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Steve's Trading Diary - October 2008


10/30 Bought CYBX on the positive trading on Thursday. It had a Doji day which makes this an easy decision for Friday. If it opens positive, start buying it immediately. It could have the same type of move it had on Wednesday. 10/31 It consolidated back to the T-line but then closed positive. This can still be bought on a positive open. 11/11 It was closed out on Tuesday as it opened below the T-line, which is probably the case with most everything now.

10/24 PTP was not bought on Friday because it opened much lower. However, it moved up quite a bit during the day so it should be watched. It can be bought on any positive trading. It formed a very strong signal that showed that the profit-taking was over and the Bulls stepped right back in. Be ready to buy this on any strength on Monday.

10/24 AMZN was not bought but it came back up after opening lower. It can still be bought, especially if it comes up through the $50 area. It has formed some good signals.

10/23 Bought QID. It traded higher on Thursday but came back and closed at the lower end of the trading range. We are using this position as padding in case there is a break to the downside. In that case we would be holding the short positions and holding some short funds like the QID's. Continue to hold as long as it stays above the T-line. If the market starts picking up strength, this one will be closed out pretty quick. 10/24 Continue to hold. Even though it opened higher, it was during the overly exuberant fear/panic buying which was opposite of the fear/panic selling in the market overall. At this point use the T-line as your stop on Monday at around the $79 area. 10/27 This is one of the short funds that you should stay long in. 10/28 This should have been stopped out at the previous day's low, which would have been the logical spot to put your stop. That told us the Bears were in control, which they obviously were with the market up as strong as it was.

10/29 Bought PRU as it came up through the T-line on Wednesday but it backed off in the late hour sell-off. This one can still be bought if it comes back up through the T-line on Thursday at around the $36.50 level. If it comes up through there, it should have a good run. It could get back up into the $55 range. We don't want to see it close below Wednesday's low of $33.50. 10/30 It was closed out on Thursday as it failed at the T-line.

10/21 Bought WBMD as it traded up higher Tuesday morning but it faded at the close. As long as it closes above the T-line, continue to hold this. It has shown a strong buy signal. It may test the T-line and then start back up. Don't be afraid to buy this if it comes back up through the $20 level. 10/22 It opened lower and immediately started coming back up. It did very well in this type of market. It's still showing good strength, continue to hold. Use a close below the T-line as your stop. 10/23 It has held up well ever since it popped up through the T-line. It's still showing good bullish sentiment. Continue to hold. We're looking for the 50 day moving average to be the first target which would fill a previous gap. 10/24 It held up above the T-line even though it was off a little bit. Continue to hold. Use a close below the T-line at around the $19 level as your stop. 10/27 It held up pretty well. It moved up nicely during the day but came back and closed near the lower end of the trading range. Continue to hold as long as it doesn't close below the T-line on Tuesday at around the $19 area. 10/28 It was up strong. We're still looking for it to move up to the 50 day moving average and fill a previous gap. Continue to hold. Use a close below the T-line on Wednesday at around the $20.50 level as your stop. 10/29 It moved up extraordinarily nicely on Wednesday. Be ready to take some profits if it runs into trouble at the 200 day moving average. It had a nice strong day. It's exactly what we were looking for after the gap up from the bottom. 10/30 When it hit the 200 day moving average, half the position should have been taken off. The other half of the position should have been taken off when it closed as a Bearish Harami. It can always be bought back if it forms some sort of J-Hook type pattern.

10/17 VCP was not bought because it didn't trade higher. It opened and started trading lower.

10/20 Bought HTE. It used the T-line as support and had some sort of an announcement after hours Monday night that caused it to trade higher. We're still looking for it to come up and fill the previous gap. Continue to hold and use the T-line at around the $10.20 level as your stop. 10/21 It was closed out on Tuesday as it closed below the T-line. Keep an eye on it. If it closes back up above the T-line, you can buy it back. The stochastics are still in an uptrend. This may be in a slow, waffling trend until it can get moving.

10/22 OCNF was not bought because it traded lower after the open. Even though it opened higher on Wednesday we knew that the morning futures were down big so we would not have been in any hurry to get into this position. This can still be bought if it comes back up through Wednesday's high at around the $8.65 level. If it comes back up through there, it tells us the Bulls are back in control after the previous gap up.

