Tuesday, December 16, 2008

Earnings Gap - Goldman Sachs Group, Inc. (Public, NYSE:GS)

GS gaps up on earnings (loss is less than feared). Price breaks the ORH and comes back for a retest in the form of a bullish flag on declining volume.

MS reports tomorrow, but was a sympathy play with GS.

RIMM formed an inverse H&S pattern which triggered before the FED so I sized it on the light side. The measured move is 100%. Measure distance from point A to B and extend the distance from the BO point. Best to exist into strength, before the exact target is reached. Whole $ numbers are good exist points if they are near the measured move target.

BAC set up a perfect ambush trade following a 3 pivot point base and break on the FED announcement.

Ambush Trade - look for retracement back to R-zone after a thrusty move. Price holds the 62% level on a closing basis. When price forms a base and moves back out of R-zone, we ambush.

This setup is used extensively by John Carter and co. at TradetheMarkets.com

4 comments:

Tyler said...

Jamie,

Sweet trades today. I got killed this morning and am not good enough to trade the FED meeting, so I sat out this afternoon.

I like that ambush trade. I am reviewing charts tonight and see that SKF could have been an ambush and it dropped like a rock. Maybe too high risk, but looks good now.

Have a good night.

Tyler

Jamie said...

Tyler,

Yeah, many sectors overbought and they tend to stall. Today I traded mostly underperforming stocks.

Just started using the ambush setup recently and so far, I've had great results.

Quentin said...

Jamie,

What % of your trades are winners?

Jamie said...

Quentin,

70% Boredom trades and head fakes account for mostly small losses.