Tuesday, December 7, 2010

First Trade for me in Pre-market FWLT - Short 1500 shares

Foster Wheeler logo
FWLT had no other traders in the pre-market. It is an active company with lots of Volatility in price swings
Market is opening in 2 minutes..... more to come.
At the opening bell I am down $500.
3 minutes later down $600
5 minutes into the market down $400
10 minutes into the market down $600
15 minutes into the market down $500
20 minutes into the market down $100
25 minutes into the market plus $200
1/2 hour into the market plus $200
it is now approaching a plus $400 - I have to make a decision if it gets to $500
Do I take the $500
Do I put in a stop loss at break-even
Do I put in a trailing stop - worse case - break even
45 minutes into the market plus $200
my chart is at 15 minute increments which shows price and volume within each 15 minutes and minor support and resistance graphs overladed. The overall markets are up by 1% so far on good news. FWLT (Foster Wheeler) has been on a big climb for the past 10 days - and in the last 2 days
SAN FRANCISCO, Dec 6 (Reuters) - Ray Milchovich, chairman of Foster Wheeler AG (FWLT.O), has cut his stake by a third as part of a trading plan adopted two weeks after the surprise departure of the engineering company's chief executive. He slashed his holdings from 460,000 to 305,000 shares 
This stock has not been as high as his exit in over a year ago and not much higher in several years. It means as an insider - he is on his exit in both his stock and position as the Chairman. 
One Hour into the Market plus $300
I have put a "Trailing Stop" to avoid being at a loss position in the next hour or so - it will provide me with a breakeven - only lost time. 
It is now 1 hour and 15 minutes into the market and the price started to go up and hit a small resistance and passed thru it at the plus $200 mark I have tightened my trailing stop order....STOPPED OUT WITH +$200 
This trade is called a "scalp" trade within day trading - my other holdings are substantial long term call positions in Sprint and Cisco Systems which had a nice run yesterday - a good gain day for me... I'm finished for the day....

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