Sucker Punched

Volatile markets suck, plain & simple. Today, I got sucker punched by a trade in Target (TGT). I had a Buy-Stop set up if the stock continued its bounce and headed up, which was triggered, only to have AHM CRUSH the rally today, sending TGT down heavily, hitting my Stop-Loss and creating a nice Bearish Engulfing pattern to boot (circled in blue). Here's the chart:
Oh well, such is life as a Trader.

I did enter a few more trades (CMTL, ESV, JOSB, STLD, UTX) on Buy-Stops which were all doing well until the AHM news really took the steam out of a nice rally. Hopefully the market won't go too much further south, but it may. That's what Stop-Loss triggers are for! I am going to watch those trades for now and see where they run before I enter any more.

Back to PG:As was discussed yesterday, I felt that a Bear Call spread was a good play based on the position in the channel, and it was as the stock fell towards support. If you wanted to play an Iron Condor, you could Leg-Into a Bull Put Spread once the stock reached the support of the channel.

Happy Trading!