Wednesday, September 29, 2010

Update on steel positions

Update on Update:   whenever our short and long go green at same time we think "it's a good time to flatten out".   Out QLD for a few pennies, and rest of NUE X ATI for just under 2%.     Back to cash in all accounts. 

Update on our steel positions:

All are through trend-line and because of that we have moved stop to break-even in all three positions.   We're only up around 2% in each so not much cushion but hopefully good enough to stand the chop until we get continuation.     Long NUE 37.67, X 43.55, ATI 45.51.     We're hedged with QLD short from 66.80.  We most likely will take a loss in the QLD position if steels break-out further but want to have it on the book in case of gap down.

Tuesday, September 28, 2010

Watch the steels

We think this sector is ready to wake up from its long slumber:

Here are 4 we are watching (we're already in X looking to swing).

Click on charts to see our trend-line alerts.

Sunday, September 26, 2010

Intermediate swing ideas

If this rally continues then most likely the laggard commodity sectors will be playing catch up.  Here are some frew ideas for the swing traders out there:

ECA looks great on the break up through the down trend-line.  

If WHR can wait a few days resistance will meet the trend-line  -- entry would be long through there.

The next two trades would be bounce on trend-line swings rather than breaks of trend-line.  This type of trade offers good risk-reward if you can get in close to the trend-line as the stop will be close-by, right under the trend-line. 

BHI bounced on the trend-line but still close enough for good risk-reward.  Entry would be here with stop under trend-line.

X has suffered  horrible price-action but interesting low risk spot here on the bounce on the trend-line.  If this rally is for real it most likely will push even these type of performers up.    Entry would be here, stop would be below trend-line.