BOUGHT +58 [email protected] 28.89 LIMIT

[caption id="attachment_284" align="aligncenter" width="500" caption="CAF"][CAF][][/caption]

This is suppose to be another of my GTC limit order before leaving to Taiwan. I've set the buy order at \$25.0 on 25th. I got back on the 30th (29th EST) and CAF looked strong. So I wanted to replace my \$25 bid to \$26... However, I wasn't careful and the trading platform changed the limit price to the market ask without me realizing until I placed the order. Of course, then the order was filled and I got in at \$28.89, higher than I would have wanted. I thought of exiting the position immediately, at a small lost, but decided against it because I felt CAF is going strong. I didn't need to pick the bottom and I was never good at that anway. So I chose to stick with this entry.

But what do ya know, that afternoon, the US House decided to reject the \$700-billion rescue plan. DJIA tanked 777 points that day and the financials were hit the hardest of course. My \$26 bid would have seemed like an ingeneous entry as CAF hit a low of \$25.11 that day. However, I wouldn't have guessed that.

Given the high amount of volume at the low and near the end of the trading day, I doubt we will see that price any time soon for CAF. \$25 is definitely a strong support.

Upside: Daily chart still looks good. Financials are in severe panic mode.

Resistance: A downward trendline is capping recent highs. \$30 round number looks like the high end of trading range.

Downside: Possible turn to bearish from indicators. Financials earnings coming soon, the numbers aren't gonna be pretty.

Support: \$26 looks like the bottom of the trading range we're in now.

Bottom Line: CAF has weathered the Dow 777 day drop with style. It has shown strength at the worst of times. However, don't expect a steady climb from here. At this market's condition, anything is possible (i.e. more panic days in the coming weeks and CAF would be thrown out along with the financials again). I don't think this is to be a buy and hold position yet. So watch for breakouts either way and be ready to trade in and out.

On another note, if I have more funds, I'd rather be scaling in CAF on the lows for the long term instead of swing trading for a few bucks.

[CAF]: http://traderpau.files.wordpress.com/2008/10/2008-10-01-caf.png