The intermediate term chart on PETM, indicates that PETM has some way to go down still. The most likely target is between 16 and 21. The invalidation of this count could occur if the stock exceeds the previous high at 25.78. So I am resetting the contingecy order. A market order will exit the trade, if the stock goes to 25.85
So far, the trade has been working out just fine, with a small profit.
The long-term analysis on DE shows a FLAT with its wave "C" in progress with a target of $43 to $58. This target is most likely to be met during the life of my trade, as long as I roll over the short portion.
The short term also suggests that our target will be reached. More importantly, we can say that this count would be invalidated IF DE bounces back out of the target trapezoid, AT $64.25, hence, we can place our contingency order at $64.25. I am changing the contingency order as well as others orders in the account, to reflect the new targets. Look for the coming articles
so far, our trade has been working out fine. Take a look:
At this point we should be getting a $1000 return or about a 30% return. Well see.....
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UPDATE:
Here is the current state of the account. I have modified some of the contingency orders
Here are the positions
6 comments:
Juan,
Still in with the DE trade.
Tried to get BBY yesterday but failed at my order, with the limit price of $4.95. You caught that move well.
I am keeping my eye on SGR. What do you think? Looks like it will bounce further up to be honest, I have been keeping my eye on iy since you mentioed. Again I tried with a limit price of $3.20 and then $3.40 and failed.
About SGR: First, I gave up on SGR because of the spread between bid and ask was too large. I would be considering exiting my trade now, after reaching 25 and pulled out strongly. Still, to reenter the trade, I would wait until I get a buy signal from the stochastics oscillator while not exceeding the 61.8% retracement of the rally from $16.15
http://stockcharts.com/def/servlet/SC.web?c=sgr,uu%5Bw,a%5Ddaclyyay%5Bdb%5D%5Bpb50!b200!f%5D%5Bvc60%5D%5BiUa12,26,9!Lp14,3,3%5D&pref=G
As for BBY, watch my article,
http://stockoftheday.blogspot.com/2005/09/abandon-rrgb-enter-bby.html
pay close attention to the chart
http://homepage.mac.com/paperprofit1/.Pictures/Search/BBY1.jpeg
The target is $44, and the count would be invalidated at $47.74.
Since you are taking some of my trade suggestions, please be clear that:
1. I am not a Guru, I am a student
2. You are responsible for your own trades and there is no guarantee that they will suceed, I always have stop loss in all my trades.
3. I created the Sarmiento System in early 2005, I have back tested it, and I am now testing it prospectively.
4. The system may work better if you have 5-10 trades at any time.
Use these blogs and articles as a test of the Sarmiento system. So far, I have had a 27% return in one month. That is not bad at all.
Juan,
I fully appreciate your concerns and understand your caveats. There is no wayu I would extend my account to have so many positions on each trade.
I am in just one 1*2 ratio trade at a time.
Tried to get BBY today, this time was successful at my order, with the limit price of $4.95.
Just the one position on both DE and BBY. Took note of your comments about SGR.
Fortitude, please don't take offense, none is meant.
I am disclaiming so that there is no misunderstanding. I usually do make disclaims when people say they are trying to reproduce my trades. There must be dozens of opportunities at any particular time, and I am just trying to show what can be done, not what should be done.
Juan,
No need to worry about ‘taking offense’, I understand why you have written what you have.
RE: “There must be dozens of opportunities at any particular time, and I am just trying to show what can be done, not what should be done.”
Yes that is true. Not only understanding to evaluate what trades are good, but to be in the best ones all the time. Now that is more difficult.
Thanks for posting your column. Continue the good work you are doing. I have placed a few trades myself, so that it adds interest to your blog and then I can provide feedback from a traders’ point of view, a participant rather than a mere spectator.
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