Trading Flashback – Best Online Trades

Audio of the May 6, 2010 Flash Crash

February 7, 2012October 17, 2010 by Tom

I thought this was really interesting to listen to in case you have not already. It is the audio of an Sp500 trader quoting the action taking place in the futures pit in Chicago on May 6, 2010. Quite entertaining to listen to if you are into this sort of thing. YouTube Link On that … Read more

BestOnlineTrades Nails the CORS Trade

February 7, 2012August 14, 2009 by Tom

I am putting this post in the ‘trading flashback’ category. It is a category where I look back at trades I have talked about and try to introspect as to why they either failed or succeeded.

I first mentioned CORS Corus Bankshares on August 12th in the evening. It was trading at .33 cents at end of day August 12th. Today we hit an intra day high of .65 or almost a full 100% move in just two days. Clearly this is the power of penny stocks and outsized potential returns, but with added risk.

On my first post on CORS I said and I quote:

First CORS needs to get above .33 and close up above that level. I would prefer to see a full price bar above .33 as a signal that a big pop could start. I think we have a good shot at the beginnings of a breakout type move tomorrow and then maybe a low volume pullback Friday, and then the real run early next week sometime.

As it turns out the run did not wait until next week.

UNG Natural Gas ETF Cannot get the Job Done

February 7, 2012August 13, 2009 by Tom

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I talked about the UNG ETF several other times and at this point I am going to just have to put it in the freezer for while. The trend has been relentlessly bearish. I thought a couple of weeks ago that the UNG Natural Gas ETF would be able to get some sort of spike rally higher based on the monthly chart because there were some weekly divergences building and the monthly chart was showing at least some promise of a reversal in August.

But as of today the chart looks weak and horrible. Today and yesterday we briefly broke under trendline support and may warn of an impending break below which could be really bearish.

A Quick Review of PACR Pacer International

February 7, 2012August 13, 2009 by Tom

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Here at BestOnlineTrades I like to look back on what I talked about and see where things either went right or wrong. It is useful because it helps me figure out how I might be able to improve in the future or eliminate errors in judgment. I highly recommend that you do the same. It is really easy to make a trade and then forget about it, especially if the trade went bad and you lost money. But if you take at least a little time to review some past trades it could serve you well in the long run.

I first talked about PACR on July 31st, 2009. On that day the close was 2.49. Today it is 4.26 or 71% higher. This was an outstanding setups in many respects. PACR had a bottom in March and then a double bottom retest in July. It then went into a compression of sorts in the form of a triangle and the price trigger was activated on July 31st. The volume on the breakout was outstanding.

The most ideal entry for PACR would have been on July 30th even though it was still inside the pattern. A buy stop probably would have worked quite well on PACE just above the down trending resistance line.