 Continue to stay short. It's forming somewhat of a J-Hook pattern to the downside. 10/1 It gapped up on Tuesday and formed a little Doji, which makes this very simple. If it opens lower, stay short. If it opens higher on Wednesday, close out the position immediately. 10/2 It didn't do anything that would warrant covering the position yet but it should be covered if it comes up through Wednesday's high of $9.10. Use $9.10 as your stop. 10/2 It continues to act as a good short position. Continue to stay short until you see a definite buy signal. 10/3 It's continuing its downtrend. Continue to stay short. 10/6 Stay short. It's still in a J-Hook pattern to the downside. It did have extra large volume and it's getting close to the oversold area so we'll probably be taking profits pretty soon. 10/7 It's still heading down. Continue to stay short. If this gaps down, be ready to start taking profits on Wednesday. 10/8 This should have been covered on Wednesday as it started moving up. It finished off as a Bullish Engulfing signal. You should have gotten out at the $6.50 area. This was initiated at the $10 area so you should have made a good profit from it.

9/26 AMSC was not bought on Friday. Even though it traded a little bit above our entry point for awhile, it traded lower most of the day. It can still be bought, especially if it comes up through Friday's high of $22.50. If it opens higher and starts trading higher, start buying it immediately with the anticipation that the first target will be at the $27 area.

9/25 Bought VISN on the positive trading coming off the gap up signal and the T-line. It's now at the 20 day moving average. We'd like to see it trade higher but we might see a little bit of consolidation. Continue to hold as long as it doesn't close below the T-line. 9/26 It closed below the T-line and should have been closed out but if it comes up through the $15.70 area on Monday, it can be bought as it is still coming off the strength of the recent buy signal.

9/10 Bought COIN on the positive open. It acted well all day and moved up much higher. Continue to hold. We're anticipating that it will pop through the 200 day moving average. At this point we don't want to see it close back below Wednesday's open of $6.55, which would probably be where the T-line is on Thursday. 9/11 It continued higher and went through the 200 day moving average after using the T-line on Thursday as a support level. It shows that the 200 day moving average is not acting as resistance. Continue to hold. 9/12 It's still moving up nicely after the little J-Hook type pattern. 9/17 It has stayed above the T-line. Watch to see if it's starting another consolidation phase before heading back up. 9/19 It should have been closed out a few days ago as it closed below the T-line but it can now be bought especially if it can come up through the T-line on Tuesday at the $7.00 level. It could possibly run back up to $9.00. 9/22 It acted well on Monday and was reiterated as a buy for Tuesday. 9/23 This could have been bought again on the positive open. It came up and bumped on the 200 day moving average but closed just above the T-line, so it's still in the process of forming a J-Hook pattern. Continue to hold. We don't want to see it close back below Tuesday's low of $7.07. That would tell us it failed at the 200 day moving average and the T-line. 9/24 It closed lower. It needs to open higher and trade higher to stay in it. If it shows any weakness by trading anywhere below $6.30 on Thursday, close out the position. 9/25 It needs to open higher and start trading higher on Friday. Otherwise, if it stays below the T-line, you will want to close out the position. If it trades at all below Thursday's low of $6.26, close out the position immediately. 9/26 It should have been closed out on Friday with it closing lower.

9/29 CNB was not bought. With the futures down it opened and immediately started trading off.

9/29 SQNM was not bought. It opened and immediately started trading down.

9/25 Bought NVDA. It traded higher on Thursday. It stayed above the 20 day moving average and the T-line. Continue to hold as long as it doesn't close below Thursday's low or the T-line at the $11.07 area. 9/26 It opened lower but closed higher. Continue to hold. This can still be bought if it opens higher and comes up through the 50 day moving average on Monday. 9/29 It was closed out as it closed below the T-line.

9/22 Bought GFIG. It opened higher and closed down $.26 on Monday. It can still be bought if it starts trading higher than Monday's open at $6.20 on Tuesday. 9/23 It closed below the T-line. If it opens lower on Wednesday, close out the position. It needs to open higher and start trading higher immediately to keep holding this position. 9/24 It held up reasonably well. It opened up higher. It needs to pop up above the T-line on Thursday to continue to hold. Any trading below Wednesday's low of $4.71 would warrant closing out the position. That would tell us the Bears are taking it down. 9/25 It traded slightly lower. It needs to open higher and trade higher on Friday. If it closes lower on Friday, close out the position. 9/26 It formed a Bullish Engulfing signal. This can be bought on a positive open on Monday. There is a Double Bottom setting up. 9/29 It was not bought again on Monday because it traded lower. It should have been closed out instead.

