With all the discussion I've been having lately (with myself; here, here, and here) about WFC you probably figured I was riding it today all the way up it's '09 highs today. Of course I wasn't in WFC long today at all! So lame I am.
Anyway, the volume wasn't too impressive but it broke out of it's base decisively, keep a watch on it.
Instead I spent my day watching POT and FCX. It was a profitable day all around, but not half as profitable as it could have been had I held on to my FCX short AND my POT long (I was actually short POT most of the day until I got long at $89.10 only to be shaken out by a tight stop I had in place. Indeed, I have some work to do.
Here was the initial setup in FCX this morning:and after I had gotten in on that nr7 bar:
Here's how the entire day unfolded. And POT; I shorted on a break of $90 (around the 10:30 hour) and got out at $89.50. I shorted 2 other times as well; again at $90 and another entry at $89.50. I probably should have just sold half the first time and added shorts at $90 on the two returns and held until I saw the ton of volume come in at the 2:00 hour. Live and learn.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.