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Friday, May 16, 2008

The Stock Market is Poised? Frontline Ltd (FRO), and June 2008 Lean Hogs (LHM8)

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $734.39
Online Savings Balance: $27.15

Personal Trading Thoughts: Look at June 08' Lean Hogs, 10 day chart with the 30 minute bars. The 50 period EMA is providing nice support. I just watched the first 20 minutes of the open. Support is still holding around $76.92 on a very quiet open. Wait and see. It breaks down to $76.90, and I'm a buyer of that June 98 Put Option . . .

Personal Investing Thoughts: Market is struggling to make another high. Just can't seem to get it done. Until that happens? I'm not overly optimistic about higher highs. Just watching and waiting. My DTE stock has performed well in last month or so.

A video summary of my thoughts on each is found below:

Edit: Filled. As soon as June 08 Lean Hogs started breaking down, I put in an order to buy one June 68 Put at .250 Limit on a Day Order. I was filled at .200, or $80.00. My profit objective for the option is .450, or $180.00.

Edit: Just put in a GTC (Good until canceled) order to sell my June 08 Lean Hogs at .475 Limit ($190)

* * *

Investing Account Balance: $247.27
Stock / Futures Trading Balance: $734.39
Online Savings Balance: $27.15

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 33%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.02

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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