Monday, March 21, 2011

Tight range day

The S&P gapped up big (big gaps up or down seem to be very common these days...) only to stay between 1295 and 1300 all day long. So a rather boring day. The Dow and S&P closed right under their 20- & 50-day moving averages. Nasdaq is still a long way under those moving averages both finally closed above it's 100MA. I suspect we might see some more choppy action in the next days.

I'm very upset with my trades today, in most cases I chased price or took a sloppy setup. Two thoughts here: first, don't chase price when markets gap up like this! And second, don't short a strong up-market like today unless you find the 'perfect' setup. Better sit on your hands all day then throw away money like I did today...

First trade was a short trade by Stewie. He went in LDK at 11.22, I got a better entry (11.385 average) but we got stopped out 11.65 in no time.

Then I tried a short of my own, CCI. I shorted 37.12, on a break of base above the number. But price reversed quickly. In hindsight, the up-volume in previous candles should have gotten me out of this trade. Stopped out 37.33.

The only (small) winner of the day, long BGS. Nice base 19.20, in on break of base. The only mistake was waiting too long to get out. I kept SL @20EMA on the 5m-chart. The inverted hammers on the 15m- and 5m-charts were warning signs to get out. Getting out sooner would only made me an extra 4 cent (x1000), but still, in this tape you have to take what ever the market offers you.

In long on GPOR after a small pullback, but I chased price. In after the big, strong closing up-candle, then price moved sideways. The stock formed 3 bearish candles, nevertheless I waited for it to move thru the stoploss... Argh!

Last one, CCJ long. In after the up-candle, in hindsight, too early. I should have waited for the 5EMA to cross the 9EMA (which didn't happen, so I would have stayed out). Price then formed a bearflag which I noticed, but I couldn't short it since my laptop freezed (it doesn't always have to be me who freezes I guess).

Hopefully tomorrow will be less choppy and I need to take only the A+ setups and nothing else!

No comments:

Post a Comment