Monday, November 8, 2010

State of the Stock Market - 11/8/10 - "Keep It Coming"

A very positive session today on Wall Street, even though the market finished basically flat.   Stocks opened lower and there was some selling seen in the first half-hour of trading, but that quickly subsided and stocks spent the rest of the session taking back those losses.   Most of the afternoon was choppy, but by the end of the session, the losses were gone and stocks finished basically flat for the day.  Volume looks to be EXTREMELY low. 

Technically, days like today are perfect and exactly what you want to see after the big move we had last week (hence the title "keep it coming").   A quick look through my scans is already showing a few more setups than I saw yesterday.   Further consolidation like we have seen today and Friday (let's say two or three more sessions) would be absolutely perfect in terms of keeping this rally moving higher.   Hopefully we can get that further consolidation. 

I made one trade today near the open, adding BORN at $15.15 to my regular account (after starting positions in my IRA accounts on Friday).   That seems to have worked out well, at least so far.  I also entered HEAT late in the session, but only as a starter position based on being a little late. It wasn't a perfect day, however, because I made some careless mistakes, mainly because of poor time management on my part.  Either that, or I was played with.

I started the BORN and ASTI positions I have in my IRAs on Friday and set trailing stops immediately after entering.   Due to a busy weekend and a busy morning at work, I was not able to check those stops right at the open of trading today - I just assumed they were fine because they were not hit Friday.   For some reason, however, when I opened up my trading screen around 9:31, I saw that I had a market order to sell ASTI.   I said to myself, "what?"  I couldn't cancel it either.  I for some reason sold out at $4.37, which just happened to be the low of the day.   I went into my other IRA and saw that I had also sold out of BORN at $14.66, coincidentally also the low of the day.  

I really don't know what happened here - I had both positions in both my wife's and my IRA and set the stops basically the same way.  I was only "stopped out" of the BORN position in my IRA, and only the ASTI position in my wife's IRA.  The whole thing is very weird and I really am at a loss for what happened.  Unfortunately, I don't know anything I can do about it, so I have to assume the trailing stop from Friday was too close and triggered at the open.   Sucks for me because both had nice moves today.

Hopefully you were able to catch some movers from this weekend's video - BORN (+14%), HEAT (+10%), SOHU (+8%), ASTI (+8%) - all nice moves.   With a little more rest, we will see more patterns set up nicely over the next few days and I will try to share as I see them.  All in all, today was another positive session and until we see some real selling come into this market, there is no reason to be doing anything other than going long.  Good luck Tuesday.


Anonymous said...

CST, some nice picks today ;<)

Anonymous said...

Ask your broker for a time and trade report and let them know why you're asking. I have been successful at having outlier trades reversed.

At 17:00 EST StockCharts shows ASTI low of the day at $4.37

Mac said...

I did email Scottrade. Something is fishy about this. The account where my BORN position was not sold had a trigger of $14.41 on the trailing stop. Since it was sold at $14.67 in my other account, I am suspicious because I know there is no way I would have had a $0.25 difference in stop loss levels on virtually the same position.

Sal said...

In the past I've had horrible experience with Scottrade.

When i closed my account, i told them to erase all my information because i dont want to ever be contacted by them. Well, the trowl never did it and it took over a year to close the account...