Tuesday, February 14, 2012

DG shenanigans

My finger is on the trigger to dump my call on this stock, looking at the chart we've had 2 failed attempts to sustain a breakout to new highs that were established on 1/26. Obviously what happened yesterday was a surge in volume as the stock ran to a new high then a pretty large sell off for the rest of the day. While DG typically does not correlate with the overall markets its movements yesterday are still very concerning with all of the indices well in the green. This trade is very likely a wash, a break below the low on 2/6 and 2/13 at 41.70 will be my exit signal. The loss will be approximately 18% on the contract representing roughly a 2.4% loss on account. Obviously i violated my 2% rule here slightly which is something im trying to strictly adhere too but trading a small account with somewhat large contracts is making that adherance difficult.

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