Position Updates & Gauges For Trading on 8/4/2015

Mish Schneider | August 4, 2015

***Note: Lowered QIHU stop to 59.24 with time confirm.


Existing Position: QIHU: Long at 62.54 ATR 3.93 Reports August 24th

Name of Instrument: Qihoo 360 Tech Co. Ltd

Current Price: 62.07

****Lowered Sell Stop: 59.24 with 2 minute time confirm

Reason For Trade: Cleared all moving averages last week and is consolidating above them giving us a really tight (almost miniswing) risk if breaks the moving averages. In late May it had a good reversal bottom and then again on July 8th, it made a higher low and popped back strongly. On the weekly chart, a close over 64.22 should get it to 70.00. For a real long term play, over 73.60 should take it to 2013 levels. Bottom line, a good tech stock with the risk to 3 moving averages nominal given the possible rewards.

**HIT**First Profit Target for 1/3 off: 66.39 **HIT**

**Sold 1/3 more of position at 62.40

*Third Profit Target: 69.67 for balance

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New Position: Long ½ IYT: 144.60 ATR: 1.93

Name of Instrument: iShs Transp Average ETF

Current Price: 150.88

RAISED***Trailing Stop: 147.44 with 2 minute time confirm

Reason for trade: On July 8th it made a new low and then 2 days later, it confirmed a reversal pattern. We traded this last week and made money on ½, scratched on the other ½. With the decline in the market, we have an opportunity to buy back ½ with a stop under the 2015 low and risk about one ATR. On a daily basis, our entry was over the 30 minute Opening Range Breakout and prior day low. When we enter ½ a position, it means we are only willing to risk ½ as much as normal. If the market stabilizes, we will consider adding back the other ½ over 146.00. 144.83 is the 23 month moving average.

REACHED***First Profit Target: 147.14 for 1/3 off

REACHED***Second Profit Target: Take 1/3 off at 149.09 MIT (Market If Touched)

P3 155.43

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***Existing Position: TRIP: Long full position average price now 79.58 ATR: 3.25

Name of Instrument: TripAdvisor Inc When-Issued

Current Price: 78.64

Lowered*** Sell Stop: 75.44 with time confirm

Reason For Trade: After a super performance off of a confirmed bottom back on June 5th, it dropped hard after earnings, tested the 200 DMA and held. Our mean reversion system posted a buy July 28th. We bought it on an opening range reversal with an initial risk of 1.5 ATRs for position sizing, and an immediate adjustment to under the 7/27 low with fudge-now more like a ½ ATR of risk and under the 200 DMA. In current market environment, I am more “active” in taking profits and moving around risk for protection. If it holds, has a gap to fill up to 90.00. On the monthly chart, from date of issue the low was 23.00 and the high 111.24. The recent move down from the peak to the 66 level was a bit more than a 50% retracement. Our risk/reward is well in line and feasible.

First Profit Target: Take 1/2 off 84.04

Second Profit Target: Take another 1/2 off 88.44

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