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Steve's Trading Diary - May 2010


5/28 Bought RDN. It can still be bought, especially if it opens positive on Tuesday. It held up well even with the market backing off and taking profits on Friday. 6/1 It formed an Evening Star type signal at the 20 day moving average and closed at the 200 day moving average. It obviously has to stay above the T-line to keep holding it. On Wednesday we need to see it open positive and start trading positive. 6/2 It had a Doji type day up above the T-line. If it opens positive on Thursday, it can be bought aggressively. 6/3 This was reiterated as a buy. It can be bought on a positive open. 6/4 This was not bought again and any existing positions were closed as it closed below the T-line.

5/27 Bought PCS on the positive trading. It's setting up a J-Hook pattern or an uptrending channel. Our next target is the $10 range. 5/28 It held up fairly well. Continue to hold. It formed a Doji on Friday so if it opens positive on Monday, it can be bought immediately. 6/1 Close this on a lower open on Wednesday. 6/2 It had a Doji day. It needs to open higher and trade higher. If it does, it can be bought aggressively. 6/3 This can be bought on a positive open. It formed a Morning Star signal. Use the T-line as your stop. 6/4 It should have been closed out as it traded below the T-line. It traded indecisively so keep an eye on it.

5/26 Bought DCTH. It opened positive but came back down and closed at about the halfway point of Tuesday's bullish candle. Give it a little more time, but it definitely needs to open positive and trade positive to stay above the T-line. If it opens weaker and comes down through the T-line and the 50 day moving average, close out the position. 5/27 It came back up a little bit on Thursday. Continue to hold but it needs to have a positive open and positive trading to stay in it. We don't want to see it trade lower on Friday. If it closes lower on Friday, close out the position. That would mean it has lost its steam. 5/28 Continue to hold. It acted well and did exactly what it should have done after the Homing Pigeon signal. The Homing Pigeon signal has the same implications as a Harami. Look for more upside movement. 6/1 It needs to have a postive open on Wednesday to continue to hold. 6/2 It formed a Doji at the level where it should be breaking out. If it opens positive, definitely be a buyer. 6/3 It needs to have positive trading to continue to hold. It shouldn't close below the T-line on Friday. We want to see it open positive and break out through its current levels. 6/4 It should have been closed out immediately as it opened lower after a left/right combination below the T-line.

5/26 Bought CRUS. It gapped up. Continue to stay long. 5/27 It's still moving up in an upward channel very nicely. Continue to hold. 5/28 It consolidated. It needs to open positive and trade positive. Use Friday's low at the $14.10 level as your stop. If it comes down below that level, it means it's selling off instead of moving up. 6/1 It needs to have a postive open on Wednesday to continue to hold. 6/2 It looks like it's ready to break out through the current resistance level. Be ready to buy this on strength. 6/3 The uptrend is still in progress. Be ready to buy this on positive trading on Friday. It's in a breakout area. 6/4 It should have been closed out. Even though it didn't close below the T-line, it had a Booster move to the downside. If you didn't close it out, be ready to close it out if it opens weaker on Monday.

5/25 Bought CC as it came up through Monday's close. This can still be bought on a positive open on Wednesday. Use the halfway point of Tuesday's candle as your stop. 5/26 It consolidated on Wednesday back down to the T-line and then came back up. If it comes back up through Wednesday's open of $29.26, you'll want to be buying it. 5/27 It has been moving up nicely. Hang onto this. We want to see it get through the 50 day moving average. If it does, it should be heading for the 200 day moving average. 5/28 It backed off a little but didn't do anything to show major selling. Continue to hold and see if it will move up through the 20 day and 50 day moving averages on Tuesday. 6/1 Continue to hold. 6/2 It's still moving up nicely. We're still anticipating at least the 200 day moving average as our target and possibly the recent highs. 6/3 It's still moving in the right direction. Continue to hold with the anticipation that it will test the 200 day moving average. 6/4 It should have been closed out.

5/28 LIZ was not bought on Friday. Even though it traded up a little bit, the market was heading down. It pulled back right to the T-line and the 200 day moving average. It can still be bought if it comes back up through Friday's high of $6.40.

5/28 WATG was not bought because it didn't show any strength. It opened and immediately started backing off. It can still be bought if it comes back up through Friday's high of $8.60.

