Wednesday, March 2, 2011

Update and Watch List for tomorrow...

Ok...once again after saying that I am not going to trade; I ended up trading. The oil stocks were simply irresistible! I saw $DPTR break down but $ROYL and the other stocks were gapping and pushing to new highs on volume after I thought the sector was going to crash and die. So my rationale was that a lot of traders gonna get squeezed. I tweeted not too long after the open that the I would be watching the oils like a hawk. After the initial buying frenzy I waited patiently for them to start setting up.

With only one day trade I wanted to be in the best set up. My heart was set on $BDCO but after I missed my planned entry and price started running away from while I waited patiently on the bid @ $7.80; I decided to look to the others on my watch list. The best I saw was $LEI. It was lagging the rest of the group but the set up was beautiful. So I got long $2.65 and set an alert just above my intended stop out point of $2.50. Initially the trade was agonizing as the other oil stocks were running up yet $LEI was just chopping sideways. None the less I held on as my initial thesis had not yet been proven wrong.

During the initial stages of my $LEI trade I saw a couple of my follows tweeting about $TGC so decided to add to my watch as it was also in the hot oil sector and near breaking out of a beautiful cup with and handle and through the round dollar mark of $1.00. I got into this trade too early by accidentally hitting the buy button and got filled at $0.99. As I had planned to get long any way I set an alert above $0.95 my intended stop out point.

Then boom...both stocks exploded into the close making my decision to hold overnight very easy. Now I am sitting on a 50%+ unrealized gain in $LEI and a 10%+ unrealized gain in $TGC. I will just be looking to manage these trades tomorrow. Most likely I will get out in the morning pre-market since I have a meeting which starts before the market's open. No watches for tomorrow but will tweet interesting set ups when ever I get back to my computer in the afternoon.

Good luck and good trading!

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