Wednesday, September 05, 2007

Dummy Gap Fade - Guess?, Inc. (Public, NYSE:GES)


GES was a gapper from the Briefing.com list this morning. It capitulated after three WRBs and carved out a tweezer bottom reversal pattern. After a Fib. retracement of 25% from the previous day high to the 3rd bar low, it consolidated for about an hour forming a mini base. Dummy long on break fo NRB at the cusp of the base. Price retraced past 62%, to conveniently tag S2.

8 comments:

Anonymous said...

Jamie,
Can you tell me if CHRW presented a good setup. I got short on the break of the 1:45 15min. bar. It was a nice NR7 with low vol. The 49.13 level was also the morning low. It was going in my favor just a little bit but eventually reversed. What should I have also been looking at that would help me decide whether or not I should pull the trigger or not. Your advice is greatly appreciated.

TJ said...

Hi Alex,

Not a lot of good setups today. Only two trades for me today. Many of my watch list stocks had a similar feel to them, similar to CHRW.

I was monitoring the NASDAQ and the Qs because most stocks were trading with the market.

In the case of CHRW, the area between $49.13 and the low of the day, was a consolidation (basing) zone on Friday before the stock broke out yesterday. From Friday's ORH and most of the afternoon, this is where price hung out. Since price has a memory, it tends to consolidate and reverse in these consolidation and pivot zones.

On a day like today (NR trading most of the session), you have to be extra critical of your setups. Ideally, you want to look for setups on stocks trading outside of the previous day's range.

Otherwise, try to limit yourself to the most perfect symmetrical setups ie. B&B. Saw a few near EOD such as ALXN, but did not trade it.

Anonymous said...

Jamie,
Wonderful reversal on GES. I took all my nyse stocks off today. OSIS the best Trader X set up I've seen in a few days. stld rdn osis tpx offered some potential from the Briefing batch minus the cheap ones.

TJ said...

BL,

OSIS was a beaut. If I understand correctly, you have removed NYSE momo list, working with NAZ momo and gappers.

Anonymous said...

Jamie,
I go back and forth trying to feel my way way. This am focused on amgn thinking long but the market was down, so if using Briefing or >$40 naz watchlist bias to the market + or - side. Or how about bias to the flexible side! I might include some nyse. It's hard to tell on these >$40 small dn gappers if they are going to keep going, shld had a good chart. The chart has to "look good" to take action it doesn't it. I abhor scrolling so one of my layouts have has 36 charts, 12 to a page or 4 pages. 15" charts are fine on just to give a glance it see it's having potential, or zap it away if not...like ZING. I might put up 12 and the others naz suspects.

Anonymous said...

Jamie,
Thanks for the great advise. My watchlist showed very few opportunities (and thats out of 70 stocks). I just started paying attention to the Q's and the Diamonds to see if I can gauge a stocks relative strength. I actually did take the ALXN trade at EOD (from your watchlist 8-) ). I got long on the break of the 3:15 15min. bar. It was a bad setup (due to the high vol. NRB)and I knew it, but I just couldn't help myself. I felt like a crackhead jonesing for a postive trade. Hopefully tomorow will bring more opportunities. Thanks a bunch.

TJ said...

BL,

Also watched AMGN on and off all day hoping for something to set up but just a head fake in afternoon. No trade.

TJ said...

Welcome Alex,

I'm guessing that you have a few screens to monitor all of those WL stocks.