03/10/14 – This trade on the Fracking Suppliers, C&J Energy Inc, has stopped out giving a 1% loss on my trading account balance. This was totally unforeseen after a fantastic trigger last week as the market has reacted badly to an SEC filing made on 30 Sept, Full details HERE . In essence and as usual the market has “SOLD the NEWS” and only those with a crystal ball could have seen this coming. This is why it is so important to have stop losses in place. I would not do anything different in future trades with the same strong setup as this s one of those unforeseen circumstances that any fundamental or technical trader could not counter for, except have a stop loss in place as a mandatory discipline entering all trades. Chart as Below
27/09/14 – This Fracking Suppliers stock price had a fantastic Friday session and not only met my short term goal for the first week of closing above the entry price, but actually closed just above the 6/4 Moving Average High line! In essence this first trigger bar for this trade on the weekly time frame has ticked all 9/9 indicators for my trade setup. This big bullish movement over the week was with very high volume which generally means greater reliance can be placed on the movement in price than if there was low volume, because heavy volume is the relative consensus of a large number of participants in the market. It is also well understood that a high volume movement like this is often characteristic of the initial stage in a new trend, such as a breakout from a Wave 4 and the start of a Wave 5 movement. The fact that the price closed very near the high of this high volume movement is also brings confidence that the momentum should continue. There will inevitably be a pull back period during this new bullish trend, so next week will be interesting. Chart as Below
24/09/14 – The Stop Buy order has triggered half way through today’s session for this Fracking Suppliers Stock Long trade. A good strong movement to break the highs of the past 5 weeks and all I am looking for, is a close this week above this entry level. This is a potential long term trade for my sausage machine strategy and could be on for 3 months so I need to be patient in the early stages of this trade. The next short term target for this trade is to open and close above the 6/4 Moving Average High line (Blue MA line). Chart as below.
24/09/14 – CJES-NYSE is one of the Fracking suppliers in the US that is making the most of this new and more popular energy exploration method. That aside, there are 8/9 of my trade setup indicators in the green on this weekly chart for this Fracking Suppliers stock. The price did find support round the Fibonacci 0.5 retracement taken between the Wave 2 and Wave 3, which was also strengthened by the TJ’s Ellipse also holding as support at that level. Again with these uncertain times in the markets I have decided on a rather conservative entry above the Fib 0.382 retracement line which is way out of the Trend Channel for this current weeks bar . As long as this Fracking suppliers stock price doesn’t make a new low this week, the order will remain good for next weeks bar also. Stop Buy Order @ 29.44 which is also above the highs of the last 5 weeks and the Stop Loss @ 26.70. The take profit Limit order is @ 36.50, giving a Risk to Reward Ratio of approx 1:2.75. The target zone at the moment is suggesting a time frame of between mid December this year to Mid February next year, so this is a longer term trade. This approximation will become more accurate over the next few weeks. Charts as below for the setup of this potential long trade for this Fracking suppliers stock.