CECO gapped down on earnings, rallied back up to yesterday's low and carved out a hanging man and doji just under the downsloping 5 period ema. I was hoping for an inside bar, but I took the trade anyway. Once price retraced more than 62% of the move from the ORL to the swing high, I was determined that it would go all the way (100%). That's pretty much how it played out.
TBSI also gapped down on earnings and rallied back up close to yesterday's ORL. After some choppy sideways action, it eventually started to trade in a very narrow range at the base of its gap opening. I shorted the low of the NR base. TBSI fell sharply. The entry bar closed on its low and it continued lower. When price stalled at the 200 MA I took a partial. I placed a stop above the hammer and was stopped out on the balance. The spread on TBSI sometimes goes as wide as 40 cents. Ideally you want to get out on strength, otherwise the slippage on a stop can seriously reduce the profit. That's why I don't trade big size on this stock.
N.B. - Another wild day for the markets. I had a couple of B&B failures and more level II glitches. However, the two gapper trades worked well as did the planned trade - JOYG - intraday trendline break. I'll post that one later tonight.
4 comments:
Jamie,
How many stocks do you usually track per day and how many do you view simultaneously with your monitor setup?
Usually 25 - 50 per day. I have one screen with 6 small charts and another with multiple timeframes of one stock plus level II. I have another computer for scanning.
Jamie,
Wow look at your Briefing premkt nasdaq's: nstk omri siro cell josb insp. All the gap downs, reversed and furiously rallied. INSP PSUN HEES APOL for +/-. Learning to keep a short watchlist and pay attention. I flip from one chart to another and miss the developemt as they unfold into profitable trigger patterns. One could use 1 min charts on these and high priced stocks, spwr pcln with 5/13 ema. Thanks for the blog. oonr7 is missing out on all this volatility!
BL,
The open was wild. I waited for things to calm down before taking any entries.
Keeping the watch list manageable is always a problem because there are too many great setups. But I do like to have a handful of mapped out charts ready to go when the market opens.
Looking at the briefing's AH list, I like CFC gap down for tomorrow and NVDA which is down a bit but should bounce because earnings and guidance were good.
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