Thursday, February 14, 2008

Trading for 2/15/08

A pullback from this rally had to come, and today was the day. Four of my picks barely broke my buy points from last night, but 3 were on pitiful volume, and of course the market pressure early on was a sign it would not be a good day for breakouts. Of the 4 picks that "broke out", CNX, RRC, BMRN and INCY, only INCY had confirming volume. But it sold off quickly after touching the buy point, stopping me out.

EDIT: I also bought BMRN in the morning.

All of these stock could offer new buy points. Volume is key though. As always, I am keeping stops tight on every trade. If it's obvious the trade is not going to work out, I will pass or cut losses quickly.

Because tomorrow is options expiration, and Monday is a holiday, I am planning on taking any new positions tomorrow. I want to go into the long weekend holding my gains. However, if tomorrow is a strong uptrending day, I will be watching these stocks:


Good trading. I will be back on Monday night with some more picks for the coming week.

1 comment:

Jason R. said...

Hi Mo-Trader,

Just found your blog and it looks great! Keep up the good work.

I'm a little new to trading, and I'm trying to learn as much as I can from other traders, so I have a question for you. How do you set up your trades? Do you use Buy Stop Orders, or just keep a close eye out and manually enter the trades? It seems like often a stock will gap significantly higher either in premarket trading or right at the open (eg. PCLN today) - in these cases do you tend to jump right in with a tight stop, or do you wait and see if it sinks right back again before placing an order?

I hope I've make sense. Thanks!