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Steve's Trading Diary - December 2008


12/18 Bought SFD. It's forming a nice J-Hook pattern. It held up reasonably well on Thursday. It formed a Doji so this makes the decision very simple on Friday. It needs to open higher and start trading higher to stay in it and show that it's doing a J-Hook confirmation. If it opens lower and starts trading down, it might be coming back down to test the T-line. If it comes back down through Thursday's low of $10.83, you will probably want to close out the position. 12/19 It's still moving up nicely. Continue to hold. Use the T-line as your stop. 12/22 It sold off $.29 but it wasn't enough to change the upward trajectory. Still use a close below the T-line as your stop. 12/23 It's still moving in the right direction after the J-Hook pattern. Continue to hold. 12/29 It formed a Bearish Harami on Monday. If it opens lower on Tuesday and starts trading down, start taking profits. It needs to open higher and start trading higher to continue to hold. 12/30 It needed to open positive and trade positive to stay in it after the Bearish Harami of Monday, which it did. Continue to hold this as long as it doesn't close below the T-line. 12/31 It continues to move up steadily. Continue to hold. We have a nice profit in this one. 1/5 It formed a Doji/Spinning Top/Harami. If it opens lower on Tuesday, take off half the position and hold the other half as long as it stays above the T-line. 1/6 It's still in a nice, slow, steady uptrend. Continue to hold. 1/7 It sold off but didn't form a true sell signal. It bounced off the T-line. Continue to hold but if it closes below Wednesday's low of $13.83 at the T-line, close out the position. 1/8 It pulled back on Thursday but didn't close below the T-line, which was our major concern. Continue to hold on Friday but it needs to open and continue to trade higher to show that the T-line is still acting as support. 1/9 It should have been closed out on the lower open on Friday.

12/31 Bought AUO. It acted well. Continue to hold this, especially since it's coming up off the gap up and the 50 day moving average. 1/5 It's still in a nice uptrend ever since it gapped up off the 50 day moving average. Continue to hold. It's now into new territory. 1/6 It had another nice day. It's still moving up nicely in a J-Hook pattern. Be ready to take some profits very shortly. 1/7 It gapped down on Wednesday. This is one where, even though there was indecisive trading, you probably would've wanted to take off half the position on the close. If it opens higher and starts trading higher, you can buy back the half position. If it opens lower, you will probably want to close out the entire position. 1/8 It gapped down but immediately started trading higher. This needs to open higher and start trading higher to continue to hold. If it opens lower and trades down, close it out immediately. 1/9 It's still acting nicely. It's showing that the Bulls are still participating but it needs to trade above the T-line on Monday to continue to hold.  Any weakness at this point would tell us that it's now stuck below the T-line. 1/12 This should have been closed out if you had any of your position left.

12/29 Bought WCG as it opened and traded positive. Even though it closed lower than the open, it's still in the rounded bottom upward trajectory. 12/30 It consolidated but moved up nicely. It can be bought again if it opens positive on Wednesday. It's breaking out through the current levels and is heading toward the 50 day moving average. 12/31 It continued to move up nicely. It broke out through the top of the little "saucer" type pattern. Continue to hold. 1/5 It's getting toppy. We're anticipating that it will at least test the 50 day moving average. We should start taking some profits at that level. 1/6 It opened higher and traded up through the 50 day moving average, which is a good sign. Continue to hold. Now expect another move up. If you see a sell signal, take profits and watch to see if it supports on the 50 day moving average. 1/7 Half the position was closed out on Wednesday. It didn't form a true bearish signal, it was just selling off. If it trades below Wednesday's low at the $13.50 level, which would take it below the T-line on Thursday, close out the rest of the position. 1/8 It closed above the 50 day moving average and used the T-line as support. If it opens higher on Friday, you can start buying it aggressively. 1/9 It opened positive but immediately started selling off. It formed another Bearish Engulfing signal. It barely closed above the T-line. If it opens lower on Monday, close out the position. With the stochastics turning over and two bearish signals it will probably pull back. It would then be time to come out of this until we see the next buy signal. 1/12 This should have been closed as it closed below the T-line on Monday. It's stuck on the 50 day moving average. This can always be bought back on the next buy signal, which would pop it back up above the 50 day moving average.

