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Trade Plan: Short PWE

January 06th, 2009 Comments(0) tagged , , , , , , , and

Though I dislike trading oil and natural gas, PennWest seems like a fairly low risk short trade. TSX ticker is PWT, but I prefer NYSE-listed (PWE: 14.01 0.00%).

Trade: short PWE
Entry: today’s close or on morning pop
Target: $12.15, once reached, I may move the stop to this level and let it go to maybe $11
Stop: $0.50 above entry
Risk: $0.50
Potential profit: $1.30-$1.80

Why:
  • Barely touched the 50dma, but couldn’t break above it, even on fairly strong volume
  • Bumping against strong resistance at just under $14
  • Unfilled recent gap up from $12.15
  • RSI(3) – short term – is at an extremely overbought reading, 96
  • Stochastics also showing it’s overbought

I’m hoping for a quick and simple trade. The stop is tight as oil may take the stock above resistance in a flash.

Wouldn’t mind buying this back for its insane yield but not yet.

Click charts to enlarge
pwe

pwe2

Trade Plan: Short Gold

January 06th, 2009 Comments(5) tagged , , , , and

Trade: either short DGP or long DZZ (favoring short DGP at the moment, this may change)

Trade is based on GLD levels –

Entry: break under $82.50 (bottom of the current sideways channel + bottom Bollinger Band)
First target: $78
Second target: $72.50
Stop: $84.15 (2% above $82.50)
Risk: $1.65
Potential profit: $4.50 (min)

Click charts to enlarge

gld2

gld

dzz

dgp