Wednesday, February 07, 2007

Dummy Trade of the Day - Nortel Networks Corporation (USA) (Public, NYSE:NT)

NT gapped up on the open and carved out a NRB with an upper shadow. It spent a great deal of time basing in almost a flat line. Just when I was about to give up on NT, it popped out of its flat base for a low risk breakout. But then after all that waiting, it went back in and retested the base. Luckily, it held support and finally, by mid-afternoon, it lifted for take-off. Sweet!


ICE reported earnings before the bell and although, they had a big beat, the street didn't think it was enough and the stock gapped down on the open. It quickly tested and held yesterday's low. It then carved out a higher low and started basing in the $140,00 area, producing a series of increasingly narrower bars on declining volume. At 12:15 it carved out an NR7 as volume all but dried up. The next bar broke above the narrow range and I took a low risk long. I took a partial at $143.00 and was stopped out on the balance.

After I was stopped out, the stock reversed and took off on a huge momo move into the last hour, breaking resistance in the last 30 minutes.


4 comments:

Anonymous said...

NICE trade in ICE. I jumped on board of it too. That stock just continues to impress with that squeeze. It's the only one from the old leaders list that's still going strong. A lot of people are short and keep getting caught. I have a feeling there might be another trade in it tmrw again.
good trading.

BAsim.

Zoomie said...

Jamie,
I was watching ICE then lost track. Beauty trades today. Sorry, that was the Canadian coming out in me since I spent the day in Glenn's tradin room.

Jamie said...

Thanks Basim. Hope you got more out of ICE than me. Also watching MA as it attempts to retest its recent highs. And RMBS as it develops a bull flag pattern.

Good Trading to you too!

Jamie said...

Hey Zoomie,

Thanks, Did the Canucks in Glenn's trading room catch a piece of NT? Canada's claim to fame - NT broke the tech bubble when it missed earnings back in Q1 2000. Despite losing a ton of money, most Canadians still love the stock.