FAAACK! Took a nap yesterday around 3pm. It was right about this time that ENG started moving up again, from its lows in the 2.30s. Thankfully though I woke up in time to employ the strategy I mentioned yesterday. ENG made a strong move toward the end of the day (the stock was up more than 40%) and I'll bet that the momentum continues at least for the opening bell. After the opening bell I'll sell at the first indication of a down-tic.
Yesterday, just before 4pm, I put in my buy order when the stock was trading at 2.70-2.75, but by the time my online broker took its time to fill my order the price hit 2.82. Its like I'm trading via smoke signals instead of the internet.
Premarket indicators for ENG are very good but it doesn't mean a thing till the first trade at 9:30 goes down, so I'm trying to keep excitement levels to a minimum. Quite often market manipulators or market makers will try and play with the pre-market bids to artificially affect the first few trades hoping to set a tone for the day.
As I'm waiting for 9:30 to arrive, I'll also let you know that once support levels are broken for a stock that has moved so fast as ENG its likely to fall back down pretty far and fast (I think its moved more than 50% since I started trading it).
Now, some of you might ask "Dumbass, if its moved more than 50% in less than a few days, why haven't you just held on to the stock instead of trading it?"
Good question.
Answer: there was no guarantee that the stock was going to hold on to its gains. For every one example of an ENG type of move, I can show you a million examples where a stock has had a good half-day or day then retreated and gave back all its gains. When given the opportunity I always want to protect my profit, especially if its half-way significant.
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9:31ish
Sold ENG at 2.85. A little disappointed the morning bump I expected wasn't higher.
Gold getting all the headlines. 500 shares of Kinross at 21.15. As long as Gold, the commodity, holds on to its gain today, I should do alright.
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9:41
Regardless of Kinross move today, already up $1.09 to 21.50, I probably will not hold it overnight. Commodities are tricky to hold between sessions for daytraders. If the underlying price of the commodity drops overnight it could wipe out all your gains from the previous day.
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10:07
wow. kinross up 1.86 to 22.27. I'm debating about either setting a stop/loss at 21.90 for all or part of my shares vs just selling all of my shares now. The price of gold is up more than $16, which is fuelling Kinross' move, and really how much higher can it go in one day? I know it can go higher, but realistically speaking how much more of a move will K make in just one day? Maybe I'll just take the uncertainty out of the equation ans just set my stop/loss at 22. If it gets hit thats a 3.8% gain in one day, if it doesn't get hit, I'll sell at the end of the day.
Either way, I shouldn't be a cocksucker and complain.
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3:55
Spent the most of the afternoon at Sterg's house playing Halo. Missed out on a montser run by DDN - up 1.01 to $1.79. Fucking Huge. I bought 1000 shares at 1.84 a few minutes ago hoping for a pop tomorrow morning. I only bought 1000 shares cuz I'm not familair with the company and am not certain exactly how it will open tomorrow, although I would guess the momentum continues at the bell. If it opens strong and holds its momentum I may take a larger position. I would've liked to take a larger position earlier in the day today but I completely missed seeing DDN run.
ENG opened higher then dropped 16%. This was expected, as we noted above, once support was broken it will far fast and hard.
Kinross finished up 93 cents to 21.34, so it looks like we made a nice short term trade by selling closer to its intra day high at $22 earlier today.
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