We started our swings two weeks ago all based on a run to OIH 136 which represents daily resistance, weekly 200SMA, and monthly 50SMA. Well, we're here now and we have completely sold out of some of our commodity positions (APA BTU SWN ) but are still holding what's left of our CLF OXY UPL ATPG commodity positions. The only one we don't have a comfortable cushion on is ATPG with 14.56 average. We'll take the loss there on any close/move under 14.41 (200 SMA which it has repeatedly bounced off of). We'll also be swinging VALE from 33 on a good close, an alert from last night's newsletter.
This whole plan which at some point consisted of having 10 swing positions (a lot for traders who are used to daytrading) was based simply on the target trade strategy. It gave us conviction to hold through all the chop of the recent days.
A few weeks ago we noticed a crop of commodity charts with excellent charts and exact targets. We wrote about these target alerts repeatedly in the newsletter (and which, happily for us, many of our subscribers also got into) of for example APA 111, OXY 89 (and then when it worked quickly, we held for secondary target of 91), CLF 72, BTU 60. All were hit and we sold into it but held onto a last little bit in case of continuation (which we got and finally sold last of APA BTU today).
Our targets in UPL (49) CLF (72) OXY (secondary target 91) still have not been hit and we're happy to sit in what's left of our positions and wait for these to also break-out. Thanks to the early swings we have no multiple point cushions and stops above our entry points.
So now what? We'd like to chop around OIH 136 for a while and digest the gains. If that occurs a fresh new crop of set-ups will emerge and we'll start the game all over again. But for now, we're laying off the gas pedal and chilling. Of course market could keep on ripping higher but for us the edge for trades for new entries has now dulled.