Tuesday, January 23, 2007

Dummy Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)

Today's dummy trades include one short and one long from last night's watchlist. CAL gapped down on the open and carved out a WR red stick. Price consolidated in the lower half of the OR bar for the next 45 minutes. The fourth bar tagged the downsloping 5 period EMA and closed on its low, so I took a short position on the open of the 5th bar. I was trading from home today so I was able to incorporate the Fibonacci extension into my chart as it was difficult to determine an accurate level of support. I covered 50% as price tagged the 38% extension and I was stopped out on the balance shortly thereafter.

You'll notice I've adopted a few more trading techniques from Trader-X here, namely the 5 period ema and the Fibonacci extension. They were very helpful in this trade setup and I will be experimenting with them more often, especially on short entries which are not my forte.

KKD, another watchlist stock is self explanatory - a low risk breakout play just above support from the rising 10 period ema.


Tom C. said...

You may have won this round, but I will be back.

Bubs said...

Great trades

Jamie said...


Don't sweat the small stuff. I'm just happy to be in such good company on this trade.

Jamie said...

Thanks Bubs.

Anonymous said...

Hi J. check out CHDX. Entered on a break of the OR, 21.55. popped up on the nasdaq.com 'unusual volume' list i told about yesterday. There was a ton more trades too to play on but i wanted to focus maily on this one as i has a big position. high short interest too on this issue.


Jamie said...

Nice trade Basim. Thanks for sharing. I will try to work the unusual volume list into my daily trade routine. I guess these are available after 10:00 like most leader lists.

Anonymous said...

The list is delayed by 15 minutes as well but that doesn;t stop me from finding solid trading opps daily. I am sure if you use some of those advanced scanners you could program it to that is scans stocks that are are moving up or down on more than average daily volume. What i like about using stocks that are moving on higher than average volume is that higher volume not only brings more liquidity but also tends to bring in stronger trends i have noticed, up or down. So as far as I am concerned this could be a very powerful weapon in the day traders arsenal. Test drive it over the few days and i'd be interested in your feedback.
Good luck.

Jamie said...

Okay, I will try it and hope I can be as successful as you.


Anonymous said...

check out SVNT.


Jamie said...

Hey Basim,

Nice breakout on SVNT. It's now consolidating in a narrow range, and hopefully it will continue up this afternoon.

12:23 EST