Possible change in trend on RRC

2017年9月12日

My first attempt at buying springs at new lows, based on my backtesting, they offer great risk:reward profiles. They don't work a huge amount of the time, but when they work (turn into a change of trend) they more than make up for the losses, plus even when they don't work, we usually get some sort of knee jerk reversal for a small profit (like we did today). Gap down on large volume to new lows on Friday, followed by a higher low yesterday. I believe this Spring has an above average chance of turning into at least a moderate trend reversal because we have been trading sideways since the major gap down (SC-Selling Climax) in early August, and prior to that gap down, there was a 2 month trading range. I think we retest the support level back in June and July at the $21 level. Went long on some short dated $19 calls and longer dated $19 calls yesterday. Sold stock as hedge today, in case spring fails and we resume the long term down trend (which occurs more often than not); but locked in today's profits, and kept myself in play if a moderate to major trend change occurs. Good trading all.

2017年9月18日

註釋

Closed out the trade on thursday last week when target hit on short dated options. Still in on the longer dated options. However, I am expecting a pullback into the range in the near future. Good trading all.