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Steve's Trading Diary - October 2009


10/30 Bought AMAG as it traded positive but it traded a little bit lower by the end of the day. It needs to at least trade relatively flat to stay in it. If it opens lower and starts trading off with the rest of the market, you will want to come out of it until you see the next buy signal. 11/2 It continued to move up nicely off the gap up. Continue to hold and use the T-line as your stop. 11/3 It has moved out very nicely. Continue to hold. 11/4 It formed a Bearish Harami and came back down to the 50 day moving average. It needs to open positive and trade positive to stay in it. If it trades back below the 50 day moving average, close out the position. At that point it will probably come back to the T-line. 11/5 It's still moving up steadily. It came up and touched the 200 day moving average. It needs to break out. If you start seeing weakness at this level, it might be time to start taking some profits. 11/6 It's still moving up off the strong gap-up signal. Continue to hold. 11/9 It did some profit-taking but the upward trajectory hasn't changed. It's getting a little bit toppy. The stochastics are in the overbought area. At this point use a close below Monday's low of $43.09 as your stop. 11/10 Give it one more day. It had an indecisive day. It needs to trade higher on Wednesday to continue to hold. 11/11 It did some backing and filling but is now moving back up. If it opens positive on Thursday, be a buyer. 11/12 It's still in a consolidation stage but continue to hold. If it opens higher on Friday, you will probably want to be buying it. 11/13 It closed in the wrong direction after the three previous Doji signals. It needed to pop to the upside. It closed just below the T-line. If you didn't close it out, give it one more day. It needs to open higher and trade higher to stay in it. 11/16 It should have been closed out on Monday as it closed below the T-line.

10/29 Bought HRS on the positive trading on Thursday, especially after Wednesday's Doji. Remember, the trend will move in the direction of how it opens after a Doji. Continue to hold. Use the low of Wednesday's Doji as your stop. 10/30 It held up reasonably well. It traded indecisively on Friday. Continue to hold but we don't want to see it trade back below Friday's low at around $40.97. That would tell us the Bears are in control. It needs to trade sideways or upwards to continue to hold. 11/2 It never backed off during the pullback. Continue to hold. 11/3 It's still in a nice steady uptrend. Continue to hold. 11/4 It formed a Doji at this level so we'll have to watch it. At this point use the $42.60 area as your stop. It shouldn't close back below that level. 11/5 It's still moving up nicely. Continue to hold until you see a sell signal. 11/6 It's still in a nice steady uptrend ever since the previous gap up/Doji signal. Continue to hold and use the T-line as your stop. 11/9 After the Doji of Friday, it still moved higher. Continue to hold. This is still a good very good profitable trade. 11/10 It pulled back but didn't form a sell signal. Give it another day or so. Tuesday's trading may just be profit-taking in an uptrend. Use the T-line as your stop. 11/11 It did some backing and filling over the last couple of days. Look for it to move higher. Use the T-line as your stop. 11/12 It formed a Bearish Engulfing signal after a weak day on Tuesday. Definitely use the T-line as your stop. 11/13 It stayed above the T-line. It needs to open positive on Monday to stay in it. 11/16 It's using the T-line as support. It can be bought on positive trading on Tuesday. 11/17 It's bouncing off the T-line and forming a Rounding Bottom pattern. It can be bought aggressively on a positive open. 11/18 It needs to have positive trading on Thursday to show that the Bulls are still there. If it closes below the T-line, close out the position. 11/19 It should have been closed out as it gapped down below the T-line.

10/30 BRKR was not bought on Friday because of the very simple trading rule that even though we saw the stock open higher, we knew that the markets were selling off and the stock did not continue higher after the open. Therefore there would have been no compelling reason to buy it.

10/30 MITI was not bought. It opened lower so there was no reason for it to be bought.

10/29 Bought GTXI. It traded positive most of the day but then came back down to the lower end of the trading range. This can still be bought if it opens positive on Friday and starts trading up. If you own it, we don't want to see it open lower. If it opens lower, it must start trading higher immediately. If it starts trading down, close out the position. 10/30 It should have been closed out. It needed to open flat or higher to stay in it. The fact that it gapped down and started trading lower told us there were no buyers anymore and it was time to get out of the position immediately.

10/27 Shorted SMRT as it traded weaker on Tuesday. Look for it to hit the 200 day moving average. 10/28 It didn't do very much but it's still moving to the downside. It may have hit bottom since it's in the oversold area and forming a Doji. We need to see it open lower and trade lower. Use any trading above Wednesday's high of $9.58 as your stop. 10/29 It didn't do anything significant. Use the high of Wednesday's Doji as your stop. If it opens positive on Friday, you'll probably want to close out the position and then reset your sell stop at the $9.00 level. 10/30 It should have been closed out on the positive trading on Friday. But it failed at the T-line. Now keep an eye on it. If it opens lower on Monday, you may want to re-short this one. It may in the process of forming a bearish J-Hook pattern and then move back down to the 200 day moving average.

