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Steve's Trading Diary - August 2010


8/30 Bought ARUN. Continue to hold but we definitely need to see it open and trade higher off the breakout from the downtrending channel. 8/31 It traded up a little. Continue to hold. We want to see a positive open on Wednesday after Tuesday's Doji. 9/1 It's still moving up. Continue to hold. It's still coming up off the previous Kicker signal. Use the T-line as your stop. 9/2 It's not going anywhere in a hurry but it's still in an upward trajectory after the Kicker type signal. Continue to hold. Use the T-line as your stop. 9/3 It has been in a nice uptrend ever since the Kicker type signal formed. Continue to hold. 9/7 It's getting a little bit toppy but continue to hold. Use the T-line as your stop. 9/8 It's not doing anything exciting but it's in a slow steady uptrend. Continue to hold. 9/9 It formed a Bearish Engulfing signal. It's still up above the T-line but if it trades back down below Thursday's low, take profits and then see what it does once it hits the T-line. 9/10 It consolidated right back to the T-line but closed at the top end of the trading range. It needs to have a positive open on Monday to stay in it. 9/13 It's still moving up nicely, especially on the gap up from the Doji off the T-line. It tells us there is probably more upside potential in this one. 9/14 It's getting a little bit toppy in the overbought area. If it comes back down through Tuesday's low of $19.88, take some profits and see what it does at the T-line. 9/15 It's still in a nice steady uptrend. Continue to hold and watch for a sell signal. 9/16 After the previous Kicker type signal, it has been in a nice steady uptrend. Continue to hold. 9/17 It's still in an uptrend. Use the T-line as your stop. 9/20 It's still in a nice uptrend. Continue to hold. 9/21 It's still moving up nicely. Continue to hold until you see a sell signal. We might be starting to see the exuberance at this level so be ready to take some profits. 9/22 It sold off but didn't form a true sell signal. However, Wednesday was a selling day so if it opens lower and trades lower, close out the position. It needs to open higher and stay higher to stay in the position. 9/23 It stayed above the T-line on the close. It needs to close above that level on Friday to stay in it. 9/24 It's still up above the T-line. Continue to hold. Look for it to pop higher. 9/27 It's still strong and may be getting a little bit toppy. Just use a close below the T-line as your stop. 9/28 It consolidated and came back up. It can be bought on a positive open on Wednesday. 9/29 It's still in a slow steady uptrend. It needs to stay above the T-line. Continue to hold. 9/30 It was stopped out on Thursday as it closed below the T-line after a little Spinning Top signal on Wednesday.

8/27 Bought PLX on Thursday with the positive trading after the Kicker signal. Continue to hold and use the T-line as your stop. 8/30 It continues to move higher. Continue to hold. At this point use Monday's low of $7.58 as your stop. It shouldn't be coming back down through that level if it's in an uptrend. 8/31 Although it traded off a little bit, it's still in an uptrend after the Kicker signal. Continue to hold. 9/1 Continue to hold as long as it doesn't close below the T-line. It has formed a lot of Doji signals at this level so be careful. It's still coming up off the previous Kicker signal. 9/2 It moved up nicely on Thursday. Continue to hold. 9/3 It has been moving up nicely ever since the Kicker signal formed. 9/7 After a couple of big days to the upside, it formed a Doji. Use Tuesday's low of $8.11 as your stop. If it comes back down through there, take profits and then watch to see what it does at the T-line. 9/8 It's still moving up nicely. It formed a Doji a good distance away from the T-line. Use Wednesday's low of $8.10 as your stop. If it comes down through that level, take some profits. It would then probably come back down to the T-line. 9/9 It has been moving up nicely ever since the Kicker signal formed. Continue to hold. 9/10 It's working out very nicely. Continue to hold. It's still coming up off the Kicker signal. 9/13 It has been moving up ever since the Kicker signal formed. Continue to hold until you see a sell signal. 9/14 It's still moving up nicely. Continue to hold. This has been a good trade ever since the Kicker signal formed. 9/15 It finally formed a Bearish Engulfing signal but it's still above the T-line. We want to see it open higher and trade higher to stay in it. If it opens lower and starts trading down, take some profits. It will probably test the T-line but we won't know that until it gets there. 9/16 It should have been closed out on Thursday after it gapped down from the previous Bearish Engulfing signal.

