Thursday, April 10, 2008

Thank You, Stock Market Gods... Thank You!

I woke up yesterday somewhat bleary eyed and only planning to watch a couple of stocks. We had a pediatrician appointment early, and I knew I was going to try to hit a couple of trades and then split.

One of the trades I was watching was for CF to break $133. It had reached that level and been resisted the prior two days. Pre-open, it blipped above that level, and the other fertilizer names were showing strength. The stock was volatile, so I bid at $132.40 with an idea that I'd give it to $132.

In what can only be described as a gift from the stock market gods, the stock took my bid, gave me only 4 cents of pain, and then ripped almost 4 straight points. Since I'm still not used to moves that occur so quickly, I limited out after 2 points and took my gains, thinking it "had" to pull back... no real complaints here though.

My second trade was handed to me on a platter by my friend Evolution. He's a very consistent trader who tends to specialize in a specific sector or two. Currently, he's been nailing the financials, so when he mentioned MER as a short while it was trading around $46.80, I took note. I pulled up the 3 minute graph, and placed a sell limit up on the 5-period line, at $46.93. Again, the nebulous stock market gods smiled on my poor ass, and I was filled just before the stock tanked a point.

Again, I didn't hold for the full move, my last cover was at $46.38, but no real complaints.

Lately, in an attempt to hold trending stocks that are going in my favor, I've been moving stops just above (or below) the most recent 5 minute candle. In this instance, had I covered using that method, I would have been stopped out at $46.69, netting myself about $70. Instead, I took partials on the way down and bid where there was initial resistance on the move and net $100. I think a combination of the two methods, where I take some off on "feel" and hold smaller size for potentially larger moves with trailing stops over (or above) the recent 5-minute bars is where I'm headed.

So it was 10:00am and we had to leave in 20 minutes for our 10.45 appointment. I figured I had one more trade to make, but I didn't want to risk too much since I had such luck so early. The early trade was light and the office was getting chopped.

I noticed CF trying to get back to the early morning highs while the other fertilizer names, had already turned tail and were closer to their morning lows. So I short 100 shares into the move up betting that he couldn't take out his high. I actually planned on entering a buy stop above the morning high and going to the appointment with a live order, but I didn't want it on my mind, so I covered down where Ainkurn said there was "some good ole support."

Anyway, after that, we head to the doctor's office where we learned that our daughter had a "ragin'" ear infection. She's been pretty miserable for a week, but the infection only popped up in the last two days.

This story has a happy ending however, and somewhat explains why this post is being written at 3am.

We haven't slept much here in the last week, since our daughter has been suffering through bouts of hives and fever. So last evening, while putting her to sleep, I too fell asleep, at 7:30. Just before she drifted off, she sat bolt upright in bed and announced to my wife and I that, "I feel much better now!"

Then, she dropped back down to the bed and was asleep in seconds. She hasn't had a fever or hives all night, and I got 6 hours of straight sleep. Apparently, that was enough, because I woke at 2:30, feeling brighter than the sun.

Here's the stats:
P&L, $378
Best, CF, $279
Worst, MER, $99

1000 shares traded.
2 stocks traded, 1 winner, 1 loser.

1 comment:

Bluedog said...

Nice day, DT. I'm glad your daughter is feeling better. I love that opening trade in CF! If only it were that easy every time. :)