10/26 Shorted TOO as it came back down through Friday's close after opening on the T-line and trading off. It should move down to at least the 50 day moving average and possibly all the way back to the 200 day moving average. 10/27 It formed a Bullish Harami. We don't want to see it close above the T-line. It might bounce up and come back down. Stay short until you see a close above the T-line. 10/28 It couldn't get up through the T-line on Wednesday. Stay short. We're looking for the 200 day moving average to be the target. 10/29 It formed a Bullish Harami. It should be closed out immediately if it opens positive on Friday. 10/30 If you covered this on Friday, be ready to re-short it if it opens lower and starts heading lower, especially if it moves through the 50 day moving average on Monday.

10/29 Shorted OCR. It can still be shorted if it trades lower on Friday. It came up, touched the T-line, and then headed back down. This can be shorted again, especially if it comes down through the $22 level. 10/30 Continue to stay short until you see a buy signal and a close above the T-line. 11/2 It should have been stopped out as it closed at about the halfway point of the previous day's candle. It's showing too much strength. It can be re-shorted if it comes back down through Monday's low.

10/28 Shorted WAB on the weakness Wednesday morning, which brought it down through the T-line. Stay short until you see a buy signal. 10/29 This was scary on Thursday. It gapped up but immediately started selling off. This is an example of continuing to hold it until you saw where it ended, which was much lower than where it opened. This can still be shorted on any negative trading on Friday. 10/30 With Thursday's huge Belt Hold type signal it's still telling us there is more downside potential. Continue to stay short. Use the T-line as your stop. 11/2 It's still in a downtrend. It's moving toward the oversold area. At this point put a stop at Monday's high of $37.43. 11/3 It should have been stopped out as it came up through Monday's high.

10/27 Shorted OI as it came back down through Monday's close. Continue to stay short. 10/28 It continued down. We're looking for it to move below the recent low levels. Continue to stay short. 10/29 It formed a Doji. This should be covered if it comes up through Thursday's high at the $34.05 level. 10/30 It had the opportunity to reverse after the Doji in the oversold area but there was no follow-through. Continue to stay short until you see a buy signal. There is a possibility that this could move all the way back down to the 200 day moving average. 11/2 It hasn't shown any strength. Continue to stay short. There is still a possibility that it will reach the 200 day moving average. 11/3 It should have been stopped out as it came up through Monday's high. It formed a Bullish Engulfing signal.

10/9 Bought CHK. It's now breaking out through the little trend channel. Continue to hold. We would still be a buyer, especially if it gaps up on Monday and heads for the recent high levels. 10/12 It moved up. Cramer recommended it, which could push it through the recent high levels. If that's the case, look for it to move to $35. 10/13 We're reiterating this as a buy on a positive open on Wednesday. If it does, it will be breaking out and heading toward the $35 area. 10/14 It formed a big Bearish Engulfing signal for some reason. We didn't find out why. It needs to open higher and trade higher on Thursday to stay in it. If it opens lower, come out of the position. 10/15 It needed to open and start trading higher, which it did. Continue to hold as long as it closes above the T-line. 10/16 It still stayed above the T-line. It needs to open positive and trade positive to stay in it. 10/19 It's staying above the T-line. It can be bought on any positive trading. 10/20 It traded off and consolidated but came back up above the T-line. Continue to hold as long as it doesn't close below the T-line. 10/21 It traded up quite a bit on Wednesday but closed near the bottom of the trading range, but still above the T-line. It needs to open higher and trade higher on Thursday to stay in it. 10/22 It came down, tested the 34 day moving average, and came back up. We want to see it move back up above the T-line pretty quickly. 10/23 It should have been closed out because it didn't show enough strength to move back up above the T-line after closing below the T-line on Thursday.

10/21 Bought LNCR. It traded positive during the day but then backed off. If you still own it, it needs to trade positive above the T-line on Thursday. If it opens below the T-line, come out of it and wait for the next buy signal. 10/22 It stayed up above the T-line on the close. Be ready to buy this on a positive open on Friday. 10/23 It held up above the T-line. Continue to hold. A close below the T-line should close this one out. 10/26 It should have been closed out on Monday as it closed below the T-line.

