"A man is not finished when he is defeated. He is finished when he quits."

Monday, November 22, 2010

November 22


I had some time in the afternoon to sit in on the markets to practice. First around lunch, then later near EOD. I thought that RIMM was poised for reversal based on the chart and feel of momentum. I was, as has been the case recently, just a bit early; what I have come to characterize as "early wrong". I took a long trade at 58.51, corresponding to the price at the near-doji yesterday at 11:40 am. Nope, that wasn't the level traders were seeking: RIMM dropped further to significant levels from Nov 15th (see doji at 1:10pm), the 16th, and the 18th. I felt momo shift in my favor around $58.20 so I took two more longs at 27 cents. Price dipped only six cents below that level in the next candle then moved up. I exited early for a small gainer.
I then left to remove a desk from Mrs. Bluecollar's old office in Portland. When I returned near the end of the day, I found that my exit from RIMM was close to the low of the day and its price had climbed about $1.20 per share from my exit.
I then went to TNA which was moving up near the close... the run-up was getting stale and I didn't want to push my luck by going with trend. I waited until it felt like momo was going to shift then I set a mental stop (red line above) while taking a short. Price rose against me about nine cents before dropping into the close. I got out about 13 cents shy of the bottom of the move but I'm satisfied with my 20 cent winner to end the day.

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