12/19 Bought PAY on the positive open. It's doing exactly what it should be doing when coming out of a Fry Pan Bottom pattern. The first target is to fill the previous gap. The second target is the 50 day moving average. Use a close below the T-line as your stop. The probabilities indicate that it's still heading higher. 12/22 It closed lower on Monday but it came down and bounced off the T-line. It actually closed down $.87, right near the T-line. Give it another day or so. It may be starting back up. Notice that it didn't quite get into the overbought area before it sold off, and it didn't form a sell signal. If it closes below the T-line, come out of it. 12/23 It continued to move up nicely on Friday with no volume, but it still showed that there was positive action coming out of what could be considered as a Fry Pan Bottom or Cup and Handle pattern. 12/29 It pulled all the way back to the T-line but closed near the middle of the trading range. Continue to hold. It needs to trade higher on Tuesday. We don't want to see it close below the T-line at around the $5.00 level. 12/30 It's still forming a nice little J-Hook type pattern. Continue to hold. We expect it to hit the 50 day moving average or at least close the previous gap. 12/31 Although it had a bad day on Wednesday, it popped right back up on Friday. Continue to hold as long as it stays above the T-line. 1/5 It stayed up above the T-line. Continue to hold. 1/6 It's still continuing up toward the 50 day moving average. Continue to hold. Still use a close below the T-line as your stop. 1/7 It opened lower and traded off a little bit on Wednesday. It's still attempting to form a J-Hook type pattern. If it opens lower and trades below Wednesday's low of $5.47, close out the position. That would tell us the Bears were in control. 1/8 It's continuing its slow upward climb toward the 50 day moving average. Continue to hold. The stochastics have a little bit more room to the upside. Now we're waiting to see what it does when it gets to the 50 day moving average. We don't want to see it close below the T-line at around Thursday's low of $5.48. 1/9 It's still in a nice, slow, steady uptrend. It's getting near the overbought condition. If it can't bust through the 50 day moving average, start thinking about taking profits in the next day or so. 1/12 It should have been closed out as it nudged the 50 day moving average and then closed below the T-line. It created a Bearish Engulfing signal after a Doji.

12/30 Bought BVN as it came back up through Monday's close after trading down all day. Even though it closed lower at the end of the day, it still formed a nice Hammer/Doji. This can be bought aggressively again if it opens positive on Wednesday. We don't want to see it close below the T-line at around the $18.75 level on Wednesday. 12/31 It's still in a slow uptrend. Continue to hold as long as it closes above the T-line on Monday at around the $19.40 level. 1/5 It formed a nice bullish candle and stayed above the T-line. Continue to hold. 1/6 It was closed out on Tuesday as it formed a Kicker type signal back below the T-line.

12/31 Bought AXYS. It consolidated but the upward trajectory didn't change. Continue to hold. 1/5 It didn't perform well enough to continue holding it, but give it one more day. It needs to open and trade higher to stay in the position. If it trades back below the T-line, it tells you the Bears are in control on the position should be closed. 1/6 It closed right on the T-line. If it doesn't open higher and start trading higher on Wednesday, close out this position. 1/7 It was closed out immediately as it was opening lower, which meant it was opening below the T-line.

12/30 Bought RBS as it came back up through Monday's close. It consolidated early in the day and came back up and closed above the T-line. This is still a very bullish candle. It can be bought aggressively on a positive open on Wednesday. 12/31 It continues to stay above the T-line. Continue to hold. We'd like to see it break through the 50 day moving average relatively quickly, which would break it out into new territory. 1/5 It closed higher on Monday and formed another bullish candle. Continue to hold. We don't want to see it close below the T-line. 1/6 It opened lower again and came back up from its low. It's still trading above the T-line. Continue to hold. We don't want to see it trade below $15 on Wednesday. That would indicate the Bears are still in control. It needs to open higher and trade higher on Wednesday. 1/7 It was closed out on Wednesday as it opened below the T-line after trading back down to the lower end of the trading range on Tuesday.

