Tuesday, March 15, 2011

Bounce from support

And a huge one it was! Market bounced from support (100MA) right at the open, to grind higher thru the day and end strong. Crude, gold, silver were all down, and not recovering as much as most stocks.
Dip buyers still come in the market, so no real panic yet it seems. Still, I can't imagine the market going straight up from here, we'll probably see some lower prices in the next few days.

The dollar rallied sharply during the pre-market selloff, but gave back all of its gains once the market started to rise. Even in these circumstances, the dollar can't hold any gains, so what will happen if the markets starts rallying again?!?

Swingtrades
Regarding my remark concerning TZOO in the previous post, I stand corrected, the stock made a new high today!

I covered 1/2 of my positions in SOA, GMO and NUVA, right at the open. I sold the remaining shares of SOA and GMO a little later on. SOA because it looked too strong and GMO cause it almost hit my target and now started going back up. Good thing I sold, both stocks ended the day much higher and closed very strong!
I kept NUVA since it looked weak. It barely bounced, unlike the market. However, I adjusted the stoploss to 25.55, just above the opening range high and nicely 'in the money'.

The results so far this week for my swingtrades aren't staggering, just near breakeven for now;
PAG: -4.05%
PCX: -5.77%
TZOO: -0.20%
SOA: +3.05%
GMO:  +5.61%
NUVA up 3.7% and still holding half my position.

Daytrades
I missed some great buying opportunities in POT, SLB and XHB. They all shot up at the open, not my style to be buying early in the day with so much volatility going on! I prefer seeing an intraday V-shape and than buy when the time has come (judging how extended price is, volume etc). I gave SLB a try but it felt like I was chasing price so the trade was scratched for a very small loss. Ten minutes later a rather small risk entry came by, but I didn't take it. Price went up with the market afterwards, so another missed opportunity.

2 minute chart for SLB:

Other stocks I almost entered were MCP and INFY, both on bounce from support. MCP I saw too late and I didn't want to chase price. It went down fast and on huge volume, a sign the down move was probably coming to an end. The white circle indicates where I was watching.
What I should have done was stalk the stock for another low risk entry!


INFY rather grinded down and wasn't too extended from the moving averages, so I didn't really trusted the action here. Price rested on the 200MA and after a triple bottom, it started moving higher to close near HOD.


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