Tuesday, October 21, 2008

Retracements

I placed my Fib. retracement lines from Thursday's low to Friday's high. Yesterday was inside and this morning's early swing high carved out another lower high. Price moved towards the 25% retracement level and printed a NRIB setting up a low risk short. After taking out the 38% Fib. level, NQ reclaimed it so I covered, went long midway back up to 25% level. Price stalled and carved out a tweezer top-like reversal pattern, setting up a short to the next lower Fib. level at 50%.

Sold the balance of my ABX swing trade on the open. As luck would have it, my alert at $25.00 was triggered in the afternoon. The former base now acted as resistance, setting up a perfect short into the close.


The POT chart is an update on my swing trade. Sold RIMM yesterday on the open because of an analyst downgrade. The account is now all cash. I do believe gold will bounce when the $USD retraces after this incredible run. I'm looking for it to pause at the 85 level which will come into play in the next day or so. Hearing a MSFT for RIMM rumour so I want to get back into RIMM as well. Now that AAPL earnings out of the way, RIMM might catch a bid. Missed the swing move in CNQ and will be looking to pick some up in the retirement account after a retrace.

4 comments:

Susan said...

Great to see how you used fib. retracement.

Jamie said...

Yeah, when market starts going sideways, I place my Fibs so that they cover the last leg up or down.

john said...

Nice job milking an inside day. Where are you setting stops when you trade futures off of 15 min bars like you did today? ..would you hold your position if it retraced the entire entry bar?

Jamie said...

Thanks John,

I was trading futures on 1 minute chart and found I was just scalping. Also, in after hours I was getting stopped out too quickly so I switched back to 15 minute. I do watch it closely on the lower time frames and if it doesn't get off to a good start I reduce size. If it starts off well, I keep stop above previous bar high and go for the target.

Also candlestick patterns are key when trading off of 15 min. chart.