Wednesday, November 29, 2006

Trade of the Day - None

Not for lack of opportunity. I was stalking the metals sector early on and was hoping to get long Titanium Metals Corp. (NYSE:TIE) after the gap consolidation. Unfortunately, the consolidation took too long and I wasn't around when the break took place. Here are the charts - 15 minute and the 5 minute, the latter accentuates volume contraction during consolidation and expansion on the price break. Also check out the charts for IPS and X. Now that tech is losing its leadership, XLB might offer some strength.


Notice how sharply TIE fell after it failed to stay above $31.00. I try to always move my stop just above the dollar number in late day trading because when price fails at the dollar level, it can cause a lot of slippage.



On another note, if anybody followed up on my pre-market post - (NASDAQ:MSCS) - Insider Buying - here's the chart:

2 comments:

Anonymous said...

Hi Jamie,
Appreciate if you could do a post-morton on this trade for me.

I traded SNDK on both 5 min and 15 min chart. Looking at the daily chart, there is strong support at $44 and chart also seems to be potentially forming double bottom.

2nd bar on 15 min chart printed a hammer. Entered long on break of 2nd bar high with stop below 2nd bar low. Target OR high.

Stock went up but seemed to stall at previous day low. Held on the trade till stop loss triggered at 12th bar.

Pls advice if there's anything wrong with this setup or with my entry / exit. Thank you.

Zen

Jamie said...

Hi Zen,

I'm going to post my take on this tomorrow. But in the meantime, look at the 15 minute timeframe over the last three days. Using a 20 period EMA, notice that SNDK has yet to close above the 20 EMA on every rally attempt. It's on a path of lower lows and lower highs. Your entry was good for a scalp long, but when it failed at the 20, it was implying further weakness and continuation of the ongoing pattern.