Thursday, March 11, 2010

KIRK long Update

UPDATE: Took profits on 17-MAR-10 sold 3 contracts for $4.40 each...a double! Current holding's cost basis is now $1.22 per contract

Date entry: 11-MAR-10

Trade: Long KIRK Apr 2010 $17.50 Calls - 5 contracts at $2.15 each

Set-up:  8-Mar-10 set up confirmed on daily chart on %R and accel bands.

Confirmation on Accel band on 8-MAR-10 (%R had been confirmed 4-MAR-10)

Conditions: Efficiency Ratio, Stochastics, ADX/DMI are all very bullish..%R has violated...stock is in top IBD group

Re-Entry: %R retest

Exit strategy: 18.38 is violated on daily chart.

Target for profit taking: Sell entire position at $500 profit.

Stop loss: close below $18.38 (latest %R Retest bar's low).

Time Frame: Prepared for 1 month  holding period.

Where found: IBD stocks on the move


KIRK is top rated in a top group on IBD. It is reporting earnings tomorrow 12-MAR-10...this is scary, but the Imp vol is less than 2x historical this is within my rules. KIRK has a true retest outside of the accel bands, it was violated for 2 days now...but efficiency ratio is still bullish.

Volume is high today and it is moving again outside of Accel bands and %R is overbought again. more bullishness. I think the %R violation is a fakeout and that this is setting up for a big move post earnings.

Stock is near a 52 week high which it posted the day of the reversal and 1st %R retest. My stop is based on the 2nd retest day's low.