10/19 Bought KFN as soon as it went positive on Monday. It's fulfilling the Fry Pan Bottom breakout. Look for this to move into the $7.00 area. 10/20 It gave some back but didn't do anything to change the upward trajectory. 10/21 It used the T-line as support and started back up. Continue to hold. Use the T-line as your stop. 10/22 It stayed up above the T-line. It consolidated a little bit on Thursday but held up well. Continue to hold as long as it doesn't close below the T-line. 10/23 Continue to hold as long as it closes above the T-line. 10/26 It should have been closed out on Monday as it closed below the T-line.

10/15 Bought CGA as it traded positive on Thursday. It ended up trading off but still didn't breach the trend channel level. Continue to hold as long as it doesn't close below the T-line. 10/16 It consolidated right back to the 50 day moving average near the T-line but had an indecisive trading day. If it opens positive, meaning above $13, and starts heading north, you will want to be a buyer again. 10/19 It should have been bought aggressively on the positive open on Monday. It's bouncing off the T-line. It can still be bought on a positive open on Tuesday. 10/20 It had a sloppy day but it's still in an uptrend as long as it stays above the T-line. 10/21 It stayed above the T-line. It looks junky but continue to hold it as long as it stays above the T-line. 10/22 It consolidated nicely but came back up before the close. You will want to be a buyer on a positive open. 10/23 It was a little bit "iffy" but stayed above the T-line. Continue to hold as long as it closes above the T-line. 10/26 It should have been closed out on Monday as it closed below the T-line.

10/13 Bought IMA. This could have been bought on Tuesday, but if you didn't buy it there was no real necessity to do so with the markets not doing anything out of the shoot. We would still be ready to buy this if it came up through Tuesday's high of around $41.15. Put a buy stop at $41.15. If it came up through there, it would be breaking out through the recent high levels. 10/14 If you didn't buy it on Tuesday, it can be bought on a positive open on Thursday. 10/15 Continue to hold as long as it closes above the T-line. 10/16 It traded up but closed back at the lower end of the trading range. We want to see it open positive to start breaking out through the recent high levels. 10/19 It didn't do anything devastating. It's still in an uptrend. Continue to hold as long as it stays above the T-line. 10/20 It's sloppy but stayed above the T-line. 10/21 It moved up even though it consolidated a little bit on Wednesday. If it opens lower on Thursday, close it out immediately. 10/22 It has been in an uptrend ever since the Belt Hold signal. Continue to hold as long as it stays up above the T-line. 10/23 It's getting very "iffy" here. Continue to hold as long as it opens and trades positive on Monday. If it opens lower and starts trading lower, close out the position. 10/26 It should have been closed out on Monday as it closed below the T-line. Once it came back down below the breakeven point after trading higher, it was time to close the position.

10/9 Bought FITB. It's trying to come up out of the trend channel. Look for a big pop-up fairly soon. 10/12 It's still breaking out from the downward trend channel. Continue to hold as long as it stays above the T-line. 10/13 It formed a Long-legged Doji.  If it opens higher on Wednesday, you will want to buy it immediately. 10/14 Be ready to buy this on a positive open now that it has broken out of the trend channel. 10/15 It's still moving up. It can be bought on a gap up situation on Friday. 10/16 It did a Kicker type signal. It needs to open positive to stay in it. If it opens lower, close out the position immediately. 10/19 It held up and didn't confirm the Kicker type signal, which was only a selling type day in an uptrend. This can be bought if it opens positive on Tuesday. 10/20 It came up nicely. It can be bought aggressively on a positive open on Wednesday, especially if it gaps up. 10/21 It traded up most of the day but came back down and closed as a Bearish Harami. If it opens weaker on Thursday, you will probably want to come out of it. 10/22 It formed a Stick Sandwich. It should be bought aggressively on a positive open. 10/23 We were looking for a breakout but it's now looking like a Fry Pan Bottom pattern is forming. Continue to hold as long as it stays above the T-line. 10/26 It should have been closed out on Monday after it gapped down. Still keep an eye on it. It gapped down because of a downgrade, which doesn't mean anything significant. Watch to see if it supports at this level and starts picking back up again.

