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Steve's Trading Diary - January 2010

1/29 Shorted ATHR on weakness. It didn't hold at the 50 day moving average. Continue to stay short and use the T-line as your stop. 2/1 It formed a Bullish Engulfing signal right on the 50 day moving average. The analysis is very simple. If it opens higher on Tuesday, close out the position. It needs to open lower and trade down to stay short. 2/2 It needed to open lower and trade lower on Tuesday but it traded up above the previous day's close. Therefore, it should have been closed out. Now this one can considered as a buy on a positive open.

1/29 Bought BKI as it traded positive on Friday, but it closed back down at the lower end of the trading range. If it opens lower on Monday, close it out immediately. That would be telling us it failed, especially after it could not break through the highs from a few weeks ago. It needs to open higher and trade higher to stay in it. 2/1 It needed to have a strong day on Monday to stay in it, which it did. If it had closed lower, we would have closed out the position. And if it had gapped down on the open, we would've also closed out the position. 2/2 It's still moving up nicely. It formed somewhat of a Shooting Star signal but continue to hold. We don't want to see it close more than halfway down Monday's candle or create an Evening Star signal. 2/3 It consolidated but came back up. Continue to hold. Use the T-line as your stop. 2/4 After a couple of days of indecisive trading it needed to open higher and trade higher. It should have been closed out on the lower open and definitely should have been closed when it came down through Wednesday's low.

1/12 REGN was not bought on Tuesday. It opened a little higher but with the market selling off immediately there wasn't any reason to get into the position.

1/12 ONXX was not bought. It opened lower and traded lower.

1/12 FINL was not bought because it opened lower.

1/11 Bought CYH. It backed off but it can still be considered as a strong buy if it comes back up through Monday's high at the $38.36 level. That would tell us the Bulls are still fulfilling the J-Hook pattern. 1/12 It didn't confirm the J-Hook pattern. If you bought it on Monday, you should be back out of it now.

1/8 Bought CNO on the positive trading on Friday. It's still fulfilling the Fry Pan Bottom breakout. Continue to hold and use the T-line has your stop. 1/11 Even though it pulled back a little bit, it's still in a nice Fry Pan Bottom trajectory. Continue to hold as long as it doesn't close below the T-line. 1/12 It's still in the trajectory but use the T-line as your stop if you decide to keep holding it. It probably should have been closed out on Tuesday because it closed below the previous day's open.

1/8 Bought SNA as it was coming out of the J-Hook pattern. Continue to hold this with the anticipation that this could move up into the $50-$52 area. 1/11 It's still fulfilling the J-Hook pattern. Continue to hold. 1/12 It probably should have been closed out on Tuesday with it backing off like an Evening Star signal. However, it did stay above the T-line. If you still own it, be ready to close it out if it trades at all below the T-line on Wednesday.

1/6 Bought CLNE. It acted well on Wednesday. Continue to hold. 1/7 It's working very nicely coming up out of the J-Hook pattern. Continue to hold and use the T-line as your stop. 1/8 It broke out of the J-Hook pattern nicely. It's still moving strong. Continue to hold until you see a sell signal. Just to be cognizant of the fact that it has moved a little bit away from the T-line, so we may see some profit-taking pretty soon. At this point we don't want to see it trade back below Friday's open. 1/11 It formed a Bearish Engulfing signal. It's a good distance away from the T-line. If it opens lower on Tuesday, you will want to close out the position and see if it comes back and bounces off the T-line. If you still own it, it needs to open higher and trade higher to stay in it. This is a case where coming out of half the position may have been the logical action to take. To stay in the remaining position we need to see it open higher and trade higher. 1/12 It backed off on Tuesday but formed a Doji. It needs to stay above the T-line if you decide to keep holding it. It should have been closed out with the markets trading lower and the stock opening lower on Tuesday following Monday's Bearish Engulfing signal.

1/5 Bought MTG on Tuesday as it traded positive. It eventually closed up above the recent high. This one still has more upside potential. Use the T-line as your stop. 1/6 It backed off on Wednesday but didn't do anything to change the upward trajectory. Watch for it to open and start trading positive. We would be a buyer if it comes up through Wednesday's high of $6.54. 1/7 It moved up nicely on Thursday. Continue to hold and use the T-line as your stop. 1/8 It moved up nicely. Continue to hold until you see a sell signal. 1/11 It's still in a slow uptrend. Continue to hold. It formed a Doji. Watch for some profit-taking. Use any trading back below the halfway point of Friday's bullish candle at around the $6.83 level as your stop. That would tell us it's probably coming back down to test the T-line. 1/12 This should have been closed out as it came back down through Monday's close.

1/5 Bought MTW on the positive trading. It had a very nice day. How we're watching to see if it will break out through the recent high levels. Use the T-line as your stop. 1/6 It moved up nicely. Continue to hold. It's now into breakout territory coming out of a nice J-Hook pattern. 1/7 It's moving up very nicely. It has gotten a good distance away from the T-line. Just watch for some profit-taking. 1/8 It continues to move up nicely ever since it broke out through the top of the J-Hook pattern. Be aware that it has moved quite a distance from the T-line. We don't want to see it trade back below Friday's open. 1/11 It may have experienced some profit-taking but it didn't form a sell signal. Use any trading below Monday's low of $12.79 to take off at least half the position and see what it does from there. 1/12 It should have been closed out as it traded back below the previous day's open. If you still own it, it needs to open positive and trade positive to stay in it. Regardless, you should be out of at least half the position.

1/5 Bought KWK as it traded positive on Tuesday. Continue to hold. A J-Hook pattern is in progress. 1/6 It held up reasonably well. Continue to hold and use the T-line as your stop. 1/7 Continue to hold as long as it stays above the T-line. It's coming up off the little Kicker signal. 1/8 It stayed above the T-line. It can be bought if it breaks out through the recent high levels. 1/11 It formed a Dark Cloud signal. If it opens lower on Tuesday, close out the position immediately. 1/12 It should have been closed out after it gapped down and opened below the T-line following Monday's Dark Cloud signal.

1/4 Bought TRW on the positive trading. It can still be bought. It came down to the 34 day moving average, formed a Morning Star signal, and is now moving up nicely. Continue to hold and use the T-line as your stop. 1/5 It still moved up nicely. Continue to hold. 1/6 It did some consolidation. We don't want to see it open lower. It needs to open higher and start trading higher to stay in it. 1/7 It stayed up above the T-line. Continue to hold, especially if it opens positive on Friday. 1/8 It's still holding up. Continue to hold as long as it doesn't close below the T-line. 1/11 It's staying above the T-line. Continue to hold as long as it stays above the T-line. 1/12 It should have been closed out as it closed below the T-line on Tuesday.

1/13 SPPI was not bought on Wednesday because it really didn't show enough strength. It opened lower, bobbled around, and started selling off. It can still be bought if it comes back up through the $5.20 level.

1/11 Bought GOL on the positive trading after the gap up breakout from the previous day. Continue to hold and still use the T-line as your stop. The gap up is an indication that it's moving up into new territory. If you didn't buy it on Monday, be ready to buy it on any trading that comes up through the $16.87 level. 1/12 It backed off but stayed above the T-line. Give it one more day. Use the T-line as your stop. 1/13 It stayed above the T-line and used it as support. It needs to open positive and trade positive. We don't want to see it close below the T-line. 1/14 It should have been closed out on Thursday with it closing below the T-line.

1/7 PVX was not bought. It opened and traded down. However, if it comes back up through the $7.50 level on Friday, be ready to buy it. It's still in a Fry Pan Bottom breakout situation.

 
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