The market opened strong in today's trading with a high of 3787 but most traders locked in their profits today driving the index lower gaining and closing with 9.4 points only. Today might be the start of the correction as the candlesticks are showing a scary shooting star - possibly evening star in the making. Possible support at 3620. If it does otherwise, the market is running into the danger of overheating.
By mid-session, I decided to take profits and close out my positions in MPI at 3.66 with 8.20% net gain and FLI at 1.30 with 6.25% net gain, as both trailing stop got hit. I could have sold MPI for more but a misunderstanding happened with my broker today as they were seeing 3.71 in the bid but I was seeing 3.69 already so I decided not to sell just yet. When 3.68 bid side was demolished, I decided to sell at market which was 3.66 already as 3.67 was easily sold down. The error cost me 1.10% in that trade, .04 centavos off my trailing stop.
Later in today's session, the support in DMC collapsed steadily, closing at 24.20, the same level I closed my position with a 10.50% net gain.
Overall performance, DMC outperformed all the other stocks I held, taking me by surprise as it has relatively low risk with high reward performance. Performance was also confirmed by the length of holding time vs the profit it gained. DMC gained 10.50% within six-trading days, MPI with 8.20% within seven-trading days, and FLI with 6.25% within eleven trading days.
Most of the stocks that I held closed with bearish patterns. MPI and FLI both closed with bearish engulfing while DMC closed with a shooting star, all are enough to merit a sell signal.
Now that I closed my positions early this week, it's now a waiting game to find possible entries in GMAP, GMA7, PX and in DMC again. I need to write a trading plan for these before the weekends.
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