The markets overreacted to the tepid jobs data this morning in the pre-market. This was a sell signal so I immediately moved my stop on the AAPL swing from $61.50 to $61.95 to protect my profits. Sure enough the Qs started coming in even before 9:30 and I was stopped out just before 10:00.
Friday, June 02, 2006
Swing Trade - AAPL Update
The markets overreacted to the tepid jobs data this morning in the pre-market. This was a sell signal so I immediately moved my stop on the AAPL swing from $61.50 to $61.95 to protect my profits. Sure enough the Qs started coming in even before 9:30 and I was stopped out just before 10:00.
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2 comments:
Hi Jamie,
I mean this is the kindest way, but you seem to never make any mistakes? You have a great sense of the market... can you advise ways to watch for sell/buy signals or know about them, or is it more of an experience thing? I guess I am asking for some tips! Or do I need to read a bunch more books :) I like the trendline tip, I used it yesterday, thanks!!
Glenn
Hi Glenn,
I make a lot of mistakes and I guess I don't always write about the mistakes in my blog. For example on Thursday I placed three buy limit orders before going to work and none were filled becuase I was pennies too low on each order. Eventually, I chased the AAPL trade and managed to get in but the LRCX and MCHP orders got away from me in the morning and I only risked a small trade on MCHP at noon. The opportunity cost of placing my orders right on the support line rather than the trendline was significant given the lack of tradable setups lately. That's why I published the trendline post on Thursday night.
Another mistake I made this week was not selling AAPL on the open on Friday.
I'm not sure that I can answer the rest of your question except to say that under the current market conditions, economic data is king. When the actual data strays too far from the consensus, the markets will react.
I don't know how many books you've read but after reading the basics on technical analysis, candlesticks, and the O'Neal books, the rest usually only have one or two good take aways. And many books are a complete waste of time.
Basically, you have develop your own criteria and stick with what works for you. Sometimes, I go back and re-read the early books I read when I really didn't understand half of what I do now. My experience helps make sense of concepts that I'd originally ignored.
The best tip I can give is to plan the trade and trade the plan if market conditions are favorable to a successful execution.
Good trading!
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