19:30 h GMT: A couple of trades this week:
- I bought ADS @ 201,07 with SL @ 168,51, position 3rd entry
- EMN reached Target 1 @ 67,60, 33 % closed, stops adjusted, swingtrade.
- I bought GILD @ 81,26 and SL @ 75.56, position 4th entry.
- I bought BMY @ 59,59 and SL @ 55,24, position 1st entry.
- I bought SPLS @ 8,55 and SL @ 7,47, position 3rd entry.
I closed most of my swing positions like APA, HAS, TSS, KO and F, some with small losses, some with small gains. Market has changed somehow character as we can see on the tick bar charts. I decided to reduce exposure on the long side and also deleted open pending long orders. I do not know what is going on, but now is the time to scale out and be careful.
My net exposure stays short, my portfolio is good balanced, but i want to see the next hints and clues of the market. I do not like the price action of the last two days, time will tell.
16:01 h GMT: A couple of trades last week:
- HSIC was stopped out with a 1R loss.
- MCD was stopped out with a 1R loss.
- TSS was stopped out with a 1R loss. I re-entered TSS and will give it a second chance.
- AAPL reached target 2 and i closed a small portion with 0,327 R profit. Next target 115-116 area, stops adjusted.
- SYMC reached target 4 and i closed a small portion with 0,501 R profit. Next target 25 area, stops adjusted.
- RHI is a position 2nd entry and i bought @ 38,00 with SL @ 32,98. Target 1 is @ 44,60-46,00 area.
- TIF reached target 1 and i closed a small portion with 0,30 R profit. Next target 71-72 area, stops adjusted.
- WFM is a position 5th entry and the second time i am trying to catch a move with this stock. My frist attempt was successful and i entered long @ 30,99 with SL @ 26,79. First target is 34,90-36,00 area.
Overall my portfolio has 7 swing and 8 position stocks. Still holding my SPY short positions and my net exposure remains short. A couple of pending orders are waiting to be hit and can change my net exposure to the upside. Markets are drifting to the upside with super low VIX and volume. I believe it won´t stay forever like this, next month is September and it should be wise to watch VIX, OEX-PCR and price action; time will tell the story.
17:16 h GMT: Tiffany reached my stage 1 target @ 68,46 where i closed 30 % of my initial position. I realized a profit of 0,307 R and will adust my stop according to my tradingplan.
Today i was stopped in into 2 more stock positions, both are position entries:
- Lyondellbasell Industries long @ 76,60 with SL @ 64,28
- Whole Foods Market long @ 31 with SL @ 26,79
Again a new all time high with a super low VIX. Big players like Icahn and Soros are heavy short, Central Banks are buying and a lot of options on the call side. Although it is not understandable are markets drifting higher. This week is expiration week, let´s see if volatility to both sides comes back into the markets, time will tell.
14:57 h GMT: Yesterday i was stopped in into Henry Schein Inc. long @ 167,03. It is a swing1st entry with tight stop @ 161,49. My target 1 equals 1R.
Fastenal Co. reached my target 1 @ 43,52. I closed 37 % of my initial position and realized a profit of 0,29 R. My stop is above entry now, time will tell.
16:07 h GMT: Today i bought TSS as swing1st entry @ 48,94 and a tight stop @ 47,40. My target 1 equals 1R.
The breakout of the more than 2 years lasting sideways range in the overall market is confirmed, we can expect moves to 2400. Fundamentally it makes no sense, but TINA (there is no alternative) plus Central Banks work their ways. Time will tell.
16:06 h GMT: My target 1 was hit after a lucky punch and a gap up of RL. The stock is > 9 % in profit today and i could realize 0,21 R gain by closing 1/3 of my position. My stop is above entry now.
Market is in a narrow daily range @ all time highs. No market reaction to the news, that Deutsche has a capital gap above its entire market capitalization… Strange days we have, time will tell.
19:13 h GMT: Another day in the markets and another all time high. Fundamentally it is not understandable but it is, like it is. My SYMC position trade reached stage 3 of my take profit and i could take out 25 % of my position. It is a great move and reaching now +30% of my entry price. The profit i am taking out today is a 0,79 R gain and it is the third time i am taking out money in this stock. I am adjusting my stop according to my tradingplan but recognizing that this beautiful last swing up was sold and can be an exhaustion gap. Anyway: these trades are type of “dream trades” and give confidence.
MCD is a swing 1st entry trade with a tight stop. My entry long is @ 118,82 with SL @116,15.
This week´s bullish bar of the overall market can be seen as breakout confirmation, which means to cover asap the short legs in SPY. We can now expect another upswing to somewhere 2250 area. My overall net exposure stays short, my position has room to short more, but it is becoming more tricky and dangerous. Time will tell the story.
14:52 h GMT: A couple of trades today
1. Met Life was stopped out, the stock is crushing down over 8,5 % when writing this. I could catch small profits, i call it a breakeven trade.
2. Tiffany andf Ralph Lauren are second / third entries to a position trade, let´s wait.
3. Apache, Exxon Mobil and Eastman Chemical are swing trades with tight stops.
Overall trading is by far away from easy, so why buying stocks? The answer to that is simple: a setup is a setup is a setup and follow your plan. In my earlier years i was doubting a lot, now not anymore. The fundamental data ( earnings of Companies) are desastrous but markets are making a new all time high nearly every single week. Big Banks in Europe are de facto insolvent, non performing loans and declining margins everywhere, but who cares?
If someone would ask me if desastrous things will happen in the markets, i have to answer “definetly yes and lehman was a kindergarten game”, the more important fact is, when will it happen? Tomorrow, 3 Months, 2 Years? Nobody knows, at least we small people do not know that.
Although i bought a couple of stocks today my net exposure stays short (SPY short) and my portfolio is well balanced. I have absolutely no idea what will happen next, a rise to the upside (somewhere to 2250-2400) nor a decline to the dwonside (somewhere 1800-1850) would not surprise me.
The toughest lesson in trading is the uncertainty we have to live with. At the end time will always tell the story.
14:52 h GMT: On Monday this week i was stopped in long into KO @ 43,76 with a tight stop @ 42,81. It is a swing trade – under water when writing this.
One of my better trades, Target Corp. was stopped out today a couple of minutes after US opening. This was a position trade but yesterday has been a bad red day with a gap down today and my stop was hit. I could reach my target 1 in this stock and making some money with this stop out.
My overall position stays net short (SPY short) and i am still in weekly scalp mode. The problem of all traders is that the market stays in a narrow range within 2150-2180. We all know that this can´t stay here forever and that an explosion will occur, either up or down, time will tell the story. Although my portfolio is well balanced when writing this, my net exposure rises after each stop out in the equity long side, but this is the game i am playing…
20:56 h GMT: Yesterday i was stopped in long into FAST @ 42,29 with T1 @ 43,52. This is a swing trade with a tight stop @ 41,08. Markets are closing again at all time highs, the stress test for European banks is leaked, of course they are all “healthy” and Monte Paschi “rescued”. It is a rigged game and time will tell the story.