Sneeze...cough...my trades...blow nose...
Posted by Darcy2
|
Sneeze...cough...my trades...blow nose... May 31, 2013 06:43PM |
LINKEDIN
05/31/2013 O STC LNKD Jun13 170 Put 5 $7.00 $14.95 $3,484.82
05/31/2013 O BTO LNKD Jun13 170 Put 5 $6.45 $14.95 ($3,240.12) 244.70
Total Realized Gain/Loss for LNKD....$244.70
NETFLIX
05/29/2013 O BTC NFLX Jun13 215 Put 3 $9.15 $14.95 ($2,760.05)
05/28/2013 O STO NFLX Jun13 215 Put 3 $10.85 $14.95 $3,239.89 479.84
Total Realized Gain/Loss for NFLX $479.84
WALTER ENERGY
05/31/2013 O STC WLT Jun13 20 Put 12 $3.25 $18.00 $3,881.53
05/29/2013 O BTO WLT Jun13 20 Put 12 $2.71 $18.00 ($3,270.40) 611.13
Total Realized Gain/Loss for WLT $611.13
This was a result of my trades this week. I have switched from a 10 moving average chart to an 8 moving average chart and a 55 for the FP or HRFP. I stopped waiting for the 21 moving average to cross. By the time it crossed my entry was over.
Starting with LNKD… I bought this near the close off a 5 GW chart. I bought it when the candle broke the 200 moving average. It was really available all day but I was wrapped up in research about the Russell.
I bought WLT off the 55 chart on Wednesday. I believed it needed to have a pull back on the 55 before I bought in. Then I wanted to wait for it to go below the 200 moving average so I would have power in the PUT. I bought at the DOJI close on the 55 which would have been the next candle open. I got in at $17.73 stock price. This was the perfect entry off the 8 chart..which I didn’t know at the time. I almost didn’t buy because of the location on the Stoch RSI on the 55 but I just knew that once it fell below the 200 moving average I would have a good PUT trade. So I bought.
I was ready to pull the trigger to sell on 5/30 but it never broke the 20 moving average on the 55. I often use the 20 as a support or resistance. Most of you know I really do not like holding over night but with this market acting as it has up and down and up and down I simply ignored the up and marked only the down which led me to believe I could hold over night safely. What I mean is I used the 20 moving average as my trend line. I placed a GTC on WLT today set at $3.20 and was sold out at $3.25 right at the close..or there abouts.
On my NFLX trade I followed the same as I did with WLT. I bought on May 28th after the candle close on the 55 chart below the 200 moving average. I did see the white candle forming on the 55 so I waited until it closed and the next white candle landed on the center of the BB. I knew then that I had a trade. I bought NFLX when it hit $218.10 and sold on the 29th on the gravestone DOJI as it pulled away from the BB. When I looked at my 8 moving average chart I saw I could have gotten in earlier almost $2.00 earlier which would have been a much better trade.
Why did I do this…not wait for an action chart??? Well my way of seeing it was since this market was so up and down and up and down and up and down well you get the picture if I was to watch an action chart I would see no reason to get into a trade because the action chart would scare me to do a trade. So I just used a bigger chart that had less up and down and the heavy 200 moving average to base my entry. On WLT it worked well but on NFLX I could have made a better trade. So now I‘ll be using the 8, 55 and watching the 3 for whipsaws.
Now about my research…
I was trying to figure why in the world this market was so jerky. I know it is the summer time and ‘IT IS LOW VOLUME” and that the Fed is feeding this monster; I felt there had to be more reasons for these violent moves. So I entered BING and typed in rebalancing and I got a little more prospective from Russell.
It sure made this market more sensible and less SCARY. I don't know about you all but I have a need to know stuff.
So here’s the site if you want to read some of the information:
[www.russell.com]
Then I heard CNBC talking about investment firms and that they were rebalancing their portfolios. A light went on in my head. “No wonder,” I said to myself, “that part of the day stocks are up and the other part they are down.”
REBALANCING AND RECONSTITUTION!
“The 2013 reconstitution of the Russell Indexes will occur June 28.” The Russell only does this once a year with “all eligible securities globally ranked by their total market capitalization” on May 31st.
How big is the Russell? “The index encompasses 98% of the investable global market.”
When you add this (the Russell reconstitution) and financial investment companies rebalancing portfolios and lower volume you get a volatile market. IMHO the volatility may decrease some but I expect this sort of action to continue until the Russell is finished on June 28th.
