Friday, August 03, 2007

Base & Break - Alexion Pharmaceuticals, Inc. (Public, NASDAQ:ALXN) and Monster Worldwide, Inc. (Public, NASDAQ:MNST)

The first chart is the 5 minute timeframe of ALXN which opened where it left off yesterday. Early weakness held support from yesterday's late day retracement. Then it chopped around and eventually formed a tradable base. I took a partial after 1 pt. and closed the position on weakness heading into late morning. Shortly after lunch it set up a nice B&B pattern and rallied up to $63.00. As soon as it fell back under the round $ number I was out.


The next chart is the daily view of MNST. As you can see it was setting up a B&B pattern off of yesterday's NR session.

The next chart is the 15 minute timeframe of my entry and exits. MNST violated the base on the second bar and retested on the third. After that it was just a matter of finding a low risk dummy entry close enough to the downsloping 5 period ema.

4 comments:

Anonymous said...

Hi Jamie,

Great to read a fellow Canadian trader blog ...I really enjoy seeing your trades and commentary.
A suggestion ... throw in the odd losing trade - it's more credible. IMO...we learn as much or more from how well (or not) we manage our losers. Thanks, and keep up the good work.

kb

TJ said...

KB.

Thanks for your comment. Appreciate the input.

Anonymous said...

Jamie, That is beautiful man, just beautiful!

I shorted NTAP breaking from early consol (4th 10min). Had to leave mid-day and covered around 23.40. Hindsight, should have left breakeven stop in place. A good Friday AM short has >> even odds of continuing down in the afternoon.

Came back later in the afternoon and saw AAPL breakdown from sideways line. Checked PPs... had taken out previous day's low and key PP from 7/24. Shorted on retest of intraday breakout level (134.27) - what a low risk entry point... thank you for highlighting the importance of PPs.

TJ said...

Hey Jim,

Also traded NTAP - break of ORL on 15 min. timeframe.

Excellent PP trade with AAPL! If markets continue lower, we should get many more like this next week.