Monday, November 23, 2009

Update to November 20th Weekend Post

The futures this morning are looking incredibly strong, and coupled with the rapid downward trajectory the past few days of the markets, make me think it prudent to put on a hedge on my positions and to tighten my stops on my contras (no sense giving up too much paper gain).

Hence, I will put a long hedge on each of my contras based on the following rules:
  • If I own TWM, I will select UWM as the hedge
  • I will put a stop loss at 98% of Friday's low ($28.46) on TWM
  • If Friday's UWM bar was green, I will enter UWM @ the close price + $0.05 ($24.98) , else I will enter UWM at the high price + $0.01 ($25.11).
Let me know if you have any questions.  As always, leave a comment below.