Thursday, January 04, 2007

Dummy Trade of the Day - Amgen, Inc. (Public, NASDAQ:AMGN)

AMGN showed up on my Trade_Ideas gapper scan (1) this morning. I didn't immediately fall in love with the setup as it was a little too choppy for my tastes. Nevertheless, I kept it on my gapper focus list for the day. Shortly after lunch, it started to consolidate in an orderly fashion. By mid-afternoon, it tagged its rising 10 period EMA. The next bar opened strong and as soon as it took out the tag stick, I went long. My original stop was the previous bar low. Once the trade got underway, I moved my stop to the low of the prior bar every 15 minutes. I was stopped out going into the close.

CAL presented a low risk dummy entry midday as it formed a shallow rounded base in the area of its rising 10 and 20 MAs. Long on a break of the base. I was expecting CAL to test its all time high at $46.29, but it didn't quite make it and I was caught trying to manage a respectable exit.

(1) I'm using Trade_Ideas Web version - The scan is entitled "Gaps Up and Keeps Going Higher". The scan notifies you when a stock crosses the open after X% retracement.

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