10/8 Bought VISN on the positive trading. It's forming a J-Hook pattern. Continue to hold. 10/9 It consolidated quite a bit on Friday. It needs to stay above the T-line but we'd like it even more if it stayed above Friday's close. Be diligent. This should still be an uptrend which means we need to see some positive trading on Monday. 10/12 It opened higher on Monday and traded higher, which it needed to do for us to stay in it. Continue to hold as long as it doesn't close below the T-line. 10/13 It needs to trade higher on Wednesday.  Just do not let it close below the T-line. 10/14 It's in a choppy stage. It needs to open higher and trade higher on Thursday to stay in it. 10/15 It's forming a J-Hook pattern. Continue to hold until you see a sell signal and a close below the T-line. 10/16 The gap up should have motivated you to close at least half the position. If you didn't, it needs to show positive trading. Otherwise, if it opens lower, take profits and watch for the profit-taking to end and then buy back in. 10/19 It's still moving up nicely. Continue to hold. Use the T-line as your stop. 10/20 It's still in a nice steady uptrend. Continue to hold. 10/21 It consolidated nicely, right back to the T-line and then back up and closed at the top end of the trading range. Continue to hold. 10/22 It held up above the T-line. It's still in an uptrend. Continue to hold. 10/23 It's still in an uptrend. Use the T-line as your stop. 10/26 It should have been closed out on Monday as it closed below the T-line. With the Bearish Engulfing signal you might even want to go short on this one.

10/27 Bought NVTL on the positive open on Tuesday, but it closed back below the open and the low of Monday. This does not bode well. It should have been closed out.

10/26 Bought SCSS on the positive trading. It stayed positive by the end of the day and formed a Doji. The analysis is very simple. If it opens positive on Tuesday, continue to hold. If it opens negative, start thinking about taking some of the position right back off again. That would be a function of how the markets open on Tuesday. 10/27 It should have been closed out on Tuesday with it closing below the T-line and forming an Evening Star signal.

10/22 Bought AXL on the positive trading on Thursday. It was reiterated as a buy on Friday. Continue to buy this one. 10/23 This can be bought again on Monday if it comes up through Friday's high at around the $7.18 level. We don't want to see it close below the T-line. 10/26 It needs to stay above the T-line and shouldn't close below the T-line for us to keep holding it. It held up reasonably well on Monday. 10/27 It should have been closed out on Tuesday. It could not hold the T-line.

10/6 Bought MTW after the Abandoned Baby signal. It used the T-line as support. This can still be bought on positive trading. 10/7 It consolidated a little bit but didn't go anywhere. Continue to hold. 10/8 It can still be bought. If it breaks through the recent high levels, it's going up into the $15 to $16 range. 10/9 It continues to move up. If it can break out through the recent high levels, it should have another good 3 to 4 point move. 10/12 The upward trend didn't change. Continue to hold. 10/13 It showed some profit-taking but it looks like it bounced off the T-line.  It needs to open higher and trade higher. 10/14 It's about ready to break out into new territory. It can be bought on positive trading. 10/15 It's about ready to break out into new territory. Be ready to watch this on a positive open on Friday. 10/16 It pulled back but didn't do anything decisive. Continue to hold and use the T-line as your stop. 10/19 It broke out nicely on Monday. Continue to hold until you see a sell signal. 10/20 It consolidated but didn't close below the halfway point of Monday's bullish candle. Continue to hold and use the T-line as your stop. 10/21 It didn't do anything decisive on Wednesday. It's staying above the T-line. We'd like to see it open positive and trade positive on Thursday. 10/22 It stayed up above the T-line. Continue to hold. Use the T-line as your stop. 10/23 Continue to hold. Use the T-line as your stop. 10/26 If it opens weaker on Tuesday, especially below the T-line, close out the position immediately. 10/27 It should have been closed out on Tuesday with it closing below the T-line.

10/28 Bought APAC, but obviously it should have been closed out for two reasons. It closed back below the signal that told us the Bulls were in control and it closed below the T-line.

10/28 MOD was not bought. It opened lower, below the T-line. It's still in a downtrend.

10/22 Bought SYK. It opened up into the upper tail of Wednesday's candle which told us the Bulls were still in control. It's still in an uptrend. 10/23 It formed a Bearish Engulfing signal but did it after a gap up/Kicker signal. Give it one more day. We don't want to see it close back below the T-line. 10/26 If it closes below Monday's low, you will probably want to come out of it and wait for the next buy signal. If it trades at all below the T-line on Tuesday, you will probably want to come out of the position. 10/27 It used the T-line as support on Tuesday. It needs to trade higher on Wednesday to stay in it. We don't want to see it trade at all below $47.40. That would be our stop. 10/28 It should have been closed out on Wednesday as it came down through the T-line and Tuesday's closing price.

