Sunday, March 21, 2010

ROST long

Date entry: 19-MAR-10

Trade: Long ROST Apr 2010 $52.50 Calls - 10 contracts at $1.85 each

Set-up:  18-Mar-10 %R retest.

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

Re-Entry: none.

Exit strategy: 51.82 is violated on daily chart.

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

Stop loss: close below $51.82 (%R retest bar's low)

Time Frame: Prepared holding 3 weeks.

Where found: Stocks on the move


After watching a webcast with Price Headley, he said that he likes to get in ONLY on %R retests and mostly those that occur outside of the accel bands. In this case, the stock closed inside the bands, but only barely...and it rebounded nicely the day I got in.

This so far is working out realy well as it bounced right away. The stock is in a very strong group and has solid fundamentals...the uptrend has been in place and is also strong.

Daily and Hourly Chart below.