POZN was highlighted in my pre-market post as very active. At first I thought I had missed the move, but it pulled back sharply and carved a series of NRBs the last three of which, had consecutive higher lows. This setup a dummy B&B entry long. I had to leave midday so I left my initial stop intact. I took a partial when I got back as the trade had generated a 1 pt. gain.
IDCC was a name I picked up off of the Trade_Ideas scanner. I also noticed strength in other Biotech names despite the market weakness. GILD was very momo, but I missed the correct entry and didn't want to chase it. Entered IDCC long after a consolidation base formed. It moved quickly out of the base but then started to retrace sharply so I took a partial out of fear of a head fake. It did observe the base as support so I was able to keep half of the position open for the full extension of the second leg up.
Still kicking myself for not shorting KKD. Even if I had entered on my return this afternoon, I could have generated a huge profit. Here's the chart.
10 comments:
Jamie,
1) Per your pre-market post, I also had POZN on my watch-list. I also saw the (potential) entry... which is the same as your entry point. But the Upper Shadow of the 3rd candle, along with (what I thought) a dying/lack-of volume, really turned me away. Looking back now, even if it stopped at the Day-High, there were still some good profits in it.
2) Had you NOT step away, would you have exited (half your position maybe?) your position based on the 12:45 candle with that Upper Shadow?
3) How, or would you, have traded DELL today?
Thanks, and have a wonderful weekend, to you, and all your readers!
Hey CDT,
2. No question, had I been in front of my screen, I would have taken a partial when price tested the morning swing high.
3. Looking at a 15 min. wide range view of DELL I see support at $27.61 (swing low from Aug.31 and $17.20 (support base from 28/29th Aug.
Dell gappped down and carved out an inside bar (2nd bar) followed by a star with a long upper wick, both are sell signals, however, I would make sure that price took out $27.61 before shorting, so short two ticks below. The BI bar closes near its lows so we stay in the trade. Cover full position at $17.20. The reason being that this is support and the stock has just carved out three WRBs, a vertical move which will require consolidation as price is now too far away from the 5 ema.
I would have used a lower timeframe such as 5 minute to set my stop.
Great weekend to you too!
I've been asking so many questions this week I think its a record for me. I want to know if you were watching HANS today. I caught its run early Thursday on the 5's, and was watching it today for a continuation. I got long on the break of the 12:15 15min. bar. Once it started stalling near yesterdays high, I had my parachute ready. Basically I would like to know if you had an alert on it and where (i.e. yesterdays high; if that was the case then there wasn't any reason to even look at it and avoid a false breakout). Your thoughts please.
Jamie,
Impressive that you found profitable longs today. I was short with good results. My best trade was:
AKAM - short early on gap thru PP. Allowed 38% midday retrace anticipating test of 30.08... came near EOD. Could easily retest 28.43 PP.
Others:
ASML - gapped below recent PP at 30.85. Small profit. Potential single day island reversal on daily.
ESRX and SNDK - both 4th 15min bars. ESRX is a very interesting chart on the daily. The BO on the daily appears to have failed (see weekly for better perspective). It is showing a potential wide-range 4 (WR4) reversal down on the failure. This trap could (potentially) have several days of follow thru and lead to a retest of support at ~48.
Had my finger on the trigger for CLWR long at previous PP consol (~23.25), but my success on the short side gave me pause and then she was gone.
damn Jamie. Question on POZN (and I'm sure you've answered this before) on your base and break setups, do you specifically look for nr7's to form? Possibly indicating a move in your direction? Thanks
Jamie,
some of those Briefing jewels appeared: KKD POZN SWHC. They missed CTDC. I missed >$40 naz gapped dn with good patterns: ftek sndk jcom vsea ntap nvda.
Hey Alex,
There's no limit on the number of questions, yet. ;)
I was not specifically focused on HANS Friday. I was more geared towards Biotech as that's where I saw the early strength. However, I did get a small piece on Thursday. I missed the early break because I was trading BIIB and JOYG.
Good eye on HANS and congrats on Thursday's trade. Yesterday was a gap fill and you were well prepared to bail at that level.
Once the PP has been taken out, I put my alerts on both sides of the previous day's range.
What usually happens if the stock closes strong on the BO day is continuation the following day. I often see price dip back down to the rising 50 MA on 15 min. and then move back up. Yesterday's trade was hampered by the negative jobs data.
You seem to be trading in the zone. Your learning curve was very short. Congrats, and good trading.
Jim,
Congrats on finding all those trading opps. Agree that ESRX looks very negative EOD yesterday. I'll be watching it closely next week to see how price reacts to $53 and $51.35 PPs.
The CLWR trade you anticipated is extremely compelling. As you know, thanks to you, I just added the NR7 signal to my TI tape reading scan. CLWR showed up 5 consecutive times from 10:15 - 11:15. I kept going back to the chart in the morning but nothing was happening.
Unfortunately, I had to step out for a couple of hours midday.
I see a mini C&H between 9:45 and 2:00. The mini C&H is a base within a much larger C&H pattern which developed from 28/8 at the PP base $23.25. If you extend fibs from $20.00 to 23.35 you will see that CLRW extended 100% in the last 45 minutes of trade yesterday. My trading fantasy is to catch more moves like this one.
I have to keep reminding myself to look at the wider view of the 15 min. in order to anticipate these types of moves before they happen. But then again, not sure I would have reacted in time given that I was away from my trading desk for so long. My first priority when I came back in was my open position in POZN.
Hey OONR7,
I love NR7s and they are a key component in my trading setups. If you read the comment I just posted in response to Jim, you will see that I am now scanning for NR7 on the Trade-Ideas scanner. NR7 in its purest form - NRB with almost no volume, signals a potential price and volume expansion. NRBs with higher volume don't grab me but I will come back to it if other aspects of the chart look good.
However, just to clarify, I did not find POZN from the NR7 scan (although it did signal there as well), I found it on the Briefing.com list and highlighted it because of the heavy pre-market volume.
In this particular setup, because of the offsets leading into the mini base, I was looking for higher lows as well as NR7. This gave me a mini ascending triangle pattern. Volume was also leaning bullish as the red bars came in at much lower volume. The combination of all of these elements sold me on the setup.
BL,
Briefing jewels indeed. I didn't pay enough attention to KKD because it didn't have much in the way of pre-market volume. The other prejudice I have is low $ value stocks especially on the short side.
One observation I have made time and again is that tight, NR trade in pre-market often leads to price and volume expansion at the open. Now I will have to firm up that observation as to whether or not it is NR7 or just NR.
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