Monday, December 04, 2006

Dummy Trade of the Day - Akamai Technologies Inc. (Public, NASDAQ:AKAM)

BRCM gapped up on the open and consolidated just below Friday's resistance area. I took a long position on the third 15 minute bar on a break of resistance. I don't know why I stayed in the trade as long as I did. Wishful anticipation, I guess. But after the first leg up, BRCM just consolidated sideways for the rest of the session.

AKAM gapped up wide on the open. It had a lot of momentum (probably a squeeze) and it was impossible to get in until mid-morning when it paused briefly to consolidate. I took a long entry on an uptick in volume knowing this was a power scalp. After 20 minutes I tightened my stop knowing it didn't have much longer to run. I was stopped out at $49.75.

After a weak open, CAL managed to join in the rally. I decided to take a long entry after support was tested and held. The narrow consolidation in the mid-late afternoon looked like it was setting up or a strong finish, but it just couldn't close above Thursday's reaction high.

Although it was a big day for the market, for the most part, my trades felt like we are still in range trading mode.

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