MRVL was gapper from Friday that did not break the ORL. I took this entry on the open in the hopes that it would extend today, but it did not reach the target. Textbook - stop placement 2 ticks above the previous bar high. Exit when price takes out the previous bar high.
NTRI is a watch list stock that set up a low risk, dummy base & break entry. It tagged the down sloping 20 EMA on the daily time frame. Nice bounce after all the weakness.
CAL set up a low risk dummy entry on a break of PP support. The target was $30.00. This one took a long time to get going and I thought I might get stopped out, but I don't move my initial stop unless the BO bar closes near its low, so I managed to stay in for 1.7 R ( lunch money).
In general, today's session was a typical August snooze fest.
14 comments:
I give up ntri and chl for lfc, but I wasn't able to profit much.
what did you do for google to always pick up your blog post?
Hi Jamie,
Hard to find good trades today, at least here in Brazil :).
I was wondering if you look at indexes or index futures while deciding to place a trade. I decided to not take this trade on VALE5(aka RIO for you..) when I saw weakness on DJI, SP500 intraday charts. This is really frustrating when you miss a trade like this(http://i10.tinypic.com/4zcm9w5.gif) but there are some times you would be glad you watched the index/futures.
I would be thankful if you could make comments on the matter.
Tks
Jerry,
I was watching LFC too but did not take an entry.
I do the same as you, I copy the stock title from Google Finance and they pick it up in the blog posts section.
NTRI reminds me of the other naz rally.sell off from the open: bidu wfmi biib nvda joyg.sndk stld vsea in addition to the Briefing list. Sometimes it looks better to join the momo rally that figure out out gap set ups. I have a naz over $40 1mil screen. I should pay more attention to that. LFC wow!!
Swell charting Jamie.
Hey Joao,
Same here, not a lot of good setups.
I do watch the index chart as well as the sector chart to help me in my trading decisions. However, I do have certain trading rules that I must follow. Also if the markets are not testing S/R, then I cannot be sure if they will reverse.
For example, the third test of a pivot point is usually the one that breaks out. So if I get a low risk opportunity on the third test of a PP, I must take the trade. My CAL trade today, was based on that rule.
On your chart of VALE5, I see that the afternoon break out was the third test of PP resistance, so I would have taken the trade regardless of the noise on the index.
Also you had very low volume prior to the BO - NR7 - price and volume contraction prior to expansion. The low volume prior to a BO is sometimes misleading.
The best advice I can offer is to define your trading setups with specific rules and then follow the rules. If they generate the desired R over time, continue to trade by these rules, if not adjust the rules to attain the desired result.
BL,
I sort both my usual suspects list and the gapper list by % change several times over the course of the morning. That's how NTRI caught my eye.
jamie:
a great blog.
What is ORL?
i take it that you shorted MRVL?
Gurlate,
Welcome to the blog!
ORL stands for opening range low.
MRVL shorted when price broke Friday's ORL.
Red arrows indicate a short entry and blue arrows a long entry.
jamie:
thx
i had good luck w/ ACH today ..had an entry after the stock retraced from a huge 25% jump.
I am just a beginner in this daytrade but i presume a better strategy would be to look at ~5-10% up/down in the open from the market scanner software? and take a look at the technicals long/short term and then position yourself..what do you think?
also are you not concerned w/ possible gap up in the morning with your overnight position?
thx
also jamie, when you talk about PP etc are you just being simple about it, that is just pick up top/bot points in the chart or you go the Fiser route "Fisher describes pivot points, the daily pivot price (high+low+close)/3), daily pivot range, 3-day rolling pivot, etc. The last 30 days data are viewed to obtain the big picture of the vehicle being traded. He calls this his Macro ACD. He provides 25 chart examples to illustrate how to score each day."
my thinking is why make it complicated as fisher says.
1.7R lunch money ! At .5% account risk per trade that is 4.25% per week. For your risk exposure of 1% that would be 8.5% per week. I would kill to get that kind of lunch money daily :-)
Gurlate,
You have a good strategy and you will fine tune it over time. For gappers, I look mainly at stocks that gap above or below previous day high/low. That way the previous day's range is out of the way or may be tested as support/resistance. High trade activity in pre-market sometimes is a good indicator too.
Pivot points are points where price pivots and changes direction. Simple and visual.
When you have time, check out Intro to WSW blog in the key posts section.
Not holding any stocks overnight. All positions were closed.
GT,
Just a figure of speech as the CAL trade was a big disappointment in terms of reaching the target.
I got it, I just thought it was funny. CAL has been a favorite of yours for a while and usually rewards you well. I am sure you will extract a lot more $$ from it in the future.
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