Swing Trade: CAL

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I swing traded Continental Airlines, Inc. (NYSE: CAL) over the last 2 days. The daily chart looked weak, so I went short as CAL broke down through the OR low of the first 5 minutes yesterday, which was also at round number $36:

I placed my stop above a swing high from the day before, and my initial target was $35. When it opened weak this morning, I lowered the stop to $35.10 to protect the profit. If it broke that level to the upside, CAL would print a hammer on the daily and I wouldn’t want to be short anymore. For my revised target, I was watching the daily for support, and saw some near $35 (it blew through that this morning) and another pivot point near $34:

CAL stalled out near $34.69, and as I posted on Wallstreak, I watched for a break. It went down, so I stayed in. Near the close, CAL plunged with the rest of the market, and I covered into support at $34.06 for a profit of 3.75R.

I’m really happy with my trading today. The profits are nice, but even better to me is that I executed very well. My psychological account is up like a million R. I kept my head, picked good entries and exited into big moves instead of getting stopped out on retracements. If I can keep this up, I’ll be able to close out June green in my account. I’m down about -2R right now, up from a drawdown of about -6R or so from a week or two ago.

Trade Summary:

CAL Short 37 Shares
Entry: $36.01, Stop: $36.53, Target: $35.00
R: $19.24, Exit: $34.06
P/L: 3.75R, or $72.15

Trade Grade:

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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com