CREE was exited, enter DE and AMTD

The CREE trade was exited as the stock price exceeded $26.05 today.

I will update this post tomorrow, with the confirmation from OptionsXPress.

As you know, I have been covering DE for a while now, after the stock triggered my system, back on the 16th of Aug. At the time, you will remember, DE announce poor earnings and lowered forecasts.


http://finance.yahoo.com/q/h?s=DE&t=2005-08-16

http://stockcharts.com/def/servlet/SC.web?c=DE,uu[w,a]daclyyay[db][pd20,2!b50!f][vc60][iUah12,26,9!Lp14,3,3]&pref=G

Notice how the 20dMA (center Bollinger band) was hit, and the stock pull back. Meanwhile, the 50dMA is well overhead. It looks like the moment has come to enter a position on DE.

As usually I will place an exit contingency order. I am going to tolerate only a bounce up to the 50% retracement of the original drop. Thus, my contingency order will be at $67.15



A carefull analysis of the Elliott wave count on DE reveals that the downtrend could be initiated shortly, with a target of about $10 or more below current levels. It looks like a good opportunity to me!




I have been following AMTD since it triggered my system back in June. Today, news were positive, and volume was strong early in the morning. I decided to enter a trade. Here is the summary of the account currently



It is important to enter the contingency order immediately. I am setting it at $18.35, just below the 38.2% retracement.