12/23 Bought QCOR. Continue to hold. 12/29 Continue to hold. Use a close below $8.20 as your stop. 12/30 It had an odd opening. It opened and slammed down but came right back up and closed positive. This is still a very strong buying opportunity. 12/31 It got a little bit toppy on Friday at about the same level where it topped out before. This one definitely needs to have a positive open and then trade higher. If it opens lower and doesn't show any strength, take some profits and wait to see if it uses the T-line as support. 1/5 It closed right above the T-line on Monday. It needs to open higher and trade higher to stay in it. You should have closed out at least half the position on Monday on the weaker open. With a Doji in the overbought area, it needed to open higher to continue holding the entire position. Now we own half the position. If it opens lower on Tuesday, close out the other half. 1/6 It traded off but came back up and closed at the high end of the trading range, which kept it above the T-line. Be ready to buy this aggressively on a positive open on Wednesday. That would tell us the J-Hook pattern is in effect. 1/7 It was closed out on Wednesday as it came back down through the 50 day moving average, which was also bringing it down below the T-line.

12/29 Bought CETV on the positive open. It consolidated but stayed above the T-line near the close. It can be bought aggressively if it opens positive on Tuesday. 12/30 It pulled back to the T-line and then closed positive on Tuesday after opening positive earlier in the day. Continue to hold. Look for this to form a J-Hook pattern. This is still a very strong chart pattern. 12/31 It moved up nicely on Friday. Continue to hold. We're looking for it to break out through the current high levels. 1/5 It pulled back but didn't close below the T-line. Use a close below the $21 level as your stop. 1/6 It opened higher, consolidated, and traded back up. Continue to hold. Use a close below the T-line at around the $21.50 level on Wednesday as your stop. 1/7 This should be closed on a lower open. 1/8 It was closed out on Thursday as it opened and started trading lower. However, it came back up and formed a nice little bullish Hammer type signal. It can be bought again if it comes back up through Thursday's high of $21.12. That would tell us the Bulls are back in it and Thursday's action was just a pullback in an uptrend.

12/29 FOE was not bought on Monday. It opened but immediately started trading down. It didn't show any signs of strength.

12/16 Bought ASH. It moved up nicely on Tuesday. It opened above the 20 day moving average coming out of the Fry Pan Bottom pattern. It still has the potential of filling a previous gap and then moving to the 50 day moving average. 12/17 It had a nice day and moved a little bit higher. It's coming out of a Fry Pan Bottom pattern. Continue to hold. 12/18 It continued to move higher. Continue to hold. Use a close below Thursday's low of $10.68 as your stop. That would put it at the T-line on Friday. 12/19 It held up fairly well but notice that it's getting farther away from the T-line with the stochastics moving into the overbought area. Continue to hold but if you start seeing some weakness, you might want to take a little bit off the table while anticipating that it will probably come back down to the T-line. This will be a function of how the market performs on Monday and Tuesday. If the market starts selling off, you will probably want to come out of this for a day or two. 12/22 It closed right on the T-line. You probably would have wanted to set a stop for part of your position at Friday's low. It was time to take some profits with the prospect that it would support on the T-line. Now we will watch to see what type of signal forms at this level. 12/23 It pulled back. This one should have been closed out with it closing below the T-line. Now watch to see if it forms a Cup and Handle type pattern. Be ready to buy it if it comes up above the T-line again. 12/29 It should have been closed out as it traded below the T-line.

12/19 Bought LEAP on the positive open but it should have been sold on the close. It needed to stay up and break out, which it didn't do. Once you see this type of chart action, it's probably telling you that the J-Hook is not in progress yet.

