Charts of Note
- Thread starter darkhorse
- Start date
Regarding: Short HOT Long HST
1. Correction to chart a few posts ago: the far right bottom has date labeled "Aug 4." FYI, it was supposed to be "Sept 4." Maybe I should join the thread "Have you ever traded while high." Truth be known, I am having horrible problems with my mouse, and I had to do most of the chart twice and threw them away. I was in a hurry the 3rd time.
2. Two hours in the session, the position has made a very nice favorable move. However, earlier accumulating of shares on two different days didn't get ALL the passengers on the train before this move.
UPS taking out the June lows after a guidance cut from Fedex. The company blames a deteriorating economic environment.
Transports breakout from mid-August is now completely trashed.
The next support level for UPS is a minor swing low from November '11 at $66.50 - with more reasonable support near $60 (lows from last summer).
We're short UPS (enjoying the gap today), and keeping a close eye on other transport opportunities...
Quote from darkhorse:
Surprising weakness from crude (CL, USO)
We have noted potential weakness in energy stocks... may also reinitiate crude short if weakness persists into market close
Then there is the other side of the trade: the geopolitical. Israel's golden window to unilaterally attack Iran is during the campaign. It is no secret that the American president is not a lover of Israel in spite of his "whisper-in- their-ear" political speak to the jewish of his support for America's ally.
"...many think that Netanyahu and Defense Minister Ehud Barak see a window of opportunity for a strike during the election campaign because Obama would not want to be seen as abandoning Israel at a time when his own job is at stake."
http://www.thejewishweek.com/news/international-news/if-israel-strikes-iran-how-would-us-react
....hmm.... Are gas prices high now ? Maybe, baby, you ain't seen nutin' yet !
As promised in response to some PM's and slow down getting more, here is my response. It's simple. And we can dialogue on this thread unless it gets too tedious to do that on it.
Updated chart (immediately above post) on nicely and quickly performing trade (re-trade, actually)
Short HOT
Long HST
all over again.
It had mostly retraced (80%) from the closing out of the Aug trade's to the starting point of that trade three weeks earlier which of course is why I called to start accumulating shares a few days ago (posted twice to accumulate).
The train just left the station, as evidenced on the last post with the chart immediately above this post and making a nice move almost overnight. Today it went virtually the same maximum spread as the best spread (profit) of the original trade a few weeks ago. In the big scheme of things, it has a lot more to go, but why I got out flat on the original trade by 22 August was that it appeared to be rolling over, which it subsequently did, moving toward the point of origin of the original trade. IMPORTANT: Many times, wonderfully looking potential trades for long distance moves in a trader's favor do these "re-visits" before finishing the long trip to the final, excellent destination.