***NOTE: X: Cancel Sell Stop at 7.14, go back to original stop and expect another adjustment on Tuesday
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Existing Position: Long X 8.06 ATR: .74
Name of Instrument: U.S. Steel Corporation
Current Price: 8.40
Sell Stop: 6.47 (about 2 ATRs away)
Reason For Trade: On December 8th, X made a new low at 6.80. From what I see it was an all-time new low, making this buy a purely technical setup. On December 9th X confirmed a reversal bottom meeting all the criteria. Our stop is below the lows so our position sizing gives us wiggle room. If this is to rally, it has to do so soon. Therefore, with the room we gave it, if X cannot make a move higher early next week, we will either reduce position or exit. If it does move higher, we are looking to raise the stop quickly as well. If it can get above 9.12, December high thus far, we will be encouraged. And our 1st target is reasonable as well.
First Profit Target: 10.94 for 1/2 off
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Existing Position: TAN: ½ Long 27.42 ATR: .64
Name of Instrument: Guggenheim Solar Energy
Current Price: 32.91
***Breakeven Stop: 27.42
Reason For Trade: Volume patterns have been uniquely big. Since December 2nd, the average daily volume has increased up to 6 times the norm. With oil’s decline, TAN has stayed under pressure, but has not broken down beneath November lows. The 2015 low made on September 29th is our risk now as I want to give this enough room for a buy/hold type trade. To risk 4 ATRs is not typical, but the room is necessary so we can give it time to see if the recent volume spikes are indicating a true bottom. As a megatrend, I have no doubt solar energy is the future. As a tech trader, if the bottom holds, we will have a huge winner taking first profits at nearly 8 ATRs away. If Tan can clear 50.00 in time, I see no reason why it can’t go to 100-120 next.
***REACHED!! First profit target sold ½ 32.25
Second Profit Target: 38.49 for another ½ of the remaining balance
