NBR: Short stop entry $16.10 / Exit stop $16.60

Myexit yesterday on NBR couldn't have been worst. Minutes after I got stopped out, NBR took a dive. The decline continued this morning with a giant gap down even though the overall market is holding steady.

I've attempted to short NBR five times in a row now. Only to be stopped out every time. Most of those entries were horrible because I was impatient. Thus, for this trade, I'm aiming to enter only when the probability of a favourable move is very high. I am putting a short stop entry at the low end of today's move. Coupled with a loose trailing stop. If this is indeed the beginning of a major down move, then the weakness should not be bought back and the gap shouldn't be filled.

Entry: \$16.10, low end of today's range on big gap down open

Stop: \$16.60, near top of gap

Target: \$13.20, back to long term downtrend Fibonacci level, see Figure 2.

Update 07/23: Well guess what, I'm stopped out again!

[caption id="attachment_1608" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[caption id="attachment_1610" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
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[Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-22-nbr.png [Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-22-nbr_prop1.png

Posted 22 July 2009 in stocks.

Shorted -60 NBR @17.00

I held out on Friday afternoon to short Nabors Industrial Ltd. (NBR). I'm back in now at \$17. However, I'm going to use a looser stop this time instead of goingin and out as I have done last week. With the S&P500 approaching 950, trading is going to be very choppy.

Entry: \$17

Stop: \$17.17 mental stop, then hard stop at \$17.50, just below the 200 day MA at \$17.56 but above today's high of \$17.36.

Target: \$14.50

Reward / Risk = 2.5 / 0.5 = 5

Update 07/21: NBR broke \$17.70 at the open. I placed my stop at \$17.55 at 10:06am. It just got executed before 11am.

[caption id="attachment_1603" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[caption id="attachment_1604" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-20-nbr.png [Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-20-nbr_prop.png

Posted 20 July 2009 in stocks.

Shorted -62 NBR @16.42

One more try today to short NBR just seconds before the close. I watched NBR's Level II for the last few minutes and see the 100+ ask at \$16.43 held steady to the end.

The market has been climbing up for 4 days now. With so many stocks testing their resistances, it's hard to imagine we can keep steaming on ahead without some breather. So I'm giving this short one more try just to test the water.

Entry: \$16.42

Stop: \$16.7, near recent high

Target: \$14.80, previous congestion zone

Reward / Risk = 1.62 /0.28 = 5.8

Update 07/17: I got stopped out at \$16.70 just after noon hour.

[caption id="attachment_1599" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-16-nbr1.png

Posted 16 July 2009 in stocks.

Shorted -64 NBR @16.10

I've entered a short in Nabors Industrial Ltd. (NBR) again. However, I have modified my strategy slightly by entering with a limit at the resistance instead of with a entry stop at the support. From my previous few failed trades, I noticed that my stops keep getting hit and then the price would go in my way. I don't know why I didn't realize it before, but we're in a choppy trading range lately, so it's a general case of short the high and buy the low within the trading range.

Anyway, I marked \$16.09 as a resistance for my exit stop a few days back (Figure 2). The price of NBR has reached it. So I'm entering now. This is the case of being patient and letting the price come to me.

However, as I'm writing this, the NBR is testing \$16.17, the next intraday resistance from last Monday.

Entry: \$16.10, Figure 2

Exit stop: \$16.35, recent high

Target: \$14.50, although I'd also look out for \$10 in the intermediate term

Reward / Risk = 1.6 / 0.25 = 6.4

Update: I got stopped out at around 14:40 in the same day

[caption id="attachment_1594" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[caption id="attachment_1595" align="aligncenter" width="500" caption="Nabors Industrial Ltd."][Nabors Industrial
Ltd.][][/caption]

[Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-16-nbr.png [Nabors Industrial Ltd.]: http://traderpau.files.wordpress.com/2009/07/2009-07-16-nbr_prop.png

Posted 16 July 2009 in stocks.

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