12/9 Bought DRYS on the positive trading. It gapped up and started moving up nicely. When it gaps up that much, sometimes it's better to buy half a position and then wait to buy the other half of the position if it keeps moving up. Continue to hold. After the two gap ups, there is probably enough strength to move it up through the 50 day moving average. 12/10 It's still acting well. Continue to hold this along with the other shipping companies. 12/11 This was a perfect example of when to take profits on a trade. After a Spinning Top, it opened lower but immediately started trading up. The perfect place to stop out was back at the previous day's low. If it came back down through there, it would be time to take some profits. Profits should have been taken on half the position on Thursday. We'll wait to see what it does on Friday to either come out of the other half position and wait for the next buy signal or buy back the half position that was sold. 12/12 It opened lower and came back up. This should be bought aggressively on a positive open on Monday. 12/15 Continue to hold. It moved up nicely on Monday. 12/16 It's moving up nicely off the J-Hook type pattern. Continue to hold. We'd like to see it break through the 50 day moving average. At that level it's still a very good profit. 12/17 It moved up pretty strong on Wednesday, up over 10%. It almost touched the 50 day moving average. Be very diligent to see what it does when it gets to the 50 day moving average. 12/18 It's starting to show selling. If it opens lower on Friday, close out the position but be ready to buy it back at the T-line. 12/19 We closed the position and took some very good profits from this one. Be ready to buy it back if it moves back to the T-line and shows support at that level.

12/22 PHH was not bought. It opened and immediately started trading down.

12/22 WCG was not bought. It opened and immediately started trading lower.

12/17 Bought CX after it opened lower and then came back up through Tuesday's close. It consolidated nicely. It's still in a J-Hook type pattern and has the potential to move up to the $15 area. Continue to hold. Use a close below the T-line at approximately the $9.00 level as your stop. 12/18 It consolidated a little bit but didn't do anything to change the direction. We don't want to see it close back below the T-line at around the $9.15 range. 12/19 It pulled back. It closed right above the T-line. Continue to hold but close out the position if it closes below the T-line on Monday. It needs to open higher and start trading higher to show that the T-line is acting as support. If it starts trading lower, it will probably come back to the halfway point of Tuesday's large bullish candle, which was the candle that told us the Bulls were taking control again. 12/22 It was closed out as it closed below the T-line on Monday. It's showing too much weakness.

12/16 Bought GNK on the open. It moved up nicely on Tuesday after it gapped up. It closed above the 50 day moving average. It had a nice percentage move. This is still in a Fry Pan Bottom breakout. It could have a nice strong run in the short-term. All of the shipping stocks have been acting well. 12/17 It had a big move on Wednesday which broke it out above the 50 day moving average. It's in a Fry Pan Bottom breakout. Continue to hold until you see a sell signal. 12/18 It pulled back but didn't form a sell signal. It didn't form a Dark Cloud because it didn't open above the previous day's high. However it's getting tentative. If it starts trading weaker on Friday, close out the position and then watch to see if it supports at the 50 day moving average and the T-line. 12/19 It traded weaker but notice what it did. It just barely touched the T-line and came back up again. This can be bought aggressively if it starts trading positive on Monday. We don't want to see it close back below the 50 day moving average. 12/22 It was closed out on Monday as it closed below the T-line and the 50 day moving average. Now watch for the next buy signal.

12/15 Bought TBSI on the positive open on Monday. This is what we wanted to see after the Belt Hold/Bullish Engulfing signal right at the 50 day moving average. Continue to hold. It's moving up toward the overbought area but it's not there yet. With the previous gaps up, especially the last one, we are anticipating more upside movement. 12/16 It's doing extremely well. It continued its uptrend on Tuesday. Continue to hold. 12/17 It had a big move. Many of the transportation stocks had huge moves on Wednesday, up 10% to 18% in some cases. Continue to hold until you see a sell signal. 12/18 It formed a Dark Cloud on Thursday. If it opens lower on Friday, close out the position and see if it supports on the T-line. 12/19 It came back, touched the T-line, and bounced back up. This can be bought aggressively on positive trading on Monday. Use the T-line at the $8.80 level as your stop. 12/22 It was closed out on Monday as it opened lower after the Hammer type signal of Friday and then closed below the T-line. The previous Dark Cloud became the criteria for coming out of this position.