10/14 Bought BCRX as it traded positive on Wednesday. It's forming a nice Rounded Bottom and is staying above the T-line. Continue to hold with the expectation that it will come back and test the $12.50 to $13.00 area. 10/15 It's forming a nice Fry Pan Bottom. Continue to buy this one. 10/16 It's still coming out of a Fry Pan Bottom pattern. It can be bought on any positive trading. 10/19 It was trading up pretty well after hours at around the $10.30 area. This can be bought aggressively on a gap up on Tuesday. 10/20 It opened just above the 50 day moving average and then came back and closed right on the T-line. It needs to have a positive open to stay in it on Wednesday. 10/21 It opened and immediately started trading higher, which it needed to do for us to keep holding it. Now use a close below Wednesday's open of $9.01 as your stop. 10/22 It came up nicely. If it breaks out on Friday, you will want to buy it aggressively. We're reiterating this one as a buy. 10/23 This should not have been bought again on Friday. Continue to hold as long as it stays above the T-line. It can be bought if it comes up through the $10 level. 10/26 It had a good strong day. If it opens positive on Tuesday, you will want to be buying it aggressively. 10/27 It consolidated but came back up a little bit. Use the T-line as your stop. 10/28 It should have been closed out, especially when it came down through Tuesday's low.

10/12 Bought CREE on the positive open as it immediately started moving positive. Continue to hold. It's in wave three. 10/13 It pulled back but didn't do anything dangerously bad. But it needs to show some strength on Wednesday. If it opens weaker on Wednesday, come out of it until it comes back to the T-line. 10/14 It came right back again. It can be bought on a positive open on Thursday. 10/15 It held up well. It can be bought aggressively on a positive open on Friday. Remember, it formed a Doji on Thursday. 10/16 Continue to hold. Use the T-line as your stop. 10/19 It's still in an uptrend. Continue to hold. 10/20 It apparently had good earnings which gapped it up above the previous day's open. Continue to hold. 10/21 It moved up very nicely on Wednesday. Continue to hold until you see a sell signal. 10/22 It showed some profit-taking on Thursday but the direction hasn't changed yet. If it trades higher on Friday, you will want to be buying it. 10/23 It did a couple of days of consolidation. We would definitely like to see this open positive on Monday. Use the T-line as your stop. 10/26 It traded up most of the day. It still finished a little bit positive. We wouldn't want to see it close lower on Tuesday depending on the strength of the markets. 10/27 It pulled back. If it trades below the T-line at around $43.10, you will want to be out of the position. 10/28 It should have been closed out as it closed below the T-line. It couldn't hold up in this market. As you can see, a lot of the long positions have been closed out because of the market pressure.

10/8 Bought APT on the positive open, which meant it broke out through the recent high levels. Continue to hold until you see a sell signal. 10/9 It's still in an uptrend. It did a little consolidation on Friday but nothing to be concerned about. 10/12 It formed a Doji and a Bearish Engulfing signal. There may be some profit-taking going on. It needs to open higher and trade higher to stay in it. If it opens lower, aggressive traders may want to come out of it for a couple of days. 10/13 It pulled back but it's a little bit "iffy." Aggressive traders may want to come out of it.  Just watch to see what it does when it comes back to the T-line.  We suspect that it's still in an uptrending pattern. 10/14 It's getting toppy. It's still above the T-line but it definitely needs to have positive trading on Thursday. If it starts coming back toward the T-line, you may want to come out of it for a few days. 10/15 Continue to hold as long as it stays above the T-line. Notice that the pullback is not very convincing. 10/16 It got very scary but notice where it closed, just above the T-line. If it opens positive on Tuesday, you will definitely want to be a buyer. 10/19 This was reiterated as a buy on a positive open. 10/20 It traded up most of the day after the big Hammer signal followed by a Morning Star signal. It can still be bought aggressively on a positive open on Wednesday. 10/21 It stayed up above the T-line on Wednesday. It needs to open positive. We don't want to see it close below the T-line on Thursday. 10/22 It came back up to the resistance level. It can be bought aggressively on a positive open. 10/23 This could have been bought again on Friday on the positive open. It can still be bought on a positive open on Monday. Continue to hold. 10/26 It consolidated back to the T-line but closed positive. Continue to hold and use the T-line as your stop. 10/27 It held up. Continue to hold as long as it doesn't close below the T-line. 10/28 It should have been closed out with the gap down on Wednesday.

10/29 Shorted PMTC. This is a prime example of intending to short it as it went below the T-line, which it did, but then it closed higher as a Bullish Harami. The short position should have been closed out. It showed that the T-line was still acting as support.

