Today was only my third day trading session of the summer. Last Tuesday was a miserable day for me trading-wise. On Wednesday I drove to New York for the Market Technicians Association Annual Symposium at the New York Stock Exchange. After coming back from a short and losing two day trading week, I got some much needed relaxation and socialization time in this weekend. Last night, I did some preparation for my trading day by ripping through charts, looking at futures, and checking out the news (mostly by watching Bloomberg at the same time). I made sure to be in bed by 1 am. Waking up at 8:30 this morning was not an issue. I ate a good breakfast and felt energized going into the session.
I started my day by looking through the various equity indexes to gauge where the market was. For the most part, things started off a little bearish, looked bullish for a little while, then slipped lower into the close. During the bullish looking stretch, I found JCP on my radar. It just broke out to the upside from a low tight range after a pullback from new highs. From the breakout, price pulled back and I entered a long position. I did not put a hard stop in right away, and the position suddenly dropped past my mental stop. So I exited the trade for a loss of about $305. This was not exactly my ideal start to the day, but I kept watching JCP. Almost immediately after being stopped out, it set up bearishly and I entered a short position. From there JCP trended lower throughout the day, during which I made multiple trades in the direction of the trend. A little after lunch time, Bloomberg started talking about the retail sector and compared JCP to LOW (the companies, not the stocks). This is when the trend ended. Big surprise there.
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