5/27 Bought EXXI on the positive open on Thursday. It bounced off the 200 day moving average with a left/right combination. Continue to hold and anticipate the first target being at the 50 day moving average. 5/28 It consolidated nicely and showed strength. Continue to hold. 6/1 It should have been closed out with it closing back down below the T-line. The close below the T-line told us it would have a hard time moving back up. Keep an eye on it. If it opens positive and starts trading positive, you can buy it back.

5/26 Bought CLF. It held up and had a Doji type today. Use Wednesday's low of $52.33 as your stop.  It needs to open higher and trade higher to result in a positive trade. If it comes back down through Wednesday's low, close out the position. 5/27 It did exactly as we thought it would. After the Doji of Wednesday, it moved up farther. We're looking for the 50 day moving average as the next target. 5/28 It consolidated. Continue to hold as long as it doesn't close below the 20 day moving average. 6/1 It should have been closed out.5/21 Shorted SBGI. However, it should have been covered on the close. It gapped down but immediately started trading higher. Be ready to short this if it opens weaker and starts trading down. The higher trading after the gap down may just be a bob the market.

5/14 Shorted MRVL on the gap down. It came down to the 200 day moving average. Look for it to open weaker and continue down. If it opens weaker on Monday and you're not yet short in this position, you still have an opportunity to go short. 5/17 It bounced off the 200 day moving average again. It formed a Doji. If it opens positive on Tuesday, close out the short position. It needs to open lower and trade lower to stay in it. 5/18 It can be shorted aggressively if it trades below the 200 day moving average on Wednesday. 5/19 It formed a Bullish Harami. If it opens higher on Thursday, close out the position. At that point it will probably be stuck between the T-line and the 200 day moving average. 5/20 Stay short. It needs to trade below the 200 day moving average on Friday. 5/21 It should have been closed out immediately on the positive open after the Doji on the 200 day moving average. Now you may want to watch this as a possible long position.

5/24 MTL was not bought. Even though it was forming a left/right combination, it opened weaker on Monday with the general market weakness and traded down. Just keep an eye on this for a buy signal along the 200 day moving average fairly soon.

5/20 Shorted WATG as it opened lower on Thursday. It formed somewhat of a Hammer signal. It can still be shorted if it opens weaker on Friday. We don't want to see it trade more than halfway up the previous day's candle at the $8.00 area. 5/21 It needs to open lower and trade lower to stay short. If it opens positive, watch for it to come out and test the T-line. Close this out on a positive open. 5/24 This one got scary. If you closed it out, it can be re-shorted on a weaker open on Tuesday. It came up, tested the T-line, and failed. If it trades weaker on Tuesday, it can be shorted.

5/20 Shorted PWER. It formed a Hammer. It can be shorted again on a lower open on Friday. We don't want to see it trade up above the 20 day moving average at around the $7.15 level. 5/21 It came up, tested the T-line, and backed off. To stay short in this position it needs to open lower. 5/24 If you closed this out on the positive trading on Monday, be ready to short it again if it opens weaker on Tuesday. The Doji tells us there was indecision and it's still in a downtrend. If it opens weaker, anticipate that it will move down to the 50 day moving average.

5/25 AEA was not bought on Tuesday because it opened lower. However, it traded higher by the end of the day. If it opens positive on Wednesday, you can be a buyer.

5/25 Shorted PACR. It opened lower and came back up. However, it should have been closed out on the close because it formed too strong of a signal. If you didn't close it on Tuesday, close it out immediately on a positive open on Wednesday.

5/24 Bought CRUS on Monday on the positive trading. It stayed positive even with the market selling off pretty hard. It needs to trade positive again on Tuesday. Use the 20 day moving average as your stop. If it comes back down through there, get out of the position. It needs to open positive and trade positive to move up through the T-line. 5/25 It should have been stopped out on Tuesday but we have reiterated it as a buy for Wednesday. Be ready to buy this on a positive open.

5/24 Shorted REN. If you shorted this on the weakness on Monday, stay short. We're looking for it to break down through the recent lows. We don't want to see it trade at all back up through Monday's high of $12.33. 5/25 Once it gapped down in the oversold area and started moving back up, it should have been covered. It definitely should have been covered when it closed positive on the day.

