tradersams blog

ewc close

EWC: Closed today in two peices as the price fell after the first sale – my tweet said a lightening in position, but soon after I closed the full position – for a gain of 3%.  Note the similarity of the last few days to the graph in yesterdays post for the closing of the CHC position.  Anyway, did not quite break the stop loss, but considering the acceleration of some parts of the market, combined with the ‘lower low’, I thought it prudent to cut the trade.

ifm monthly

IFM: Opened a position in Infomedia today at 0.37 – just look at the monthly graph to the right.  From the monthly graph the telling signs that have caught my interest are the low and declining volume over the last 6 months, combined with a volume spike just prior to the share price pushing aggressively through the down trend.  Below is the daily graph.

The share was located on a heat map by my broker with high volume today. I have sketched in the volume on the bottom of the graph.

ifm (Infomedia) today

Reasons for entry:

• volume spike about a month ago  to start uptrend
• volume spike today
• gap up
• impressive break of monthly downtrend

The factors I can see against this entry are:

• I’d expect a retracement after this level of run-up
• Possible H&S bottom over the last months indicating that I have entered just short of the standard price projection expectation of a H&S bottom formation.

Anyway, lets see how we go.