Twitter handle: JMSTweets

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QIHU short 3/27/15

Brief description:

QIHU, Earnings 2015-05-27, Enter $52.00, Target $42.50, Stop $55.50, Risk/Reward  3/8, Shares per $100 Risk 29, Money Employed $1,485.71, Return on Risk 18.3%, Notes: May 50 Put. Bounced off 50MA. Bounced off TL. Bearish Engulfing. Stochastics very high. Stochs crossed down. Below 50 DMA. Ichi: Chikou in the clear. Ichi: Kumo overhead. Ichi: Kumo future bearish.

Detailed description of short setup:

4 indicators that all suggest a down move is coming, but I should wait for 1 more as confirmation. However, the 1st 4 look so good I got in early. Here are the 4 indicators:

1) Price bounced off a Trend Line (TL) yesterday (TL connects highs on 11/25/14, 2/6/15, 2/13/15, 3/26/15),

2) The Trend Line is coincident with the 50 day Simple Moving Average, so it also bounced off that,

3) the 50 SMA and TL were also coincident yesterday with a 50% retracement from the 2/6/15 high to the 3/10/15 low (50% Fibonacci number), so it bounced off that too,

4) Stochastics peaked in the over bought condition yesterday and started rolling over today.

The confirmation I should be waiting for is a closing print below the 8 Exponential Moving Average. I'm expecting that to happen early next week. My target is another TL connecting the lows of the following dates: 10/13/14, 10/15/14, 12/17/14, and a bunch of dates from 2/26/15 - 3/16/15. I'm estimating price will hit that lower Trend Line again around $42.50.

Since this is my first post, here's an explanation of the "Brief Description":

"Earnings" is the date of the most recent or the next upcoming Earnings Report.

"Risk/reward" says that for every $x of risk if it hits the stop, you get $y reward if it hits the target.

"Shares per $100 Risk" means given the entry and stop, if you want to risk $100 then buy n shares. Of course you can buy multiples of this or maybe half this to risk $50.

"Money Employed" is how much money you tie up buying n shares.

"Return on Risk" is (Reward * #shares)/money employed.

"Ichi" is an abbreviation for Ichimoku Kinko Hyo. A Japanese trading style.

I like to max the risk/reward, min the money employed, and max the Return on Risk.

In the "Notes" section if you see an option then I'm entering the trade using that option rather than the stock. If no option is mentioned then I'm using the stock.

Also, I should say I'm not an adviser of any kind and the only license I hold is to drive my car. I have no idea whether any trade I post will actually be profitable or will lose money. I just believe the risk/reward warrants taking the trade for me. I started this blog for a few reasons but none are to suggest any particular trade is suitable for any particular reader.

All reader comments are welcome if they are civil.