Divergences

Discussion in 'Journals' started by romik, Jul 2, 2006.

  1. romik

    romik

     
    #21     Jul 6, 2006
  2. romik

    romik

    CPB (NYSE) Campbell Soup Co

    Current: $36.98
    PT1: $36.00
    PT2: $35.00
    PT3: $34.00
    Stop: $38.50
    BRD in RSI/MACD HIST/CCI on a daily chart attached. Looks perfect BRD confirmed in 3 indicators. Weekly supports the short by inverted long shadow doji


    http://finance.yahoo.com/q?s=CPB
     
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    #22     Jul 8, 2006
  3. romik

    romik

    DELL (NASD) Dell Inc

    Current: $23.87 1/2 max position
    PT1: $29.00
    PT2: $32.00
    PT3: N/A
    Stop: This is a tricky one, as the stock has broken through all recent support levels, actually from 2003, developping a double top on weekly in 2005, but no risk no gain, so I would scale in with 50% @ $22.50 and stop @ $21.
    BLD in RSI(perhaps making a double bottom, depends on the settings)/MACD HIST. CCI in heavily oversold territory recently and pulling upwards breaking -100 on the way up. All on weekly here.


    http://finance.yahoo.com/q?s=DELL
     
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    #23     Jul 8, 2006
  4. 4re

    4re

    Romik,
    Have you looked at CAL yet. Yesterday it set a new high for year. Seems kind of strange with oil setting new highs also but they are doing it right now. I have been watching them for about 9 months now or when they were at 9.00 a share. I did an options play on them and rode it up to 21.00 in Jan or Feb. Can't really remember. Now they are over 31.00.

    4re
     
    #24     Jul 8, 2006
  5. romik

    romik

    Well...I had a look on daily and weekly, there is a BRD present there on weekly in RSI, MACD HIST. I would say it's long overdue for a pullback at least. Short interest is increasing according to data and probably at the mo they are being squeezed...I would probably trade it once CCI has broken -100 on the way down creating possibly yet another BRD on weekly...it is possible for price to see $32-33 prior to a pullback IMO.

    I think once it retraces to $28 based on an INCOMPLETE BRDs in HIST and CCI, that would signal the possible entry to ride this stock to $21, I am taking $21 from my PTs that can be seen in weekly BRDs averages.
     
    #25     Jul 8, 2006
  6. 4re

    4re

    You and I are very close in our analysis. I was able to leg my way into a straddle trade on this one. My next resistance is just under 35. If it gets there it will be a double on this trade. Then I will sell some of my calls and buy more 30 puts. This is my plan for this trade. Can I ask how you come up with your targets? I am show first major support at 24 and then 21, so we are pretty close here.
     
    #26     Jul 8, 2006
  7. romik

    romik

    My main target is PT1, that's where I would normally exit with 50% of the position. PT2/3 are either hit or exit @ entry.

    PT1 in the case of CAL (please check the weekly chart) is around $21. Do you see where the divergence started forming in the HISTOGRAM and RSI and even CCI, specifically at the high point of the first slopes in indicators? I just go with the average price at that time and try not to be too greedy with the estimates, like in this case I could say $20-19 or even$18 looking at support levels, but I would rather have these lower estimates as PT2/3.
     
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    #27     Jul 9, 2006
  8. 4re

    4re

    I see how you are getting it now, thanks. I hope your short side is more accurate than mine. I just have it around 24 I would love to be wrong in this case.

    Thanks,
    4re
     
    #28     Jul 9, 2006
  9. 4re

    4re

    Hey Romik,
    So how has your testing been going so far?

    Gary
     
    #29     Jul 10, 2006
  10. romik

    romik

    As these divergence based trades are in daily TFs it would take longer to get either a positive or negative result, the only one that has been almost there so far are Silver futures, where PT1 and PT2 have been achieved ~12.75% return based on very basic calculation based on price increase, not initial ROI, as that would depend on margins used etc, if one was to buy SLVs though, the ROI would have been around mentioned above, but it hasn't played out to the end yet, as PT3 is still out there somewhere, so is exit @ entry.

    All other stocks are neither here or there at the moment, most of them are BLD and from S&P index, so if it tanks, these BLDs might sink along with the ship, but hey, I believe there is still room to the upside in the index for the time being, so I remain positive :)

    How are things with you? Nothing exciting today, tomorrow should be good though for intraday traders.
     
    #30     Jul 10, 2006