Monday, October 30, 2006

Technical Trade Ideas - (NYSE:TIE), (NYSE:X)


Both TIE and X are well positioned for a potential consolidation breakouts following three days of narrow rnage trading. Notice that both stocks carved out higher lows on Friday. Also notice that last Tuesday both stocks had a high volume price expansion following NR7 bars.

8 comments:

Anonymous said...

These stocks look like they are breaking down, not out.

Charlie said...

So would that imply that with positive results being posted tomorrow, US X might be in a good place to rally?

Jamie said...

Anonymous,

I can appreciate different points of view, so if you have an alternate view, please elaborate. As it stands now, your comment is meaningless.

Thanks.

Jamie said...

Hi Charlie,

A significant beat tomorrow morning could put US Steel (X) in rally mode (gap up). However, just meeting the Reuters estimates will likely send the stock south for now. Either way we could have enough volatility for an interesting daytrade.

Simply Options Trader said...

TIE announced AMC today & missed earnings. Guide in line. Stock is down after market.

Let's see what plays out tomorrow

Jamie said...

Hi Simply Options Trader,

Thanks, TIE earnings and guidance were certainly not very sexy. Hopefully, it will hold the $30.00 breakout support. If not, we'll just move on. The chart setups were short-term. I was hoping for a pop in anticipation of earnings and that didn't happen, although I did get a nice power scalp on US Steel (X) off of this morning's 10:00 reversal.

Simply Options Trader said...

Jamie,
Cool trade on X, I see that you have been milking X alot lately!

I suppose you went in at the bounce off $68. Where did you exit? How different is your scalp play from the dummy style trades?

Thanks

Jamie said...

Hey Simply Options Trader,

Around 10:15, X made a higher low on the 10 minute timeframe and my entry followed at $68.40. My exit was $69.75. So I was able to capture a good portion of the move in a very short period of time.

My scalps usually involve smaller share size. If a scalp doesn't move quickly, I don't mind bailing. With a dummy trade, I usually give it more time to develop and I rarely move my stop to breakeven until the trade is well underway.