Quick Update

We are still in Manila with our families and friends. Today, I was able to check my standing order for my QQQQ position. I have found out that my sell order was triggered last June 19, sold 80 shares at $36.25 a net loss of -$62.40 including commissions.

This is my last position and will not trade until after July 8. Trade well my trader friends.

My Sister, My Friend, My Hero

These are my wife's words dedicated to her loving sister, Perseveranda So, whose untimely demise from the massive blast at Pearl Continental Hotel in Peshawar, Pakistan last Tuesday, June 09 have brought our families sadness and grief.

We lost a very passionate and caring person, Ate Persy whose active dedication to help children ensure their rights to education irrespective of their race, color, and creed. This heinous act ended her precious life but her noble work shall continue stronger than ever. The forces of evil will not prevail.

Ate Persy, we love you very much. We will never forget you.

Perseveranda So (1956-2009)

UNICEF Chief of Education, Pakistan

“While I always try to take personal safety and precautions, I also know that a determined suicide bomber or kidnapper cannot be stopped. I take time to remember that "Safety is not the absence of danger, but the presence of God". This gives me great comfort when I start feeling afraid of the situation here.”

Ate Persy's email to a friend last April

Sold REDF, FAX, and FITB

Me and my wife is going back home to be with our family more details on this on an upcoming post. I'm so busy right now preparing for our trip and dealing with office matters I just want a quick update, I've sold the following stocks:

REDF, 300 shares for $3.45 for a net loss of -$56.00

FAX, 300 shares for $5.61 for a net gain of +$34.00

FITB, 300 shares for $7.70 for a net gain of +$178.00

I'm so thankful that I've managed to eke out some gains overall. Two of these trades REDF and FAX are problematic from the beginning due to entries being hit not according to my plan. I still have one position QQQQ, I'm trailing it with a stop.

Shooting Qs From The Hip

Ok, I have entered QQQQ today, intra day using the 10 minute chart. I don't know, I consider this "shooting from the hip trade". My number of shares are not enough to gain reasonable profit from intraday moves. I'm not proud of it I was even thinking of just scratching the trade before the market closes but the QQQQ have managed to consolidate from 36.50 to 36.70 there's an intra-day support around this area. I only have 80 shares so we'll see what will happen come Monday. But this is the type of trade I should not do again!

Still holding REDF, FITB and FAX.

Have a nice weekend.

Chart courtesy of FreeStockCharts.com

Swing Trades Update

I'm long these three stocks:

FITB, 300 shares at $7.06

FAX, 300 shares at $5.45

REDF. 300 shares at $3.59

A Reply From Scottrade

Yesterday I got an email reply from a Scottrade representative explaining their side regarding what have happened to my REDF buy stop order. In the spirit of transparency I'm publishing their email so you have the opportunity to read their explanation.  Names have been omitted for privacy.

Dear :

Thank you for your e-mail. We have reviewed the order in your *****0 account and determined that the order was filled appropriately. On 6/3/09, you submitted a buy stop order for 300 shares of REDF, with a stop price of $3.75, good for the day, at 01:00:19 ET (Order ID # XADED2E).

Please note that a stop order can be triggered if the Bid or Ask price reaches the stated stop price. It is not required that the security actually trade at the stated stop price for the order to trigger.

As shown in the Time & Sales detail below, REDF opened at 09:30:04 ET with an Ask price of $3.91. The opening Ask price triggered your stop order and it was routed to the market center as a Market buy order. The order was filled at the available price of $3.59 at that time.

Date   Time       X  Volume  Price  VWAP   Bid Bid ID   Ask Ask ID  Size Cond Corr# Seq# 
06/03  09:30:51 K   300      3.59   3.5524                                                            30692 
06/03  09:30:49                                      3.45Q        3.59Q         10x1    
06/03  09:30:47                                      3.45Q        3.60P          10x1    
06/03  09:30:14                                      3.45Q        3.61W         10x1    
06/03  09:30:13                                      3.45Q        3.62Q         10x10    
06/03  09:30:09                                      3.45Q        3.61Q          10x1    
06/03  09:30:04                                      3.45Q        3.62Q          10x10    
06/03  09:30:04                                      3.45Q        3.91P          10x15    
06/03  09:30:04 Q   110      3.45   3.4500                                            AGX          20914 

Please let us know if you have any questions.

Regards,

National Service Center, Scottrade Inc.

When this type of situation happens there's no way for a regular trader like me to see what's really going on with the price action during that particular trading time. The price 3.91 did not got printed in the price bar of the day. Nonetheless, I appreciate Scottrade's prompt reply. 

The Market Proxies

Looking at the four major market proxies, DIA, SPY, MDY, QQQQ you will see a common scenario, the previous resistance have now become support as pointed by the green arrows. 

Today's closing prices with the exception of the QQQQ have come near or have touched support the blue lines this is the "test", next we need to see prices continue to bounce from this area to be able to resume the uptrend. 

A bearish leaning scenario would be the price fails and break support then we may see a probable sideways trading action that could revisit the May lows. Before this thing could happen I'm already out of my swing position.

Disappointed with Scottrade

Checked my trading account today and guess what…Scottrade have executed my REDF buy stop order at $3.59 for 300 shares…What a heck!!!! I'm very disappointed, I've called Scottrade and asked why this happened because the price high at the time (around 8:55AM, Pacific) is $3.610 why and how the buy stop order got triggered. I have a pleasant conversation with them but I'm still not fully convinced with their representative’s explanation. I still want more details because my hard earned money is on the line. This should not happen in the first place, so I’ve sent them my email below.

Hi,

Would you please send me an explanation about what have happened how my Buy Stop Order to buy REDF at $3.75 got triggered at $3.59?

The highest price was recorded at $3.61 according to your detailed price quote (reference time 8:55AM Pacific Time). I use “buy stop” because I do not have time to watch the screen and it is designed to help trader enter only on their target points.

Kindly, send me your explanation why and how this thing have happened and give me all the details. Thank you.

I really hope Scottrade will reply immediately and do something to correct this issue. I know I’m just a very small client but if this thing happens to me then most likely it may have happen to hundreds if not thousands of Scottrade clients.

Let me know if any of you have experience the same problem with this online broker.We should voice out this problem and demand every online brokers for an effective and prompt solution.

Stalking REDF

I've placed a stop order, to buy 300 shares of REDF at the $3.75 level, I like the narrow bar (NRB) candle that have formed today very near the 12MA. This is a low risk long trade potential with a sell stop at around the $3.20 area.

Update: Still holding my long position on FITB and FAX

Swing Trading FITB and the Scottrade issue on FAX

My buy stop order for FITB was triggered at $7.06 and I have no problem with that the issue I have was my buy stop order with FAX which I pegged at $5.60 I was surprised to learn that the order got triggered at $5.45 should I be happy I got in with a discount? No! My game plan is to only enter long, if the stock trade above Friday's close around the $5.60 area. I called Scottrade and complained but I was told that my order was a limit order not a buy stop order. I can't prove my order but I firmly believe I did place a buy stop not a buy limit! Anyway, I'll just have to manage the FAX trade carefully as it cannot be undone.