ATR Trading
Bought a 19.67% of equity position in LCC at 8.54. The target is 10.28. The initial trailing stop based on today’s close is 7.67.
COT Strategy
Sold SSO at 32.74.
Jun 292010
Stock: U.S. Airways (LCC)
Price: 8.54
RSI(2): 1.23
Risk: 2% of equity
ATR Entry: 0.579
1.5 X ATR: 0.87
Position Size: 19.67% of equity
Target Price: 10.28 (three times ATR added to the entry price)
Stop: 7.67
Action: Buy an approximately 19.67% of equity position in LCC at 8.54 with a target price of 10.28 and an initial trailing intraday stop loss at 7.67.
This trade goes in the ATR Trading portfolio.
ATR Trading
Bought a 27.92% of equity position in VCI at 33.25. The target is 38.01. The initial trailing intraday stop is 30.78.
Sold SJT at 24.18 on a stop.
COT Strategy
SSO closed below its close-only stop. It will be sold as of tomorrow’s open.
ATR Trading
Bought a 23.18% of equity position in UAUA at 20.91. The target is 24.53. The trailing stop begins at 19.14.
I have another new trade for this portfolio for tomorrow:
- Stock: Valassis Communications (VCI)
- Price: 33.85
- RSI(2): 0.31
- Risk: 2% of equity
- ATR Entry: 1.588
- 1.5 X ATR: 2.38
- Position Size: 28.42% of equity
- Target Price: 38.61 (three times ATR added to the entry price)
- Stop: 31.47
- Action: Buy an approximately 28.42% of equity position in VCI at 33.85 with a target price of 38.61 and an initial trailing intraday stop loss at 31.47.
Jun 272010
“The national budget must be balanced. The public debt must be reduced; the arrogance of the authorities must be moderated and controlled. Payments to foreign governments must be reduced, if the nation doesn’t want to go bankrupt. People must again learn to work, instead of living on public assistance.”
– Marcus Tullius Cicero, 55 BC
Cicero for president!
Never mind, the more I think about it he got on the wrong side of Marc Anthony and was assassinated. It was just a thought anyway. So on to the real world.
ATR Trading Strategy
I’ve added an additional row on the ATR Tracking spreadsheet that includes a “Target” column and substitutes “3 X ATR” with “1.5 X ATR.”
“1.5 X ATR” means that for some trades (maybe all of them, we’ll see how it goes) in this portfolio I’ll use a trailing stop that is 1.5 times ATR under the entry price or the highest closing price, whichever is higher, rather than 3 times ATR. We’ll still risk only 2% of equity on each trade, we’re just tightening the stop.
“Target” means that I’m setting a target price when the trade is entered that is 3 times ATR above the entry price. For example, if the entry price is 20 and the ATR is 1.00 then the target price would be 23.
The latest Blees numbers are posted.
There was no buy or sell activity today. The FST order was not filled. So that trade is canceled.
Jun 252010
- Stock: Forest Oil (FST)
- Price: 28.60
- RSI(2): An anemic 0.76
- Trend: Higher. Price above green Ichimoku Clouds.
- ATR: 1.448
- Trailing stop at 3 X ATR: 4.34 below entry price and adjusted to trail below highest close.
- Risk: 2% of equity
- Position size: 13.17% of equity based on the current price and ATR.
- Action: Buy an approximately 13.17% of equity position at 28.60. Today only.
- Portfolio: ATR Trading
* Stock: San Juan Basin Royalty Trust (SJT)
* Price: 25.31
* RSI(2): 1.76
* Trend: Higher. Price above rising green Ichimoku Clouds.
* ATR: 1.052
* Trailing stop at 3 X ATR: 3.16 below entry price and adjusted to trail below highest close.
* Risk: 2% of equity
* Position size: 16.04% of equity based on the current price and ATR.
* Action: Buy an approximately 16.04% of equity position at 25.31. Today only.
* Portfolio: ATR Trading
* Price: 25.31
* RSI(2): 1.76
* Trend: Higher. Price above rising green Ichimoku Clouds.
* ATR: 1.052
* Trailing stop at 3 X ATR: 3.16 below entry price and adjusted to trail below highest close.
* Risk: 2% of equity
* Position size: 16.04% of equity based on the current price and ATR.
* Action: Buy an approximately 16.04% of equity position at 25.31. Today only.
* Portfolio: ATR Trading
ATR Trading
Bought a 16.03% of equity position in SJT at 25.29. The trailing stops starts off at 22.15 close only
Jun 242010
- Stock: San Juan Basin Royalty Trust (SJT)
- Price: 25.31
- RSI(2): 1.76
- Trend: Higher. Price above rising green Ichimoku Clouds.
- ATR: 1.052
- Trailing stop at 3 X ATR: 3.16 below entry price and adjusted to trail below highest close.
- Risk: 2% of equity
- Position size: 16.04% of equity based on the current price and ATR.
- Action: Buy an approximately 16.04% of equity position at 25.31. Today only.
- Portfolio: ATR Trading
Follow us on Twitter 