March 27, 2008

Net: $108
LFT: 0
DD: $4
Trades: 50
Shares: 5000
Frame of Mind: Same as yesterday’s, careful and risk averse.

Started shorting CAG at 23.28,  added another 100 shares at 23.24, because the range was broken. Took half at 23.11 since I thought the gap wouldn’t be filled since it was too huge. From 23.08 low it squeezed up to 23.40. I took my remaining shares at breakeven.

cag-032708.png

Saw nice S/Rs on COP and XLE, they were at the highs touching the pivots then decided to play them.

cop-032708.pngxle-032708.png

I first noticed that XLE might be forming an ascending triangle, I then looked at COP, which was the closest ascending triangle oil stock I could find. Started going long around 76.80, to cut .20 below, pretty good support I thought since there was some consolidation around .60-.70 earlier.

And so it went up, sold my long, then sold short, assuming the scenario that it would fall back to form the  triangle. I knew the triangle was fucked when XLE started breaking the recent lows, ahead of COP. From there I had no idea where to pick bottom so I didn’t do that. I shorted the 2nd bounce up, thinking there would be some resistance up there after falling that hard, my target was at .00. That was another good call, however the stock dropped only to .20 and formed a bullish doji.

After seeing the doji I was leaning towards the bullish side now, and also the XLE had support at that area and seemed to have found support. that was a good call.

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