DUG and PEIX Trades 051908

I had some decent trades today in LKD, FRO, and JASO. I also caught a great trade in PEIX off the 15-minute chart. This stock was on the gap list this morning. You won’t find a better pattern. The stock gaps out of a stage 1 base with volume. The pullback stays in the top 1/3 of the move. Buy the higher high.

I stalk these oil stocks every day. It paid for me to complain about them yesterday. I bought the short signal in the OIH, by using DUG. Now DUG gave the buy signal, but I happened to be watching OIH at the time. Hitting DUG was easier than shorting OIH. Here’s a snapshot of the 5-minute at the time. Note the breakout failure, followed by 100% retracement. The lower high pivot marks the signal.