5/24 Shorted ELX on Monday. This was done based on the simple criteria that it would move in the direction of how it opened after the Doji. The stochastics are still heading down. Continue to stay short. 5/25 It should have been closed when it moved back up above Tuesday's open after gapping down earlier in the day.

5/21 Shorted VZ on the weak open on Friday. It came back up and closed just short of the halfway point of the previous day's candle. It needs to open lower and trade lower to stay in this short position. If it opens positive, close out the position immediately. 5/24 It did open lower. Continue to stay short. 5/25 It should have been closed when it moved back up above Tuesday's open after gapping down earlier in the day.

5/20 Shorted PVA as soon as it gapped open on Thursday. It traded down and is starting wave three with a strong move to the downside. 5/21 It bobbled back up. Give it another day. If it opens lower and trades down, stay short. 5/24 It opened weaker and headed down. Continue to stay short. 5/25 It should have been closed out after it gapped down and then started moving positive.

5/18 Shorted FCX. It gapped up early and then started losing ground. It could have been shorted. If you didn't short it on Tuesday, it can be shorted on Wednesday on weakness. 5/19 This can be shorted again on a lower open. 5/20 It gapped down. Continue to stay short. 5/21 It formed a Bullish Engulfing signal. If you didn't close this one out, it needs to open lower and trade lower to stay in it on Monday. 5/24 It touched the T-line and traded off. It can be shorted on weakness on Tuesday. 5/25 It opened lower and started moving back up. It should have been closed out as it came back up through Monday's close.

5/17 Shorted IOC on the weakness on Monday. It formed a Doji, so the analysis is very simple. It needs to open lower and trade lower to stay in it. We want to see it move down below the 200 day moving average. It's forming a bearish J-Hook pattern. 5/18 It can be shorted again if it moves below the 200 day moving average on Wednesday. 5/19 Remain short. It's breaking down nicely. It's a good options play for buying puts. 5/20 Continue to stay short and use Thursday's open of $50 as your stop. It shouldn't come back up through that level. 5/21 It came back up nicely. Watch to see how it opens on Monday. 5/24 Stay short. Use Monday's open as your stop. 5/25 At least half the position should have been closed out when it gapped down. The other half should have been closed out as it came up through Monday's close.

5/14 Shorted LYV on weakness. It's failing at this level which means it can move all the way down to the 200 day moving average. Continue to stay short and use Friday's open of $13.87 as your stop. 5/17 It came back up. It needs to open lower to stay in it. 5/18 It's still in a downtrend. Continue to stay short. Use the T-line as your stop. 5/19 It continued its slow downtrend. Continue to stay short. Use the T-line as your stop. 5/20 Continue to stay short. Use the 200 day moving average as your target. 5/21 It formed a Bullish Engulfing signal. It needs to open lower and trade lower to stay short. 5/24 It came up, just barely touched the T-line, and came back down. It's still heading for the 200 day moving average. 5/25 It gapped down and moved back up through the previous day's close. It should have been closed out at that point or definitely by the end of the day.

5/25 Shorted EXBD on the weak open. Stay short but if it comes back up through Tuesday's high of $30.09, close out the position. 5/26 It should have been closed out on Wednesday as it was trading positive. It can still be shorted if it comes back down through Wednesday's low of $30.37.

5/21 Bought HAUP. It can still be bought on positive trading. Use the T-line as your stop. It appears that the profit-taking is over. 5/24 It pulled back on Monday to the T-line. The stochastics are flat. Give it one more day. It needs to open positive and trade positive to stay in the position. If it opens weaker on Tuesday, close out the position. 5/25 We would have stayed in the position because it opened and just hovered in the same area most of the day. If you were stopped out, be ready to buy this on a positive open on Wednesday. 5/26 It should have been closed out on Wednesday as it closed below the T-line.

5/19 Shorted MSPD as it came down through our stop. It traded below the 50 day moving average. It can be shorted again if it opens lower on Thursday. That would tell us it's failing at the T-line. 5/20 It continued its downtrend. Look for it to potentially move all the way down to the 200 day moving average. 5/21 Give it one more day. If you didn't close it out on Friday, it should open weaker and trade down to stay short. 5/24 It didn't really trade positive all that much. If it opens weaker on Tuesday, it can be shorted. 5/25 This one gapped down and then moved back up but didn't show as much strength as some of the other positions. Be ready to close it out on a positive open. This one still has the possibility of heading down farther. 5/26 It should have been closed out as it opened higher on Wednesday.

