Both of my gapper trades were developing cup & handle patterns. As I mentioned recently, since the volatility in the markets started, there have been very few gapper trades that have extended fully for me.For the C&H pattern I place my Fibonacci extension lines from the morning swing low ( low of the cup portion of the pattern) to the base. My expectation is a 100% extension from the base. Neither TIF nor VIP were up for the task today. TIF extended 62% but did not even manage to tag the ORH and VIP was just too weak to even hold the base so I bailed for a tiny profit.
14 comments:
Very disappointing day with those gappers from the Breifing list except SIGM PSS CWTR and yesterdays SMSI. I was impressed with the open on some of the stocks like JASO FSLR etc after VSE upgrade AAPL
BL,
Briefing list was weak indeed. Solar stocks very momo again today. The two top performers on my watchlist.
Hi Jamie,
Would you consider shorting this stock?
I saw a nice upthrust and was waiting for an orderly pullback to enter long. It break down its base around 14:30, formed a nice hammer and trapped some bulls on the long side who believed that was the bottom(red arrow). I saw support to halt the the stock at 79.84(recently broken pivot point, which I believed was too close of the broken base to halt the stock) and next at 79.20.
I didn't shorted it because it was on of the strongest stock for the day.
http://i8.tinypic.com/6au5i4n.gif
Tks in advance
Hi Joao,
I would not have shorted it either. I believe this is RIO and the NYSE chart is a little choppier than yours. But it is reasonable to expect that the PP would hold as support. Often times there is a breach of support but price quickly snaps back like a head fake.
I usually wait for the third test of support before shorting, otherwise, it is just a scalp and it could go either way.
Jamie,
How long have you been using the Trade-Ideas scanner?
Jim,
I can't remember the exact date but I would say about 1 year. Do you use it?
Jamie,
I do not currently use TI, although I do have access to it through one of my trading platforms/accounts (Scottrade). I have not taken the time to investigate.
Jim,
I use it for pre-market scanning, watch list scanning, and scanning for stocks that break a trading range on higher relative volume intraday. It gives me a good read on market direction as well. A great tool that enhances my trading platform.
Jamie,
I have activated TI and am working to setup a "Tape" Reader scan to supplement my watchlist. I see how to select Exchanges, setup Window Specific Filters (to filter the universe of stocks), and then apply Select Alerts on the filtered list.
I am using the following filters:
Min Price = $20
Min Spread = 10 cents
Min Daily Volume = 700K
Min Current Volume = 1.4
Min ATR = 1.0
Due to the number of choices, I am having trouble selecting and configuring the Alerts. I am consider some of the following:
NewH & NewL (filtered) X #days
Crossed daily res/sup X #days
15min OR H/L BO
30min consolidation BO
15min Hammer/Hanging Man (75%)
NR7 (time period?)
Perhaps I need to play with the options in real-time. Any comments you may have would be appreciated. Sorry for long post.
The Min Spread filter should be Max Spread.
Hey Jim,
That's great!
The filters I use on my tape reading scan are:
Min. price $20.00
Max spread 5 cents
Min. daily vol. 500k
Scanning for:
Crossed daily high/low (3 days) I use three days because if a stocks has already had a big move, it usually takes three days to consolidate before moving higher. When I first started using TI they had this as a stand alone preset scan also using 3 days.
Crossed above/below R/S - 8 hours. I keep reducing the number of hours as I go along, still feeling my way around this one.
I used to scan for 15 min OR BO but removed it because it didn't mean that much unless it was on my watch list and I have a separate window for that.
I get a lot of hits with these settings but I only look at the charts of stocks with relative volume above 1 and a quality level above 10 days.
You can test it by unchecking History - real time to review the hits you would have generated using your settings on Friday.
Friday I found a nice little trade with CP which caught my eye because its Canadian. Around mid afternoon it showed up on the scan with 1.3 relative vol. and 30 or so days quality. It had just BO of a C&H pattern so I jumped in.
Jamie,
I see the CP trade. Nice!
Thanks for the History - RT tip. Now I can test without RT data... just what I needed. I am going to increase filtering and/or make "tougher alerts" to reduce the # hits. Too much data distracts me.
I was short AKAM on Friday following (weak OR) ORL BO with an OR/MR Fib zone stop. At a minimum was expecting gap fill, but it trended down all day... pre-holiday weekend contrarian.
Thanks for your help.
Welcome Jim,
Nice trade on AKAM!
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