Questerre Energy – Toronto Exchange

Questerre Energy – QEC.TO is a new stock that found its way into my portfolio today. It is well financed but I am not going to talk much about fundamentals. I focus on the technical aspects of things when I enter positions. So here are a few things that I like about the technical setup right now.

Natural gas prices are going down. The price of the stocks in that sector – especially the Utica Shale Gas plays seem to have printed their lows in March. That’s the first sign of serious divergence. If stocks do not track their underlying to the downside and move up instead that’s a sign the path of least resistance has changed and is now up. The chart on my public list shows I was looking for a gap up. I waited patiently. Today was the day. So I bought. A stop loss that makes sense could be placed @ 1.19. If the stock closes the gap and dips below 1.20 that would negate the bullish picture and would be a reason to exit.

As a general rule I want to remind you of the fact that successful trading should be effortless. The best results are obtained when positions don’t inflict too much pain. It’s really simple. Have a look at the positions in your portfolio. Which are the ones giving you a headache? The biggest losers. Winning traders focus on the losers in their portfolio. They get rid of them and replace them with new stocks that have the potential to be winners.

Here’s a quick summary of the other positions in my portfolio:

• FEED – AgFeed Industries: Not much to say. This one is a monster. It still wants to go up more.
• BXI.V – Bio Extraction: Excellent technical action. Stock is trading near its all time high. Odds have increased this might turn into a huge winner.
• WTM.TO – West Timmins Mining: Excellent technical action. Volume is drying out on the pullback. This is exactly the type of action you want to see.
• UXG – US Gold: This one looks like it might roll over. Not sure yet. Depends on what gold will do. If you can’t sleep well consider reducing your position.
• RGLD – Royal Gold: I like the royalty concept. I’ve stated that numerous times. Still, this is the worst performing stock in my portfolio. So my main focus is on that one. I don’t think it will crash and burn. Odds are low in my opinion. Then again trading opinions is dangerous.

The only thing you need to do is: ‘Avoid letting small losses turn into huge losses.’

Have a great evening!