5/18 Shorted CTXS when it came down through Monday's close as the market started getting weak. This could head right down to the 200 day moving average. 5/19 Stay short. 5/20 It's still in a downtrend. Look for it to head down to the 200 day moving average. 5/21 Watch to see if it opens weaker. If it opens positive on Monday, close out the position and see what it does at the T-line. 5/24 It opened weaker. If it opens weaker on Tuesday, it can be shorted. It should be heading for the 200 day moving average. 5/25 It didn't come up enough to show any significant strength. Continue to stay short. Use Tuesday's high of $43.43 as your stop. 5/26 It should have been closed out on positive trading but could have been re-shorted as it came back down through Wednesday's open.

5/17 Shorted CAR on the weakness. It's forming a bearish J-Hook pattern. If it opens weaker on Tuesday, it can still be shorted. Use any trading above the 50 day moving average as your stop. 5/18 Remain short. This can be shorted if it moves below the 200 day moving average on Wednesday. 5/19 It's still heading down. It can be shorted again on a weaker open on Thursday. It's starting wave three to the downside. 5/20 Continue to stay short. 5/21 It's in the oversold area so it definitely needs to have a weaker open and weaker trading to stay in it. If it opens positive on Monday, close out the position. 5/24 Once it opened, it started trading off. Be ready to short this on weakness. 5/25 It didn't show enough strength to close it out. It should be closed out if it comes up through $10.78 on Wednesday. 5/26 It should have been closed out on Wednesday as it opened positive.

5/14 SOMX was not bought because it opened lower.

5/13 Bought ISSI. It came back down and traded relatively flat after trading positive earlier in the day. Use the T-line as your stop. It should not trade below that level. 5/14 It should have been closed out as it closed below the T-line.

5/12 Bought KERX on the positive open on Wednesday but it came back down. It can still be bought on a positive open on Thursday. The J-Hook trajectory didn't changed. We don't want to see it close back below the T-line. 5/13 It came back down but stayed above the T-line. It needs to open positive and trade positive on Friday to stay in it. 5/14 It should have been closed out as it closed just below the T-line.

5/12 Bought SVM on the positive trading as it broke out above the recent highs. Continue to hold until you see a sell signal. 5/13 It backed off considerably. It probably should have been stopped out as it came back down through Wednesday's low. However, if you're still holding it, it definitely needs to stay above the T-line. If it trades at all below the T-line, close out the position. 5/14 It should have been closed out as it closed below the T-line.

5/11 Bought MOD on Tuesday as it came up through our buy stop. It had a nice day after the gap up off the Doji. It opened lower, moved down to the T-line, and came back up. 5/12 It's still moving in the right direction. Continue to hold. 5/13 It backed off a little bit but stayed above the T-line. It needs to trade positive and stay above the T-line to continue to hold. 5/14 It should have been closed out as it closed below the T-line.

5/11 Bought NEWS. It moved up nicely on Tuesday. It can still be bought if it breaks out through Tuesday's high of $8.11. That would put it up into new territory. 5/12 It's still moving up after the big Fry Pan Bottom pattern. Continue to hold. 5/13 It backed off but the uptrend didn't change. Use the T-line as your stop. 5/14 It should have been closed out immediately on the gap down open.

5/17 DTG was not bought on Monday because it opened lower. However, it can be bought on Tuesday if it trades positive. It can be bought if it moves up above $50.40 on Tuesday. Then use the T-line as your stop.

5/17 Bought CNAM as it went positive on Monday. It can still be bought on positive trading on Tuesday. Use the T-line as your stop. 5/18 It should have been closed out on Tuesday with it gapping down below the T-line. That tells us it has run out of steam. Now it's possibly forming a J-Hook pattern to the downside.

5/19 NETL was not shorted on Wednesday. Even though it opened lower, it immediately started trading higher. However, it can still be shorted if it comes back down through Wednesday's open of $26.65. If it opens lower or trades below that level, you will want to short it.

