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…mighty Rick’s has struck out.
I got stopped out of my 1/2 long position in $RICK earlier this morning, just south of $6.40. All kidding aside, I still like the risk/reward of that kind of setup. The stock had been in a steep downtrend and printed two hammers in a row. I bought with the intention of selling out below the low of the most recent hammer, and I did just that. For all of the times that I buy and get stopped out in this type of trade, they are more than made up for when the stock follows through on the hammer to the upside and rips.
So, all things considered, on to the next one.
UPDATE: I took profits and sold out of the rest of $ISLN.
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TOTAL PORTFOLIO:
EQUITIES: 56%
- LONG: 50% ($APKT $KOG $LVS $MELI $HMIN $RDWR $CMI)
- SHORT: 6% ($ANV)
CASH: 44%
Do you use volume alongside your candles?
One thing that I’ve learned is that volume coupled with the candle pattern is very powerful. The volume accompanying the hammers on RICK was nothing impressive and didn’t seem to be around any support area.
Thanks for your continued excellent posts!
It’s a thinly traded stock, so there was added risk from that.
Speaking of candles and volume… what about the USDX today guys? Outside reversal candle forming at the 50 day, on high volume?
I bought a few puts on TLT today. I think it needs a rest. Call me crazy, but i think that the Yen looks like it could use a rest soon too.
Hey Chess, how has your overall performance been since you were in all cash a couple months ago?
Reasonably well but not a banner summer by any means. You can look through the archives if you want.
Chess,
Nice call on RDWR! Without it I would be down today. I have a condor on the SPX that is eerily getting close to my exit point.
Bryan
Thanks, Bryan. Well done.