12/31/13 WLT Long

Stock: WLT

Entry Price: 16.85

Stop Price: 16.50

Price Target: 18.60

Return $: 4200

Risk $: 840

Reward/Risk: 5/1

Strategy: Swing, pattern breakout, brother stock pattern

Reason for trade: The price did not swing down in the manner I was expecting toward the low 16’s today. They instead began consolidating around 16.80. This failure to break down accompanied with favorable intraday and daily chart setups on brother stocks ANR and BTU, I decided to enter WLT on a potential 5 minute channel breakout.

Actual Sell/Stop out Price:

Mistakes: a day before making this trade I forecasted that price would move to test 16.28 before making a significant move higher, well it did that the day after I bought. Another show of impatience by me.



12/27/13 WLT Long

Stock: WLT

Entry Price: 16.48, 2400

Stop Price: 16.18 / 15.93

Price Target: 18.60

Return $: 5088

Risk $: 720 / 132

Reward/Risk: 7.06 / 3.85

Strategy: Swing, pattern breakout

Reason for trade: Major cup and handle after double bottom on weekly chart, break of inv. h/s on daily chart, bounce from rising major channel line after two tests, break about major resistance line of 16.40 and 200ma.

Actual Sell/Stop out Price:  16.68, I wanted to lock in $400 profit that I earned from this entry and re-enter at 16.27, which I felt through intuition + support + a doji forming would eventually happen. Always good to lock in profits i guess.


Notes: New term learned, January effect, is the more likely than not outperformance in January of underperforming stocks from the previous year.

Weeks of 11/26 – 12/13

Initiated Tuesday November 26th

WLT Buy: $13.86 Tuesday, Nov 26. Bought following a snapback rally after touching 3 month support level of 13.70 and the 62% fib line of multi-month upswing. Oversold daily stochastics.

WLT Sell: $15.30 Friday, Dec 6 after price broke support of 15.35. I was afraid of a close below the daily 50EMA, in which case I would fade short and hope for one of WLT’s classic reversals.

Initiated Friday December 6th

WLT Sold Short: $15.17 3:55pm, Friday, Dec 6 EOD following an inverted hammer formation and close under 50EMA. Also a snapback selloff after touching 32% fib line from November downswing.

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WLT Buy Cover: $15.32 10:55am, Monday, Dec 9 after priced retraced to descending trendline and bounced back above the 5min 50EMA. It scares the crap out of me to be short a stock with such high short %, cut your losses while they’re small.

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Initiated Monday December 9th

WLT Buy: $15.45 1:02pm Monday, Dec 9 following a retrace to the 200EMA on the 5 min chart and began a move toward 15.50, i figured it was time to pull the trigger on the potential elliot wave 3 forming on the 5min. (See 2nd chart below)

WLT Buy: $15.62 1:17pm Monday, Dec 9 after price broke previous day 15.60 consolidation.

WLT Sell: $16.07 7:45 Tuesday, Dec 10 after price broke the 40EMA on 5 min chart. Assure profits!


Market situation

Today may be a bittersweet day for the markets as a very positive nonfarm payrolls report showed an increase of 203k jobs compared to an expected 180k, but the good news leads to a higher likelihood of a taper (or in the very least a change in “tone” of fed statements) of the QE program, or as traders lovingly call it “POMO.”

S&P futures are up 1% premarket and it will be curious to see if we continue to gain or we encounter a “buy the rumor, sell the news” type situation.

Current Holdings

WLT      Entry: 13.86     Current: 15.66


BTU       Entry: 19.03     Current: 19.45

WLT      Entry: 15.74     Current: 16.00