Swing Trade Review: Big Profits on our Short in RJET!
Oct 26, 2008 Small Cap Stock Picks, Technical Analysis
It was about time we caught some negative volatility on this heavily overbought stock yet it was an great call that we covered our position while we were ahead as these stocks are very volatile and rallied strong into the close after its morning drop.
I alerted Black Service members to go short at $12.43 Wednesday afternoon on the breakdown of the intraday support as you can see on the 5 min 5 day chart below. Thursday price sold off on rumors of OPEC cutting production rates putting us in a nice position for our short and momentum in our favor. Global markets then began to sell off after hours placing us in an even better position now for our move into Friday. RJET gapped down largely yet was showing some signs of strength so i took this as a great opportunity for us to cover our position for a solid 11.5% gain in just 2 days.
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Technical Analysis:
Tags: Day Trading, RJET, swing trading, Technical Analysis
Technical Analysis Day Trade Review – YGE , LCC, RJET
Oct 20, 2008 Day Trading, Technical Analysis
Wasn’t my best day for day trading as i was going short in all 3 of these stocks on a bullish day in the market. I was right on all 3 of these stocks to go short but got greedy and didn’t cover my positions quick enough to capitalize on the profits while going short in a bullish market day. I was expecting more weakness in the airline sector as oil was up today and Airlines have rallied so much. So lets take a look at the Day Trades today.
Day Trading stock Pick #1 – YGE
YGE i have actually been interested in a long position yet found a day trading short opportunity early in the morning as price had gapped up. When price broke down the gap support at $6/share i went short at 5.95 and was looking to cover around 5.70… Price dipped to 5.80 yet never fell below that mark. I was forced to cover this position at 6.01 for a small loss
technical analysis:
Day Trading Stock Pick #2 – LCC
I’ve been looking to go short in some airline stocks for the past week or so yet just waiting for the right opportunity. These stocks have had a huge amount of buying pressure yet eventually will have profits taken. I went short in LCC this morning at 7.11 and the position was looking excellent dropping to 6.70/share placing me in a decent winning position. Price then consolidated the rest of the session forcing me to get stopped out of my position at 7.31.
technical analysis
Day Trading Stock Pick #3 – RJET
Same situation here in RJET, went short in the morning and position was looking awesome with no real support until $10/share. The problem with shorting on a bull day in the market is the possibility of short squeezes. The problem is that i was looking at these stocks in a day trading form with the risk/reward of a swing trade. The potential reward is much larger than the risk here as we could be short here with minimal amount of upside risk and a lot of downside potential. Unfortuntely i was looking for continued weakness into the close on airlines but the market continued to rally hardcore into the close giving airlines a strong boost off there intraday selloff bottoms. I covered at 11.55 for a small gain.
technical analysis
All in all today was a decent day… Didn’t lose too much and cut my losses. Could of have a great day tho as i was profitable in all 3 of these positions at one point. All trades had great rewards than risks. Unfortunately the risks had to be cut short as the rewards didn’t work in our favor today… But my mind was in the right place… You need to have attractive risk/reward ratios for every trade you make. Although they don’t always work out.. You cut your losses short and move on. Theres always another day in the stock market. The question is did you survive to make it there, or did you hold onto your stocks as they ate up all your money.
Tags: Day Trading, LCC, RJET, stocks, Technical Analysis, YGE
