Friday, May 9, 2014

Reversals of Fortune: XCO, CORN

I've been having a great run.  But that doesn't mean every trade has gone well.  I was stopped out of XCO today for a small loss, and saw a substantial amounts  of my CORN profits  evaporate.

XCO had so much potential.  I bought 5.85 range and saw a jump to 6.60, which faded back into consolidation area.  As with many failed breakouts, XCO then broke out of the consolidation zone the other way.  The reversal was triggered by a downgrade and a $4.00 price target. My stop at 5.40 was hit and a small loss was taken on the trade less than -.05 R.   I was only on 500 shares and position this trade in hopes that it might make a multi-week / month move.  My premise failed and I gladly took my loss.

Corn.  This has been one that I have tracked for a while now.  In at avg. 33.84.  I've had big hopes for catching a multi-month move.  I'm no longer optimistic as today's crop report predicted a robust harvest.  Another reversal. 35.49 to 34.34.   The position is still profitable and trades above the 50 MA. But another reversal and back to consolidation.  If I do not see immediate improvement on Monday.  I will bang it out.

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