Monday, April 11, 2011

More downside

Markets are rolling over, the question now is, how far down will they go? Some major moving averages (20MA & 50MA) are right below us and may act as support.
Gold sold off, but not as hard as crude oil and silver. Oil lost +3% and silver 1.3%. A logical dip since all were significantly overbought.

I closed my remaining swingtrades, those of today for breakeven. I also entered a trade in LO, ment as a swingtrade, on the break of the bullflag. But when the market started turning, I sold near breakeven, no need to fight the tape, we're probably going lower tomorrow, or stay in chopmode...
I bought May SPY 128-puts and will probably sell these tomorrow if markets keep heading south.

My first daytrade was in RIG, but my entry was bad. I was watching the 2m-chart (depicted below). But I should have checked with the 5m (and 15m as well). On the 5m-chart, the 9EMA was still far below price plus, R2-pivot was just above. Basing above a pivot would be more positive than basing under. In other words, this entry was far from good.

My entry in REE on the other hand, was very good, right after the hammer above 9EMA and R1 (although I missed an excellent opportunity at the open - see circle). I sold partial after the big volume spike up, the rest at breakeven. My SL was just above the 9EMA instead of below, again because I was paying more attention to the 2m-chart than the 5m. Let's not make a habit of that. By the way, my first target was 15.90...

The market rolled over intraday and I chose to go long TZA after a small pullback. Immediately, a spike up followed and I took partial gains. This time, I kept my stop under the 20EMA on the 5m-chart, but I got stopped out anyway. Of course, little after that, TZA went higher when the market tanked again.

CAM was mentioned in the HCPG-newsletter as a support-trade. 54 was the number to look out for, which was the 100MA.
Price didn't bounce hard, maybe because the stock rather travelled lower along it's moving averages, instead of falling down on volume. Still, it was good enough for small gains although I hoped for more. Oh well, it will pay for another month of their newsletters!

No comments:

Post a Comment