12/15 Bought BGC on the positive open. It opened, moved higher, and came back down, but didn't do anything to change the possibility of a J-Hook pattern. At this point we don't want to see it close back below the T-line. It needs to open and trade positive on Tuesday. 12/16 It moved up nicely again. Continue to hold. We still wouldn't be afraid to buy it on a positive open on Wednesday. 12/17 It moved up nicely on Wednesday. Continue to hold. The J-Hook pattern is still in effect. 12/18 It should be closed out if it trades below Thursday's low of $17.18. That would bring it down below the T-line and we would anticipate that it would be coming back to test the 50 day moving average. 12/19 It didn't do much of anything on Friday but it did close above the T-line. It formed a Doji so if it opens positive, continue to hold. If it opens lower, get ready to come out of the position and wait for the next buy signal. 12/22 It should have been closed out fairly early in the day because it opened flat and started trading off. To keep holding this position, it needed to at least open flat and start trading higher. When it closed below the T-line on Monday, it told us that all of the position should have definitely been closed out.

12/12 Bought TWM but it closed below the T-line and the halfway point of the previous day's candle with the markets picking up strength, so it was time to close out the position.

12/15 SFD was not bought on Monday. It opened higher but immediately started selling off and never showed any strength after that. Once the market opens, you definitely want to see what the stock is doing before getting into the trade. It needed to open and start trading higher to show that the buyers were still there.

12/8 Bought SNDK on the positive open on Monday. It's still in a nice uptrend. Continue to hold. Use the T-line as your stop. 12/9 It held up reasonably well. It was up higher during the day but came back near the close. It might be getting a little bit toppy. It definitely needs to open higher and trade higher on Wednesday to stay in it. If it opens lower and starts trading down, you might want to come back out of it and wait for it to bounce up off the T-line. 12/10 It moved up nicely even with the consolidation from Tuesday. Continue to hold. We're still targeting the 50 day moving average. 12/11 It formed another Doji. We definitely need to see it stay positive at this point. There is a lot of indecision in the overbought area with several Doji signals being formed. If it trades back below Thursday's low of $9.59, take profits at that level. It would probably then come back to test the T-line, which isn't very far away. However, we don't know if it will stop there so take some profits. 12/12 It supported on the T-line and moved back up. Continue to hold. Use a close below the $9.28 level as your stop. 12/15 It was closed out on Monday with it closing back below the T-line. It didn't form a sell signal but it's showing enough weakness to warrant getting out of it. Now watch to see if it forms a J-Hook type pattern to buy back in.

12/18 Bought CBI on the positive open on Thursday but it should have been closed out as it closed more than halfway down Wednesday's bullish candle. That doesn't rule out that this is still a viable prospect but it would have to open higher and trade higher on Friday to buy back in.

12/17 Bought GTI on the gap up open on Wednesday. It moved up nicely. A J-Hook pattern is in progress. 12/18 It closed below the previous day's open and formed a Bearish Engulfing signal. It should have been closed out on the close. If you didn't close it, be ready to close it out if it opens lower on Friday. The only way to stay in it is if it opens higher and immediately starts trading higher.

12/12 Bought DIOD after it opened lower and came back up through the previous day's close. This can still be bought while anticipating that the next move will be to the 50 day moving average. 12/15 It traded up a little bit and consolidated, but didn't do anything to change the trajectory. Continue to hold. We don't want to see it close back below the halfway point of Friday's bullish candle at around the $5.55 area. 12/16 It formed a Belt Hold type signal. This can be bought aggressively on a positive open on Wednesday. 12/17 It moved up nicely after the Belt Hold/Bullish Engulfing signal of Tuesday. It tested the 50 day moving average for the first time. Be ready to take some profits if it does a couple of days of consolidation. 12/18 It was closed out as it closed below Wednesday's open. It closed right on the T-line. It can be bought back but it needs to have another positive trading day.

