Wednesday, December 13, 2006

Fade the Gap

I shorted the Qs on the open and I'm now short CAL .

12 comments:

Jamie said...

Okay, I covered the Qs on the gap fill. Took a partial on CAL and I'm moving my stop to break even. The CAL trade is a little too much for my taste. I feel like I'm stuck between a fade and a squeeze.

Trader said...

gotta love those gap fades! :-)

ExEngineer said...

Jamie,

What made you fade the q's this morning? What told you to go short?

Jamie said...

The pre-market bullish action felt way overdone. I shorted the Qs on the open with a stop a few pennies above the pre-market high - very low risk. $44.10 is a pivot point and I was betting that it would hold as resistance. My only mistake was covering too soon. :-(

Anonymous said...

HI jaime. your thoughts on RIMM hanging out near the 50 day M.A.?
thnx!
Basim.

Anonymous said...

CAL is one stock which trades solely based on technicals. I shorted it also this morning, but looks it will not close the gap today. Also since this friday is options expiration, they want it to keep it as close to 45 as possible.

-MJ

Anonymous said...

Jamie, do you have any conditions for determining that the pre-market bullish action was way overdone? Thanks

-Lyn

Jamie said...

Hi Basim,

RIMM had a nice, high volume rally into the close and carved out a bullish hammer on the daily. Look for follow through in the early going tomorrow. I would target the $130.00 - $130.50 area for now. Are looking to swing this?

Jamie said...

Hi MU,

I agree. I'm not getting back in CAL until next week.

Jamie said...

Hi Lyn,

Price moved very quickly in the 45 minutes prior to the open, despite the lack of any real catalyst. The only NDX stock with legs in the premarket on my radar was AAPL. The AAPL news was mixed - a target increase offset by cooling itunes sales. At these lofty prices, I felt the Qs needed more to move beyond the intraday pivot point resistance.

Anonymous said...

Good morning jaime. I bought a very aggressive 7000 shares of Rimm yesterday as i noticed some positive divergenvces on the RSI and MACD and a falling wedge pattern on the 60 minute chart. It played out really well into the close. Looks like it is up to 129.5 in the premarket. I'll probably sell it at the open. and watch how it behaves as the day goes on. what do you think? i am a pretty short term trader.
thnx jaime.

Basim.

Jamie said...

Nice work Basim. I'm fond of partial profit taking with a tight stop on the balance. I'm sure you will know what to do.