Tuesday, October 03, 2006

Trade of the Day - The Andersons, Inc. (Public, NASDAQ:ANDE)

As per last night's watch list, ANDE fell out of its bearish flag on the open by way of a gap down. Because it is not very liquid, it was a bit of a struggle to get in. I had an overall target of $30.00 but I knew it would find some midday support at last week's low around $31.50 so I covered 50% of my position as price fell into that price area. I was a little disappointed with the depth of the bounce and actually had to move my stop back to break-even. I managed to hold on and cover the balance into the close.

I was hoping we could regain the 50 period MA and close above $32.00 when I took this long entry on HANS. However, it just didn't have any traction and couldn't score more than a tag so I let it go at $31.50.

7 comments:

James said...

Hi, just wondering what your reason was for getting long HANS... Was it the narrow range bar? Just wondering b/c i was watching hans today and it didn't look too strong to me at that point... Thanks

Jamie said...

Hi James,

The HANS trade was purely technical. As I mentioned in last night's post, HANS was testing its bullish gap support. When I noticed that it held again on the open, I was looking for a low risk entry point. Under better market conditions, it could have worked.

Anonymous said...

Jamie,
I noticed that ANDE was 5 min chart while HANS was a 15 min chart. How do u decide which timeframe to use for entry & exit?

Also wld like to hear how you may have traded KSS?

Many Thanks

Jamie said...

Hi,
I use the 5 min. when I'm trading the open because it moves too fast. The 15 min. is good for intraday trades and low risk entries.

Tell me about your entry on KSS.

Anonymous said...

Hi Jamie,
Thks. 1 more question, hope it doesn't sound silly, but may I ask if u have already plan to trade ANDE at the open if it opened below the low of Mon?

On KSS, I didn't trade, but looking back, thought it might have made a good trade. It gapped up, then faded the gap, consolidated at the 6th & 7th 15 min bar. Could have entered at a break of 7th NBR. What do you think?

Thanks again.

Jamie said...

Hi,

Sorry to get back to you so late but I didn't see your comment until after the open. The one thing I did not like about ANDE was the lack of liquidity. So I'm not in a hurry to get back in.

I'll look at the KSS trade later tonight and answer your question then. I'm going out tonight so it might be really late.

Anonymous said...

No worries, enjoy yourself! Good trade on NVDA & DRIV!