Bought 150 VEN.TO @ 10.85

I added more shares to my Ventana Gold (VEN.TO) long position. I’m now holding 350 shares with an average cost of $10.22 per share. I also moved my stop order to breakeven at $10.22 for the entire position.

The reason for this trade is simple. I am adding to my winner. It’s by far my favourite trading strategy.

Ventana Gold (VEN.TO)

Gold

Bought 4 MFC Jan 2010 Puts 14.00 @ 1.70, Mark $13.25

I am shorting again. This time on Manulife Financial (MFC.TO) with a January 2011 put at 14 strike price. MFC is trading at $13.25 at time of entry.

Recent series of prop desk closings isn’t going to bode well for the market, particularly for the banks as they need to recuperate those easy income. On top of it, the lack of push from the bulls this week as S&P test 1110 resistance doesn’t look promising either. Yet, this could very well be a bear trap.

In any case, I am taking a bearish bet via shorting MFC. Figure 1 shows a chart of MFC. It is depressed and it is struggling. Moreover, MFC keeps announcing billions of dollars worth of share offerings lately. I like it.

There is a distinct possibility of a bear raid if MFC can break this $13.50 resistance level. The gap above $15 is just staring at me.

Hard stop is at $1.00 premium. Worst case risk for this trade is thus ($1.70 – $1.00) * 4 * 100 = 280 + $27.90 commission = $307.90 = 3.2%. However, I’d be very cautious if MFC closes above $13.50.

Manulife Financial (MFC.TO)

Bought 200 VEN.TO @ $9.74, Stop $8.90

Well I found a viable long term hold just as I declared that there’s nothing good out there today. Yes, I eat my words often. So I took a long position in Ventana Gold Corp (VEN.TO). That cup-and-handle breakout from $9.00 is just textbook (Fig. 1). I am indeed a bit late, but the trend is now upward.

There is a big resistance at $10. It is where the June epic decline started. From just above $10 to $6.5 between June and July. Now that VEN is back at this level again. I am betting that the positive momentum would carry it upward.

My hard stop is $8.90. My mental stop is $9.50. As VEN seem to like to gap at $9.50. From the look of it, $9.50 level is more important than $10. Since we’re above it already, this gives me a bit more confidence in this trade.

Another point to note is gold price. It is on a direct train to test, and possibly, break a new high record (Fig. 2).

Risk is ($9.74 – $8.90) * 200 = $168 + $9.90 commission = $177.90 = 1.85% of RRSP trading account.

Ventana Gold Corp. (VEN.TO)

Gold

Short USDCAD @ 1.0654, Stop 1.077

This is my first real forex trade after a year minus one day of studying the market and paper trading.

Shorted USDCAD based on the following intermarket observations:

1. Yesterday’s equities sell-off held around S&P at 1050
2. Overnight Asian market seem orderly, not every market followed through, but most did
3. European markets down move were slow overnight until US open
4. But perhaps most importantly, EUR/USD made a higher low with an increasing COT

Basically, as much as the sell-off tries to scare off people, the markets don’t seem to be moving in unison. So it would seem this move (in equities, thus inverse USD) is still a bear trap in an intermediate term bull rally.

Plus this daily chart, Figure 1, for picking USDCAD specifically.

USDCAD daily chart

And this 4-hour chart for trade execution.

USDCAD 4-hour

Size of trade is 1000 unit. Risking about 0.05% of capital with a hard stop at 1.077. Anything above 1.070 would put me on alert though.

Coincidentally, I first got into the forex market by studying the loonie. Let’s see how this first trade performs.

Bought 200 K.TO @ $15.94

Update Aug 13: I got stopped out at $15.80 for small loss.

Precious metals and the miners are holding well in today’s 30 point drop in S&P (WSJ article). In particular, gold just made a higher low (Figure 1) and AUD/USD is holding 0.8900 somewhat. As such, I’ve lowered my mental stop on the PAA.TO short to $24.30, a mere few cents above. Secondly, I am taking a long position in the Kinross Gold Corp. (K.TO).

Gold

As evident in Figure 2, Kinross has been taking a beating the past year. However, it is trading on a long term Fibonacci support level around $15.80. Thus, I am buying here with a small position while Kinross is making higher lows intraday and on the daily (so far).

I have set a mental stop at $15.60 and a hard stop at $15.50.

Risk is ($15.94-$15.50) * 200 = $88 + $9.90 commission = $97.9 = 1% of account.

Kinross Gold Corp. (K.TO) weekly chart

Kinross Gold Corp. (K.TO) daily chart