Since I am going to do a comprehensive market review sometime this weekend, like I usually do, let me get straight to how my day went. It was an interesting day indeed though the markets were determined not to make a move in either direction.
I started today by taking a very small position in DLTR, a chart I pointed out yesterday. It is a very small position as I had planned to add on new highs, which didn't happen. I still really like the chart though. Check it out if you haven't done so already.
Then I sold my PMI position at 2.88 for an overall gain of 2.6% before the housing numbers came out. This turned out to be a smart move as the housing numbers were quite horrible. So far, so good.
Then I tried to make a quick buck in MTG, but instead had to settle for a loss of 0.65%. I know what you are thinking. These quick scalps never work for me but still I seem to be making the same mistake again and again. Its been a very disappointing week in this regard and I have really overtraded. Luckily, my tight stops have meant I haven't got much hurt by these misadventures. Long story short, I am determined to correct this wrong in my trading next week. This quick trade meant I was done with my day trades for the week.
Then I saw NR down a little too much and decided to jump in at 5.16. A decent sized position. Basically, it had fallen over 3.5% on a day when oil was doing really well. It closed at 5.17, so no damage done. I admit calling bottoms is really not my speciality.
I thought I was done for the week here. But then I realized that LCC was having a serious crack at 7.20. I had been waiting patiently for this the entire week. I have posted this chart very regularly in this blog, and in fact, posted it even last night. So, I took a decent sized position in it despite the fact that I was going on margin now. But I was very confident about this play. It certainly broke out after that and closed at 7.35. I hope some of you readers were able to take advantage of this move up too!
By now I was around 135% long, a situation I knew wouldn't be comfortable with sometime during the weekend. So, I decided to take some profits in WFMI at 35.50, selling 1/3rd of my position and now I am 112% long heading into the weekend. This is the first time I have been on margin this year and am surprisingly, quite comfortable.
I will be back this weekend with the weekly trades review, the market update and some setups for next week. Have a great weekend!