Steve's Trading Diary - May 2006
5/16 Bought HNT on the positive open. It had a nice move to the upside on Tuesday, continue to hold. 5/17 continue to hold. Now use a close below $40.60 as your stop. 5/18 it consolidated but closed at the top end of the trading range, continue to hold. 5/22 it's still moving up steadily, continue to hold. Anticipate a target of $44.85 at the 50 day moving average. 5/23 it pulled back slightly. It may be consolidating. Use a lower close on an indecisive pullback to close out the trade. 5/24 it's still consolidating but isn't pulling back, continue to hold. Now use a close below Wednesday's low of $41.09 as your stop. 5/25 it's consolidating sideways, forming good signals. Look for it to eventually move up to the $44.40 area. 5/26 it's slowly moving higher. We're still targeting the $44 level. If it closes below Thursday's low of $41.20, close out the position. 5/30 it's still trying to move higher, continue to hold. 5/31 it's continuing to move higher, continue to hold. 6/1 it broke through the 50 day moving average, continue to hold. 6/2 it formed a Doji-type signal. Be ready to close this one out if it opens lower and trades lower but see if it supports at the 50 day moving average. You may want to take half of your profits on a lower open. Use a close below $43.70, halfway down the previous white candle, as your stop. 6/5 it consolidated. If you took off half of your position, continue to hold and be prepared to buy it on any signs of strength, especially in this market. 6/6 it's getting toppy. It formed another Doji at the top. Be ready to close this one immediately on a lower open on Wednesday. 6/7 it continued to move up, continue to hold. 6/8 it formed a Shooting Star-type signal. Be ready to take profits on a lower open followed by selling on Friday. 6/9 it's starting to show some consolidation. It opened slightly higher. Be ready to close this one out on any trading below $45.44. 6/12 it finally broke down. This one should have been closed out as it traded below the $45.44 level.
5/15 Shorted NWY on the weakness. It can be re-shorted on a lower open on Tuesday. 5/16 it moved closer to the 50 day moving average, continue to stay short. We're anticipating a test of the 50 day moving average and maybe even lower. 5/17 continue to stay short. It failed to hold at the 50 day moving average. It could now potentially test the recent lows at the $14 area. 5/18 continue to stay short. It moved down nicely on Thursday, closing at the low of the last two months. There should be more downside movement left in the stochastics. It could possibly go lower. The next target would be in the $10 area. 5/22 it's showing support at the $14 range. It formed a Bullish Harami on Friday and formed another bullish candle on Monday. Be ready to close this one out if it opens and starts trading up above the $14.10 level. 5/23 it opened and continued down, continue to stay short. 5/24 continue to stay short until we see a candlestick buy signal. 5/25 it formed a selling signal, stay short. 5/26 it's starting to form a flat trading area. Be prepared to cover this on any trading above $13 a share. 5/30 it still hasn't shown any strength, continue to stay short. 5/31 it formed another little Doji, continue to stay short. Now use a close above $12.25 as your stop. 6/1 it formed a Bullish Harami. Be ready to close this position out on any positive trading on Friday above $12.23. 6/2 it traded above our $12.23 stop. It should have been stopped out with profits taken.
5/31 Bought DRL as it opened higher. If you bought it on Wednesday's open, continue to hold it and be prepared to buy more on strength on Thursday. 6/1 it's moving higher, continue to hold. 6/2 it formed a Bearish Engulfing signal. It seemed to be resisting at the $7.80 level. If it opens lower on Monday and starts trading down, close out the position. It needs to open and immediately see some bullish strength come into the price.