Thursday, August 6, 2009

Trade 47,48 - Getting set in MQG using the dailys

So far I have been using the 5 minute charts to try and fine tune the timing of stocks; but MQG is a volatile stock, and I've been getting whipped out of the position a tad early in 2 different scenarios already.

I am going to apply a daily chart to the MQG position and see if that works better.

Once again I am shorting in a rising (but overbought) market, and so I believe it's still fairly risky, thus I will keep my finger on the EJECT button at all times.

Even now, as I read aftermarket bullish reports, in employment numbers etc - I am wondering to myself why I'm such a donkey and betting that the market will retrace?
If only my rational brain and intuitive brain could converge into a more decisive action, I would've made a lot more money on this upswing.

Shorted 80 MQG @ 43.96 and then another 80 @ 44.44 - not sure if my opinion on MQG overbought status deserves double my usual load, but what the heck, let's see what happens.

1/ Chart shows bearish candles - 4 of them together
2/ MQG is way overbought, MACD is falling
3/ Stop loss at the top of the bearish range 44.95, target 40.60
4/ The range is hitting the top of the trend line
5/ Hoping this trade will be a trade I can hold for a few days at least, assuming that the price starts falling

If the market continues it's bullish ways, I'm pretty sure I'll get stopped out quickly. We'll see how she goes tommorrow.