10/26 Bought VPRT on the positive trading on Monday. It held up well. Continue to hold as long as it stays positive above the T-line and doesn't show a sell signal. 10/27 It showed some weakness and formed a Bearish Harami. If it trades back below Tuesday's low of $52.25, you will want to close out the position. It needs to trade flat or higher to continue what would be a Fry Pan Bottom breakout. Otherwise, it will probably form a Cup and Handle type pattern. 10/28 It backed off but closed up above the T-line. Give it one more day. If it closes below the T-line, you will want to close it out. 10/29 It should have been closed out on Thursday with it closing below the T-line. Now look for a negative Scoop pattern.

10/26 Shorted PLCE as it came back down through Friday's close after trading higher. It's now trading below the T-line after a Bearish Engulfing signal. Now look for it to come back down toward the 50 day moving average. 10/27 Continue to stay short as long as it doesn't close above the T-line. 10/28 It moved down dramatically. Continue to stay short. It's looking like there may be enough force to take it through the 50 day moving average and down to the 200 day moving average. 10/29 It touched the 50 day moving average. If you saw this happen, along with seeing the strength of the market, it was a pretty good time to cover your position. At worst, the position should have been covered as it closed more than half way up Wednesday's bearish candle.

10/16 GES was not bought with the market trading down most of the day, but it come back up near the top end of the trading range at the end of the day. If it opens positive, above $39, you will want to be a buyer.

10/16 IP was not bought. It opened lower and came back down. Just keep an eye on it now and see if it does a Cup and Handle type formation.

10/16 SAY was not bought. It consolidated but came up to the top end of the trading range. If it opens positive, especially if it comes up through the $6.55 level, you will want to be a buyer.

10/14 Bought EXPE on the positive open as it broke out into new high territory. It can still be bought on a positive open on Thursday. 10/15 It's still moving up nicely. Continue to hold. 10/16 It should have been closed as it closed below the T-line and formed an Evening Star signal.

10/13 Bought WTFC on Tuesday as it was trading positive. It can still be bought on a positive open on Wednesday. Use the T-line as your stop. 10/14 It moved up nicely again on Wednesday. Continue to hold. It's forming a nice breakout pattern. 10/15 It consolidated but came right back up. It can be bought aggressively on a positive open on Friday. 10/16 Aggressive traders should have closed this out on the lower open and lower trading. If you still own this, it needs to stay above the T-line.

10/9 Bought HMA on the positive trading on Friday. It broke out through the recent high. This one is still going higher. 10/12 It consolidated but the direction of the uptrend didn't change. Continue to hold but we don't want to see it close back below Friday's open. That would tell us it's coming back to test the T-line for a couple of days. 10/13 10/13 It didn't close below the halfway point of Friday's bullish candle. Give it one more day though to be sure it's not heading down. It needs to open higher and trade higher to stay in it. 10/14 Be ready to buy this on a positive open. Use the T-line as your stop. 10/15 It's moving sideways. If it closes below the T-line, close out the position. 10/16 It was closed out as it closed below the T-line.

10/7 Bought CPX. It opened and immediately started trading higher after Tuesday's Doji. It can still be bought on the strength. 10/8 It still moved up higher coming out of the Fry Pan Bottom pattern. Continue to hold. 10/9 It's coming out of the Fry Pan Bottom pattern. It consolidated on Friday. Look for it to move sideways for a couple of days until the T-line catches up. 10/12 It traded flat on Monday. Continue to hold as long as it stays above the T-line. 10/13 It needs to trade higher on Wednesday and stay above the T-line. 10/14 It stayed up above the T-line. Continue to hold. If it opens positive, you can be a buyer. 10/15 It was a little bit scary on Thursday but closed back up above the T-line. This can be bought on a positive open on Friday. 10/16 It closed below the T-line and should have been closed out.

10/19 BEXP was not bought. It opened lower on Monday but opened right on the T-line and came back up. It formed a Belt Hold type signal. It should be bought aggressively on a positive open on Tuesday.

10/20 HGSI was not bought. It did open higher on Tuesday but immediately started selling off. This is a situation where, if you saw it gap up a little bit on the open but it never started trading up from there, you should have held off buying it. If you did buy it on the open, continue to hold it as long as it stays above the T-line. Then watch for a Bullish Harami on Wednesday followed by positive trading.

