Trade of the Day - LRCX

LRCX was part of last night's watch list as was MRVL. Both were started off on a buy stop orders. LRCX was entered just above yesterday's high. Around 9:55, I felt the market was weak so I booked 50% profit. I was stopped out on the balance. LRCX then pulled back to it rising 10 period ema forming a hammer reversal bar. The next bar had a higher low and formed a doji. When the next bar took out the high of these two reversal bars, I re-entered my full position size. From the daily view, I knew we would run into resistance in the area of $45.50, so I locked 50% profit at $45.55. The balance of the position was stopped out again. Notice that LRCX has made a lower high in the afternoon. It probably needs to rest after such a nice run in the past two days.

MRVL got off to a good start and I locked in some profits around 10:00, but the pullback was deep and the risk reward on a re-entry was not as compelling. I attempted a late day trade with MRVL on a break of resistance, but it didn't go very far.

I also had a nice trade with AAPL. Same setup as yesterday, on a bounce from its rising 10 period ema on the 15 minute view during the lunch hour.

My ITRI trade, although profitable just serves to remind me why I hate trading stocks with a big spread between the bid and ask. A stock that averages less than 1M shares a day is often too difficult to manage once you're in the trade.