12/11 Bought SSRI on Thursday as it opened positive and started trading higher. Even though it closed lower than where it opened, it didn't change the fact that the Bulls are still in control and it closed above the upper trend channel. Continue to hold but we don't want to see it close more than halfway down Wednesday's bullish candle at around the $10.10 area. 12/12 It opened lower but eventually started trading up. Continue to hold. It's still in a nice uptrend. Still use a close below the T-line as your stop. 12/15 It moved up nicely on Monday. Continue to hold. The gaps at the bottom told us there was lots of strength in this one. 12/16 It moved up strong on Tuesday. Continue to hold. A huge profit could be made in this one. 12/17 It formed a Shooting Star signal. In the chat room we mentioned that we took off one quarter of the position. If it opens weaker on Thursday, we'll take off the rest of position and wait for the next buy signal. 12/18 It was closed out. We closed out a quarter of the position on Wednesday and closed out the rest of the position on Thursday. It can always be bought back if it forms a J-Hook type pattern.

12/11 Bought HK on the positive trading on Thursday. However, it closed lower, at the halfway point of Wednesday's bullish candle. It needs to open higher and trade higher on Friday to continue to hold. We need it to break out through the recent high levels. If it backs off, come out of the trade and wait for it to hit another support level. 12/12 It came back down, used the 50 day moving average as support, and came back up. This can be bought again on a positive open on Monday. 12/15 It traded lower but continue to hold as long as it doesn't close below the T-line. 12/16 It bounced back up. It's still trying to bobble near the upper trendline. Continue to hold. Use a close below the T-line as your stop. 12/17 It traded lower. It needs to open higher and trade higher on Thursday to continue to hold. Notice how it closed below the T-line. If it doesn't open higher on Thursday, close it out. It may be caught in a sideways trend. 12/18 It was closed out as it closed below the T-line on Thursday.

12/10 Bought CLR on the positive open on Wednesday, which is exactly what we needed to see to show that it was breaking up through the T-line. It had a nice big move on Wednesday. 12/11 It opened higher and traded up but came back and closed relatively flat. Continue to hold but it needs to trade higher. If it trades back down below Thursday's low of $19.63, close out the position and wait for the next buy signal. 12/12 It pulled back right to the T-line and the 20 day moving average. It formed a Doji. We're looking for it to open higher on Monday. If it opens higher, you can start buying it immediately. 12/15 It closed a little bit lower but keep holding it as long as it stays above the T-line. 12/16 It stayed above the T-line and moved up a little bit on Tuesday. If it breaks out through the 50 day moving average, it should fill the gap at the $28 range. 12/17 It was up a little bit on Wednesday but formed a Shooting Star type pattern. It may be running out of steam. Be ready to come out of it if you don't see some strength in the next day or so. 12/18 It was closed out on Thursday as it closed below the T-line.

12/10 Bought OII on the positive open on Wednesday morning. It broke up through the downward trend line. The first reasonable target is the 50 day moving average.  Coming off the previous gap up, it could break through that level and go much higher. 12/11 It consolidated but it was nothing severe. It's still up above the trend channel. Continue to hold this even if it comes back down to the T-line. Use the T-line as your stop at around the $23.70 level. 12/12 It consolidated back to the 20 day moving average and came back up. This can be bought aggressively on a positive open on Monday. 12/15 It was up $.32 on the day and closed at the lower end of the trading range. Continue to hold. It's still in a nice, slow, steady uptrend. 12/16 It came up through the 50 day moving average very nicely. It's doing a double bottom breakout through the 50 day moving average. Continue to hold. Use a close below the 50 day moving average as your stop. 12/17 It moved up nicely and stayed above the 50 day moving average. Continue to hold. Don't be surprised to see it move up and then back down to test the 50 day moving average before it can move back up again. 12/18 It formed a little Evening Star type signal and closed below the T-line. It should have been closed out.

12/9 STP was not bought. It opened lower on Tuesday below the previous day's trading which meant the Bulls were not in control.

12/8 Bought COO on the positive open. It pulled back but stayed above the T-line. It can be bought aggressively if it starts trading positive on Tuesday, meaning above Monday's high of $15.75. 12/9 It should have been closed out on Tuesday on the weaker open. Now watch to see if it can be bought on positive trading after hitting the T-line.

