Thursday, October 16, 2014

Closed HCLP

When mean reversion trades work, they really work.  HCLP Really worked.  No need to press my luck here.  This was the largest move this particular stock has ever made.  

Entry:  44.88
Exit 1: 45.68 (1/2) (+.80, 1.7%) 1
Exit 2: 50.53 (1/2) (+5.65,  13%)
+2.15R --- and with that I pass the 50% mark  on the year!

closing remarks 
What I did well on this one is I kept stalking it.  Earlier this week when it faded, I got out with a small profit.  I saw it set up again and hit it again.  

Taking partial profits  I don't necessarily trust bounces in this market.  They have been very profitable because I don't trust them.  By taking partial profits, I moved my stop to a point where I could let the remainder run and still end up with a profitable trade.   

Why Did I sell?
The overall trend of this stock is still down.  As much as I would like to think that HCLP bounces right back to the highs there is too much damage.  I initially targeted the 200MA (48.40) as the profit target for this trade. Obviously, I got more than that and am pleased.  I'll let the rest of the traders play the rest of the bounce.  If it sets up again, perhaps I'll play along. 

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