Saturday, April 10, 2010

My favorite set up...Bull Flag!!!

I was stopped out of my HTHT position on Friday for a small loss around $20.00 including commissions. Ordinarily I would have been looking to get long of this beautiful set up straight out of Jeff Cooper's book; Hit and Run Trading I. I thing he calls it the Hot IPO pull back. However, HTHT is not marginable and I am looking to get 200% long. Here is the chart.



Beautiful isn't it?

After spiking up from just below $10.00 to just below $11.50, SVN has been moving sideways. In the process it has formed a beautiful bull flag. This is what the chart currently looks like:



Very beautiful. The only thing wrong with this set up is that it has not formed just off all-time highs. I will be looking to add to my current position on a break out above $11.40 with a stop just below $11.00. I am anticipating a sharp 1 - 3 day spike up into over head resistance in the $12.00 - $13.00 region.

I am also currently long 500 shares of ABCD bought @ $4.75 thanks to TOS (instead of my original 2,000 share position...ahhwww man!!!). So far it has acted beautifully. Here is the chart:



I will hold ABCD as long it continues to rise calmly. I may even attempt to hold onto it through one pullback and possibly add to it as long the overall the market continues to stay as strong as it has been. However, if it has an unusual spike ( 5- 7 R) I will take profits.

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