Failed H&S - ANR - Alpha Natural Resources
I started off the day reading through the morning headlines as usual and saw that Monsanto was upgraded with a higher target. Then the employment data came out and the futures dropped.
The Ag names gapped lower, pushed higher to make new near term or all time highs (depending on the name), and gyrated back lower. I saw similar action in almost all of the momentum related names.
After things settled down for a bit, I saw a decent entry in ANR (or at least I thought it was at the time). It looked like it was forming a Head & Shoulders pattern, so I took a stab at it and got stopped out almost immediately.
Here's the chart below. I forgot to mark my entry and exit points. I went short below 85.81. My stop was above the recent high of 86.53. Talk about getting chopped up.
After that failed trade, I basically sat on my hands and called it a day.
Did I mention coal stocks can be choppy?
If you had a tough day or a tough week, don't stress yourself out over it. I'm sure quite a few people did as the market looked like it was going to break down, then break out and then break down again. Just try and go back through & review your trades (good & bad).
Also be sure and get some rest as it looks like things are likely to be interesting next week.
Take care and have a good weekend.
dont feel bad - you copuld be Dennis Gartman who shorted crude.
Anonymous said... June 6, 2008 at 10:06 PM
MD,
AIG came out with neg news as SEC was going to investigate. Good edge to short. No pos.
bl said... June 6, 2008 at 10:37 PM
qqqball,
Ouch. I saw that short squeeze type action that took place on crude once it broke 135, it was off to the races.
Is he still short? I'm guessing he got squeezed out.
bl,
Thanks. Yea I felt that the market could head lower, I just looked in the wrong place. Things were a big choppy through out the entire morning, so I figured I'd just call it a day & a week.
Trader M.D. said... June 8, 2008 at 4:44 PM
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