January Review

So I have been going over some of my trades, and trade ideas. So far I am not off to a bad start. A 4.7% profit in only a couple of weeks. Not to shabby. Most of the profits came from a fortunate trade in GERN. The kind of situation where i was more lucky than good in my stock selection. Looking at other trades, I closed out of TTI because of general market weakness as well as weakness in the stock itself. I also closed out of PNRA. After reviewing this trade, I was correct in my forcast of direction, but wrong in my timing. If I had either made my stop a little higher, or waited another day to enter, I would have probably stayed in the trade and would currently be enjoying a profit. As for my current positions, i have 4 short positions (AOC, LNCR, PCU, and CRS). These positions represent a relatively diverse range of companies. But thats not why I traded them. PCU, LNCR, and CRS were all traded based on head and shoulders formations, while AOC was traded based on a break below support in the 30 minute chart. Both AOC and LNCR are showing the most strength relative to my trading plan for them and will likely be closed out tomorrow, though i will hold if my stop is not reached. The other two I am anticipating a pullback to the neckline of the head and shoulders pattern followed by a continuation south.

My single long position is in EQ. This stock appears to be setting up in an ascending triangle formation. This stock also represents one of my larger positions in my actual portfolio, so I am definitely in position in anticipation of a breakout. My stop is held pretty tight for this with a plan in place to re-enter incase my stop is to tight.

Other longs that I looked at but did not enter include EGOV, ABX, ABAX, MCK. These all worked out. EGOV broke out today, but i was busy at work so i missed the boat. ABX and ABAX I could not get in at a price that I liked, so I just stayed out. MCK gapped up the morning that I put it on my watchlist, so i never entered. No problem there, i can always get in later if i still like the stocks. We will see. I would like to mention, that MCK appears to be setting up in a bull flag pattern, and ABAX has a very nice nice looking pole forming, and I am anticipating a bull flag formation in this stock as well.

Stocks I may buy tomorrow include:BTU (ascending triangle), CAH (trending), DRQ (trending), GENZ (ascending triangle), KALU(trending-found through OA), MCK (bull flag), MHS (bull flag), OCR, RIO

I wont put on any more shorts for the moment since i a little more short exposed than I prefer. But like I said before, i expect to be closed out of some of these in the near future.

Happy Trading