10/22 CLNE was not bought. It opened much lower and continued down.

10/21 Bought RRI on the positive trading on Tuesday. Even though we saw the market heading lower, this stock kept moving up slowly. After seeing this for a while it proved that the stock was not being affected by the downward trend of the market. It can still be bought if it opens positive on Wednesday and breaks up through the 20 day moving average. 10/22 It closed below the T-line. It should have been closed out on the close on Wednesday.

10/20 Bought ZOLT as it opened positive on Monday. It came down and tested the T-line but came right back up and closed at the high end of the trading range. We're anticipating that it will open higher on Tuesday and start trading up. We're looking for the 50 day moving average to be the first target. We don't want to see it close back below the T-line at around Monday's low of $12. 10/21 It bounced off the T-line and formed a little Doji. We are now anticipating a positive open and higher trading. At this point we don't want to see it close back below the T-line. 10/22 It closed just below the T-line. As discussed in the afternoon chat session, it should have been closed out on the close but be ready to buy it right back if it opens positive and starts trading back up again.

10/17 Bought GNK on the positive trading but it came back down to where it opened. It needs to open higher and trade higher on Monday. If it opens lower, close out the position immediately. 10/20 It moved up nicely and stayed above the T-line on Monday. Continue to hold. Use $20 at the T-line as your stop. 10/21 It's still holding up well and is fulfilling the rounded bottom type pattern. This can still be bought on a positive open on Wednesday. 10/22 It was closed out as it closed below the T-line on Wednesday.

10/16 Bought FTBK on the positive trading on Thursday. It backed off a little bit but closed much higher. We're still looking for the 50 day moving average to be the first target and the 200 day moving average as the second target. Use the T-line at approximately $10 a share as your stop. 10/17 It opened lower and traded up, but came back down and formed a Gravestone Doji/Shooting Star type signal. The stochastics are still low but it may come back down, test the T-line, and then come back up, so look for a little consolidation. Traders may want to come out of the position on a lower open and be ready to buy it back as it supports on the T-line. 10/20 It moved up nicely on Monday above the 50 day moving average. The next target is the 200 day moving average. We don't want to see it close more than halfway down Monday's candle at around the $11.30 area on Tuesday. It needs to trade higher. 10/21 It pulled back at the 50 day moving average and is forming a Bearish Harami. It stayed above the T-line. If it closes below the T-line on Wednesday, close out the position and wait for the next buy signal. We want to see it come back up through the 50 day moving average. 10/22 It was closed out as it closed below the T-line on Wednesday. After the Bearish Harami, it failed at the 50 day moving average.

10/13 - Bought FED. Continue to hold. 10/14 It moved up very nicely. Continue to hold. Right now it's testing the 50 day moving average. Another positive open could break it out toward the 200 and moving average. We don't want to see it close below the T-line at around Tuesday's low of $9.27. Use $9.27 as your stop. 10/15 It opened lower, traded up, and then closed lower. If it opens lower on Thursday, close it out immediately. That would mean it failed at the 50 day moving average. 10/16 It consolidated nicely and came back up. We still want to see it break through the 50 day moving average. After that it should move much higher, possibly up to the $17 level. 10/17 It came back down and tested the T-line but stayed above it. Continue to hold but if it opens lower on Monday, close out the position. 10/20 It pulled back. It needs to stay above the T-line on Tuesday. It needs to open higher and start trading higher. We're hoping for a J-Hook type pattern to form. If it closes below the T-line, close out the position. 10/21 It held up well on Tuesday. It's supporting on the T-line and now we're anticipating another move to the upside. 10/22 It held up well in a bad market. It stayed above the T-line. Continue to hold as long as it doesn't close below the T-line. 10/23 It was closed out on Thursday as it closed below the T-line.

10/14 Bought BUCY. It opened higher but traded back down. It should have been closed out with it closing more than halfway down the previous day's candle and closing below the T-line. If it opens higher and starts trading higher, you can buy it right back. If you still own it after buying it on Tuesday, it needs to open higher and trade higher to stay in it.

10/13 - Bought ES. Close this on a lower open. 10/14 This was a good lesson on when to get out of the position. When it trades up one day and then gaps down the next day, especially when the news channels are saying its future doesn't look good, you should close it immediately. Very rarely will you see it gap down and start moving positive after bad news.

