One of those days

REE moved with the other Rare earths.  Huge volume but again  it couldn't close over the 6.50.  I sold another Apr 6. put for .35, to generate some cash.  If it falls below 6, It will effectively let me purchase my short stock back at 5.65.

INVN:  As I noted yesterday, there was a good chance of it making a pull back as reflected by the doji candle and close below the open.  It pulled back today hard.  5.03%.  That's the problem with Momo stocks.  I should have considered selling into the big move.  Anyway, my stop is still in place and the 10 EMA  has held.   Over the past month that EMA has been the  floor of this stock.

WFM:
A Small pull back after a big reversal move.  No worries yet.

CORN:  Today wasn't all bad.  My Corn short, which is my largest position kept falling and closed at the low.  It took out the bottom at looks to fall to at least $38.5 before next support level.

Since CORN tracks the commodity, the chart of the actual Corn futures also closed at a low.  But is more in the range of support than the ETF.  I like that the Force and the MACD are dropping like stones.  I would have liked greater volume.

BA:  This is becoming a long term short as it won't break out to stop me out.   There is huge divergence and despite Market in Rally mode, BA has been stuck.  EMAs are flat.   Eventually, it has to go one way or the other.

Update: The good, the bad, and the ugly

The Good:  My order to short BA got filled and then stock fell pretty nice.  I'll watch this for a continuation move.

The Bad:  After initially making a strong move in my favor,  SLV continued its bounce off the channel.  My entry into the position was decent. my expectations for the size of the move probably weren't.  I had nearly  a 10% drop from my initial short.  Anyway,  My position just went red by a bit, but I have over .80 before my stop is hit.   If I'm right that this is a complete breakdown I'll be fine.

The last two days have made me rethink the cascade entry strategy I used.  Had I hit SLV with  a larger number of shares on the initial sale, I would already have closed out portion of the position for profits.  Instead, I continued to add to my position as it went it my favor making me susceptible to going red on a bounce, which happened.  

 My view off the trade has not changed, however.  The move to 36.44 was weak.  On the weekly is shows up as a kangaroo tail top.   Impulse is blue on both weekly and daily.  

The Ugly:  Ree moved up 20.35% because MCP bought out a rare earth processor, which caused speculation that REE would be the next buyout.     I'm not buying.  It's big move off a signal that hadn't suggested a bottom.   My inclination is that this will fade.  I shorted another 50 shares at 5.99.   a 79% entry grade.   However, this was a reactionary trade, which means I probably should not have entered it today.  it is possible that this trades upwards if MCP does and I probably could get a better entry by waiting.    Maybe 6.50 from the chart.  It will be interesting to see if the bearish MACD divergence continues, which showed a clear top in the beginning of February.

REE: Update

REE sold off nearly 8%.    I've had a long standing buy to cover order at 5.36 for 1/3 of my position.   5.36 happened to be the low of the day earning me a 100% grade on the exit. Woo hoo!   This looks like a sick dog, but I wouldn't be surprised to see a relief rally because the sell of was so severe.  Anyway by taking profits, this will let me ride this much lower.  I'm triggering low 4s.

Triage:  In retrospect, this was a bad trade with many broken rules.  I fairness to myself, however, I took the position before I created the rules and before I had started the impulse system.   It's evident that I initiated this trade way too early  into a strong wave of buying.  The impulse system would have prevented me from taking this trade when I did.   Because I was only short only 200 shares I was able to ride out the position.  Also, I felt comfortable with the fundamental reasons for this short as I had researched it extensively.     

I entered this after a large move by selling ITM calls (short shares were scarce).    There was no MACD divergence at the time however,   Had I waited until that occurred I would have gotten short at least $1.50 higher.   My second entry was nearly 1.00 higher.  So I averaged into a losing position,  usually not a great strategy. 

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.

REE: When it Works

This is what I like to see in a short

The high to 8 was with a worsening MACD.   That's what you look for in a top.   No follow through and then a big sell off.  Down another 6.3% on Friday.     Next step look what happens in the 6.0 -5.50 range.  If the elder bar stays red  this could go down in a hurry.     I would expect to see 4s

Ree, looking tired?

Ree looking primed for a fall. Secondary move was much less powerful. Look for entry on a gap up.