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
Emotions:
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 volatility...so 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.
