Tuesday, May 19, 2009

Low Risk Dummy Trades - GIL, SNDA

GIL - analyst upgrade from neutral to BUY. Two NRIBs at the base of the whole $ level on the 15 min. and 2 NRIBs in the upper shadow of a bullish WRB on the daily. That's very bullish.

After topping out at $17.00, I shorted it (blue line segment) back down to $16.00. The reason I'm exiting at $16.00 as opposed to holding on until price meets the rising 20 EMA, is because of the whole $ level and because price based a long time at $16.00 on the way up, so that provides support (matching congestion).

SNDA from my WL, had a small gap and a perfect entry on break of ORH which I missed. It then carved out a flag pole (high volume) and flag (declining volume) setting up the next leg higher. For chart patterns such as flags, we look for a measured move of 100%, so I placed my fibs from the ORL to the BO point of the flag.

Yeah, I missed the rest of that move, but who knew after that shooting star?

4 comments:

DG said...

These are the kind of trading lessons been waiting from you Jamie. Been missing them for some time...many thanks...

Day Tradr said...

Excellent trades Jamie. It was a difficult day to find any good setup from my WL.

What were the reasons for entering a short in GIL?

Also, do you add the upgrades/downgrades daily on your WL?

Thanks,
Day Tradr

bl said...

beautiful. screen: most % hi priced stocks : itri snda ady

Jamie said...

Thanks guys,

Entered short on bearish engulfing bar. Stock has rallied 65% in 4 days.

I look for significant upgrades/downgrades in pre-market in context of daily chart and pre-market action. Goldman conviction list buys /sells are particularly important. Other analyst ratings also can move stocks especially when markets void of other catalysts.

Missed ITRI. Saw it on my intraday momentum scan, but, it was too late.