Sunday, March 21, 2010

EZPW long

Date entry: 17-MAR-10

Trade: Long EZPW APR 2010 $20 Calls - 10 contracts at $1.55 each

Set-up:  16-Mar-10 %R retest...retest inside bands...near 20 day MA...big volume on retest.

Conditions: Efficiency Ratio, Stochastics, ADX/DMI are all very bullish..

Re-Entry: none.

Exit strategy: 20.12 is violated on daily chart.

Target for profit taking: Sell entire position at 75% profit.

Time Frame: Prepared holding 3 weeks.

Where found: Stocks on the move


EZPW is a strong IBD stock since entering the trade it has not rebounded nicely, and the %R has not gone back above overbought, this isn't a very clean retest and I may remove the trade in lieu of other opportunities.

Also the retest occured well inside the accel bands and this is also sub-optimal according to new learning from Price Headley.

Daily and Hourly Chart below.