Wednesday, March 07, 2007

Dummy Trade of the Day - Chico's FAS, Inc. (Public, NYSE:CHS)

Good setups were hard to come by today. I managed to find two pullback entries that made sense given the proximity of the rising MA, volume, and chart technicals. CHS was a long entry on the first pullback, on a break of the previous bar high. It was a choppy trade, but I managed to hold on until it started pulling back from the 62% Fibonacci extension. I use the 5 EMA up until 11:00 and then I switch to the 10 for all trades executed after 11:00. So CHS has the 5 EMA and ENER (below) is the 10. The reason I do this is because I don't like when price runs through the MA because I like to use it to gauge support. Except for a flat base breakout or sideways consolidation, most entries after 11:00 don't hold the 5 too well. Of course I'm still experimenting with this and may eventually come up with a better alternative.

ENER had a lot of resistance at $33.00, but I knew it would attempt a retest if it held support of the rising MA. I took a long entry as soon as it recaptured the OR low and exited as price tagged the target.


Babak said...

CHS does look choppy.
what kind of trailing stop - if any - do you use?

Jamie said...

My initial stop is marked on the chart by the small red line segment. After the dip, I moved it to breakeven and finally after price took out the 50% extension, I moved my stop just under the 38% level.