Swing Trade Setup Worked out Well:
In my last couple of posts, I mentioned that I went long on the Market Vectors Vietnam index following Tuesday's flush down on the inflation numbers. This was a well calculated level for a bounce and it triggered a strong Shift-in-Psychology (SIP) Buy opportunity. As mentioned, I scaled into the long position on the way down as follows:
- 500 Shares Long at 19.76
- 500 Shares Long at 19.26
- 500 Shares Long at 19.40
- 1500 Shares Average Long at 19.48
I sold out of 1000 shares at 20.41, with 500 remaining in the trade. I will let the remaining 500 ride, with my stop loss just below 19.76.
Figure 1: Daily Chart showing VNM bounce. Note the flush down towards the downward "hyper-extended" level of 19.00. Inset, my StockFinder Indicator (green arrow) highlighting SIP short term-buy signal. Chart generated in eSignal.
As I said earlier, I remain bearish on Vietnam in the long term. This setup was good for a swing and thats all.
On a side-note, HPQ, which I highlighted as a potential long trade below $36 started to show some strength today. I did not enter this trade, however. Below is the daily chart with the 10-minute intraday chart inside.
Figure 2: Daily Chart of HPQ. After recapturing the $36 level, HPQ showed some strength coincident with the market strength observed today. Inset, the 10-minute intraday chart. Charts generated in eSignal.