SMSI was a gap fade setup with a similar scenario as the CAL trade on Tuesday. SMSI gapped down on heavy selling. It breached it 200 day MA on the daily timeframe by about 60 cents before reversing. After regaining the ORL it consolidated and setup a momo, dummy long off of an NR7 signal bar. My entry was on the 1 minute timeframe where it had a very low risk, narrow base and break pattern.
MNST had a monster rally during lunch. By the time I noticed it, it was too far gone and I didn't want to chase. I watched as it consolidated up against resistance and then pulled back. I kept coming back to look at the chart and shortly after 2:00, I started watching closely as it attempted to recapture the base. Around 2:30 it setup a very low risk dummy long.
There was no lack of winning gapper charts today. Hope you had a great day!
4 comments:
You are pretty damn impressive. I've been reading your blog for a while now...
But, how are you finding setups day after day? I usually stalk around 4-5 stocks and only trade on the base and break, but am starting to appreciate your gapper trades.
But seriously, thanks for sharing your trades.
Hi Eric,
Thanks for the compliment.
Both SMSI and MNST are on my nifty fifty usual suspects list. SMSI gapped down on the open and was listed on Briefing.com's gapper list which I posted during pre-market.
I review my watchlist at night and map out pivot points and set alerts. I also run gapper and momentum scans during the day. I check for stocks with unusual volume at various times during the trading day as well.
I have a good setup for AMZN which might break tomorrow. I will post the chart and highlight the PP latter tonight on the blog.
Hi Jamie,
Keep up the good trades! Did you have insider info from Cramer? Lol! I read from briefing.com that Cramer on CNBC notes call buying in MNST, says would be an amazing acquisition, at 2.44pm EST, just before your entry! :)
Thanks SOT,
I only became aware of Cramer's comments after the fact. But if he helped the trade along, I'll be happy to give him credit. :)
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