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Last Update: 7.10.13

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5.30.13 “$TRN The Big Move (Part 1)“

6.11.13 “$TRN The Big Move (Part 2)”

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7.5.13 Friday

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Entered Short Positions (Puts) @ $36.52

Pretty simple strategy here as $TRN has been breaking down for sometime now.  Despite of the great bullish reversal pattern back in 6/24-6/26 (hammer island reversal), bulls weren’t able to last too long which shows relative weakness in this bull market.     I do not chase after a trade and I always wait for a some kind of continuation pattern such as these.

Currently forming a bear flag continuation pattern which means, we have few days of rest and then the bearish run could continue (notice very low volume).   I decided to enter short at this level and hopefully we can see further bearish move next week.

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7.8.13 Monday

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[Open] Added More Short Positions (Puts) @ $36.72

Low volume and grinding action (last three days) tells me still bear flagging here.  I added more Puts at this level short after opening.

[Close] Bear Flagged with Volume

Showing much weakness here as it closed with high selling pressure with text book bear flag pattern.  Next target at around $34.50 (hammer candle wick from 6/24).

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7.10.13 Wednesday

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Selling Pressure Continues

Yesterday we had what it looked like possible bullish Harami candle but with low volume day, I was expecting more downside to come today.   As you can see the selling volume today supersedes yesterdays candle.  Support is getting very near which is about $35.20ish and if we break lower, I expect more selling to continue.  We are also now traveling much below 200SMA.

Daily Stochastic and RSI showing some resistance levels as well and pointing to possibility of more downside to come. You noticed how Stoch and RSI never fully reached the top of the band which is the overbought status but it comes short and rolls over before getting to the top band.  That’s a great indication of lack of bullish strength.

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7.12.13 Friday

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Got Stopped Out @ $37.10

Well I got stopped out this morning. It was great setup but I guess when the market is bullish, its tough to short.  I still think bearish in the bigger picture.