Existing Position: Long DBA 22.71 ATR: .21
Name of Instrument: PwrShsDB Ag Fd
Current Price: 23.18
****Raised Sell Stop: 22.71 with a two minute time confirm
Reason For Trade: After a long downward trend in commodities, many are basing out. DBA is a way to trade the basket of soft commodities. It is in a Recovery Phase. Risk is to the 2008 low so lots of room. Traded as high as 25.21 earlier this year. If commodities are bottoming, the upward potential is hard to predict.
****Reached: First Profit Target for ½: 23.31
***Second Profit Target for another ½ off: 23.71
New Position: Long IYT 146.35 ATR 2.33
Name of Instrument: iShares Transportation Average ETF
Current Price: 146.87
Sell Stop: 142.67 (initial day of trade stop 175.73) Expect adjustments on the original stop as well.
Reason For Trade: Volume patterns suggested a bottom was forming and then Friday, July 10th, it confirmed a reversal pattern (new low followed by an inside day, then a move over the outside day high-145.73.) Once we have that pattern, the proper stop is under the lows. Notable is the weekly close that maintained a hold over 144.93. Although we plan to watch this carefully and most likely adjust stops, for now, we see potential if the market stays firm for this to rally up to 150-151 area of higher.
First Profit Target: Take off 1/3 at 149.74 Market if Touched Order (touches there and order becomes a market order to sell)