9/12 Bought WLK. It traded lower, came all the way down and tested the T-line, and came back up. If it wasn't bought on Friday, it can be bought on a positive open on Monday. 9/17 It could have been bought again. It traded lower, came all the way down and tested the T-line, and came back up. If it wasn't bought on Friday, it can be bought on a positive open on Monday. If you bought it, it should have been closed out the next day.  However, on Wednesday it formed another bullish signal and is continuing the potential Fry Pan Bottom pattern.  This can be bought on a positive open on Thursday using a close below the T-line as your stop. 9/19 This was reiterated as a buy with it breaking out through the upper level. If you didn't buy it before, it can still be bought while anticipating wave three being in progress. 9/22 It held up reasonably well on Monday. If you didn't buy it, it can still be bought on a positive open on Tuesday. It's still showing a nice chart after the gap up. 9/23 It held up reasonably well and is still in an uptrend. Continue to hold. Use any trading below the $20.70 level as your stop. 9/24 It ran out of steam again. It formed a "Two Dark Crows" signal. If it opens lower on Thursday and starts trading down, especially if it comes down through $21.70, close out the position. That means it will probably come back down to the T-line. 9/25 Continue to hold. It's still moving up nicely off the recent buy signal. 9/26 It's still holding up. Continue to hold as long as it closes above the T-line. 9/29 It was closed out as it closed below the T-line on Monday.

9/9 Bought LPL on the open as it gapped up above Tuesday's open, forming somewhat of a Kicker signal. It's coming off an Island Reversal pattern. We're still looking for it to come up and test the 50 day moving average. 9/11 It opened much lower but came right back up and is forming a Belt Hold type signal. This one can still be bought aggressively if it comes up through the 20 day moving average above Thursday's high of $12.90. 9/12 It moved up nicely after the Belt Hold signal of Thursday. Continue to hold. 9/17 It should have been closed out on Monday on the gap down open and a close below the T-line. 9/19 It was closed out as it closed below the T-line a few days ago but it can be bought, especially if it comes up through the $13.90 level at the 50 day moving average after the gap up Doji and bottoming action. 9/22 It isn't doing anything decisively. If it doesn't open higher and trade higher on Tuesday, close out the position and use the money somewhere else. 9/23 It opened higher and stayed above the T-line. It needs to open higher on Wednesday to continue to hold. Close out the position on any trading below the T-line at around $12.62. 9/24 It's looking weak. You will probably want to come out of this and keep your money in cash. 9/25 It opened higher and started trading higher. Continue to hold. If it breaks through the 50 day moving average, it has some good running room. 9/26 It's still in a slow uptrend. Continue to hold as long as it doesn't close below the T-line. 9/29 It was closed out immediately as it gapped down below the T-line after Friday's Doji.

9/26 Bought NOG as it came up through the close of the previous day. This is a typical pattern where it resisted at the 50 day moving average, pulled back, found support, and is now breaking through the 50 day moving average. This could have a good strong run. 9/29 It closed at $7.50. It needs to be closed out immediately on Tuesday if it opens weaker. 10/1 It did open higher on Tuesday and stayed up above the T-line and the 50 day moving average. This can be bought again on any positive trading on Wednesday. 10/2 It sold off but still closed above the 50 day moving average near the T-line. However, this needs to open higher and trade higher on Thursday. Otherwise, with the stochastics heading down and with it closing below the 50 day moving average in the T-line, you would probably want to close out the position. 10/2 It opened lower, back below the T-line. It should have been closed out on Thursday. However, there is nothing to keep you from buying it back if it comes up through the T-line again.

9/17 JOYG was not bought because it didn't trade up above the $52.55 area.  However, after it pulled back, it had a nice day on Wednesday and can still be bought on a positive open on Thursday.  Keep an eye on this one.  It could have a good run back up to the 50 day moving average to fill the previous gap.

9/17 PQ was not bought.  It still seems to be bottoming but keep an eye on it.

9/8 Bought ADCT. It consolidated back down to the T-line. If you bought it on the slightly positive open, you're fine. If not, be ready to buy this aggressively if it opens positive. Notice the big move on Friday with a Doji type day on Monday. If it opens higher on Tuesday, it tells us immediately the Bulls are still in control and it's time to be buying. The first potential move could be back up to the 50 day moving average. Then it could come up and fill the previous gap. 9/9 It held up reasonably well on Tuesday but had a Doji type day. Continue to hold as long as it doesn't trade at all below the T-line at the $10 level. 9/10 It continued higher coming off the strong reversal signal. Continue to hold but it definitely needs to break out through the recent highs in the next day or so. Otherwise, it might be just trading flat for a while. 9/11 It pulled back a little bit on Thursday but came back up above the T-line. It needs to open higher and trade higher on Friday to continue to hold. If it opens lower and trades back down through the T-line, come out of the position immediately. 9/12 It stayed above the T-line, continue to hold. 9/17 It was closed out as it closed below the T-line. The 500 point down-day took the stock down pretty hard.

