I have not been making very many trades, due to the fact that my systems were not built to handle the market dislocation of late. Well actually, they’ve handled it very well, as they’ve kept me out, so I guess they were built to handle it.Â The point is, the market has to stabilize a bit more before I’ll start getting regular signals again.
So I decided to take my old nemesis out of the closet and punch him around a little bit, meaning I made some discretionary trades.
I’ve been watching Provident Energy Trust (USA) [[PVX]] both as a play on yield and a play on the energy markets. I got in today at $5.81 My stop is set just beneath today’s low, so it is tight. I’m expecting managers to chase yield as well as I’m expecting OPEC to intervene and decrease supply. I will likely begin taking profits near the $6.60 range, as I expect some resistance in that area.
I also bought some [[QLD]] in the after hours market, shortly after seeing the numbers from Microsoft Corporation [[MSFT]] . My stop is placed just beneath today’s low. There is a lot to like about this chart, but my main reasons for buying in are the bullish divergence on the MACD and the (hopefully) successful test of the lows. If this trade does not quickly stop out, I’m going to attempt to hold out for roughly 10 points of profit, which I think can be easily achieved if any momentum can develop on the upside.