UPDATE Trade: Short CVD Equity...winner

UPDATE 9-SEP-10:
Exited this position fully today just based on time in trade, and the need to free up capital for other opportunities, this thing hasn't moved much up or down but the 4hr has started to perk up on the 13 EMA...so that's good enough for me. Covered the 100 shares I had left for $39.

So let's see that's a total profit of $450...not a bad trade for a 1 month holding...still too long for such a "small" profit.

4hr chart:

UPDATE 12-AUG-10:
Trade trigger fired this morning with the rapid drop in CVD. This is now a free trade! Covered 100 shares for $39.68 this morning. Current Cost Basis is now $40.63. It is nice to not worry about loosing money anymore and to also have more buying power free.

6-AUG-10:
Went short 200 shares of CVD in the taxable account. Got filled at $41.59 per share. Stop is $43.41.

This has a massive move down already but it is officially an outside the band retest as of today.

I needed some short exposure and there isn't very much these days that isn't beat up to a pulp. CVD has terrible ratings and is in a terrible group. So I figure despite the move down, there may be further to fall for this puppy.

As always, I hope I am right. But I expect to be wrong.

Charts:

Daily:

4hr:

ITUB: UPDATE...loser

UPDATE: Stopped out 16-JUL-10 at 20.46 for total loss of $430.50 which was the defined risk I had placed prior to this trade. Trade trigger worked great and I am happy with the execution of the trade...of course this was a breakout and I rather play retests...this is yet another example of why I like doing that...breakouts get faded, retests are nice low risk entry points post breakout fade...

So after my eureka moment. I decided to test the waters using a breakout and using ATR based position sizing.

Based on an ATR (20 period) of $0.70 and my calculated risk tolerance of $430. I determined I could get 615 shares.

Entry point was $21.16

Stop is placed at $20.46

I will use the 2 for 1 method of profit taking here...I will halve the position at $21.86 and leave the current stop in place. This effectively gives me a free trade if I am right....if I get profitable, then I will keep riding this until the exit on %R is apparent (OR should I wait for my trusty 13 day EMA idea to pan out?)...nah I will stick with %R

The setup on ITUB was a breakout on %R and Accel bands confirming close in time. My buddy Shilpi gave me this one so I have him to thank either way.

Charts

Daily:

4hr: