Wednesday, September 17, 2008

Flght to Safety (C&H) - Barrick Gold Corporation (USA) (Public, NYSE:ABX)

Gold took off on the open as many panicked investors, used gold as a flight to safety. Both ABX and AEM went vertical and carved out C&H type patterns for the afternoon extension. Neither reached the full extension, but the early entries inside the base allowed for solid gains.

GRMN was a HCPG pick. I did not take the initial break at $35.00 because price had moved too far. However, the next pass above $34.50 allowed me to take the setup as a target trade. Price easily took out the morning swing high and extended to $36.00. Not bad for such a bearish market day.

FLS was a missed trade due to problems with IB. My order was transmitted but printed pale blue rather than royal blue which means that the order did not receive confirmation of acceptance by the order destination. FLS has a wide spread and I know I should use stop limit orders, but I'm sure that the order desks are filling the easiest instructions first on days like today. Anyway, when I noticed the color code, I canceled the order, price was too far gone to salvage a trade.

Ironically, on such a bearish session, most of my stock trades were on the long side. Every time I pull up a chart of AIG, my Esignal platform crashes. IB is also having stability and execution glitches, so there were a lot of lost opportunities for day traders.

UNH is a trade I took yesterday after reading that they had large positions in LEH and AIG.


Anonymous said...

Hey Jamie,

Nice composed trading. Did you see the VIX? We may get overall capitulation tomorrow or Friday.

Simply Options Trader said...

Hey Jamie,
Its been a while, glad you're still making good money in this market. I've always been a silent supporter of your blog :)

Talking about the VIX, I've also just blogged about it. Agree that a turn around could be coming soon...

Jamie said...

Thanks Jim,

I guess I regained my composure after a frustrating start. Yeah, the VIX has taken out recent highs and we're just waiting for capitulation.

Jamie said...

Thanks SOT,

Just checked out your VIX post and it is bang on. I was looking for some clues of positive divergence on the lower time frame of the COMPQ and I'm just not seeing much yet, so agree that we are moving towards capitulation or a shake-out of some sort. Maybe tomorrow or Friday as Jim commented.

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