9/9 Bought SGEN. Continue to hold. 9/10 It continued higher. Look for it to come up and test the recent highs and maybe bust through that level to form a J-Hook type pattern. 9/11 It continued higher and is continuing the Belt Hold type signal. 9/12 It opened lower but came up and formed a nice Bullish Engulfing/Belt Hold type signal. Continue to hold. We're looking for it to break out through the recent highs and have another strong run. 9/17 It continues to stay above the T-line and looks like it's starting to break out. This can still be bought on good strength. 9/19 It has stayed above the T-line. It can still be held. It can be bought aggressively on any buying on Tuesday especially if it opens higher. We don't want to see it close back below the T-line. 9/22 It formed an Evening Star signal and closed just below the T-line. It needs to open higher and trade higher to continue to hold. If it opens lower, close out the position. It's getting toppy at this level. 9/23 It should have been closed out Tuesday on the lower trading at the close. It held up reasonably well during the day but sold off near the close. If you didn't get out of it, close out the position immediately if it opens lower on Wednesday.

9/5 Bought AXL on Friday as it continued to move up coming out of the little Fry Pan Bottom formation. We're looking for it to come up and test the 50 day moving average. If it can break through that level, it has some good running room. Continue to hold. 9/8 It closed right on the 50 day moving average. The stochastics still have more upside potential. This makes for a very simple trade. If it opens lower and starts trading down, it means it probably failed at the 50 day moving average. If it opens higher and breaks through the 50 day moving average, it has some good running room. 9/9 It formed a Gravestone Doji above the 50 day moving average. This becomes very simple. If it opens lower on Wednesday, take profits immediately. It needs to open higher and trade higher to stay in the position. 9/10 It moved up nicely after the Shooting Star signal at the 50 day moving average. If it had opened lower, the 50 day moving average would have acted as resistance. The fact that it opened higher and traded higher on Wednesday is a good sign that the Fry Pan Bottom pattern may still be working. 9/11 It was reiterated as a buy on Friday if it can break out above its current level. Continue to buy on strength. 9/12 This was bought again on Friday as it opened lower but came up through the previous day's close. This one may be doing a Fry Pan Bottom breakout. Continue to hold and use the T-line as your stop. 9/17 It stayed above the T-line and is still moving up. Continue to hold. It's still coming out of a nice pattern. 9/19 It's still coming out of a nice Fry Pan Bottom pattern. Continue to hold. It consolidated a little bit on Friday but that could be due to some profit-taking. Continue to hold this one as long as it stays above the T-line. 9/22 It's still holding up above the T-line. Use any trading on Tuesday below $7.14 as your stop. 9/23 It should have been closed out with it closing below the T-line. Just watch to see if it forms a J-Hook pattern here.

9/3 Bought HBAN as it traded positive. It opened lower on Wednesday, tested the T-line and the 20 day moving average, and came right back up. This can still be bought with the anticipation that we could see a breakout to the upside. 9/4 It pulled back on Thursday. Now we will watch to see if it continues to trade lower. If it closes below the T-line on Friday, close out the position. 9/5 It came back up very nicely on Friday. It's now at a level where it could be ready to break out. 9/8 It had a nice breakout on Monday. It formed a Doji so we know what to do on a positive open on Tuesday. We would be buying it immediately. Then it should move right up to the 200 day moving average. 9/9 It consolidated a little bit. It needs to trade relatively flat to maintain the rounded bottom trajectory. If it starts trading lower on Wednesday, take some profits. 9/10 It closed right on the 50 day moving average. If it opens lower on Thursday, close out the position. It needs to open higher and start trading right back up again. 9/11 It used the 20 day moving average as support again and closed above the T-line. Look to recommit to this trade on a positive open on Friday. 9/12 It's still in a nice, slow, steady uptrend. Continue to hold. 9/17 This would have been hard to keep holding over the last few days but if you stayed in it, it's moving in the right direction. Continue to hold. 9/19 Like some of the other financial stocks it had a very nice run, up 50%. Continue to hold. 9/22 It may be getting toppy. This should definitely be closed out if it trades below Monday's low of $9.07 or closes below the T-line. 9/23 It was closed out on Tuesday with it closing below the T-line.

9/24 FBP was not bought on Wednesday because it didn't do anything positive. It can still be bought on a positive open on Thursday. Keep an eye on this one. After the big move up followed by profit-taking, it should be ready to move up again, especially if something is resolved in the mortgage crisis.

