The effect of the Cats and Dogs trades is an interesting phenomenon that I will explain later, but it looks like we are seeing it in the shippers and particularly the dry bulk shippers, yes the same ones represented by the Baltic Dry Index which has been plummeting. As for the C&D trades, they can move very quick, but profits should be taken pretty quick as well. I generally take at least partial profits on a double digit move and trail a stop, hopefully the move is being enough that you can take your original investment off the table and let the profits run guaranteeing a profitable trade. However the arrival of these trades, especially when they are working counter the market, is a warning signal, so be careful about managing them as well as risk. These are speculative trades by nature, so I would cut the risk management rules (If you use a 2% rule, then make it 1%, etc), the way these trades can explode will make up for it.
DHT looking to move to stage 2 mark up, this can be short in these C&D trades, volume should increase a lot on a real stage 2 breakout today.
The daily 3C chart, a short accumulation period, but fairly strong, it should support the pop that these trades usually see.
On a 5 min chart, we see the accumulation at the bottom, the first run and a pullback.
On a 2 min chart, it looks like accumulation of the pullback for the next run.
I have a new swing trade template that I'm still working on, but it is at least far enough to tell you what candle/day is in the trend, what is noise and what is a reversal. If you have StockFinder I can share it with you later today.
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