Thursday, June 25, 2009


We frequently discuss our trades in the nightly newsletter. Last night we talked about how we screwed up a trade in MON short and in tonight's newsletter we'll talk about the trades we took this morning. Here's a preview:

Our day started with a small loss as we put out a small feeler short on BHI at 35.8 (ahead of the 35.6 short alert). The move started well as the stock went close to our alert (4 cents away) but then reversed sharply up and stopped us out at 35.9 out for a dime loss. This was a good tell for us to start looking long.

CNQ 51 resistance that we showed yesterday served as resistance again today. However we didn't short this at 51 because we liked the price-action and instead waited for an entry long. The entry long came as the stock consolidated on the 5min/20EMA and R1. It finally dipped a penny lower than previous low (went to 50.31), took the stops out, and reversed up. We bought from 50.46 to 50.6.

SNDA offered a base and break at 57.5; at 58 itself the break-out failed.

Our biggest trade though came in SPY itself. This is from last night as we wrote that "through today's high and we break the trend-line and have a good chance of going higher".

Yesterday's high was 91.08 -- stock went close to that area and stopped on R1 within the first 30 minutes of the day. Then the SPY reversed slowly back to the 5min/20EMA, consolidated, and broke-out. Buy point was just under 90.8 with around a 20 cent stop (90.6). If you're trading the ES the break-out was at 903. If you're trading the SPY/ES, this is as good as it gets with everything aligning as it should.

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