April 8, 2008

Net: $111
LFT: $8
DD: $7
Trades: 43
Shares: 4600

Saw ALV from ToS’s Sizzle Index search, decided that it was a nice long when I saw the reversal with (relatively) big volume. Went long at 50.97. A few moments later the chart changed and the big volume candle was gone.. I was concerned that it might be a fake, however I decided to hold on to it until it stops me out at the low (50.80). I decided to take it at 50.40, based that from yesterday’s high. This was a very good trade.

alv-040808.png

Next up was BAC. Went long 100sh at 39.01, seeing what seemed to be a forming ascending triangle. Stop was at 39.96. I had picked a very good spot to cut.

Few moments later it spiked up, confirming my bet, and went long another 100sh at .21 since I missed the .16, however my target was at .40, the stock and other financials got slammed before my target, much to my frustration. It went back to my price again, and lower.

Frustrated, I decided to buy 100sh more at .99. I took 200sh at .10 and .11 just so I could lock in my profits. I still kept my hopes of it hitting .40 and didn’t at all expect the stock to range so I kept 100sh.

I took the last 100sh at .15, seeing that it might be forming a descending triangle now, and went short. Covered and reversed when it hit .18.

bac-040808.png

Been watching XLE today waiting for it to hit pivots and reverse from there, however I missed them because I was watching BAC and ALV.

Finally an opportunity presented itself on the short side, upon XLE’s breaking of the pivot I shorted XOM, with a at 89.60 with a stop at 89.72. It looked like a potential reversal pattern. It materialized!

However I covered at 89.24, I thought the stock was way oversold and due for a small pullback but NO! Went on down to 89.08 then pulled back to 89.24 before melting down to 88.90 and eventually 88.65.

xom-040808.png

What I did right:

Stuck to my discipline on ALV, and stuck to my discipline on BAC, rewarding me with handsome gains.

What I did wrong: 

Didn’t think that BAC would range, had I thought of that scenario I would have gained a lot more than what I had. It is important to think of multiple scenarios and plan accordingly.

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