8/31 Bought SXCI on the positive trading on Tuesday. Continue to hold as long as the Fry Pan Bottom pattern is in progress. Use the T-line as your stop. 9/1 It didn't do as much as we expected it to do. It came back down but continue to hold as long as it stays above the T-line. Close it out immediately on a close below the T-line. 9/2 It has finally broken out nicely. Continue to hold. 9/3 It's still moving up nicely. Continue to hold. We don't want to see it trade below the halfway point of Thursday's candle at around the $79.70 level. If it does, there will probably be profit-taking back to the T-line. 9/7 It pulled back and you probably should have closed it out on Tuesday. However, if it comes back up through the high of $80.37, you will want to be a buyer again.

8/25 Bought FOR on the positive trading on Wednesday. It's staying up above the T-line. Now it needs to break out above the 20 day moving average to reach the 50 day moving average. Hopefully, with this type of bottoming action there is enough force to get it through the 50 day moving average. Continue to stay long and use the T-line as your stop. 8/27 Continue to hold as long as it keeps trading above the T-line. Look for it to hit the 50 day moving average. 8/30 It needs to stay above the T-line, which means it needs to open positive and trade positive to stay in it. 8/31 It remains up above the T-line. Continue to hold. 9/1 It continues to move up. If it can break through the 50 day moving average, it has a lot of running room. 9/2 It's trying to push up through the 50 day moving average. Continue to hold. 9/3 It showed that the 50 day moving average was not going to act as resistance. If it opens positive, you can still be a buyer. The next target will be the 200 day moving average. 9/7 It used the 50 day moving average as support but it needs to open higher and trade higher to stay in it. 9/8 It's sitting on the 50 day moving average. Continue to hold as long as it stays above the T-line. However, after Wednesday's little Shooting Star type signal, it has to open stronger to stay in it. If it opens weaker, you will probably want to close out the position. 9/9 It formed a Bearish Engulfing signal. It should have been closed out on Thursday with it closing just below the T-line.

8/24 Shorted MBI as it opened lower on Tuesday. It can be shorted again if it opens lower on Wednesday. Continue to use the T-line as your stop. A lower open on Wednesday after a Doji would probably give it another big down-day like Monday. 8/25 It needs to open lower and trade lower for us to stay short. If it opens positive, close out the position immediately. 8/27 This obviously should have been covered as it came up through Thursday's open. That told us the Bulls were taking it up through the T-line.

8/24 Shorted WTW on Tuesday. It can be shorted again if it opens weaker on Wednesday. Notice how Tuesday's trading used the T-line as a resistance level. If it opens lower on Wednesday, it will probably head down to the 200 day moving average. 8/25 It's still using the T-line as resistance but formed a little Bullish Engulfing signal. Even though the stochastics are not in the oversold area, it needs to open lower and trade lower to stay in it. 8/27 It should have been covered as it came up through the T-line on Thursday.

8/23 Shorted IOC on the weakness on Monday. It moved down through the 200 day moving average. Now there is a good likelihood it will move down to the 50 day moving average. Continue to stay short. We don't want to see it close above Monday's open of $62.70. 8/24 It finished the day down at the bottom of the trading range. There is still some juice left in the stochastics. If it breaks through the 50 day moving average, it could move much lower. 8/25 If it opens positive on Thursday, close out the position immediately. For us to stay short, it needs a lower open and a breakdown through the 50 day moving average. 8/27 It should have been covered after it opened positive after the Doji after it supported on the 50 day moving average. It can still be shorted but only if it comes back down through the 50 day moving average.