10/6 Bought SCSS on the positive open on Tuesday. This still has strong upside potential. Continue to hold. 10/7 It's still acting well. Continue to hold. 10/8 It formed a little Shooting Star type signal. It might do some consolidation. Use Wednesday's open as your stop. If it comes back down through there, there will be too much profit-taking to stay in it. It needs to open higher and trade relatively flat to stay in it. 10/9 It's still moving up nicely. There was an opportunity to take some profits if it opened lower on Friday but it continued in an uptrend. Continue to hold. 10/12 It's still in an uptrend. Continue to hold. It formed another Shooting Star. We might see some profit-taking. Watch to see if it trades sideways until the T-line catches up. 10/13 It consolidated but came right back up again.  Continue to hold. 10/14 Continue to hold. Use Wednesday's low as your stop. If it comes back down through there after a Doji/gap up in the overbought area, it should be closed out. It should move higher and trade higher but if it starts trading back down, you should start taking profits. 10/15 It may be getting a little bit toppy. Take some profits if it comes back down through Thursday's low of $6.35. 10/16 It pulled back but didn't do anything yet to change the upward direction of the trend. If it opens lower and starts trading down, you will probably want to take some profits. 10/19 It looks like it has hit a resistance level. It needs to open positive and stay positive to stay in it. Close it if it closes below the T-line. 10/20 It should have been closed out on Tuesday after the Bearish Engulfing signals and with it closing below the T-line.

10/14 Bought SAPE on the positive open. Be ready to buy it again on a positive open on Thursday if you haven't bought it already. Remember, it formed a Doji with the stochastics heading up. If it opens positive, the Bulls are still in control. 10/15 It's still holding up nicely. If you're not in it yet, it can be bought aggressively on a positive open on Friday. 10/16 It's still trading positive and can still be bought. 10/19 It's still in a nice uptrend. Continue to hold. 10/20 It needs to have a positive open after the Bearish Harami of Tuesday. It needs to have a positive open so it doesn't trade below the T-line. 10/21 It should have been closed out as it closed below the T-line.

10/13 Bought NUAN as it was trading positive. It needs to open higher. If it does you will want to be a buyer. If it opens lower it will probably test the T-line. 10/14 It moved up from the positive open after a Doji. Continue to hold. 10/15 It formed a Bearish Harami. It might consolidate. Traders should get out of it if it opens lower. Swing traders can hold it as long as it doesn't close below the T-line. 10/16 It backed off after the Bearish Harami but stayed above the T-line. It needs to open positive and stay positive on Tuesday. 10/19 It came up nicely. It can be bought on positive trading on Tuesday. 10/20 It consolidated but it's still an uptrend as long as it stays above the T-line. 10/21 It should have been closed out on Wednesday. It gapped down through the T-line after a Hanging Man signal. It was in trouble right from the get-go on Wednesday.

10/12 Bought LRCX on The positive open. It moved up nicely. It's in wave three. Continue to hold. 10/13 It opened higher and came back but didn't do anything that would have reversed the direction of the trend. Continue to hold. At this point use a close below $37.40 as your stop. 10/14 It came right back up again. It didn't trade off too far with the expected consolidation. Be ready to buy this on a positive open. 10/15 Continue to hold as long as it doesn't close below the T-line. 10/16 It closed right on the T-line, which means it needs to open positive to stay in it. 10/19 It held up above the T-line. This can be bought on a positive open. We're anticipating a J-Hook pattern set-up. 10/20 It's still staying above the T-line. It can be bought aggressively on a positive open on Wednesday. 10/21 It should have been closed out on Wednesday as it closed below the T-line.

10/22 SNDK was not bought. It opened higher but immediately started selling off. Any time you see one open and it doesn't move up in the first few minutes, just wait until you see some signs of strength. If you never do, then don't get into the position.

10/21 Bought SPAR on the positive trading on Wednesday. It's coming out of a Fry Pan Bottom with a gap up through the moving averages. Continue to hold. Use the T-line as your stop. 10/22 It should have been closed out as it closed below the T-line on Thursday. Apparently it didn't have the earnings that people wanted to see.

10/12 SVA was not bought on Monday. It didn't show any strength after it opened. But keep it in mind. It's still trading at the T-line. If it comes up through $8.00 you will want to be a buyer.

10/8 Bought DEPO on Thursday on the positive trading. It formed a Doji. Use the halfway point of Wednesday's bullish candle as your stop. It shouldn't close back below that level. 10/9 It's doing exactly what it should be doing after the Bullish Harami/Doji follow-through. Continue to hold. 10/12 It had some disappointing news which gapped it way down. There is only one thing you can do when the direction changes from what it's supposed to be doing. Get out of the position. Take your lumps and move on to the next one.

10/7 Bought LAZ on the positive trading. Even though the Dow got a little bit soggy, LAZ opened and started trading higher. It's starting a "wave three breakout." 10/8 It backed off on Thursday but stayed above the T-line. Give it one more day. It needs to open higher and trade higher to stay in it. If it closes below the T-line, close out the position. 10/9 It came back down and tested the T-line. It needs to stay above that level to stay in it. 10/12 It should have been closed out as it closed below the T-line. Now watch to see if it bounces back up. You can always buy it back if it starts moving positive again.

