Joe traded LDK today for a nice gain, but feels he left too much money on the table. How would I have traded it? I'd would have placed my Fib extension lines from the previous day high to the flat base as opposed to the ORL. Short on a breach of the base with the 5 ema in very close proximity acting as resistance. Generally I exit after 3 WRBs, but LDK capitulates on a huge volume spike on the second WRB. So, normally I would partial out and move my stop about 5 cents above the WRB. This WRB is really wide and the fact that it happens right at lunch time is a good excuse to cover 100%, otherwise it means a potential stop out or a long drawn out consolidation through the lunch time doldrums.In mid afternoon, LDK starts to setup a reversal as it takes out the 5 ema on a closing basis. Note that there is no volume to support the move, and it can't break the round $ number $50.00. Eventually, it carves out a mini rounded top which is bearish (supply > demand). You can short the confirmed hanging man and catch the next leg lower. Notice how volume picks up and accelerates into the close. If you look at the daily or the wide view of the 15 min, you'll see that this was a gap fill dating back to December 7th.
8 comments:
Nice Jamie... Glad someone got a piece of LDK. My brokerage didn't have shares available :(
I wasn't able to short LDK, UA or LEG. Ah well.
Not many can short LDK.
IB still has a few LDK shares available to short, also has UA and LEG. The nice thing about IB is that you can insert a color code column that lets you know ahead of time if the stock is available to short.
Thanks for the IB tip Jamie, it helps.
Jamie,
Nice explain. I scalped -6/15 offsetting like bar. Ridiculou$.
50DEC puts low.10 h4.6! 6 gap downs >-4% >$15 premkt from Trade Ideas: leg ldk apog mbi abk gfi. CFO resigned at trid=short! A bankable short for any cfo resignation. Wall Street doesn't like this sort of thing. Gap up this am=short the brokers, shippers, solars. Long fertilizers. Thanks for the wfr heads up lunch rally. No trade :(
Jamie,
Did you play N? I vowed not to play ipo's as all my ipo trades cost me: mpel fig lft. B$@^&$s! Had a good 15 chart today.
Welcome Hammer.
BL, no to N. Fertilizers very hot. Was watching, but did not jump into POT. Too bad.
Hi, you link to "THE MARKET SPECULATOR" not Market Speculator...that would be my webiste.
Could you kindly update your link?
Many Thanks,
Market Speculator
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