8/9 Bought HANS on the positive trading on Monday after the breakout from the big Rounded Bottom pattern. Continue to hold. At this point use Monday's open of $44.74 as your stop. 8/10 This was reiterated as a buy on positive trading. Tuesday showed good consolidation but the Bulls are still in it. 8/11 This was not bought again on Wednesday but our current position shouldn't have been sold either. If it had closed below Tuesday's low, it would've been a different story. Instead, it held up. Use Wednesday's low as your stop. If it comes down below that level, it tells you the Bears are in control. 8/13 It closed below the T-line on Thursday but it needed to open lower and trade lower to close it out. However, it opened higher. Use a significant close below the T-line to close out this position. 8/16 It cannot close below the T-line. Now look for it to open positive. It can still be bought, especially after Monday's left/right combination. 8/17 It's still moving up nicely. Continue to hold. 8/18 Continue to hold. It's still in the big Fry Pan Bottom pattern. We're looking for a breakout. As a matter of fact, this might make a good options play if it breaks out pretty soon. 8/19 It's still moving positive. Continue to hold. Use the T-line as your stop. 8/20 It's in a slow, steady uptrend. Continue to hold as long as it doesn't close below the T-line. 8/23 It's still moving positive. Continue to stay long. Use the T-line as your stop. 8/24 It couldn't close below the T-line but it needs to open positive. If it opens weaker on Wednesday, close out the position immediately. 8/25 It's continuing up. Continue to hold. 8/27 If you closed it out on Wednesday, that was the right thing to do. Now it can be bought on positive trading on Monday as it has come back up through the T-line. The uptrending channel is now becoming the predominant factor.

8/30 SPMD was not bought on Monday. It opened at the T-line and immediately traded off. It can still be bought if it comes back up through Monday's open at the T-line.

8/30 Bought VRML but it should have been closed out on the close below the T-line. Unfortunately, there wasn't very much volume being traded in this stock.

8/27 Bought OVTI on positive trading on Thursday. It formed a Doji and then moved up nicely on Friday. Continue to hold and use the T-line as your stop. 8/30 It should have been closed out on the Bearish Engulfing signal and the close below the T-line. There is probably a downward trend channel in progress.

8/23 Bought MELA on the positive trading on Monday. Notice what it has done over the last few days. If it opens positive on Tuesday, you can still be a buyer and use the 50 day moving average as your stop. The fact that it has gapped up twice coming out of the Scoop pattern may add a strong force to the upside. 8/24 It backed off on Tuesday but didn't do anything decisive. Continue to hold and use the T-line as your stop. 8/25 This is still a good position. We're expecting it to move up to the 200 day moving average. Use the T-line as your stop. 8/27 It continues to slowly move up. Continue to hold and use the T-line as your stop. 8/30 It should have been stopped out. I would've put my stop at the low of the Hanging Man signal, which was at the 50 day moving average. It shouldn't have come down through that level if it was still in an uptrend.

8/20 Bought DDS on Friday even though the market was sluggish because it kept trading positive all day. It closed near the 200 day moving average. It can still be bought on a positive open on Monday. Continue to use the T-line as your stop. 8/23 It opened positive and came back but didn't do anything to change the uptrend. Continue to hold and use the T-line as your stop. 8/24 Although it pulled back, it didn't show any weakness on Tuesday. Continue to hold as long as it doesn't close below the T-line. 8/25 It's still holding up. Continue to hold as long as it stays above the T-line. 8/27 It's staying above the T-line but just barely. It needs to break out fairly soon. Continue to hold but we don't want to see it close below the T-line. 8/30 It should have been closed out with it closing back below the T-line, especially after a Hanging Man type signal.

8/31 Bought LLEN Tuesday morning on the positive trading but it should have been closed on Tuesday afternoon. Obviously, it closed below the T-line.

8/27 Bought INFN on Thursday on the positive trading. It pulled back but came right back up again on Friday. Continue to hold and use the T-line as your stop. 8/30 It needs to open positive on Tuesday and stay positive. If it opens below the T-line, close out the position. 8/31 It should have been closed out on Tuesday as it traded below the T-line. However, it can be bought back if you see positive trading after Tuesday's Doji.

8/31 Shorted CML as it showed weakness below Monday's open. It closed right near the T-line and needs to open lower and start trading down to continue to hold the short position. At this point we don't want to see it come back up through Tuesday's open. 9/1 It should have been closed out on the positive open on Wednesday. With the futures up that strong and with it bouncing off the T-line, there was no reason we would think it would continue trading down. If you're still in a position, stay with it as long as it doesn't close above the T-line.

