Monday, March 02, 2009

Opening Range Breakout - Potash Corp./Saskatchewan (USA) (Public, NYSE:POT)

First order of business today was to lock in my swing profit on ABX. Today's market sell-off spared no sectors, so pointless trying to pick a bottom until a clear reversal pattern develops.

POT/AGU carved out bearish h patterns.

STT from the Trade-Ideas pre-market gapper scan faked an upside move, but quickly failed, setting up a low risk short. Took a partial as price retraced to the ORL. Eventually, STT carved out an inverse C&H, but failed to extend much beyond 50% on the first swing lower.

7 comments:

JF David said...

I also shorted POT at the exact same place, but i got out way to early at about 78$. I must absolutly let those nice winner trade run.

Jamie said...

JF,

Yeah, h-pattern usually good for measured move of 100%. Try to hold half until closest $ level to 100%

anarco said...

Cool trading Jamie!
There is an h-pattern on the 1 min chart (first 8 bars). What prevented you from entering there?
Thanks in advance!
Anarco

anarco said...

The above is for POT.

Jamie said...

Anarco,

Good question. h-patterns usually retrace at least 50% and I want to get a better feel for the opening range on the longer timeframes. 8 minutes into the trading session, I was still looking at my gold charts. Couldn't decide if I wanted to short the gap fade.

greytrader said...

Did you drop briefing.com for pre-market gappers ? I have found that Trade-Idea's gapper scan misses a lot of candidates that other scanners pick up.

Jamie said...

GT,

You could be right about Trade-Ideas, but I think it has more to do with how you program it. For me, it's not about quantity, it's about quality. I'm looking for stocks gapping above/below PDH/L on volume, so I use TI for number of prints.

Still using Briefing.com as well as IB.