10/15 VCP was not bought. It didn't open higher. In fact, this can be shorted on a weaker open on Thursday.

10/15 RTI was not bought. It opened lower and traded lower. It needed to open higher and trade higher. However, it closed below the T-line, which makes it a possible short position. We are recommending this as a short if it trades below $13 on Thursday.

10/14 Bought RRI on the positive open on Tuesday. It pulled back but still traded positive and stayed above the T-line. It's still showing a very nice pattern. We expect that this will open higher and start trading higher. We don't want to see it close below the T-line, which means we would have to wait for another buy signal to get back into the position. 10/15 It should have been closed out because it closed below the T-line.

10/14 Bought HK. It opened higher and backed off but didn't close more than halfway down the previous day's candle. It needs to open and start trading higher on Wednesday to stay in the position. 10/15 It was closed out on the open because it needed to open higher and trade higher immediately.

10/16 RTI was not shorted on Thursday with the market showing some good strength. If you shorted it early, it should have been closed out as it closed more than halfway up Wednesday's candle. Right now we're trying to be long in this market until we see otherwise.

10/1 Bought PTRY. It moved up nicely on Wednesday despite the market selling off most of the day. It's still trying to break out from the wave three area. Continue to hold. 10/2 It backed off on Thursday but didn't close below the T-line. Continue to hold but if it trades at all below the T-line on Friday, close out the position. Use the $20.35 area as your stop. 10/3 It was closed out as it closed below the T-line.

10/7 DNDN was not bought. Even though the market opened a little higher, we wanted to wait to see what the market was going to do.

10/6 Bought HBAN. It moved positive, which was unusual for any stock in Monday's market. Continue to hold. At this point use Monday's open at the halfway point of Friday's candle as your stop. This should still be forming a nice J-Hook type pattern. 10/7 This should have been closed on Tuesday with it closing back below the T-line and the 200 day moving average. This can always be bought back if the market turns around.

10/3 Bought CEG on the positive trading on Friday. It stayed above the T-line. It can still be bought on any positive trading with the possibility of forming a Tower Reversal, which means it could have some good gains while moving back up into the previous resistance area. 10/6 It pulled back but came back up and closed right on the T-line. Continue to hold but if it closes below the T-line on Tuesday, come back out of the position. 10/7 It was closed out on Tuesday as it closed below the T-line. It may also be forming an inverted Scoop pattern, so we didn't want to stay in the position. It can be bought back on a positive open.

10/1 Bought CNB as it came up through the close of Tuesday. This is still a very nice chart. It can still be bought. The stochastics should start curling up after the Bullish Harami. It could move up to test the recent highs in the $12 to $13 range. Continue to hold. We don't want to see it close below the $8.00 level at the halfway point of Wednesday's candle. 10/2 It held up well in this market like some of the rest of the banks. Continue to hold but we don't want to see a close back below Thursday's low of $7.75. If it comes back down through that level, that would tell us the Bears are probably back in control. 10/3 It backed off after trading higher. If it trades below Friday's low at the $7.72 area, you should probably close the position. 10/6 It closed below the T-line on Monday after coming down and touching the 50 day moving average. Give it one more day. If this cannot come up and close above the T-line on Tuesday, close out the position. The only reason I'm suggesting giving it one more day is because the banking stocks held up reasonably well on Monday, so let's see if this one can swing back up on Tuesday. 10/7 It was closed out because it opened below the T-line, traded up a little bit, but then sold off.

10/9 Bought FSYS on the positive open. However, it should have been stopped out at the previous day's close because the market showed definite signs it was in a downtrend and could not pick up any strength. Now it has formed a Bearish Engulfing signal in the oversold condition right on the 200 day moving average. Continue to watch this for the next buy signal to get right back into it.

10/9 GFI was not bought. It opened lower and stayed lower. This can still be bought if it comes back up through the 50 day moving average or Wednesday's high at around $9.00.

10/2 PBKS was not bought on Thursday. Even though it open higher, the market was selling off so there would have been no sense of urgency to get into the position. However, it held up well and can be bought if it opens higher on Friday. If things work out with the bailout situation, this could pop back up into the $17 area where it tested the other day.

10/2 COIN was not bought on Thursday. This was a case where, even although you saw it trading higher, the market was selling off so there would be no rush to get into the position.


 

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