Oct 162014
 
SAVE daily Oct 16th

SAVE daily Oct 16th

The SAVE (Spirit Airlines) short trade hit the first profit target (T1 at 53.38) for a 23.3% gain on Monday and has so far traded around that level every day this week.

This is one of many recent examples of why multiple price targets are used as reactions (i.e.- a bounce or consolidation) are common upon the initial tag of each price target. Consider booking partial or full profits and/or lowering your stops if holding out for T2 (48.27), which is remains the final target on this trade.

Oct 162014
 
PNC daily Oct 16th

PNC daily Oct 16th

The PNC (PNC Financial Services Group) short trade hit T1 yesterday which was the sole official profit target at 78.20. I had also listed a second target zone which was likely to be extended as the final target but as I had not made that target official before T1 was hit, I will have to consider this trade completed. For those still short, PNC has a better chance of reaching that second target zone now that the intermediate-term trend is bearish. Consider booking partial or full profits and/or lowering stops if still long. PNC will now be removed from the Active Trades category without any additional updates.

click here to view the live, daily chart of PNC

Oct 162014
 
KATE daily Oct 15th

KATE daily Oct 15th

KATE (Kate Spade & Co.) hit the final target, T2 at 27.65, on Sept 26th for a 28.9% profit. I had thought I had updated this one earlier but just noticed it still listed as an Active Short Trade while updating the trade ideas today. As always, traders should have limit orders in place to close positions upon their preferred profit targets unless actively monitoring those positions at all times. For anyone still in the trade, KATE is now down 35% since the short entry at 38.91 at the open on July 30th so at least consider lowering and/or trailing stops at this point if still short. However, as T2 was listed as the final target, KATE will now be moved to the Completed Trades category.

Oct 162014
 
BXS daily Oct 15th

BXS daily Oct 15th

The BXS short trade hit the second target, T2 at 19.33, yesterday for a profit of 18.1% since the original short entry. Consider booking full profits and/or raising stops, depending on your trading plan. T3 at 18.30 remains the final target for now but as always, reactions off the initial tag of each target level are likely.

Oct 162014
 
AA daily Oct 15th

AA daily Oct 15th

The AA (Alcoa Inc.) short trade hit the final target, T2 at 14.05 for a 15.5% gain yesterday, exactly one month after the short entry at 16.62. Consider booking full profits as T2 was the final target on this trade.     click here to view the live daily chart of AA

Note: For those signed up for email notifications, updates may be posted on a few other trades that have recently hit a price target as I’m updating the trade ideas today. In order to reduce inbox clutter, notifications may not be sent out on all trade updates today unless the trade offers an objective entry, add-on or the price targets or stops have been modified since the previous update. All completed trades, winners & losers, must be posted after reaching a profit target or being stopped out or removed early for categorical & archiving purposes.

Oct 152014
 

Wash. Rinse. Repeat. WLT (Walter Energy Inc) will once again be added as an aggressive Long Trade Setup on a break above this 60 minute bullish falling wedge pattern. T2 (2.59) is the current preferred target at this time with a final target (T3) at 4.17. Stops will be determined upon entry.  As with the previous WLT long trade, Walter Energy, along with several other US Coal stocks, has the potential to morph into a long-term term trade or bottoming play. However, we just don’t have enough technical evidence at this time to make that case with a high degree of confidence although I have been observing some recent bullish price action in other coal stocks, such as ANR (also shown on the 60 minute time frame below, as this stock has recently broken above this descending price channel & will also offer an objective long entry once the 2.04 resistance level is clearly taken out). Target levels are marked but the suggested sell prices will follow.

 

On a related note, I wanted to clarify or really expand on my previous comments about hedging against short positions. For weeks now I have made a case for a reversal in the $USD and a bullish case for select commodities including gold/gold mining stocks, wheat, corn, soybeans and select US coal companies. I continue to believe that these are some of the most promising trade ideas heading into the 4th quarter & likely well into 2015 and as such, although they are not considered typical hedges against short positions in US equities, they very well could prove to be if things play out that way (dollar down, commodities up). That has certainly been the case recently with precious metals and those commodities (and commodity producers) exhibiting very strong relative strength against equities. In this sense, I am running a quasi-hedged portfolio or at least a long/short portfolio, since it is not directly hedged via equity index futures, call options or bullish ETFs against my short positions.

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