would seriously consider selling all CAGC positions when it is near its resistance and at the same time S&P 500 is near its resistance level. I ended up selling at $13.55 for a 25% profit in 5 trading days.
Not too shabby considering the short time frame. My strategy was really simple. Using the support and resistance levels for CACG in conjunction with S&P 500 index levels, buy low and sell high. Honestly, there also is some luck that needs to be part of this as well… I was lucky in that I chose the right stock because not all stocks had the same result during the same period.
The next time I buy CAGC again would be once again when it reaches it support around $10.50 - $11 range. It looks like yesterday’s break above 1,110 was a “Bull Trap” because today’s open is headed in the lower direction. After today’s session is complete, we should know whether it was indeed a “Bull Trap” as the price would sink right back into the trading range (1,040 – 1,110). We actually experienced many “Bear Trap” when the market sky rocketed after the market crash last year. Now, we could be seeing the opposite pattern. Only time will tell…
Meanwhile, I also entered LONG position on ERY at $9.85 yesterday to make addition profit as the stock market declines towards 1,040.
Other Posts:
The Weekend Rule
What Lessons Can We Learn From Worst Performing Stock in 2010?
How Do You Plan To Trade CAGC?
Fibonacci Retracement Levels in S&P 500 Index
No comments:
Post a Comment