Swing trading... lessons learned...

[yaoyao]

I bought ERS, but a bit after its HUGE run of a week ago. Bruce thinks it has tremendous potential as long as it stays above the 7.4-7.5 region. I'm actually about even on it now, but it's forming a flag, and should make a run soon. He usually looks for stocks like this AFTER they make their huge run on earnings, so that he knows how the market is receiving it (considers it safer that way).

Didn't buy CMT, but did buy MCZ. One stock that's really done well for his model is EZEN. I didn't get that one either, because the market stunk at the time he bought it. It's up over 50% now. I gotta stop chickening out

I also check poorman's website periodically. I like his method, and become a longer term investor because of him and Mr. Market. The most successful one for me was FORD. That's my first double (bought at 7.25 and sold at 15.60, but didnt touch it again). I also bought MCZ and PRZ. Actually, I had three buy limits (MCZ 1.55, PRZ 4.37 and EZEN 1.75) set about the same time. The first two got hit, but didnt act well after I bought them, so I cancelled EZEN before it hit my limit on the same day. What can I say, it was just my luck. I do like ERS, and also have a buy limit set. Dont know if it will hit.

[B.J]

Here are my most recent buys:

ERS:

http://stockcharts.com/def/servlet/SC.web?c=ERS,uu[w,a]daclyyay[pb9!i][vc60][iUb14!La12,26,9]&pref=G

Recent run-up after good earnings, currently forming flag, supporting at 9 DMA. Non-ferrous metals distributor has inside ownership of about 2/3 outstanding shares.

MCZ:

http://stockcharts.com/def/servlet/SC.web?c=mcz,uu[w,a]daclyyay[pb9!i][vc60][iUb14!La12,26,9]&pref=G

Manufactures and distributes videogame accessories. Nearing 52 week high ahead of earnings (6/9). Supporting 9 DMA. Not completely in yet, waiting until after earnings report to add.

FICC:

http://stockcharts.com/def/servlet/SC.web?c=ficc,uu[w,a]daclyyay[pb9!i][vc60][iUb14!La12,26,9]&pref=G

Mortgage banking company has been public since Feb. Insiders hold 50%. Revenue and earnings growth really picking up. Channel turn up since Thursday. Strong uptrend.

[Websman]

I'll probably join you on MCZ soon.
I'm considering ERS if it pulls back some.
FICC worries me a little, but I'll be watching it.

Good luck on them!

[B.J]

I'll fix my chart links later when I have time.

Webs, are you going to wait until after MCZ earnings come out? I'd go in only partial before the release, but that's just me.

It's Ernie vs. Ernie this month

$$MM$$ may not know this, but he's running in a dead heat with my dad. It will be very interesting to see if Ernie Barasmian can hit the big 7-0 (stock winning streak) before my dad (Ernie Johnson) hits the big 7-0 (years on planet streak) on June 20. I'll be watching this one

$$MM$$ has four picks that may hit targets by the end of this month or sooner: CME, SSNC, CMTL, and DW.

[skiracer]

This is a professional trader and hedge fund owner's thoughts on having a trading plan.
Pretty successful guy and trader.

You guys should all take a free 1 month trial to Deron's Wagner Daily and Stalk Sheet. It won't cost you a penny for the free month an I would be willing to BET anyone that takes the trial subscription that if you follow his picks you will much more than pay for the full month subscription fees for both which are $ 129.00 per month. On top of that you will be exposed to a very professional trader who has a plan and sticks to it. Just seeing his watchlist an his logic and technical analysis in making his picks is an education worth being exposed to. I've been following him an his picks for a couple of years now an you wouldn't believe how well I have done with them. I don't post them here because I feel that if you want them you're going to have to take the leap and go for the free trial. If you would spend the $125 a month for Poorman's site I can't imagine why you wouldn't take the free trial and spend the $129 a month for the ETF daily report and his swing trades stalk sheet. You really should check it out if you're into technical analysis and swing trading.
Just to set the record straight I don't get anything out of recommending him and couldn't care less if anyone tries it or not. I'm just trying to pass on a very good thing.
The site is Morpheustradinggroup.com. You can get all the info there. If you have a problem ask me an I'll be happy to get you there.

[B.J]

Poorman's is only $25/month, but, yes, Wagner seems pretty dang sharp. Like I stated before, it never hurts to have an extra set of eyes.

Thanks, Ski!

[Websman]

I'll fix my chart links later when I have time.

Webs, are you going to wait until after MCZ earnings come out? I'd go in only partial before the release, but that's just me.

It's my rule to never buy before earnings. I've learned that one the hard way.

[B.J]

I think I may sell about half of what I have in MCZ if it doesn't rally before the release.

Nice day for ERS. On June 1 it came close to a channel long at its 6.99 low. Just like me to miss that, but at least it was a bullish confirmation if nothing else. My average purchase is 7.57. Hardly celebrating yet.

DIOD bounced off the 50 DMA. It's done well for me in a couple trades.

LB in a nice consolidation. May pick some up soon.

Watching SSNC. Good little consolidation at 30.

Webs, watch SIRI. Nice chart, volume dry up. Maybe nice entry soon. DHB can't get through its 50.

[B.J]

Should have made the MCZ decision yesterday. But, under the 50 DMA, it's at least crystal clear. At least ERS is on the move, easing that pain.

Did sell 1/2 of ERS, up 23%. It's nearing the upper channel. Now I'd like to see it pull back a bit and scoop up.

[mooddude]

B.J. What is your upper channel price for ERS?

[B.J]

Good question, Mood. And this is something I'm rather new at.

If you go to stockcharts.com, and use the "annotate" feature (this allows you to draw channels on charts), click the "Raff Regression Channel" option. If you drag it from the 5/24 (former 8.23 high) through today, you'll see that today's price action has bounced off the top channel. So I sold 1/2.

Now, I'm going to wait for it to get back to about the 8.30 range for a limit buy, maybe adjust it up to 9 or 10 DMA if it's particularly strong (and it appears to be). If it doesn't come all the way back, oh well, I still have half my original buy working for me.

[mooddude]

I drew a channel from 5/24 high to todays high. Is this the right way to do it? I see no bouncing back.

My upper channel is more of a long-run channel. First, you use a weekly chart. Then the line connects two highs on 8/11/03 ($3.27) and 1/9/04 ($4.55). So I see the upper channel price is well above $12

[B.J]

I drew a Raff Regression Channel. The slope and intercept of the channel lines is determined algebaically (Spike has the formula somewhere). Anyway, this is what I see:

[B.J]

Crappy day in the market... lots of good stocks reversing. To be expected, I guess, after the recent runs. If anyone subscribes to the IBD way of market watching, it was a certain distribution day.

[mooddude]

Regarding channels... How about CMT? It hasn't followed any channel rules for six straight days!