Wednesday, February 9, 2011

End-Of-Day Recap - Wednesday 2/9

P&L in the trading accounts were basically flat for the 2nd straight day this week.

Gains in AAPL long (+0.8%) and WPRT short (+7.6%) were effectively offset by losses in ABX long (-1.4%) and TBT long (-2.2%). Position sizes of ABX and TBT are somewhat larger than those in AAPL and WPRT.

I was out for most of the morning, so didn't trade much today.
  • Sold remaining HND.TO natgas short @ 9.38 (+1.60). Was offered all morning @ 9.67 but unfortunately only traded to 9.62.  Why Natural Gas Is A Short was updated as the trade was closed.
  • Subsequently bought and sold UNG as a daytrade bounce for a 4 cent gain.
  • Sold EPS.TO @ 3.41 (-.10) as natgas remains weak. Also slightly concerned that news regarding Buffalo's ban on hydraulic fracking could weaken sentiment toward the shale gas sector temporarily.
  • Sold TBT @ 40.36 (+0.83). My take profit stop loss was tripped on this one. I may end up regretting this trade as I think interest rates are still headed higher, but the daily candle wasn't looking great so I cut the position and took my profits
  • Shorted JASO @ 7.28 (see end of post for further discussion on this one)
And since I was out I was also unable to act on some of the setups I was watching. One in particular that I missed was EWZ. I tweeted yesterday that I was looking to short it, and it broke lower today. Any bounce toward 72 should probably be shorted now with a stop above the descending t/l.

Yesterday's End-Of-Day Recap highlighted WPRT as a stock to watch today. WPRT broke below 15 support on heavy volume following earnings after the close yesterday. This chart looks really ugly. The 2-year uptrend has been broken and this won't end pretty. I am looking to lighten up my short a little toward 13.50 and then target 12.

For tomorrow I will be keeping a close eye on gold and gold mining shares. Gold looks like it may be ready to try higher. I will be looking for the 100dma to hold tomorrow in GLD. If it does I will look to add to my long gold position via HBU.TO. I will also be watching ABX. ABX continues to (barely) hold above some key technical levels, but gold mining shares as a group are underperforming vs. the commodity. Further weakness in ABX tomorrow would likely cause me to cover my long. See Time To Buy Gold Again?.

As well, I am short JASO from 7.28. Not the smartest play with earnings coming out before the open tomorrow (I had actually thought earnings were due Feb 15 when I initiated the trade - but didn't cover the position when I found out my mistake). Technically it looks to be forming a descending triangle that should eventually break lower, and it has been a clear underperformer vs. the rest of the solar sector year-to-date. BUT it has also found good support above its 50dma since announcing a large supply deal last week. This is now a coin flip, which is NOT good trading. I'm a little disappointed in myself on this one - no matter what the end result. (Feb 10 8:15am - Update: JASO announces will release earnings Feb 22) 

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