This stock was supposed to break out of a consolidation pattern; however the overall market decline lead to its failure.

The idea behind this trade was that I was entering on a pullback.  Ultimately the stock was supposed to continue higher but unfortunately the entire market plunged.

I entered new positions on 8/3/10 & 8/4/10 which is obviously a big mistake.  I decided that it’s never a good idea to enter new positions when the overall S & P 500 is at a major resistance zone.  So far I am still optimistic that we’re still forming an inverted head and shoulders pattern but we need to see a major reversal in the near future.  For now , I prefer to trade OPTION vertical spreads which will allow my trades to survive these storms.

I was predicting for BGZ to take off at my entry point but it decided to reverse on me for a loss.  Inverse ETF’s are difficult to swing trade.

1. XLE cash covered puts

2. XHB cash covered puts

3. UNG

4. TAN

5. LCAPA

6. CTSH

7. WPZ

LCAPA may be ready to breakout of this consolidation pattern.  I added a position today.

I added a small position in TAN (solar energy ETF) .  It appears to be consolidating with signs of a possible reversal.

I sold cash covered PUTS (NOV , strike price 40) on the CHINA ETF FXI.

This trade was over very fast! I thought the bullish spike 5 days earlier was a sign a rebound ; however the volume was low which should have been a warning.   In the future, I think I’ll wait for a bullish spike on high volume before I enter.  This is one hell of a dud!

I impulsively entered a position on BGZ ; however it looks like I’m going to get stopped out soon.