The "Real Quickie"

The Real Quickie August 14th 2009

Keystone's Trades Yesterday's trades were big money makers for us. Hopefully some of you took the trades and profited as well! We had said we would be buyers of Walmart(WMT) around the $51 level. We entered the trade ar $50.96(which was about a $1 pullback from the pre-market highs). The market started to come in a bit, when we first entered the trade. We were watching the 200 MA closely as we had said this would be our stop. However, a big flush of volume came into the stock pushing it below that level in seconds. By watching the increased volume, we recognized that this caould possibly be exhaustion, so we hung onto the trade. Seconds later the stock was once again trading above the 200MA and we felt much more comfortable with our position. The stock then trended up the rest of the day. We sold part of the position at the $51.60 level and still are holding some. *Importnat to note , that stop lossses should usually not be adjusted, however in this case, our experience helped us recognize the arge volume bar that quite often ends the move. Our Coca Cola Short trade was a bit easier. We got short as soon as it broke through the 50MA at $48.71 and it then trended down for the 30 minutes. At around 10am, we noticed a large volume bar which we figured was the end of the move, so we covered half of our position at $47.60 and then the rest at $48. Volume always plays a role in our entries and exits, and yesterday was a perfect example of this!