8/25 Shorted HGR on the weakness but it closed more than halfway up the previous day's candle in the oversold area. If you didn't close it out on Wednesday, it needs to be closed out immediately on a positive open. If it opens lower, it needs to start trading down for us to stay short in the position. 8/27 We shorted this when it was trading lower on Wednesday. It came back up but it hasn't been able to come up thorugh the T-line. However, if it opens positive on Monday, close out the position immediately. 8/30 Continue to stay short. There is nothing yet to tell us the downtrend is not running well. 8/31 Continue to stay short. There are no signs of strength yet. 9/1 It should have been closed out immediately on the positive open on Wednesday. With the little Inverted Hammer in the oversold area and seeing the futures up strong on Wednesday, it was a good time to take profits.

8/23 Shorted MDCO as it came down through our stop area. Continue to stay short. Use the T-line at the $12.35 level as your stop. 8/24 It continued down. It can still be shorted one more time if it opens weaker on Wednesday. 8/25 It formed a Bullish Engulfing signal but it's not in the oversold area. It needs to open lower and trade lower for us to stay short. 8/27 It hasn't been able to close above the T-line yet. However, if it opens positive on Monday, close out the position immediately. The stochastics are starting to curl up and we've seen two Bullish Engulfing signals. 8/30 It's still in a downtrend. Continue to stay short. 8/31 It still can't get it up above the T-line. Continue to stay short. 9/1 It should have been closed out with the close above the T-line. It was getting into the oversold area and wasn't backing off very much so it was time to get out of the position.

8/20 Shorted PTRY. Continue to stay short but it needs to open lower and trade lower on Monday. If it opens positive and starts trading positive, close out the position. 8/23 It traded positive but didn't get through the T-line. Continue to stay short but we definitely need to see it open lower. If it opens positive on Tuesday and trades up above the T-line, close out the position. 8/24 It had a Doji type day. It can be shorted again if it opens weaker on Wednesday. We're looking for it to break down. Stay short as long as it stays below the T-line. 8/25 It's still below the T-line. However, it needs to open lower and trade lower. Close out the position on a positive open. 8/27 We're still short in this position but it's not going anywhere. Close it out immediately on any trading above the T-line. Notice how it's very lethargic. The stochastics have not gotten back into the oversold area. This stock has never broken down so if there is any positive trading above the T-line, close it out immediately. 8/30 It can't get up above the T-line. Continue to stay short. Close out the position on any trading above the T-line. 8/31 It needs to have a breakdown pretty quickly. If you closed it out on Tuesday with it trading above the T-line, that's fine because it's in the oversold area. If you still own it and it trades up above the T-line on Wednesday, close out the short position. 9/1 Not only should this have been closed out on the positive open but it can now be bought if it opens positive on Thursday.

8/20 Shorted GENZ on the weakness Friday morning but it should have been closed out at the end of the day. It obviously showed too much strength and can now be considered as a long position on a positive open on Monday.

8/18 Bought PACR. It can still be bought if it opens positive on Thursday. We don't want to see it trade back below Tuesday's low of $5.50. That would tell us the Bears are back in control. 8/19 It backed off to the 200 day moving average. It needs to open positive and trade positive to stay in it. If it opens lower on Friday, close out the position immediately. 8/20 It should have been closed out on the weakness. It failed the T-line. It can always be bought back if a second bottom forms.

8/24 FDS was not bought on Tuesday with it opening lower. It needed to open higher to break out.

8/17 Bought GFV0 on the positive trading. We don't want to see it come back through Tuesday's low at $113.07. It can still be bought on Wednesday on positive trading. 8/18 This could have been bought again. Continue to hold. It moved up nicely on Wednesday and also moved up after hours. Put a stop at the point where it opened on Wednesday. If it comes back down through that level, you will obviously want to be back out of it. 8/19 It moved up nicely. It consolidated a little bit after hours on Thursday but still traded back up again. Continue to hold even though it's a good distance away from the T-line. At this point use the halfway point of Wednesday's large bullish candle as your stop. We do not want to see it trade at all below that level. 8/20 It continued to move up nicely. Continue to hold. It's a good distance away from the T-line so we definitely want to put a stop at Friday's open and then watch to see if there are any sell signals by the end of the day. 8/23 Stay long. However, set your stop at the $117 level, which is at the halfway point of Friday's bullish candle and below the low of Monday's trading. 8/24 It should have been closed out on Tuesday as it formed a Bearish Engulfing signal. After hours it's trading down even more. It will probably come back and at least test the T-line.

