Tuesday, March 17, 2009

Cup & Handle - CME Group Inc. (Public, NASDAQ:CME)

The bears failed to capitalize on early weakness and I got stuck on the wrong side of the trade in SU for a small loss. SU printed two shooting stars at the base of the R-zone of the RH to RL. They were quickly offset by hammers and I lowered my stop.

Similar action on CNQ except I managed to salvage the trade, and get in on the right side.

UTHR from yesterday's gap scan, set up a retracement trade in the R-zone back to PDH.




SOHU caught my eye with a Cup& Handle at the base of the retracement zone of the PDH to ORL. It was a little slow, so I decided to take half off at R1. It stalled at the 50% Fib extension of the low of the cup to the base, so I exit. Normally, for chart patterns we target a full measured move of 100%, but these usually break fast and wide. If they're slow, we have to manage them accordingly.

CME was ripping on my Trade-ideas scanner in the morning, but I didn't want to chase. Finally, it paused to consolidate midday. I took a cautious entry on break of the morning reaction high, trading it as a C&H pattern. Took a partial when it gave back the 50% Fib. ext. level and tightened stop on balance to 38%. Sweet!

5 comments:

bl said...

Jamie,
Why not go long on the oils? Noticed pcz eca su cnq 5/30" hammers. BTW, where is your current WL posted? How many?
CME +news. I noticed UNP upgrade Monday/rails took off. Tuesday STRA upgrade/schools took off

Jamie said...

BL,

Oils are extended, $WTIC (light crude) is testing $50.00 round number and resistance zone.

Current WL is not posted, but I can update later this week. For oil, agchem, gold, I'm focusing mainly on Canadian ECA, CNQ, SU, TLM / POT, AGU / AEM, ABX, GG so I can trade in retirement account without having to deal with FX since $CAD only $0.78 vs. $USD. Canadian brokers give haircuts on FX which wipes out a lot of profit.

Anyway I have been trading oil daily for about a week, but I think she's very extended and needs to correct a bit.

Try to keep WL under 50 names with sector lists on the side.

All About Health said...

Jamie,

I've learned a lot reading your blog, and one of the thing that I am still amaze is how easily you are able to find all the trades like today.

I am curious and at the same time would highly appreciate if you can write a blog about from how you begin your trading day to how you manage to find all the trades.

Brandon

Jamie said...

Thanks Brandon,

I trade mainly from a fixed watch list, but I can elaborate a post on how I prepare for the trading day along with the names in the WL.

In the meantime you can peruse the Intro to WSW Blog section of Key Posts in the side panel as I have discussed various aspects of setup and preparation in the past.

Day Tradr said...

Jamie,

Can you pls. check if this pattern I traded is a triangle or some other pattern?

http://daytradr.blogspot.com/2009/03/is-it-triangle.html

TIA