Thursday, March 28, 2013

Today's Action--Alexco and Tinka

According to the plan, I bought AXU with at limit order at $3.40 using 3.5% of the account.  The intraday low went as low as last summer's low at $3.27, then bounced.  The stop was at $3.26 for this position.  Lucky guess!

Initially, I was thinking I could sell this when it gets to around $4.30, but I think I will take a more conservative approach and just sell when it gets to the 18dma (if it gets there at all!).  Right now, that would represent a decent 6.8% gain.  I would be happy with that.  My guess is that there will be a move up a least that far because: (A) this level has been support + bounce for a while, (B) RSI 7 is oversold, and that has produced bounces in the past, and (C) there was a lower BB crash at the close.  I like this set-up.  My stop level would represent a 4.5% loss on the position, or 0.16% of the account.  I can live with that...

I also initiated to two 3.5% limit orders for Tinka about 30 minutes before the close.  I had been monitoring AXU mostly today, so didn't check in with Ma' Lady until later. I was happy to see a nice break below the 18dma, my cue to add the final tranche.

I wanted to add around $1.10, but that was the end of the tail, and with only 30 minutes left in the Canadian trading day, I chose to split the final 7% between the ask @ $1.12 and the bid at $1.11.  Looks like only the $1.12 filled.  I'm happy with that for now, and will sit on it for a while.  I would only add more at this point if there is a BB crash trade below the lower BB at $1.07 or less.

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