Monday, March 25, 2013

Today's trading

Decent day, but my lack of patience continues to hurt me. I shorted Natural Gas at yesterday afternoon's open, and took some heat on it early in the day but there was little volume in that action, so I stayed patient. My stop was above recent highs. Once it started to sell off, I got anxious about giving up profits and covered for +30 ticks. Its not bad at all, and I'd be happy on that trade, but this was a very clean setup. The setup had the following going -

COT data indicating commercials building shorts
ADX(7) on daily > 70, ADX(2) on daily > 95
Seasonals
Very overbought RSI reading

So I expected to make atleast 100 ticks on the trade (cover somewhere near the daily 21EMA). NG ended down almost 1.7%. Disappointed but not unhappy?

I also was able to dump my ILF calls before the selling started this morning, but I'm still holding onto BRF and ECH, which are in pain at the moment.

No other positions open at the moment, will scan for setups and write a post later. 

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