I was talking about Kimco Realty (KIM) a few posts ago. I mentioned that I entered a short position. You can read the post over here.
It was a trade that really went my way – the drop in price was big and I made decent profits. The swing trade lasted 5 days for me. The market was actually very very OVERSOLD already. I am expecting a rebound anytime.
Then 2 days ago (4 Oct), the market rebounded very fiercely in the last 20 minutes. I thought that was no hope for S&P already initially, it looked like it was going to break the crucial support and officially in bear market. The bulls fought back, all done in the last 20 minutes! I bet a lot of people’s stop loss will be hit by the sudden surge.
As you can see from the chart above, Kimco actually went from a huge bearish engulfing to a white candle stick in the last 20 minutes as well. Sensing the market will rebound, I entered a long position. It was still a small hammer when I went in.
However yesterday Kimco actually dived (see the last candle in the chart above) while a lot of counters was actually up yesterday! It hit my stop loss and I was out of the trade. At the end of the day, it formed a hammer again! Well, I got the timing wrong. I should wait for the confirmation before I enter a position. 2 hammers in a row… this counter should go up today. But the upside is not that good. The 20d MA is near to act as brick wall. Not worth to risk it.
Anyway, I long S&P 500 index (SPX). The chart above is self explanatory. As I mentioned earlier, the market is very oversold and there will be a rebound. The market rebounded on the 4 Oct during the last 20 min and I went in. It was a small hammer when I entered. Became a big white candle when the day closed.
Those who long should be careful too. We are still against the trend. Set a tight stop loss, be quick to exit and take the profits.