Just on RXP, I've been thinking about it since I last posted, do you have any idea who has been selling their stock, and how much they originally held, and how much they might still hold (or if they are possibly done and dusted) ??
I know you really like the F/A of this stock, and that is a good thing.
Tom Williams said the syndicate he worked for, had a F/A group with a number of professional analysts employed, and also a professional T/A group, and a group of professional traders.
And incorporating some F/A into my own trading has improved my accounts no doubt (apart from day trading, pure T/A trading can be problematic).
In Tom's syndicate they all worked together, with the F/A group identifying potential stocks and commodities to trade, the T/A group would chart the market sentiment of the instruments identified, and would show where potential support and resistance would probably lie etc., and then the traders traded it (when the owner of the syndicate chose to do so).
And I feel like you will be quite disappointed if this stock actually has seen the last of the serious selling pressure (??),
and does slowly recover and grind its way higher, and up through those levels of potential resistance.
If so, why don't you come up with a relatively low risk strategy that will keep you comfortable if this does occur ??
Seeing as Friday's bar shows some potential strength, and there is potential strength in the background now.
And the mini shakeout bar's low (@78cps) is where strong support has most recently been seen.
And Friday's bar low (79.5cps) is where most recent support has been seen to come in.
Perhaps try to come up with a strategy where you take an (smallish ??) entry with the expectation of a push higher on Monday or Tuesday.
Stop at 79cps, or 78.5cps, somewhere there depending on account size and risk tolerance etc. (keeping any potential loss to a minimum if possible)
With the intention of moving the stop up to breakeven (including brokerage) or a just small profit, reasonably quickly if possible.
Then you can sit in there and be relatively comfortable if price does, over time, recover.
I have seen David and Steve do something like this many times. Steve in particular when trading the Gold ETF (GLD), and David in the futures market.
They want a position in something which has already seen support come in (like the shakeout on RXP), but it is making some false starts at a low point, so they open a position near the recent lows (usually on a downbar thrust that looks threatening, but has seen support come in at this level previously). And then shift the stop up to breakeven fairly quickly when it works. If price comes back and stops them out, they look for a second entry, and a third, or a fourth if needed. It doesn't matter to them how many times it takes to get the initial position set, because each trade that is stopped out is at breakeven (including brokerage) or at a small profit, or a relatively small loss (I realise this is where it gets more difficult for you, as you need to set conditional orders...but this is just an example, and to get you thinking of different strategies that may suit you trading).
When they take these entries they are confident it is going to move positively at some stage, but want to try to get an initial position right down near the lows (so that they can get a quite tight stop, and therefore lower the risk), with the intention of pyramiding in further if it all starts to work out well ( Steve would buy more each time a zone of potential resistance above is pushed through, and price comes back to successfully test the breakout).
Now I know you cannot trade during the day, and need to set conditional orders, but surely you can nut out a strategy that makes you comfortable, particularly if you feel the F/A of this stock really does warrant an entry of some sort.
