Short DVN From our watch list.
DVN gaped down on on earnings yesterday and had a major
sell off. We expected the trend to continue .
Entry 54.45
Stop 54.55
Target 1 54.35 1/3 +.10
Target 2 54.00 But DVN moved up and stopped us out
to b/e.
See what DVN did afterwards. It just took off and forced all the
shorts to cover and collapsed below our target 2.
Where it collapsed was a very good entry to short again.
But by then we had moved on.
Trade 2
How to eat a bad sandwich!
Short MCD From our watch list.
This sandwich didn't go down very well. MCD reported
bad earnings in 9 years.
Entry 86.35
Stop 86.45
MCD moved down and bounced quickly so we lowered
our stop to b/e and we were stopped out to b/e.
Second entry 86.28
Stop 86.45
We were stopped -.12
But we realised the MCD was simply taking out the stops and
saw the strain in the climb.
Third entry 86.35
Stop 86.45
Target 1 86.00 1/3 +.35
Target 2 85.00 1/3 +1.35!
Target 3 84.00 Never hit.
We covered last 1/3 for +1.00 EOD.
What a great trade it turned out to be!.
Net gain -.12 +.35/3+1.35/3+1.00/3 =.78
risk/Return .10/.78 = 780%
Couldn't have asked more from a bad sandwich.
Lesson: This is where the ability to read the chart between the lines
becomes so crucial.Do you have what it takes to
reenter the same stock after taking a loss on it?
Learn to trade!Don't go to a gun fight with a sword.
Trade 3
Short QCOM From our watch list.
QCOM gaped up at open due to above
estimate earnings. We had QCOM on both sides
of our watch list but with a short bias.
QCOM languished all morning basing.
Short entry 61.45
Stop 61.55
Target 1 61.35 1/3 +.10
Target 2 61.00 1/3 +.35
Target 3 60.50 It came to 60.58 and bounce
So we covered 1/3 +.75
QCOM moved higher based for a while and then fell down
to 60.38.
risk/Return .10/.75 =750%
But it was EOD we were happy with our day.
Our bucket was full.
Tomorrow will be another day at the river.
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