9/24 VCI was not bought with the market acting sloppily right from the beginning. It held up reasonably well and can still be bought, especially if it comes up through Wednesday's high at the $8.25 level.

9/8 Bought HK. This is a perfect example of where to use a stop. Notice that we saw Hammer type signals and then it opened positive on Monday. This one is very simple.  If it came back down through the level of the Hammer signal, it should be closed out right there. That would have stopped you out fairly short. At worst, it should have been closed out at the end of the day.

9/5 Shorted SINA on the weakness on Friday. It closed relatively flat. It needs to open lower and immediately start trading down to continue to hold. If it opens and starts trading higher, be ready to close out the position if it continues to show strength for the first hour or so of trading. 9/8 When you saw that the futures were up strong after the Doji from Friday, you should have closed this out immediately. Even though it closed back down below where it opened, we had no idea what it would do based on the very strong futures and a gap up open. Therefore, this should have been closed out.

9/4 Bought RDN early as it opened positive and started trading positive. Even though it pulled back later, it held up reasonably well on the day. Continue to hold and be an aggressive buyer if it goes back up above the $5.00 level on Friday. 9/5 It consolidated right back to the T-line but closed slightly positive. It's still maintaining its Fry Pan Bottom / Cup and Handle type signal. We wouldn't be afraid to be buying it somewhat aggressively if it opens higher on Monday. 9/8 It should have been closed out after it came back down and formed a Bearish Engulfing signal on big volume. Monday was not a strong day, of course, with the type of market we saw. This has been closed out but notice it closed right on the T-line, so if you see it open higher and trade higher on Tuesday, you can buy back into it. There is nothing wrong with getting out of a situation that is telling you there are no buyers present and getting right back in when the buyers show up again.

9/2 Bought MTG on the positive open on Tuesday. It's forming a J-Hook pattern. It can still be bought, especially on a positive open on Wednesday. 9/3 It acted very well on Wednesday. It was up about 13%. Continue to hold.  We are anticipating that it could move up into the $12 to $13 area. 9/4 It formed a Bearish Harami/Doji but it's not in the overbought area. We will have to see how it opens on Friday to know what to do next. How the futures open Friday morning will be very important. 9/5 It consolidated a little bit more but closed near the high end of its trading range on Friday. Look for a positive open. If it opens positive on Monday, it can be bought aggressively with the anticipation of a quick move to the 200 day moving average. 9/8 It closed lower on Monday. It's somewhat disappointing. It stayed above the T-line but it needs to open higher and start trading higher on Tuesday to continue to hold. Close it out immediately on any trading below the T-line. 9/9 It should have been closed out immediately with it opening below the T-line.

9/9 LPL was not bought. It never did come up to the level where it should have been executed. It needs another bullish signal to consider entering this trade.

9/2 Bought GEOY on the positive trading on Tuesday. It had a Doji type day but still traded at higher levels. Continue to hold and use a close below $24 at the T-line as your stop. 9/3 It held up reasonably well on Wednesday. It did some consolidation. It needs to take a couple of days to push through the 200 day moving average, which would form a good J-Hook pattern. 9/4 It moved higher on Thursday, right to the 200 day moving average as expected coming out of the J-Hook pattern. It has a very strong chart considering what the market did on Thursday. 9/5 It stayed up above the 200 day moving average on Friday, which is a good sign that it's in the next phase of a J-Hook pattern. 9/8 It opened much higher on Monday. It did some profit-taking but there is still nothing to tell us it's forming a sell signal. However, you might want to take some profits on Tuesday if it opens lower and starts trading down. Then wait for the next buy signal or at least the next signal that tells us the selling has stopped. 9/9 It consolidated. Continue to hold, but it definitely should not trade below the low of Monday. If it comes back down through that level, it tells us the Bears are in control and you would want to come out of the position. 9/10 It was closed out as it closed below the low of the previous big gap up candle.

9/11 MF was not bought with the market opening much weaker Thursday morning after the big Hammer signal from Wednesday, but it can still be bought if it comes up through the $7.17 level. If it comes up through that level, it would confirm that the Bulls were back in after the Hammer signal.

9/11 PDO was not bought. It opened weaker on Thursday but still formed a Doji right on the 200 day moving average. It's still a viable candidate to be bought, especially on a positive confirmation of the Doji. We would definitely be a buyer of this on anything above Thursday's high of $8.35. That would tell us the Bulls were back in it after it supported on the 200 day moving average.

9/4 CNB was not bought. It had a strong potential J-Hook pattern set-up but it opened lower and traded lower on Thursday.


 

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