10/1 Bought MDZ, but we would have only bought half a position. It was trading higher but the market was down big all day long. That tells us something is happening in that potential Fry Pan Bottom breakout. If this opens positive, especially if it gaps up on Friday, you will definitely want to be a buyer. 10/2 It's still moving in the right direction. Continue to hold as long as it doesn't close below the T-line. It's in a nice Rounded Bottom pattern. 10/5 It moved up but got a little bit dicey. It needs to open positive and trade positive. If it opens positive, put your stop at Monday's close. If it comes back down through there, it tells us the Bears are taking control. 10/6 It's getting a little bit toppy but the direction hasn't changed yet. Continue to hold. At this point use the T-line as your stop, which would also be at around the halfway point of Friday's bullish candle. 10/7 It's still in an upward trend. Continue to hold as long as it stays above the T-line. 10/8 It's still in a nice uptrend. If it opens positive on Friday, look for a breakout type day. 10/9 It's still holding up but we need to see a breakout to the upside. We don't want to see it break to the downside. Use any trading below the T-line as your stop. 10/12 It had an opportunity to either gap up or gap down. It gapped down. It should have been closed out.

10/15 BAC was not bought on Thursday because it opened lower. If you own it, continue to own it. If you haven't bought it, wait for it to come back up through Wednesday's close before you buy it.

10/15 MOD was not bought. It needs to show another buy signal before getting into it.

10/5 Bought LVS. Continue to hold. 10/6 It consolidated but still formed a nice Belt Hold signal. It consolidated back to the T-line. It needs to open higher and trade higher to stay in it. 10/7 It stayed up above the T-line. Look for it to open positive. If it does, it can be bought immediately. 10/8 It's still moving up nicely. Use the T-line as your stop. 10/9 It pulled back a little bit but the trajectory didn't change. We're still looking for it to come up and test the recent high levels. 10/12 It consolidated but stayed above the T-line. It needs to open higher and trade higher to stay in it. If it opens lower and starts trading down, close out the position immediately. 10/13 It hung right onto the T-line on Tuesday.  It needs to open higher and trade higher to stay in it on Wednesday. 10/14 It's staying above the T-line but it needs to show some strength to continue to hold. 10/15 It should have been closed out as it gapped down below the T-line.

10/2 Shorted PLCM. It opened lower and then headed straight up. If you shorted this one, it should have been closed out at the end of the day. If you didn't short it, be prepared to buy it on a positive open. Friday's Bullish Engulfing signal told us there are buyers in this stock for some reason.

10/2 Shorted AN on the weakness but it needs to open lower and trade down to continue to stay short. If it continues down, look for it to possibly come all the way down to the 200 day moving average. 10/5 It should have been covered on Monday as it opened positive and traded above Friday's high.

10/5 DFS was not shorted.

10/5 VPRT was not shorted.

10/7 ATPG was not bought. It didn't do anything that would have warranted us jumping into it with the market trading flat. If you bought it, you're all right. If you didn't buy it, be ready to buy it on any signs of positive trading on Thursday. Obviously use the T-line as your stop.

10/5 Bought CNO. Continue to hold. 10/6 It consolidated back to the T-line. Give it one more day. It needs to open higher and trade higher to stay in it. 10/7 It barely traded back below the T-line on Wednesday. If it doesn't open positive and trade positive on Thursday, close out the position and wait for the next buy signal. 10/8 It should have been closed out as it closed back below the T-line again. It needed to open positive and trade positive, but it opened and traded negative.

10/2 Bought HGG. It opened much lower on Friday but came right back up and even went positive for a while. This stock is still showing strength. If you didn't buy it, be prepared to buy it on a positive open at anything above the $17.60 level. That would take it up above the 50 day moving average. If you own it, we don't want to see it close more than halfway down Friday's bullish candle at at around $17.45. 10/5 This can still be bought. It moved up nicely on Monday. Continue to hold. 10/6 It's still moving up very nicely. Continue to hold. Use the T-line as your stop. 10/7 It formed a Bearish Harami on Wednesday. The stochastics are in the overbought area. If it trades back below Wednesday's low of $18.54, close out the position. At that point it will probably come back and test the T-line. It needs to open higher and trade higher to stay in it. 10/8 It was closed out on Thursday as it traded below Wednesday's Harami and Tuesday's bullish candle. This tells us it will probably come down to the T-line. Now just watch to see what it does when he gets back to the T-line.

10/1 FITB was not bought. It didn't break out like we wanted it to through the upper trendline.


 

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