IPI - Intrepid Potash - Cup & Handle; SOHU - Sohu.com Bull Flag / Gapper
It just goes to show you that you should trade what you see and not what you believe will happen. If you asked me yesterday and with the initial reaction to CF's earnings after the bell yesterday, I would have guessed the Ag sector would have continued lower and I did mention that in last night's watch list for today:
That probably would mean more selling for Ag, and more break downs for Coal, Steel, Energy, Solar names.
Woops :) Anyhow the Ag sector started off slow and then they all started to move higher one by one. I went through all the charts of sector and found IPI forming a nice Cup & Handle.
SOHU was from last night's watch list. It was forming a nice bull flag on the multiday / daily chart. Some @#$! analyst at Citigroup upgraded it in the premarket to have it gap above the bullish flag.
It probably would have been a pretty nice swing entry on a break of the bullish flag, but I didn't want to chase it.
Anyhow, it set up with a bull flag later in the day. I only got a partial fill so I scrapped my trade shortly there after.
Have a good weekend :)
I'll be watching the 2008 NFL Draft. Go Niners.
Why did you end up scrapping SOHU?
Anonymous said... April 25, 2008 at 11:55 PM
IPI PB was 50% of prior move. the C:D was essentially 1:1 of A:B. nice trade... BTW, beautiful charts.
Anonymous said... April 26, 2008 at 10:01 AM
Chartguy,
I probably could have just let it run, but I was filled on less than 1/4 of the number of shares I wanted.
I'm sure part of it also had to do with it being a Friday afternoon.
I'd honestly love to hear what other traders do in a situation like that.
Do you still enter the trade, and take smaller share size, do you scrap the trade like I did, or do you just let it run?
Trader M.D. said... April 26, 2008 at 12:23 PM
qqqball,
Thanks :)
Trader M.D. said... April 26, 2008 at 12:23 PM
what service/website/program do you use to go through the sector symbols? I've always been interested in trading the most active or 'hot' sectors but I just can't find a good way to get that information. I am a prophet.net member and they have something helps with sector information but I still find it confusing.
Any info you can share?
OONR7 said... April 27, 2008 at 8:39 AM
oonr7,
You can always go to Barchart's Sector Page.
They list the sectors with the strongest alpha weighting (basically money flowing in), and they also have a list of the top 100 alpha stocks.
I basically keep an eye on the top 100 alpha stocks list and filter out any candidates with weak average daily volume or price below $10 a share.
I heard about IPI from keeping CNBC on in the background all day. It's also been mentioned on a few trading blogs.
Hopefully that helps. Let me know if you have any more questions.
Trader M.D. said... April 27, 2008 at 10:24 AM
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