Two IPOs and a Volatile Day 121207

Can you say volatility? The Feds introduction of new liquidity measures sure reversed yesterday’s move down. Trading eroded throughout the day though. How many magic bullets does the fed have left? Someone sharper than me mentioned a scary thought. What happens when foreign oil sellers start demanding euros as payment for oil?

Two IPOs worth trading came out today and yesterday.

CEDU was yesterday’s offering. It had a poor first day, and was due to bounce. With the positive open, it gapped higher. The classic pullback allowed an entry on the first higher high. A second entry occurred over the base break.

The 15-minute chart of XIN had the cleanest chart for entry. Again, a classic three bar pull back, followed by a higher high buy signal. Conservative stops below the day’s low, and partial profits on the way up made these two stocks winners.

With the extreme volatility, I’m taking profits quicker, and cutting losses fast. Yesterday, I let a loss get away from me in RIG. The name of the game is consistency… One trade at a time.