I took my second real trade off point-and-figure charts today, for a second win. Like my GSF trade yesterday, I second-guessed it and got out early. If I had left my original stop in place, and stuck with it longer, I would have made a bit more money. Oh well!
It was in SunPower Corporation (Nasdaq: SPWR). As you can see by the daily PnF, I’ve marked the overall trend as up, though it does look like it may be about to turn over. So, I think I’d take any setup long, and I’d take a short setup through the big daily support I outlined. This is how I do all my trades… I pick which direction(s) and levels I think are safe, based on the daily charts first. Then I look for entries on the intraday charts. Anyway…
To be honest, though, I don’t like SPWR’s spread (it’s not obscene, but it can get to 10 cents at times), so I wasn’t paying too much attention to it. Well, as it happens, on wallstreak, stock traders started talking about how it was too bad there were no short shares available. I think it was a short candidate for highchartpatterns.com, too. This got my attention, and made me think, “I’ve gotta get in long, if this one turns around!”
Well, sure enough, near the 55.25 support area on the daily chart, I got the turnaround I was looking for. Then, I hoped, some percentage of the people already positioned short would give up and drive the stock higher. I think that’s exactly what happened, but I didn’t wait long enough! Here’s the intraday chart:
I saw it having trouble getting above yesterday’s low (I’ve drawn a blue line to illustrate that). So, I got out as near that level as I could, given the 4 to 7 cent spread I was dealing with. Oh well, I made money, and got another PnF trade under my belt.
Read on if you want to see several more trades I spotted. I think I will do my best to be more aggressive tomorrow, as long as the market environment is sane enough:
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| SPWR |  |  |  |
