Evening Thread

LO. Tobacco stock. New all-time high today. Raised dividend. 4 of the top 10 consumer stocks in 2011 were tobacco - because they all pay a high dividend. Position - long common, short Feb and March 100 puts. (I am worn out with AAPL.)

Afternoon Thread

BAC buyers are chewing through the supply zone from the late Aug retest. There is an unfilled gap at the 7.50's I don't have a crystal ball as to whether or not it will get filled, but now is a good time to make an "If, then" PLAN !

Morning Thread

WLL daily chart: Stock closed above 200 day. That's new.

Gator's Chart of the Day: WLL 5 minute

I traded this stock on Wednesday and it worked out very well.  My original position was started on Tuesday as the stock looked ready to make a move to the upside from a volatility squeeze.  (Volume had been very good and it closed very near the high of the day.)  I was watching from the open and when I saw the move above R1 I added (9:50) to the position.  When it cleared R2 I added (9:54) again.  When it stopped going up I got a little nervous and when it printed a second red candle I sold (10:32) the entire position.

I use the daily R and S levels to help me time my entries, adds and exits.  I need them as a crutch for my trading.  Maybe I'll get good enough someday to toss my crutches but like Harry Callahan said, "A man's gotta know his limitations."

The 5 minute chart shows that R1 and R2 defined the highs and lows for the remainder of the session.  I still like stock and now that it has closed above the 200 day simple moving average I will use that as a reference for stops.  I'll reenter on a move above the new R1 (53.97 for 2/9) or a pullback to test the breakout and buy the bounce.