Wednesday, February 14, 2007

Trade of the Day - Ross Stores, Inc. (Public, NASDAQ:ROST)

The first two charts are before and after daily timeframes. The first is a view of chart last night and why I had it on my watch list going into today's retail sales data. The second is the daily view after today's breakout to all time highs.

The first 15 minute bar was WR and closed near the high end of the OR. The second bar filled the shadow of the first bar and closed in line with the OR high. I took a low risk dummy entry on a break of the OR at the beginning of the third bar. My initial stop was just below the second bar. ROST rallied then consolidated in a narrow range, followed by another rally which tagged the 62% Fibonacci extension. Since the stock was trading in blue sky territory, I had no target and used the Fibonacci extensions as my guide. I took a partial at 62% and the balance at 100%.

I took a second low risk dummy entry in mid-afternoon, hoping for a retest of the morning highs, but it took too long to get going, however, it was a nice bit of icing to add to the morning trade.


Bullish Jim said...

Nice trades. Thanks for sharing.

Jamie said...

Thanks Jim.

Bubs said...

Great trades you might be my new hero. You always know what your doing before, during, and finishing a trade.

Anonymous said...

Can you help me to understand in what ways the first entry was a low risk dummy one? I don't see it close to the 10 MA or NR bar. Hope you don't mind explaining. Thanks alot


Jamie said...

Thanks Bubs,

I'm trading from home this week so I have extra time to prepare and more time to think about what I'm doing as I'm doing it.

But I had many days like you had today in my early development as a trader. Hope tomorrow is much better for you.

Jamie said...

No problem Zen,

I trade with side by side charts of the 15 and 5 minute timeframes. Also in the morning I add the 5 period EMA to my 15 minute charts. I take it off midday, because on a pullback I prefer the 10.

If you look, at the 5 minute chart of ROST, you will see that bars 3-6 carved out a bullish shallow base, just below the OR high. That was the trigger for me to go long. I call it low risk because the depth of the 2nd 15 min. bar (and my stop)is within 20 cents of my entry point.

Also this was a planned trade which I mentioned in last night's NASDAQ post. So the decision making process is faster because the plan is working as expected. I also traded URBN as a sister trade. URBN was slightly different because I had a target -Jan. 10th high.

Hope this makes it clearer.

Anonymous said...

Thanks Jamie. As always, so much insights to learn from you.


Zoomie said...

Thank you too for sharing those trades.

Jamie said...

You're welcome. Next time I do a breakout trade, I'll post both the 5 and 15 minute charts.

@Zoomie - Congrats on the Fedx trade!