Were You In URRE? Did You Close It?

Yesterday one of the stocks that I think is going to be a secular bull within the next year or so made a decent run or capped off a decent run leaving some positions that were formally underwater at a double digit profit, but yesterday was the time to close that position. URRE may very well make for a great pullback buy, but we'll have to let the market tell us if so and when.

Here's yesterday's post laying out the reasons to close the trade or at least trail a stop. I did get an email about trailing stops under a certain dollar figure and brokerages not allowing stops for stocks like URRE. Most of you probably know I don't believe in placing any order with a broker unless it's an order I'm placing at the moment I want to make the trade, I don't want anyone knowing where my stop is or what my intensions are. So trailing stops are meant just in the sense of using the Trend Channel or a moving average, a Clear Method system or whatever you prefer, it's not meant as a trailing stop available at a broker.

You might think I'm being myopic about the topic, but I had a long position and I was going on a weekend cruise, I was going to miss Friday so I put in a stop quite a bit lower than I'd ever expect that particular stock to move (I believe it was a couple of standard deviations below an ATR. In any case, the stop was hit which was a pretty decent hit because I had it so much lower than I expected, it was like a catastrophic stop, then the stock closed up something like 5-8% o the day and went on to become a big winner. Guess what the low of the day was to the penny? My stop.

After that I decided to close all trading positions before going on vacation for a few reasons, I never used a stop loss like that again (I didn't before that, it was the vacation) and I personally try to keep stops end of day not intraday and especially not a.m. trade.

Here's URRE today, remember it may become a decent long, its character is changing.

Yesterday the closing candle was way too close to a star as I suspected it would be earlier in the day and volume was increased, this makes for a very high probability next day reversal. You could say the same about the day at the yellow arrows, a star and increased volume over the previous day, but the one thing it was missing was a break above those two resistance levels, that's where the action was as far as demand, better prices, etc and it was so close at that point, why wouldn't they go for it.

Any way, I hope you made or saved some money there. We'll keep an eye on it in the near future.