Unfortunate Japanese Candlestick Formations

I have to make this quick. First of all, my inflated shares traded today was a result of me bumping up my share positions in a number of trades. It's not like a placed more trades, I just placed bigger trades.

I started the day off well with a stock off my watchlist. I wanted to see CMI clear 2-day resistance at $53.13. It opened at $53.15 and I picked it up after it ran and consolidated a little, near $53.50. I caught almost the whole move with 500 shares, selling most over $54.50.



I gave a little back later in the day, when the chart formed an unfortunate (and unfortunately common) candlestick pattern the Japanese call the "ass rape." As you know, I'm reading a book on candlestick charting right now. The problem with this formation is that you don't know it's an actual "ass-rape" until after the fact.

My big loser today was GG. The reason why it was such a big loser for me was because it held such promise as a trade, and I sized in, with 1500 shares. Here, I'll let the chart explain...



It sucked, but I'd do it again. Why? Well, first of all, $40 was a breakout point on the daily graph. Also, GG reported earnings last night and was showing relative strength versus the other gold stocks and the market. The reason why I lost more than I'm accustomed to in the trade is because I had more shares than I'm accustomed to. I sold 500 at $39.86, 500 at $39.80 and 500 at $39.70. So on average, I lost a little under 20 cents on my shares. Not a disaster. Still, I lost $350 all told in the stock.

I also managed to have a few other losers over $200. MON, KMT and the piece of shit known as SWC. In fact, we see the "ass rape" pattern again (this time in reverse) in SWC in the late afternoon.



I was short 2000 shares of SWC going into that "ass-raping." While I had the strength to hold onto half, I let go of 1000 near the high of the move, at $18.40, because I suck like that.

Anyway, gotta go. Will be back later to discuss the Obama/Hillary debate with an "open thread" if all works out.

Here's the stats:
P&L, -$546
Best, CMI, $390
Worst, GG, -$351

45,800 shares traded.
18 stocks traded. 9 winners, 9 losers.