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Steve's Trading Diary - December 2010


12/17 TQNT was not bought on Friday. It would have had a very nice chart if it opened positive and traded positive. However, it gapped down and traded lower. Leave this one alone for now.

12/20 PPO was not bought on Monday. It opened and immediately started selling off. However, it can still be bought if it comes back up through the recent high levels on Tuesday. It's still showing a potential J-hook pattern set-up.

12/7 Bought MGIC on the positive open on Tuesday with the market moving up. It pulled back but it didn't do anything that changed the trajectory. If you bought it, hang onto it and use the T-line as your stop. If you didn't buy it, use Tuesday's high as your entry point to buy. If it comes back up through there, you will definitely want to be a buyer. 12/8 It traded up for awhile but closed weaker. It stayed above the T-line but it definitely needs to trade higher on Thursday to stay in it. If it trades back below the T-line, you will probably want to be out of the position. 12/9 It tried to break out on Thursday but came back down. It can still be bought if it opens positive on Friday. We don't want to see it trade back below the T-line. If it does, that tells you the Bears are consistently holding it down and you would want to be out of it. 12/13 This could have been bought again as it traded positive on the open. It broke out from the recent high levels to start another leg up. Continue to hold and use the halfway point of Monday's bullish candle at around the $7.45 level as your stop. 12/14 It moved back up near the close. Continue to hold but we don't want to see it trade at all back below Tuesday's low of $7.43. That would tell us the Bears are still there. It needs to trade higher on Wednesday. 12/15 It pulled back to the T-line and bounced up off of it. It needs to open positive and trade positive on Thursday to stay in it. 12/16 Stay long. 12/17 It backed off a little bit. It needs to open higher and trade higher on Monday to stay in it. It's still trying to set up another J-hook pattern. 12/20 A blindside announcement was released which told us there was going to be a new issue. It sold off hard. It should have been closed out on Monday. If you still own it, it needs to open higher and trade higher on Tuesday to stay in it.

12/16 Bought CSKI on the positive trading on Thursday. It closed just slightly positive but it's still an excellent one to be buying on a positive open on Friday. 12/17 It opened higher but came back and tested the T-line. It needs to open higher and trade higher on Monday to stay in it. If it trades back down below the T-line, close out the position. 12/20 It needed to open higher and trade higher, which it did. It stayed above the T-line. Now we need to see another positive open after the Doji to start carrying this one back up. Use a close below the T-line as your stop. 12/21 It closed below the T-line and should have been closed out.

12/8 Bought PRGS on Wednesday. It can still be bought on Thursday on positive trading. Use Wednesday's open as your stop. 12/9 It's still moving up nicely. It formed a Doji on Thursday. Use any trading below Wednesday's low as your stop. We don't want to see it form an Evening Star signal. 12/13 It consolidated a little bit but it was nothing to show a definite change in investor sentiment. We don't want to see any trading below Friday's open, which would coincide with the T-line. 12/14 It moved up nicely on Tuesday. Continue to hold. It's still in wave three. 12/15 It's still in an upward trend. Continue to hold. Use the T-line as your stop. 12/16 It moved up nicely. Continue to hold. 12/17 It's still in a slow uptrend. Use a close below the T-line as your stop. 12/20 It's getting a little bit toppy. It needs to open higher and trade higher to stay in it. Any trading below the T-line would warrant closing out the position immediately. 12/21 It closed below the T-line on Tuesday and and should have been closed out.

12/7 Bought JCP on the positive trading. The trajectory of the Fry Pan Bottom didn't change but if it trades below the T-line on Wednesday, you will want to be right back out of this trade. 12/8 It held up reasonably well on Wednesday. If it opens positive on Thursday, you will definitely want to be a buyer. If it closes below the T-line on Thursday, you will want to be out of it. 12/9 It's still staying above the T-line. If it breaks out, look to do a spread options trade while anticipating a strong move to the upside. 12/13 It should have been closed out on Monday with the close below the T-line.

12/6 Bought URI as it went positive on Monday. It's still moving up nicely. Continue to hold. 12/7 It opened higher and pulled back a little bit but the trajectory didn't change. Use any trading below Tuesday's low of $21.48 as your stop. That would probably mean it's coming back to test the T-line, but why take a chance? 12/8 It had a strong day and formed somewhat of a Kicker signal. It moved up farther coming out of the Fry Pan Bottom. Continue to hold. 12/9 It formed a Doji on Thursday but the stochastics seem to be heading up. Use the halfway point of Wednesday's candle as your stop, which would also probably correlate with the T-line coming up to that level. 12/13 It should have been closed out as it came down below Friday's low, especially since it opened positive and formed a Bearish Engulfing signal. If you still own it and it opens lower on Tuesday, close out the position.

12/13 SKS was not bought. It opened higher but immediately started selling off. Once it opened, we would have waited to see if there was more buying enthusiasm, but there wasn't. It can still be bought if it comes back up through the $12 area.

12/14 CRIC was not bought because it opened and immediately started trading down. However, if it comes back up through Tuesday's high of $9.27, you will want to be a buyer. There is a Scoop pattern setting up.

