The first chart is the daily timframe for CAL. I didn't put this one on the watchlist last night because I thought it had time before the next test of the PP. The confirmed hanging man obviously didn't want to wait.Needless to say I wasn't focused on CAL this morning until I noticed on my quote screen that it was trading down almost one point, I missed the perfect dummy entry off of two NR inside bars, so I had to wait for the next consolidation. I took a partial as price came into the $30.00 PP support level and moved my stop to breakeven. I was hoping that it would not bounce too much because of the late entry. After what seemed like a never ending NR consolidation, CAL finally broke down and set off on a momo move to the downside on increasing volume.
Judging from what I read on Briefing.com, I have CNBC to thank for all this CFC angst. A gap down on a Merrill downgrade, followed by a gap fill, followed by two inside bars and the downsloping 20 EMA acting as strong resistance. Partial at the round $ number (ORH). Price moved sharply lower in mid afternoon and I noticed what looked like a tweezer bottom reversal taking shape after a volume spike, so I tightened the stop.
5 comments:
Two in a row on CFC mean big win for you.
I followed KFN and felt this will break down soon. But decided traded FSOL(despite yesterday resistanc).
Would you consider short KFN 15/9bar?
Does gut feeling play a big part in trading or must find the best setup?
Jerry,
I did not see your FOSL trade on your blog so I cannot comment.
KFN is a series of offsets and therefore very difficult to time the perfect entry. I don't care for offsets and do not usually trade them unless I'm desperate for a trade.
On the 15 min. timeframe, Bar 2 offsets bar 1, bar 5 offsets bar 4 and 9 offsets 8. The only trend is that each consecutive offset, carves out a lower high. The stock swoons bars 10-11. How can one know when the offsets stop and the trend begins? No, I would not have considered break of 9 as an entry point per se. But if you had drawn a trendline below bars 4-9 and traded a trendline break - okay. Still it is a wide stop for a $12.00 stock.
I will noted this and remember to read chart carefully and see if there is any offset bar in pairs.
I will post tonight.
Thank you.
Jamie,
An excellent trade in CAL. Hats off to you my friend.
LP
Thanks Lloyd,
CAL is on my watch list so I was able to catch it in time.
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