That however is just my opinion.
05/31/2013 O STC LNKD Jun13 170 Put 5 $7.00 $14.95 $3,484.82
05/31/2013 O BTO LNKD Jun13 170 Put 5 $6.45 $14.95 ($3,240.12) 244.70
Total Realized Gain/Loss for LNKD....$244.70
NETFLIX
05/29/2013 O BTC NFLX Jun13 215 Put 3 $9.15 $14.95 ($2,760.05)
05/28/2013 O STO NFLX Jun13 215 Put 3 $10.85 $14.95 $3,239.89 479.84
Total Realized Gain/Loss for NFLX $479.84
WALTER ENERGY
05/31/2013 O STC WLT Jun13 20 Put 12 $3.25 $18.00 $3,881.53
05/29/2013 O BTO WLT Jun13 20 Put 12 $2.71 $18.00 ($3,270.40) 611.13
Total Realized Gain/Loss for WLT $611.13
This was a result of my trades this week. I have switched from a 10 moving average chart to an 8 moving average chart and a 55 for the FP or HRFP. I stopped waiting for the 21 moving average to cross. By the time it crossed my entry was over.
Starting with LNKD… I bought this near the close off a 5 GW chart. I bought it when the candle broke the 200 moving average. It was really available all day but I was wrapped up in research about the Russell.
I bought WLT off the 55 chart on Wednesday. I believed it needed to have a pull back on the 55 before I bought in. Then I wanted to wait for it to go below the 200 moving average so I would have power in the PUT. I bought at the DOJI close on the 55 which would have been the next candle open. I got in at $17.73 stock price. This was the perfect entry off the 8 chart..which I didn’t know at the time. I almost didn’t buy because of the location on the Stoch RSI on the 55 but I just knew that once it fell below the 200 moving average I would have a good PUT trade. So I bought.
I was ready to pull the trigger to sell on 5/30 but it never broke the 20 moving average on the 55. I often use the 20 as a support or resistance. Most of you know I really do not like holding over night but with this market acting as it has up and down and up and down I simply ignored the up and marked only the down which led me to believe I could hold over night safely. What I mean is I used the 20 moving average as my trend line. I placed a GTC on WLT today set at $3.20 and was sold out at $3.25 right at the close..or there abouts.
On my NFLX trade I followed the same as I did with WLT. I bought on May 28th after the candle close on the 55 chart below the 200 moving average. I did see the white candle forming on the 55 so I waited until it closed and the next white candle landed on the center of the BB. I knew then that I had a trade. I bought NFLX when it hit $218.10 and sold on the 29th on the gravestone DOJI as it pulled away from the BB. When I looked at my 8 moving average chart I saw I could have gotten in earlier almost $2.00 earlier which would have been a much better trade.
Why did I do this…not wait for an action chart??? Well my way of seeing it was since this market was so up and down and up and down and up and down well you get the picture if I was to watch an action chart I would see no reason to get into a trade because the action chart would scare me to do a trade. So I just used a bigger chart that had less up and down and the heavy 200 moving average to base my entry. On WLT it worked well but on NFLX I could have made a better trade. So now I‘ll be using the 8, 55 and watching the 3 for whipsaws.
Now about my research…
I was trying to figure why in the world this market was so jerky. I know it is the summer time and ‘IT IS LOW VOLUME” and that the Fed is feeding this monster; I felt there had to be more reasons for these violent moves. So I entered BING and typed in rebalancing and I got a little more prospective from Russell.
It sure made this market more sensible and less SCARY. I don't know about you all but I have a need to know stuff.
So here’s the site if you want to read some of the information:
[www.russell.com]
Then I heard CNBC talking about investment firms and that they were rebalancing their portfolios. A light went on in my head. “No wonder,” I said to myself, “that part of the day stocks are up and the other part they are down.”
REBALANCING AND RECONSTITUTION!
“The 2013 reconstitution of the Russell Indexes will occur June 28.” The Russell only does this once a year with “all eligible securities globally ranked by their total market capitalization” on May 31st.
How big is the Russell? “The index encompasses 98% of the investable global market.”
When you add this (the Russell reconstitution) and financial investment companies rebalancing portfolios and lower volume you get a volatile market. IMHO the volatility may decrease some but I expect this sort of action to continue until the Russell is finished on June 28th.
That however is just my opinion.
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