AAPL - wide earnings gap. The setup felt similar to my RIM.TSX trade from Monday. After gapping lower, price carves out a tight sideways pattern until the down sloping 5 period ema catches up. We had two NRIBs, the second of which was NR7 leading into price expansion. The BO bar (7/15) closes near its low which is one of my critical success factors in this type of setup. I took a partial as price approached the round $ number on the 3rd WRB.
JOYG was not a wide gap, but it carved out a number of long upper shadows and could not close above the down sloping 5 period ema. Short the break of red inverted hammer. Again, the BO bar closes near its low signalling a great start. I missed my partial on the third WRB, so I tightened my stop, but I was rewarded with a hanging man and price broke through yesterday's pivot low at the $50.00 pt. I tightened the stop again as price consolidated at $50.00 and was stopped out on a partial. Shortly after, price swooned down to S2 (red line) on a huge volume spike and that was the end of the move.
Today was the flushing out day that we've all been waiting for. I took two longs this afternoon AAPL and RIM.TSX. Here's a picture of the AAPL trade. The bullish rounded bottom is a great long signal because it shows that demand exceeds supply. Everytime bears try to push price lower, more buyers step up. I'm holding a partial on RIM.TSX for a swing with a BE stop.
7 comments:
Jamie,
Congratulations. You played the market reversal day perfectly, especially in AAPL.
Thanks Jim,
When I saw the futures this morning, I decided to stay home and focus on trading. Had a good feeling that today was going to be the flush!
Jamie, you should write a book on short-term trading ! As always, thanks for teaching us
Thanks Michael
Wow, I shorted AAPL in the same way as you did and exited pretty much the same manner, feels great to be trading the same way as THE master :)
I did not take the afternoon trade for AAPL, but I see a earlier setup for going long in AAPL: break of 9/5 (the 1.20pm ET 5min bar). Would that have been a good entry?
AIV: gap down. Is break of 5/5 NRIB a good entry if one missed the break of PP at about $35.5?
SHLD: gap down. 3/5 entry on break of $97. I'm not sure if this is considered a good one because the opening 5 min bar printed upper wick, although the 2nd one had a higher low and closed near the highs. What do you think?
Thanks,
YR
YR,
Congrats on the AAPL short!
Aggressive traders would go long above $128.00 as the rounded base was taking shape. I waited until price crossed above 20 ema on 5 min. time frame.
AIV - I don't like to enter after such a wide move.
SHLD - Break of 3/5 is base of intraday pivot P, but not sure of the strategy behind this setup. Daily pivot at $100.00. I prefer the late session BO after price captures and retests daily PP then forms a base. B&B at 3:00.
Thanks Jamie. I'm looking at the SHLD setup from gap fade view.
YR
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