I almost totally forgot. I had a trade going and been forgetting to check on it since I had to go on an errand and quick dash to the shops this morning. I didn’t even check the results of the US market. Good thing that my trade is designed to suit my busy life, was following the market trend, and the seasonal tendencies – which is, you guessed it, shopping, shopping, shopping! (Preparing for the big celebration — people seem to hardly think of anything else!)
OK – back at home, checking my position STOL57. STO had been going down the last couple of days, today, it did slide a little bit more. I am thinking whether to take profits at this point.
Here are the few things I’d be basing my decision on (the full details are explained in Step 4 Gathering Market Knowledge of the Trading Process in the book “High Heeled Traders”)
1. Price has moved near the Support level in the historical price chart (1 month chart). Current price of 12.58 is actually the 3-week low.
2. STO and the rest of the market has been moving in a range, so as per band trading concept, since the stock has gone down, it may move back up soon. (But need to wait for confirmation!)
3. Seasonal tendencies – people tend to go on holidays and close off active positions, this means, with lessened trading activity, there is not going to be a lot of buyers in the market which could limit any price rises, even pus prices lower.
4. European debt situation still unresolved, and as mentioned with the public holidays looming, there is little activity or “policy fix” to be expected. (But who knows, there might be yet another summit next week! The Christmas Party and Kris Kringle edition.)
5. Options are expiring next week for this quarter for many kinds of financial instruments. This invites people to “liquidate” their positions so they can report their profits and losses. Again, many will will be selling to close. Not too promising for price gains.
I think I will keep this position open, since the potential move down is greater than any move up.
Hasta la vista. Will keep you updated.
STOL57 Dec 15
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