Thursday, April 19, 2007

Dummy Trade of the Day - Reliance Steel & Aluminum (Public, NYSE:RS)

RS is very similar to OSG yesterday. I found RS on my 10:00 gapper scan. The wide OR which took out yesterday's low made it difficult to map out the Fibonacci extension, so I used today's low and the 10:15 high as my end points. I exited as price approached the 38% extension. I also took a second low risk entry in late afternoon.

I did not run a gap down scan because when the whole market opens lower, I find the gap down scan unmanageable. SMSI is one of my usual suspects and it set up a dummy short just below the OR low.

4 comments:

El Toro said...

Hey Jaime,

I didnt run the gap down scan today either due to the gap in the market. I would be interested in what you do instead, if anything, to seperate the true gappers from those that move with the market?

Jamie said...

Hey El Toro,

I look for charts that are not trading the same pattern as the QQQQ and I look for candidates on the unusual volume lists.

QQQBall said...

hey jamie, so if the Qs are headed down, you look for stocks gapping up? evene NYSE stocks? is that it?

TIA.

Jamie said...

QQQBall,

I'm too lazy to sort through hundreds of gappers, so I look for contrarian setups (gaps in the opposite direction of the market) as well as my WL and the Briefing.com gappers. For stocks trading with the markets, I'm more inclined to scan for unusual volume as opposed to gappers to narrow the selection.