Thursday, December 18, 2008

Bears Own It

All of these trades are from my watch list of usual suspects (fixed list of 50 stocks across various sectors). First up I read on Briefing.com that BUCY and JOYG were downgraded. Yesterday, we traded these and they both closed above their 50 DMA for the first time in several months.

I didn't get into JOYG today, but BUCY provided a quick swoon off the open. After filling yesterday's gap, price retested the PDL and failed, setting up another short.

ABX overbought as highlighted in last night's technical post.

FWLT gapped up and immediately sold off. I shorted when it took out the 3 pivot point base from yesterday. I placed my Fibs from the ORH to the base and exit at 100%. I re-entered when it couldn't hold the initial reversal base.

The futures spent most of the morning in a narrow range chop. During lunch the Nasdaq futures carved out three narrow higher closes on declining volume. That's when I knew it was going down.

The spike from 4:00-4:15 is RIMM beating on guidance.

8 comments:

Attitude Trader said...

Beautiful job with the Naz today Jamie...almost makes me sick looking at your trades. :)

I had almost identical trendlines drawn on my chart for today but I couldn't get myself mentally turned around from the long position I had taken earlier in the day until late in the downmove.

Thanks for posting the charts because it really helps me confirm the hindsight analysis I did after the close today.

-AT

Jamie said...

AT,

That last swoon below the PDL was a bonus. Guess it had something to do with GE, the 800 lb. gorilla.

timo4sho said...

Hey Jamie,

once again brilliant trading. I have a question concerning your FWLT trade. Once you shorted it below the 3pt pivot break from yesterday, where did you place your initial stop? The only logical point that makes sense is the prior relative high at around 27.85. Isn't this a bit too far away if you are going for a large R-multiple trade?

Also what target were you going for when you entered the second short?

Thanks so much!

Timo

timo4sho said...

Oh and I forgot ... one more thing ;-)

On your ABX trade same question as FWLT? Why short there -> initial stop placement where? -> initial target you were aiming for?

Thanks bro'

Timo

Tyler said...

Jamie,

I see that you mix it up and use the 3 MIN chart every once in a while as opposed to the 15, 5, or 1 as usual. How do you decide which timeframe to trade? Or do you have a chart of each up and just watch them all for a setup?

Thanks,
Tyler

Jamie said...

Timo,

For FWLT place stop on previous bar high on 1 min. chart. The pattern (3 PP B&B) should give instant gratification. If it head fakes you have to exit right away because it is just a test of support.

ABX was a break of 15 min. ORL. This one I talked about night before as being completely overbought. I said that smart money was going to take profit, so I just wanted to get ASAP. Look at daily chart of ABX in Wednesday's Technical Picture post.

Jamie said...

Tyler,

Good eye, yeah I sometimes change the 5 min. to 3 min. for clarity. I'm usually watching 1, 5, 15 min. at same time to confirm entry looks good on all timeframes.

Jamie said...

Tyler,

Some trades I manage on 1 min. like FWLT because it's a fast trade. Others I move over to longer 15 min. when price moves out of consolidation zone.