First week using esignal was a great learning experience for me. I added to my knowledge of pivots and now have to learn more about Vwap since I found custom formulas online for both of these indicators (as they aren’t part of esignal originally).
On a recap I made a mistake with AIB. I was too focussed on looking for my magical Fibonacci retracement price that I didn’t pay attention to the correlation with the markets. My short was up almost $400 until the next day when I got stopped out for a loss of $250. It could have been a little less of a loss if I had respected my stops. Several times this week I did not respect my mental stops showing me I am not yet of the caliber of mental stops. I have to put in my stops and let them run. Also the lesson here is in allocation. Had I taken even half my profit I would have been in the green.
I made a good moves on CPST on a gap up using my market scanner. My goal in the next month is really hone in on this strategy as it can be quite profitable. The problem is I thought CPST was going to rise into earnings which it did but not significantly. I ended up selling CPST for a 20% profit and then the next day doubling my position near the high of the day. I gave back about third of those profits and am holding my original position’s size into tomorrow. Looking back at the last earning CPST did not do well the day of. I will try to sell on a pop in the morning and buy back on Tuesday if things look right. Again an allocation problem – something to work on.
Other than that I did alright with FAZ but I missed a banking rally. BAC going up two days around 6-9%. Silly that I didn’t get into it. I really thought that SPX was forming a head and shoulders, and although it seemed to be true at first, it was totally denied and formed a wedge pattern instead posting 6 month highs piercing through the head and shoulders high of the week. I *Still* think that the markets will have some down days in the near to intermediate future. I am now honing in on certain stocks that I will pickup when that happens. I am writing out the scenarios as I think they will happen and my reactions to them.
So unfortunately I ended the week slightly in the red, but I learned a lot and upgraded my knowledge of things. I’m still up well on the month, next week I hope to do better.