Capturing the Push & Pull of the Markets!

I have been interested in trading since my father showed me how to read the Wall Street Journal when I was about 12 years old. My grandfather 'traded the markets' back in the forties and fifties, so I suppose it runs in the family!

I am not a professional financial adviser and these observations should be regarded as observations and lessons learned, not as professional trading advice. I am a fellow trader making an effort to create another stream of income doing something I love to do!

Thursday, June 25, 2009

DE (John Deere)

This was another great trending trade today! I entered the trade with a call position yesterday. I held on the basis of the hourly and 2-hour charts, which had bullish MACD and buy signals:




Furthermore, the daily chart looked as though it was setting up for a snap back up to the 50 moving average, after nine recent days of selling. Deere was at a significant area of support ($39-40) as well.


Remembering yesterday's trending trade on FDX, and last week's on SKF, I remembered to watch the 10-minute chart for the trend. Price stayed above the 5 ma of the 10-minute chart all morning. When I noticed that volume in this time frame was tapering off, I sold at 41.50, which was my original target (the daily 50 ma). It always is prudent to take your target rather than be burned by holding longer than you should. As it turned out, the stock trended higher, but I took a disciplined exit at my target:

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