After the crack rally ended quickly with 4 down days following it, I became more cautious of this current bull market. Today seems calm enough though, however with the debt debates upcoming, I think it’s best to keep a neutral to negative stance.
Morgan stanley upgraded met coal today causing WLT to gap up over 8% this morning bringing along with it ANR and BTU +over 2%, however, this rally also faded as the stocks went into gap fill mode right along the 50 day ma and right under the rising trendline. This gave me a bad feeling so I sold all positions. Will look to act long or short based on future movement.
ANR sold 1130 @6.25
WLT sold 441 @14.42
Ben Bernanke decided not to taper today causing a market ruckus at 2 vaulting the s&p from .3% in the red to 1.2% green. I got back into ANR and WLT, and also opened an $11k position in BTU in my dad’s account.
I got in because the price was flagging and used my usual entry points to get in. This time I got in WLT at 14.44 with 900 shares and ANR at 6.64 with 2200 shares. BTU was entered at 19.04 with 590 shares.
Bringing my ANR and WLT averages to:
ANR 3350 @ 6.45, stop 6.57
WLT 1301 @ 14.02, stop 14.27
BTU stop 18.90, which it closed under at 18.88, however with the sentiment of the market, I’m hoping it rises tomorrow, will watch closely on open.
*Shipping – DRYS, DSX, EGLE
Agriculture commodity prices – DBA, SANW, CHSCP
Semi-Conductors – INTC, AMD, CY
Miners and Coal related industries – RIO, GLEN, ANR, WLT, BTU, X
Emerging Markets – EEM, CEW
Metals – GLD, AEM, Silver
China Financials – CHIX
Individual Stocks that look interesting:
It’s been a while since I’ve posted in my journal but things have been quite uneventful besides the gradual rise in coal stocks I’m holding.
Their up and down over the last 2-3 months has been a test of my patience and discipline. They have taught me three valuable lessons.
1. Be patient in getting into a trade
2. Be patient in getting out of a trade, if you are confident
3. Don’t get into a trade unless you are totally confident
Anr has returned to 6.10 breakeven levels and above to the 6.80’s and wlt has increased to the 16’s. I am contemplating scaling down 2/3 of my position at those levels with the market problems looming next week and resistance upcoming for these stocks. However, in reading the bullish things people are saying about coal right now on stocktwits, I am being swayed slightly. Part of me wants to wait till later this week.
However! despite them, I pared down 2/3 of both positions and I’m feeling glad I did. I have finally recovered my money plus some. Feel like I can breathe stocks again.
anr sold 2080 @6.70, kept 1150 with soft stop at 6.10
wlt sold 750 @15.67, kept 401 with soft stop at 13.08
Sold anr because it broke down from 4 day up channel, did not want to give back a possible move down to 6.45. Sold wlt because intraday descending triangle was forming.
Will look to get back into both stocks on future setups.