20/07/15 – OMC NYSE – This Stock is in a strong Bearish trend and the Wave 4 Pull back has behaved very well, finding resistance around the Fib 0.5 Retracement level and the 89 Day moving average. The Earnings today were not that spectacular, so a great opportunity for a 5th wave Short trade with 7/9 of my trade setup indicators in the green. Initial setup before open will be Stop Sell Order @ 72.34 with the Stop Loss @ 74.21 and initial Target @ 67.00, giving a Risk to Reward profile over 1:2. I will not be putting the order on until after the open as there maybe a spike up or even a gap down which will obviously alter my entry strategy and Risk to Reward profile. Charts as below for the setup of this potential Short trade on OMC NYSE.
21/07/15 – OMC NYSE – After the open the price did spike slightly making a new wave 4 high and has then started its decent. I have adjusted the order to reflect this so now is Stop Sell Order at the original price of 72.34 with the new Stop Loss @ 74.61. Chart s below.
22/07/15 – OMC NYSE – My Stop Sell order was triggered during yesterday’s session and the price continued down until it found support at the 71.60 level, which was a previous support and resistance level during Wave 3 and Wave 4. The price then back filled the large volume drop by 50% to close above my entry price, but outside of the trend channel of the Wave 4. Now the big reaction to earnings should be over the price should get back to rejoining its overall bearish trend for the rest of this week and close below my entry price. At the time of writing this update the US futures were negative which will help the momentum of this new Short trade on OMC NYS if they remain so on open. Chart as Below
24/08/15 – OMC NYSE – This short trade has been on for nearly a month now and with the help of the Bearish run on Thursday and Friday last week, it has really gathered momentum. The price did close near the low on Friday and with an increased volume, the momentum looks to continue this week. I will look to place a Trailing Stop after the close of Today’s close, BUT in the meantime I have adjusted my Take Profit Limit Order to 64.10 (Light Blue hatched line) which is just above a previous Wave 5 low from October 2014 and a possible target if this Bearish run continues. This would mean a potential profit of just over 3.5%, but I don’t want to get ahead of myself at this stage – Just prepare and mange with Trailing Stops whilst the bearish momentum shows signs of continuing. Chart as Below.
27/08/15 – OMC NYSE – After a very volatile few trading days the price for this stock has been at the initial target level, but yesterday closed near the open, rejecting the lower move compared to Monday. My usual trade management strategy is pretty much out of the window for this and my other open trades due to the massive volatility and un predictable swings. I am placing a Trailing Stop on this trade as it has been on for some time now and I need to protect some profit. Trailing Stop @ 70.80, which locks in 1% profit on my trading account balance and is above the previous Wave 3 low which seems to acting as some sort of resistance level in the short term. I will not place the order until the market is open due to Gap up potential. Chart as below.
01/09/15 – OMC NYSE – The markets are swinging violently in both directions and so I have decided to close out my remaining Short trades and take a decent collective profit. I closed this trade whilst travelling and took 3% profit on my trading account balance, which wasn’t too bad for one of my longer term shorts. Chart as Below