12/14 FRG was not bought on Tuesday. Even though it traded positive on the day, it wasn't significant enough to warrant buying the position. However, it can still be bought if it comes up through $11.52 on Wednesday.

12/13 Bought ELX. 12/14 It should have been closed out as it came down through the low of the Spinning Top signal.

12/8 Bought ATHN on Wednesday's positive trading. It definitely needs to have a positive open on Thursday. It had a Doji day on Wednesday. If it opens positive on Thursday, you can still be a buyer. 12/9 It's still moving up nicely. It can still be bought on positive trading after the Doji. 12/13 It formed a Bearish Harami on Monday. It's not quite into the overbought area. It needs to trade flat or have a positive open with positive buying after that. If it trades back below the T-line, get out of the position. 12/14 It formed a Bearish Harami on Tuesday. It needs to open positive and trade positive to stay in it. If it trades below $43, close out the position. 12/15 It should have been closed out on Wednesday as it closed below the T-line.

12/16 SIGA was not bought becuase it opened and traded down. However, notice it came right back down to the T-line. This will be a very good one to buy on positive trading on Friday.

12/3 RDN was not bought on Friday but if it comes back up through the $7.70 level, you will want to be a buyer. It's still showing a very nice bullish pattern.

12/3 GGAL was not bought on Friday but it can be bought if it comes up through the $17 area, which would be a new high.

12/7 Bought GGAL as it opened positive. If you waited and saw that it was backing off, you may not have bought it. If you did buy, you definitely should have closed it out when it closed below the T-line.

12/6 Bought AERL as it traded positive on Monday. It formed a Doji which still makes this stock a good one to buy it opens positive on Tuesday. If it gets moving, it could spike up because of great enthusiasm after a period of profit-taking. 12/7 It should have been closed out on Tuesday with it closing below the T-line. It moved the wrong way. This doesn't keep you from buying back in on a positive open on Wednesday.

12/6 Bought EXK on the positive trading on Monday. Continue to hold. It's still doing what it's supposed to. 12/7 When it gapped up in the overbought area, it needed to keep going. It should have been closed when it sold off. A prudent sell stop would have been at the previous day's close. If it came back down through that level, something was wrong. Watch to see what it does when it gets back down to the T-line. It may be doing a hook in an uptrend and taking a couple of days of rest.

12/3 Bought SOLR on the positive trading on Friday after it traded bullish following the previous Kicker signal and Doji. It can still be bought on any positive buying on Monday. 12/6 It continued up. It came up and nudged the 50 day moving average and there is still a lot of room in the stochastics to push through that level. Tuesday will be an important day to see if it can move up through the 50 day moving average. It's only about a five-point move to get to that level. 12/7 It opened right on the 50 day moving average and started trading off from there. It should have been closed out with the anticipation that it will at least support on the T-line, form a J-hook pattern, and then come back up through the 50 day moving average.

12/8 FTR was not shorted. It opened and traded weaker on Wednesday but not for very long. If you shorted it, stay short. If you haven't shorted it, it can still be shorted on weakness on Thursday. Notice how it used the T-line as resistance on Wednesday.

12/2 Bought IDT on the positive trading on Thursday. It's doing exactly what it should coming up through the T-line out of a little Morning Star signal. It can still be bought if it trades positive on Friday. 12/3 It's still moving up nicely. Continue to hold. At this point we don't want to see it trade at all back below Friday's low. That would provide too much bearish information. 12/6 It consolidated nicely back to the T-line but came right back up again. If it opens positive, you will definitely want to be a buyer. Use the T-line as your stop. 12/7 It came very close to being closed out. It formed a Bearish Engulfing signal after a Hanging Man with stochastics in the overbought area. It needs to open higher and trade higher to stay in it on Wednesday. 12/8 It should have been closed out on Wednesday with the close below the T-line after the Bearish Engulfing signal.

12/9 SLW was not shorted. However, still be prepared to short it if it starts trading lower on Friday.

12/9 LVS was not shorted with it opening higher. However, if it comes back down through Thursday's low of $46.20, it can be shorted. If it breaks through the 50 day moving average, it could come all the way down to the 200 day moving average.

12/1 MELI was not shorted because it didn't open lower in the strong market on Wednesday. This can now be considered as a buy based on the little J-hook pattern.

12/1 THO was not shorted because it opened higher. However, it can still be shorted if it trades back down through Wednesday's low. It was slammed down hard recently and didn't do much positive trading on Wednesday in a strong market. It's still being affected by downside pressure. Keep this one on your list as a possible short position.

12/1 SOHU didn't do anything to warrant shorting it. Wednesday was not a good day to be shorting anyway with the market so strong. Keep this on your list as a possible short position if the market suddenly falls apart.

12/2 SNCR was not bought on Thursday. It opened and immediately started trading off. However, it can still be bought if it comes back up through Thursday's high of $27.60. If it comes up through there, that means it's still trying to break out from the Fry Pan Bottom resistance.


 

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