Market Curiosity: Exploring Markets And Systems

January 5, 2011

Long PCLN on channel breakout +4%

Filed under: +0 to +5%, Long Calls — Tags: , — Jeff Fitzmyers @ 2:01 pm

Long PCLN March March(?) 420 calls, full position. Filled at $29.00
Exit: Sell half when it looks like a short term top. Stop out if price < about 418.

While stressing about the ST short (now long) trade, I almost missed this one and got in a bit late. What a nice channel! Should have tried to get long once price rose above yesterdays high.
+ Good breakout volume today.
+ 5 days of accumulation recently.
+ Yesterday price nestled into the EMA’s nicely.
+ Very nice sideways channel!
– Weekly RSI is over 70, but I think this can happen near the end of moves. Action should be strong and up, otherwise get out: The rubber band can snap back.
+ Earnings Feb 14th.

Exited at $30.30. Price is backtesting, but declined more than I wanted. And looked like it might go even lower. Time to exit with a profit and reenter later. Don’t want to ride a significant correction.
Profit = 4%
Lesson: Take half profit too soon.

Jan 22: Price did back test and calls would currently be worth -20% less.

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