8/11 Bought CMFO as it came back up through Tuesday's close after it opened lower and traded down to the T-line. Why would we be buying this with the market trading off so much? Because, if you see strength in a stock when the markets are off 260 points, something is going on with that stock and you want to be in it. If you didn't buy this on Wednesday, you can still buy it on Thursday on a positive open. 8/13 It might be running into a little bit of resistance at the 200 day moving average. Otherwise, it's still acting well. Continue to hold. At this point use any trading below Friday's low as your stop. If it comes back down through there, it would tell us the Bears are in control and it failed at the 200 day moving average. 8/16 It's still fighting against the 200 day moving average, but it's not giving up ground. We're still looking for it to break out to the upside. 8/17 It continues to fight with the 200 day moving average but hasn't backed off any. Continue to use the T-line as your stop. 8/18 It finally came up through the 200 day moving average. It should be heading for much higher territory. 8/19 It's still moving up. It's starting wave three. Continue to hold. At this point we don't want to see it trade at all back below Thursday's low. We want to see it open and move higher to fulfill the wave three move. 8/20 It's still in a slow uptrend. Continue to hold and use the T-line as your stop. 8/23 It's getting a little bit toppy at this level but hasn't closed below the T-line. Continue to stay long. 8/24 It should have been closed out on Wednesday as it traded down through the T-line, especially with the markets not showing any strength.

8/25 TSL was not bought on Wednesday but can still be bought if it comes up through the $24.15 level. If it comes up through there, it will have broken out into new territory, especially after the Belt Hold/Bullish Engulfing signal.

8/25 OPEN was obviously not shorted on Wednesday.

8/16 RGLD was not shorted. It did not open weaker. It opened stronger so it was not shorted. However, now watch for a J-Hook pattern set-up.

8/13 Shorted FOE. It's not showing any strength yet. It did show bullish trading on Thursday but continue to stay short. At this point we don't want to see it trade above Friday's high of $10.34. 8/16 It should have been closed out on Monday, especially when it opened lower and came back up through Friday's Doji signal. Right now it's setting up for a left/right combination. Obviously this shouldn't be held as a short position anymore.

8/17 BRKR was not bought. It opened lower and closed higher but didn't come up through our buy stop.

8/16 Shorted FDX on the open. It came back up. Continue to stay short but if it comes back up through Monday's high of $81.50, close out the position. It should be opening lower and trading down, probably to the 50 day moving average. 8/17 It should have been closed out on the positive open on Tuesday.

8/18 ARGN was not bought. However, it can still be bought if it comes back up through the $11.20 area. After a day of consolidation that would take it up into new high territory.

8/18 AGCO was not bought. It opened lower and traded down. If it comes back up through the $37 area, it can be bought. That would tell us the J-hook pattern is still in progress.

8/19 ERJ was not bought on Thursday. It formed a Bearish Harami. It failed to open higher and move to a new high. It can now be shorted if it opens lower on Friday.

8/19 TSL was not bought. With the market being weak, it just hovered at its current level. It didn't do anything to indicate a breakout.

8/17 Bought SYNA on the positive trading. Even though it came back down it's nothing to worry about, but we do want to see it open positive and trade positive on Wednesday. We don't want to see it close back below the 200 day moving average. 8/18 It didn't do anything magnificent but if it comes up through Wednesday's high at $28.82, buy it aggressively. That would tell us it's breaking out through the T-line. 8/19 It should have been closed out with it trading lower on Thursday. It needed to open positive and trade positive.

8/17 Bought KITD on the positive trading. It's forming a Scoop type pattern off a Kicker signal. If it breaks out through the 50 day moving average it will immediately go to the 200 day moving average. We don't want to see it close back below the T-line at the $9.00 range. 8/18 It consolidated nicely right back to the T-line and then closed near the high end of the trading range. If it opens positive on Thursday, it can be bought on the Scoop type pattern. 8/19 It should have been closed out with it closing below the T-line. It failed to get through the 50 day moving average.

