Online Stock Trading TXU Corp. for August 17, 2006

TXU Corp., TXU was the victim today in another round of online stock trading. Note the loss of the uptrend on the gap down in TXU Corp. at the open. Short selling was the plan of action as sometimes when a stock loses it’s trendline, momentum traders decide it’s time to take profits. Shorting into a downtrending stock is generally easier, but this was given a shot.

A trading entry was found on the 15-minute stock chart of TXU. Similar to the entry of Apollo Group Inc., this trade wasn’t as successful. The BS2 pattern hit and the stock was sold short at 63.48. A stop was placed .15 above the day’s high to avoid shakeouts. Note the stock peaked above the day high once by a few pennies. R = .40. Target was 1.5 R for 1/2. You can see not much happened. The stock was held until the last 10 minutes when it was sold at breakeven.

They all can’t be winners. An update on Hexcel. The stock was stopped out for a loss at 14.06 and preceeded to run to 15.8 today. A successful trade. Plan was executed. Keep those stops when trading!