Long Trade Of The Day - ITT Corporation (Public, NYSE:ITT)

ITT provided an excellent reversal entry at the 2nd bar (15 min chart). However, I decided not to enter and watched the stock climbed up to $69.74. I am still kicking myself now.

Another chance came at the 21st bars (15 min chart). To double confirm, I drew a Fibonacci line from morning low to high and looked at 1, 3, 5 & 10 min chart. It found support right at the 61.8% retracement.

I bought at the 22nd bar (15 min chart) at limit price $68.04 (4th bar high) and target was the 38.2% retracement $68.62.

Note - Trigger bar was still under 5ma, but it was a NRB with the lowest volume of the morning.

Price moved to $68.57 at the 35th bar (10 min chart), and because of the upper shadow, I adjusted my stop to this bar low $68.32. I was stopped out at the next bar with a small profit.

I learned that target may not reached exactly. Therefore, I will sell/cover few cents below/above my target next time.

Long Trade Of The Day - Big Lots, Inc. (Public, NYSE:BIG)

I was thinking a lot about my trading system lately, and it wasn't generating the profit I wanted. Therefore, I tweaked it a bit and see if it can work better.

BIG was the top choice from the gapper list. It was a downtrend from the open. The 3rd bar was a spinning top with higher volume than the 2nd bar and it finished above the 38% retracement.

I took an early entry at limit price of $27.90 and waited. I was filled 7 mintues later at the 4th bar doji with a long lower shadow that was support by the 5ma. Next 2 bars created a nice base that confirmed my decision was correct. Price stalled from 7th - 10th bars, but I stayed in it and it paid off.

My original target was daily pivot point $28.80, however, I decided that better target was 50% retracement $28.64 (ORH to 3rd bar low).

Target was reached at 11th bar (15 min chart) and I sold 1/2 position at $28.60. I sold the remaining shares at $28.39 at the 18th bar (10 min chart).

Today was a very profitable day for me and I am very happy about it.

Long Trade Of The Day - China Life Insurance Company Ltd. (ADR) (Public, NYSE:LFC)

LFC opened with an WRB and rallied from the 2nd - 9th bars. The 10th bar was a strong finished at $74.90 (10 cents lower than morning high).

I bought at the 11th bar at $74.84 with a 40 cents risk stop (instead of my usual 30 cents). The target was the 61.8% extension, but price stalled at $75.82. So I sold 2/3 shares at $75.47 and the rest was stopped at $75.10.

After returning from my yard work, price was at $78.48. Too bad!

Rest

I didn't trade yesterday and today because I was mentally fatigued.

Although, stocks I planned to trade went exactly the way I predicted, I think I wouldn't traded any better to profit from it.

I hope to be fully charged next week.

Short Trade Of The Day - Applied Biosystem Inc. (Public, NYSE:ABI)

I planned to short ABI today and missed an early entry. I thought it will be a reversal trade, but the 10th bar with a long upper shadow showed differently.

The 11th bar closed below the 10th bar low and signal for an entry. I entered a stop limit order at $31.34 (1 cent below ORL) and was filled mins later. My target was the pivot point $31.17 and hopefully beyond. However, the 13th bar hammer scared me. Therefore, I took partial profit and waited, but it stalled at $31.30 and looked like it might turn. So I have no choice but to cover ASAP with a small profit.

ABI traded down to $30.93 before it bounced. I felt that being too safe is bad in this case. Still, I wouldn't know if my decision was correct until after the fact. Perhaps, today isn't my day. I gave up BCSI and DRYS too early that turned out to be very profitable trade.

Long Trade Of The Day - Aluminum Corp. of China Limited (ADR) (Public, NYSE:ACH)

ACH opened with a WRB (bullish), the 2nd - 3rd bars pulled back and the 4th bar printed a hammer supported by 5ma. The 5th bar finished strong and followed by the 6th - 8th bars consolidated just below the ORH.

While watching NYX and BJ, I missed an entry on the break of the 9th bar. Instead, I bought at the break of 10th bar. I planned to get out near the pivot point of $42.75, but greed took over.

I was able to move my stop to break even before it tumble. However, the stock move past my stop and I ended with a small loss.

The lesson I learned, if you wanted to be Mr. Greed take a partial profit.

Study Base and Break - Autodesk, Inc. (Public, NASDAQ:ADSK)

Couple of months ago, I only traded stocks by candlesticks. Today, thanks to oonr7 and Jamie, I view and analyze charts differently. I hope to perfect my skills in the coming months. Thanks again guys!

ADSK was a gapper that closed and created a base (8 days worth) last Friday for a base and break trade today. However, due to computer problems, I didn't get a chance to think about trading this or other stocks. Still, this is a great chart to study.

I also missed:

CFC - 4th bar & 7th bar / 15 min.
RIO - 9th bar / 15 min.
EWZ - 10th bar / 15 min (It reversed before my broker found shares for me to short).

I guess you can't have them all.

Buying A Laptop

I heard that a laptop screen last a long time depend on how one use it.

Sales in one major store said "Our laptop display models are switch on for the entire store hours. And it is still working". In my world, a laptop will last if I have air condition on 24X7.

However, what I really want to know is, how long will a laptop screen last if you were to use it 8-10 hours a day, 5 days per week?

Or should I use a desktop and lcd instead?

To Rich For My Blood - Companhia Vale do Rio Doce (ADR) (Public, NYSE:RIO)

RIO opened lower but finished the first 15 min with a WRB (bullish). The 2nd bar tried to trade higher, but failed and left an upper tail (bearish). The 3rd - 9th bars rallied inside the first WRB. The 10th bar (gravestone doji) was an inside bar of 9th. It provided me a chance to short, but I didn't trade it.

1) Look closely and you'll see that it was a $0.75 range bar.

2) There was a $36 pivot point support/resistance.

3) The 10th bar (gravestone doji) finished green.

Yes, I could purchase less shares to counteract the $0.75 risk or make my own risk stop. However, it might not break the ORL ($36.30) and it may reverse before the $36 pivot point support/resistance. Despite the bar finished green, the overall chart looked great.

As you can see, RIO broken all barriers and reached the 38.2% extension. Would you have traded? BTW, the 2 years daily chart looked like another beginning of stage 4. Put this on your watchlist!

Long Trade Of The Day - Fossil, Inc. (Public, NASDAQ:FOSL)

The question is, which one do I choose? FOSL or KFN?

FOSL looked like a perfect setup, if it wasn't trading within yesterday's trading range. KFN wanted a gap fade, but provided a short trade at 11:30am bar.

I went with FOSL and entered on the break of 13:15pm bar. It started out great as it tried to break $36.00. It traded flat for 3 bars on top of the 5ma, so I tightened my stop 3 cents below my entry. With any luck, it will break a bit higher.

However, luck wasn't enough as I was stopped out at the 2:45pm bar. At this stage, I should trade from what I observed on the charts and not whatever intuition that I might not have, yet.

Short Trade Of The Day - Countrywide Financial Corporation (Public, NYSE:CFC)

CFC gapped lower, but traded higher last Friday. I really prefer to trade the direction of the gap, so I saved it. Today, it opened lower and provided a PP trade near $27.30.

I shorted on the break of 11:15am bar (NRM) and covered near high of 12pm bar.

Long Trade Of The Day - Broadcom Corporation (Public, NASDAQ:BRCM)

BRCM consolidated nicely and setup a base to trade. I bought on the break of the 12:30pm bar and stopped out near the low of the 2pm bar. It was a good profit trade.

My Goals

1) Finding the best setups.
2) Better my entry and exit.
3) Save interesting charts.
4) Read and study trades from trading blogs.