5/13 Bought KNL as it traded positive but it came back down and closed lower on Thursday. It needs to open higher and trade higher. If it opens lower, especially if it moves more than halfway down Wednesday's bullish candle, come out of the position. At that point it would probably come down to test the T-line and we would watch to see what it did from there. 5/14 It backed off but came right back up. It didn't close below the T-line. This can still be bought on a positive open on Monday. Use the T-line as your stop. 5/17 It can be bought if it opens positive on Tuesday. Continue to hold. 5/18 It formed a Bearish Engulfing signal and used the T-line as support. It needs to open positive and trade positive to stay in it. If it opens weaker on Wednesday, close out the position. 5/19 It should have been closed out on Wednesday as it traded lower after the Bearish Engulfing signal.

5/18 Bought DCTH on the positive trading on Tuesday. When the market turned around, this stock did NOT turn around. It held up. We're still looking for the J-Hook pattern to persist. However, use Tuesday's low of $14.80 as your stop. It shouldn't come back down through that level again. 5/19 It should have been closed on the lower open after the Doji.

5/18 Bought PRGS.  5/19 Close this immediately on a lower open. 5/20 It should have been closed on the lower open. Now it can be shorted on a lower open. It's setting up a bearish Scoop pattern.

5/14 Bought VHC after it consolidated and started coming back up again, even with the markets heading down. Coming out of the Fry Pan Bottom pattern this is still a good position. 5/17 It gapped open on Monday and pulled back. If it's in a breakout, it shouldn't trade lower. If it trades lower on Tuesday, close out the position. It needs to open positive and trade back up to stay in it. 5/18 It backed off to the T-line and came back up. It's still in a Fry Pan Bottom mode. If it opens positive on Wednesday, it can be bought. 5/19 It pulled back but notice how indecisive it was. Continue to hold as long as it doesn't close below the T-line. 5/20 It should have been closed out with it closing below the T-line.

5/13 Bought QCOR on the positive trading but it came back down and traded lower. It's having a tough time getting through this level. It needs to trade positive on Friday to stay in it. If it opens lower, you will probably want to come out of it and wait for the next buy signal. 5/14 It came down dangerously close to our stop. It could have been closed out with the market getting weaker. If it opens lower on Monday, close out the position immediately. 5/17 It's holding up well. It can't get below the T-line. It can be bought on a positive open on Tuesday. 5/18 It's still trading up. It's staying above the T-line. Continue to hold and use the T-line as your stop. 5/19 It hasn't closed below the T-line yet. Stay with it. 5/20 It should have been closed out immediately on the weaker open on Thursday.

5/7 SWM was not bought on Friday because the market was opening up weak. There was no necessity to jump right into this stock, which obviously showed more weakness by the end of the day. It can still be bought if it comes up through the $60 area.

5/7 Bought KERX but it should have been closed out with it closing back below the T-line on Friday.

5/10 Bought KG on a positive open on Monday. However, it came right back down and closed below the T-line. It should have been closed out at that point.

5/10 OC was not shorted because it opened in the opposite direction of what we wanted to see. Now it may be a good buying opportunity at this level. This can be bought on positive trading, especially if it comes up through the $36 level.

5/7 Shorted AKAM on the lower open. It traded down most of the day. Continue to stay short. We don't want to see it close above the T-line. 5/10 The strong premarket futures should have been an alert that a lot of these stocks that we were shorting and that opened positive should be closed out immediately. This was one of them. This short position should have been covered. Now watch to buy this on positive trading on Tuesday.

5/7 Shorted SMSI on the weakness after the big Belt Hold signal. Continue to stay short. We're looking for it to break back down through the 50 day moving average. 5/10 When it gapped up above the previous day's high, it should have been closed out.

5/6 Shorted AGM. Stay short. 5/7 Remain short. It almost formed a Tweezer bottom. Right now we don't want to see it close above Friday's high at the $20.22 area. 5/10 It should have been closed as it opened positive on Monday.

5/6 Shorted WYNN. Stay short. 5/7 If you're still short in this position, stay short. If you took profits on the first day, it would have been a good time to re-short it as it came back down through Thursday's close. 5/10 It should have been closed as it gapped up above the previous day's open. It formed a Doji so watch for a derivative Kicker signal to form. If it opens positive, it can be bought.

