Was anyone surprise I was stopped out on AMRN? You shouldn’t. I told you already that it was a wrong pick. Good thing I sold some shares in the morning to reduce my exposure; thus, my actual losses were actually less than my expected losses when my stops were hit. As in The Fly’s favorite expression- even though I lost, I won because my loss was smaller than expected.
With the bull still “floating” up, my guess is that this is an inflationary bull run. And what do you do when you make conjecture about inflation? You walk the talk and buy some gold or silver. I chose the latter and bought EXK and SLW for starter positions. Oh yes, the charts for EXK and SLW look great!
Another one I like today is AIG.
AIG?
Yes, it is purely a charting decision. I love the chart layout and the stock symbol “happens” to be AIG.
See for yourself in the charts below:
Below is the daily AIG chart: Notice that price action today took out the highs of last week and is now trading above both the 79 sma and the 89 ema which to me is a big plus. Notice that the oscillator also turned up.
Below is the weekly AIG chart: In this case, I see a “cup & handle pattern”. Do you? Well, it really doesn’t matter whether you see it or not. What is important is that I “see” it. It is my trade after all.
Hey, I feel pretty good about this AIG trade as well as the EXK trade (which is also The Fly’s trade). But as you all know, I’ve been proven to be wrong often times; therefore, my stops are always around to protect myself regardless how I feel about this trade.
Below is the daily EXK chart: Notice that price action took out the high of last Thursday and Friday with the oscillator turning up. There is also a divergence b/w price and oscillator; with the price flat line on support while the oscillator is trending up from below the zero line. These are all I need to see to give me the confidence to take the trade. However, I’m very well aware that price actions are still below the 79 sma & 89 ema; therefore, I’ll be quick to get out of Dodge in this one.
Good Hunting!
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Trading journal update:
Stopped out of AIG and SLW due to stop placements below 79 & 89 moving averages on the 5 min charts.
Still have EXK open.
Dumped my EXK for small loss. Didn’t like the fact that price tracked down more than half-way to yesterday price bar.
Moving on.