Steve's Trading Diary - August 2006
8/29 USG was not bought as it opened and immediately started moving down, but be prepared to buy this on strength over the next day or so. This means that you can be buying on any trading above $50. 8/30 Bought USG as it came back up into the $50 area. 8/31 closed right on the 50 day moving average. As a fry pan bottom pattern, this position needs to show immediate strength tomorrow breaking up through the 50 day moving average. Any weakness would warrant closing out the position. A close below the $50.50 level should be the next stop loss point. 9/1 closed below the 50 day moving average, the frypan bottom formation is still in progress. Continue to hold the long positions and use a close below the $50.33 level as your stop. Anticipate a strong breakout to the plus side, which should be the results of a fry pan bottom breakout. 9/5 consolidated slightly today but did not change the upward trend. Use a close below $51 as your short term stop. 9/6 should have been stopped out upon seeing the weaker open and immediate selling. The $51 level or the $50.33 level should have been used as stops. The logic here would have been seeing it opened lower and immediately selling off, that should have indicated that the sellers had taken control in the overbought conditions, the frypan bottom break out was not going to occur. 9/7 formed a doji at the 20 day moving average just below the 50 day moving average. If the position was closed on the weak trading, be prepared to buy it back on a positive open tomorrow. A close above the 50 day moving average would continue the fry pan bottom formation. 9/8 it can be bought on strength as it seems to be holding up above the 20 day moving average with Doji signals right at the 50 day moving average. Don't be afraid to buy this at anything above $49.30. 9/11 stay away from this for now.
8/28 OMNI was not bought because it opened lower, but be ready to buy it if it moves up on strength on Tuesday. 8/29 be prepared to buy this on strength if it moves higher on Wednesday. It formed a Dragonfly Doji on Tuesday. Be prepared to buy it on a positive open. 8/30 it needs to see strength on Thursday to break out of this range. Otherwise move your money to something else. 8/31 formed another doji trading relatively flat. This needs to see immediate strength tomorrow to continue to hold. The longer a position trade sideways, the less responsive it becomes to the bullish signal. 9/1 continued to trade slightly positive, it needs to see a strong bullish day either Tuesday or Wednesday to continue to hold this position. Any trading below the $8.80 level should stop out this position immediately. 9/5 is reiterated as a buy today. If you got stopped out with any trading below $8.80, buy again on strength. 9/6 would have been bought despite the fact the markets for opening weaker upon seeing open and immediately start the move higher. It traded lower near the end of the day but closed slightly above where it opened. This one also needs to open higher tomorrow and trade immediately higher to continue to hold the position if the markets in general are not showing any signs of strength. 9/6 can be bought on strength tomorrow after todays doji. 9/7 formed another indecisive trading day right on the 20 day moving average. It needs to close higher tomorrow to continue to hold the position, Any trading below nine dollars closeout the position. 9/8 this one should have been closed out at the $9.00 level.
8/24 Shorted ENER on the weakness, continue to stay short. It needs to go down through the 20 day moving average, which is right where it is holding right now, to continue holding this on Friday. 8/25 it remained weak. It tried to move up during the day but closed back down. Now use any trading above Friday's high of $33.05 as your stop. 8/28 it opened positive. It was stopped out as it came up through the $33.05 level on Monday.