The first chart is the daily chart of BIIB. BIIB is a watch list stock. Set alerts 5-10 cents below (above) daily pivot points. BIIB gapped up this morning and quickly tagged the daily pivot, setting off the alert in time for me to take a low risk, dummy entry as highlighted on the 5 minute timeframe below.I took a partial when price stalled at the $66.50 area and tightened the stop to $66.00. BIIB then took off on a three bar vertical move after which I closed my position. Three WRBs in row is usually all we can hope for. Also, after three WRBs, the distance from the rising 5 period ema is usually quite wide. Price and the MA are like magnets and eventually come back together, so don't be shy to take a profit under such a scenario.
JOYG was a daily PP BO on the open. I took a small position with an initial stop under yesterday's late swing low. It moved quickly up about 80 cents and retraced. I closed the position because I felt the retracement might be a reversal. After a full retracement of the OR, JOYG carved out an inverted hammer on the PP. The next stick confirmed a bullish reversal so I entered long again. The prelim. target was the ORH. After moving well above the ORH, it came back in for a retest. The retest was successful and JOYG rallied for another leg up.
AMGN was a technical reversal at the daily PP.
CAL was a B&B on a break of an ascending triangle. The pattern failed and I was stopped out. The third test of a support area usually breaks and failures often spawn fast moves in the opposite direction, so I took a small dummy short to end the session on a positive note.
12 comments:
Great trades as usual
Thanks Bubs
Oil price today may have affected your trade in CAL and other airline stocks.
I had BIIB on my watchlist as well... but I was just watching and watching... I couldn't spot an entry. I just had to sit there and watch it rise. :-) & :-(
Thanks Jerry,
I was aware of higher oil and I thought it was priced in on the early dip towards $32.00
Shortly after I entered the trade, Delta came out with August results - best ever.
Not sure what caused the pattern to fail. CAL closed a touch lower than 50DMA, so it may be due for a pullback to trendline.
CDt,
What timeframe were you watching and watching? I'm guessing 15 min. which would have been a very wide stop.
Two questions. First, I forgot, how do you determine the daily pivot points? With BIIB I would assume you would be using the high of Aug 30 as your resistance point, but it looks like the number you're using for daily pivot is higher. Are you going all the way back to late Jan 05, and taking some number from there? Secondly, how do you decided which time frame to use? Thanks, Chance
Chance,
That's correct the PP for BIIB was the Aug. 30th high $64.80. That price was almost tagged on the 15 min. ORH. I entered above round dollar $ 65.00. I should have clarified that in the post.
I have three time frames in view at all times 15, 5, and either 3 or 1.
On the 15 min. time frame the 5 period ema was too far below price. On the 5 min. I saw an orderly consolidation in the upper part of the OR and the 5 ema was advancing quickly below price so I preferred to enter and manage the 5 minute time frame for this trade. I usually find that 15 minute is better after 10:15 when the OR is wide.
Jamie,
Very nice trade in the AMGN, I actually got short it in the low 52's. I figured it might do a gap fill to Tuesdays highs at the least. At least someone made money in it.
Thanks Alex,
Your thinking was correct as the stock has been trending down intraday since yesterday's gap.
But $52.00 is a pyschological PP on the monthly chart and that's why I went long.
Not sure if it will fill that gap as you point out, but judging from today's close, it looks like it wants to.
I've highlighted the key PPs for AMGN in my watch list post.
damn Jamie :)
Day in and day out. Nice job.
Thanks SAM aka OONR7
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