12/5 Bought OFG as it traded positive on Friday. It used the T-line as support. This still has the potential to reach the 34 day moving average or the 50 day moving average. Continue to hold. Use a close below Friday's open or the T-line as your stop at around the $6.75 area. 12/8 It continued to move higher on Monday. It had a nice move to the upside. We're still anticipating that it will eventually move to the 50 day moving average. 12/9 Continue to hold. 12/10 It did some consolidation right back to the T-line. It needs to open higher and trade higher on Thursday to continue to hold. If it opens lower and starts trading down, close out the position and wait for the next buy signal. 12/11 It was closed out on Thursday as it opened and immediately started trading down with the market trading off. Now wait to see what type of pattern will set up at this level for a possible re-entry.

12/5 Bought FOE as it went positive. It can still be bought on a positive open on Monday. It's using the T-line as support. Lots of stocks like this showed a buy signal, stuttered a little bit, and now are really starting to move. 12/8 It traded higher on Monday. It formed a Doji. There may be some profit-taking in this area. It's still in an uptrend. 12/9 It held up fairly well on Tuesday and stayed above the trend line and stayed positive on the day. Continue to hold and use the trend line as your stop on Wednesday at around the $7.20 area. 12/10 It consolidated but held up reasonably well. It needs to stay above the T-line to continue to hold. If it closes below Wednesday's low of $7.36, close out the position and wait for the next buy signal. 12/11 It was closed out on Thursday with it closing below the T-line.

12/3 Bought MTZ. It opened and started trading positive even when the market was down 175 points Wednesday morning. It finally had a nice move going into the close and was up about 14% on the day. Continue to hold. We're looking for the first target to be at the 50 day moving average. 12/4 It consolidated but didn't do anything to change the uptrend. It could consolidate back to the T-line but then look for a Hammer type signal. If it moves positive on Friday, it needs to move up through the 34 day moving average. 12/5 After consolidating it opened lower, used the T-line as support, and closed at the 34 day moving average. It can still be bought. It's coming out of a Fry Pan Bottom pattern. 12/8 It gapped up nicely on Monday above the 50 day moving average. We're looking for the 200 day moving average to be the next target. The gap up through the 50 day moving average showed a lot of strength. Look for it to move higher. 12/9 It held up reasonably well and stayed positive. It might consolidate back to the 50 day moving average before it runs back up. 12/10 It pulled back. It needs to stay above the 50 day moving average. A close below the 50 day moving average on Thursday would warrant taking profits. 12/11 It was closed out on Thursday as it closed below the 50 day moving average. After the Bearish Engulfing signal of Wednesday, it needed to stay up. But with the market selling off, it couldn't hold up anymore. Notice that Thursday was an indecisive trading day. Be ready to buy this back on any signs of strength.

12/1 MTL was not bought on Monday. It opened much lower and traded down. This one required something to tell us the Bulls were still participating. On a day like this when you see that the futures are down, it means you don't necessarily need to rush in and start buying. You should wait to see what the markets are going to do for the day.

12/1 FCEA was not bought. It opened and immediately started heading down in the weak market Monday morning. There was no reason to buy it unless it came back up through the open, which it didn't do.

12/2 SLF was not bought. It opened lower on Wednesday and traded down most of the day. The only way to get into this stock right now is if it comes up through Monday's high at around the $22.35 area.

12/2 MZZ was not bought. This is a short fund. With the market heading up immediately, it didn't quite break up through the previous day's close. This can still be bought on a positive open on Wednesday if the markets are backing away from the T-line.

12/3 TAM was not bought because it opened at the same level where it opened on Tuesday. However, it also closed at the same level where it closed on Tuesday. This one should definitely be bought on a positive open on Thursday.

12/4 PPO was not bought on Thursday with the market opening lower. It opened flat and started trading down. It can still be bought if it comes back up through the $6.00 level. Thursday's trading was consolidation so it can be bought on Friday if it moves up above $6.00.

 12/4 RBS was not bought because it opened well below the previous day's close. The only way to buy this one is if it comes back up through Wednesday's high at around the $20.50 level.


 

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