AMZN gapped down on a disappointing earnings report. I entered short on a break 6th - 5 min. bar low and covered when price approached the 38% Fibonacci extension of the previous day high to the ORL.
BRCM also gapped down on disappointing earnings. It spent most of the morning consolidating the gap in a sideways trade, printing a number of doji sticks. Since dojis represent indecision, I decided to place a sell stop order below the base. After triggering, if fell but attempted to reverse, carving a bullish morning star and I was just about to close the trade but the morning star didn't confirm and price started moving lower, so I stayed in.
AKAM was a bearish flag breakout - weakness ahead of earnings. I took a partial after a 1 pt. gain and folded shortly after. I don't like to overstay these pre-earnings trades as they can be extremely unpredictable.
6 comments:
Jamie
Nice work with AMZN BRCM. Out of the flow today and with so many setups...oh boy! Semi sympathy plays: nvda lrcx pmcs sndk irf. More profitable with those but you never what is going to happen. Did you go long at the 2:22 magic hour: aapl amzn...? trmb early gogo reversal.
Thanks BL,
No longs today, just the three posted trades. TRMB momo reversal - good catch!
Jamie, i was watching TRMB as well. Solid reversal, but where would have been a low risk entry? Also, how do we know if it is a bear flag or solid reversal, other than watching volume? In this case, volume on TRMB is not very clear cut I must say. Thanks
YR
awesome work. I commented the other day about stocks that gap down then price rises to the ORH or yesterday's low. I think your HANS trade was similar. Anyway... RES on Wednesday was a great example of that. Third bar (15-min) formed a down inverted hammer right below S2 and the downsloping 5ema. It was also at the 50% fib. level from Tuesday's high to the ORL. Only thing is that volume hadn't decreased on the entry bar. Of course, I couldn't trade yesterday... but these hindsight trades are a snap :)
OONR7,
RES was beaut on Wed. - WOR as price tested August lows and bounced. Once R2 was lost, it couldn't recapture it.
YR,
Draw line above early swing high 2/15min. Wait for NRB to base at the line. Tempting to buy on 8th bar but don't. If it breaks base, you will have time to get in when it consolidates. Stocks either consolidate before the break or after the break unless the base is extremely narrow ie. flat base BO.
That's not the case here. Best entry break of 10/15min bar high because 10th bar is NR and closes at the base. Stop below 10th bar low.
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