Seasonal Heat Map 1 Week MA (Mastercard) Short

Noticed MA showing a stong SELL this morning on the Seasonal Heat Map 1 Week. It opened up today and gained about four dollars early. I shorted it at $396.65 based on my daily chart settings and the Seasonal Heat Map agreeing on a downward move. EOD Mastercard was priced at $393.22. About a 1% gain to this point. I got a good short signal about 12:20.

mtut Wrote:
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> Noticed MA showing a stong SELL this morning on
> the Seasonal Heat Map 1 Week. It opened up today
> and gained about four dollars early. I shorted it
> at $396.65 based on my daily chart settings and
> the Seasonal Heat Map agreeing on a downward move.
> EOD Mastercard was priced at $393.22. About a 1%
> gain to this point. I got a good short signal
> about 12:20.


Looks like a great entry. Macd crossed going down on the daily after the big red candle. MA looks poised for a potential pullback. And the last 5 years, MA has been weak during mid-late February.

I love the way that the seasonal downward pressure plus the technical indicators on the daily chart are working to push this stock down even though the Dow/Nas/SPX are all having a big up day. If the overall market would turn down again, MA would probably have a hugh selloff.

Absolutely agree. The entire market was up big today and MA closed at 393.15, up .19 That’s .19 on a four hundred dollar stock. It traded as low as 389.77. My entry for shorting is 396.65 and I don’t see a reason to leave yet. In fact, I feel charged after today’s lack of move.

MA has found support on MA(10) and other indicators are now turning up. Exited earlier today for about a .5% loss.

MA short sell 02/15/12 $396.65
MA buy 02/21/12 $398.72
Loss $1.93

mtut Wrote:
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> MA has found support on MA(10) and other
> indicators are now turning up. Exited earlier
> today for about a .5% loss.
>
> MA short sell 02/15/12 $396.65
> MA buy 02/21/12 $398.72
> Loss $1.93


Probably a good exit. That trade was setup up nicely when you entered...but MA is in such an up trend that it unfortuantely found support quickly and turned back up.

True, I use the MA(10) and MA(20) on the daily and should have waited for a close below the MA(10) to signal entry. It is also a good idea for the MA to be going the same direction of the intended trade. This, also, was not true.