5/5 Shorted AMSC on the weakness on Wednesday. It closed up near the top end of the trading range but it's still down. If it opens weaker on Thursday, it will still continue down. We don't want to see it come back up through Wednesday's high of $28.14. Use that level as your stop. 5/6 Stay short. 5/7 Remain short until you see a buy signal. We don't want to see it trade at all above Friday's high. 5/10 It formed a Kicker signal to the upside. It should have been closed on the positive open Monday morning.

5/3 Shorted NETL. It can still be shorted if it opens weaker on Tuesday and starts trading down. It's still coming out of a Kicker signal to the downside. 5/4 Stay short. Use the 50 day moving average at the $30.30 level as your stop. 5/5 It traded lower. If it opens lower on Thursday, it still has a good chance of reaching the 50 day moving average. 5/6 You should have taken profits at some point on Thursday. Stay short and be ready to re-short it on weakness on Friday. 5/7 It's showing some bottoming action but stay short until you see confirmed buying. At this point we don't want to see it trade back up through Friday's high of $29.21. As a matter of fact, it should open negative and start trading down. If it opens and starts trading positive, close out the position. 5/10 It should have been closed on the gap up Monday morning.

5/10 Shorted QCOR on weakness. Stay short but use the T-line or Monday's high of $9.00 as your stop. We want to see it stay below the T-line. 5/11 It should have been covered on Tuesday as it closed up above the T-line.

5/12 AGM was not shorted. It opened higher and traded higher. It can still be shorted if it comes back down through Tuesday's low.

5/11 Shorted NRG. If you shorted it on the weakness on Tuesday, you're all right. However, it definitely needs to open lower and trade lower to stay in it. It formed a little Inverted Hammer although it's not anywhere near the oversold area. If it opens higher, it needs to start drifting off immediately. 5/12 It needed to open lower and trade lower to stay in it. It opened higher which meant it should have been closed out immediately, especially after the previous Inverted Hammer signal.

5/3 CML was not shorted on Monday because of the strength of the markets. Use Monday's low of around $12.50 to short this one. If it comes down to that level, it can be shorted.

5/3 CROX was not shorted on Monday. It opened and traded positive. It's in a situation now where it could be bought on positive trading on Tuesday.

5/4 IGTE was not bought. We would not have had any reason to buy this with the morning futures down as strong as they were.

5/4 TW was not bought. Keep an eye on it though. If it comes up through the $50 area again, you will want to be a buyer.

5/4 INAP was not bought although it showed a little strength. Even if a stock trades a little positive, you want to make darn sure it will stay that way based on the overall condition of the market. If it comes up through $6.10 on Wednesday, you will definitely want to be a buyer.

5/5 EXBD was not bought on Wednesday. It opened a little bit positive but the markets were sloppy so we wouldn't have jumped into the position right away. It can still be bought if it comes back up through the $32.50 area. That would tell us the Bulls are back in control after the Fry Pan Bottom breakout.

5/5 Shorted NCI on weakness on Wednesday but it should have been covered later in the day. It needed to move down through the 50 day moving average. However, it looks like it held up.

5/3 Bought UQM on Monday on the positive trading. However, as it was pointed out in the chat room Monday morning, the volume was fairly low in this stock. It can still be bought. Just be careful of the volume. 5/4 It needs to open positive and trade positive to stay in the position. 5/5 It opened lower and should have been closed out. However, be ready for it to open positive and start trading back up. You can probably get right back into the position.

5/6 Bought VTIV on the positive open. However, it should have been stopped out as it came down through the T-line once we saw the market cratering and it was selling off hard. There is no real rule to this decision. Intuitively we just know that when we see the market selling off this hard we want to be back out of the position. Later in the day it moved back up above the T-line. This can still be bought on positive trading on Friday.

5/6 Bought ATML. It traded positive for a little while but started coming down and should have been closed out at some point during the day, especially after seeing it close below the T-line.

5/5 Bought TZA. This is a good stock to have in the portfolio when the market is sloppy. Continue to hold until we see a definite reversal in the markets. 5/6 It traded up really strong. You should have taken some profits at some point during the day. If it opens positive on Friday, it can be bought again.


 

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