8/16 Bought EPAY but it opened and drifted most of the day. However, if it comes back up through Monday's high at the $14.50 level on Tuesday, be a buyer. This is still showing a very strong signal. 8/17 It could have been bought as it came back up through Friday's close. Continue to hold and use the T-line as your stop. 8/18 It moved right back up. Continue to hold. It should move right up to the 200 day moving average. Use the T-line as your stop. 8/19 It was holding up well but had to be closed out on Thursday with it closing below the T-line.

8/13 Bought CFN. Over the last couple of days this stock has not been able to close below our stop of $22.74. It got close and closed at $22.75 on Thursday and closed at $22.85 on Friday. This one can still be bought on a positive open on Monday. 8/16 If you own this, continue to own it as long as it doesn't close below the T-line. More than likely it will squeeze between the T-line and the moving average at this level before it takes another shot to the upside. 8/17 It still isn't going anywhere. It was trading up a little bit on Tuesday but backed off. Still use the T-line as your stop. 8/18 It's still coming back very indecisively. This should not be closed until it closes below the T-line. If it breaks out to the upside, start buying it aggressively. 8/19 It needed to open higher and trade higher. It should have been closed out with it closing below the T-line.

8/6 Bought GAP. It has finally run into resistance at the 50 day moving average, but notice that the stochastics are not in the overbought area. More than likely it will be squeezed between the 50 day moving average and the T-line before it pops through to the upside. Continue to hold and use the T-line as your stop. 8/9 It should have been closed out on Monday as it closed below the T-line.

8/10 EBIX was not bought on Tuesday. However, it can still be bought if it comes up through Monday's close. We're seeing a pullback after a breakout. If the Bulls are in control, they will bring it back up to a new high.

8/10 SSP was not bought on Tuesday because of the market heading down. However, if it comes back up through Monday's close, it can be bought.

8/10 ARNA was not bought. There wasn't enough strength being shown on Tuesday. If it comes up through Monday's high at $7.60 level, it can be bought. That would tell us that J-Hook pattern is still in progress.

8/11 GRS was not bought. However, it can still be bought if it comes up through the $6.25 level. It didn't back off that far on Wednesday to make us disregard the position.

8/9 Bought TSL. It opened and came back down but then came back up again. It can still be bought on a positive open on Tuesday. It would be confirming a J-Hook pattern breakout. 8/10 It backed off right to the T-line area. We need to see it open positive. If it opens positive, you can still be a buyer. 8/11 It should have been closed out immediately on the weaker open on Wednesday.

8/9 Bought RS on the positive trading on Monday, but it pulled back. It's nothing to be concerned about just yet unless it closes below the T-line on Tuesday. We need to see it open positive and move up immediately on Tuesday. 8/10 It backed off but notice it didn't close below the T-line. If it opens positive on Wednesday, you can be a buyer. If it opens lower and starts trading down, close out the position. 8/11 It should have been closed out immediately on Wednesday on the lower open.

8/6 Bought MOD. It hasn't been able to close below the T-line. Continue to hold. If it breaks through the 200 day moving average, it has a lot of running room coming out of the Fry Pan Bottom pattern. 8/9 It moved up nicely. If it breaks through the 200 day moving average, it has a lot of running room. Use the T-line as your stop. 8/10 It's still butting its head up against the 200 day moving average. It hasn't done anything to show us the sellers are in control. Continue to hold and use the T-line as your stop. 8/11 It should have been closed out on Wednesday on the lower open. However, it didn't go very far. Keep an eye on it. If it comes back up through the 200 day moving average, you will want to be a buyer.

8/6 Bought ESRX. It hasn't been able to close below the T-line. Continue to hold. Look for the 50 day moving average to be the next target. If it breaks through that level, it still has some running room. Use the T-line as your stop. 8/9 It's bouncing between the T-line and the 200 day moving average. Use the T-line as your stop. It's not quite in the overbought area, which implies it's still in an uptrend. 8/10 It's still holding up above the T-line. Look for it to open positive. If it closes below the T-line, close out the position. 8/11 It should have been closed on the lower open on Wednesday. It needed to open higher to stay in it.


 

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