Stopped out today.   Support failed to hold.     The problem with this trade was stock selection,  there was no way I should be trading a stock that doesn't average even 100 thousand shares a day.   

Position Updates

After 5 red bars, the impulse bars  went blue for 2 bars, on an up move.   There was no follow through after the up move,  closing down on the second bar.  The MACD did not go positive.   No reason to cover yet.

PZE:   This was a poor stock choice.   On the chart, it's setting up decently with a nice  flag.   However, the volume is terrible.  Only 17.7k shares on Friday.  This was a trade that is too thin for trading and I should have passed.    I'm slightly down on this position.

QIHU:

I have July 15 puts.  The chart does not look terrible as there MACD is showing divergence and the selling pressure has been lower on subsequent downward moves.  

That being said, Picking up puts  was not a "chart" trade.   This company has been dogged by fraud allegations.  Some of the research that I reviewed for this trade includes:
Stock Citron
Delloit Watch
The Street.

If QIHU is a fraud then it will fall regardless of the chart.  Earnings come on on Feb 22.

PZE

Found this in a multiple bottom scan at finize.com. It had a nice pop to 17, and then pulled back to the value zone.  If value holds, the uptrend continues,   otherwise, I'll look to exit quickly.

Weekly, Impulse gives the okay to buy,  13 Day EMA ticking up.  Bullish divergence on MACD and Force showing weaker sellers.

Buy at 15. 61, w stop at 14.94,  target 16.75




Day 2.

Got the stock this time but not sure I wanted it.  Got hit with a big red candle.      I manually pulled the stop when I had mistakenly put a stop limit, instead of a stop.  The specialist traded right over it.

Lessons learned:
Use stops, not stop limits
Don't trade light volume stocks.

The entry scored a 19.   Perhaps splitting up the buy order would help get  better entries.   Rule No. 6 was broken on the entry.

The drop today turned the impulse bar Red.  If no rebound get out at market

MACD shows a series of higher lows since Oct.   But should have I waited until the signal line crossed again to the upside?   More research needed.