Thursday, September 30, 2010

Trades: Short EEP and PCG...both losers

30 SEP-10:
OK enough laziness..I need to update this blog not just for y'all but for myself.

I gotta say that since I turned over most of the trading to the good people at Big Trends...I have gotten lazier about this blog...

Anyway EEP was a looser. my stop was triggered on September 20th for $2.00 per contract. This was an $0.80 per contract loss. Fairly painful. But EEP kept going higher and I was right to put that trade trigger in during my travels.

Both of these had tripped technical stop points well before I got out of them. In EEP's case I got out soon after the technical stop was

PCG I just got out of today for $4.60 each. For a minor loss of 0.90 per contract (fewer contracts than EEP that's what makes it minor). Across all accounts this was a $630 loss. Easy to bear.

Now I held PCG because when it broke the technical stops on the intraday never closed the gap on the daily chart, and it never confirmed closing over the 13 day EMA...Also there was a big dividend coming so I knew that once that came through we would have a patience led me to hold on until the loss was really miniscule.

EEP Daily

PCG Daily

I have been trolling for shorts in case the 1130 area holds on the SPX as the top of the range (again). Also being net long is a bit nerve racking, especially as we are headed into resistance and we are a bit overbought.

Anyway EEP and PCG both fit the bill, both had heavy volume downside moves recently, and today both were retesting on %R at the hourly level.

I picked up October $55 puts in EEP for $2.80 each.

I picked up October $50 puts in PCG for $5.50 each.

Both had decent open interest and good bid/ask spreads...not super duper great...but good enough to trade for sure.






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