Tuesday, April 13, 2010

Base & Break - Research In Motion Limited (USA) Public, NASDAQ:RIMM); Google Inc. (Public, NASDAQ:GOOG)

Using the daily timeframe as your anchor, find a few good setups for the next day. RIMM formed a mini C&H pattern on the daily and fired off long early in the session as depicted below on the 15 minute timeframe.

RIMM has room to run on the daily chart pattern, so keep it on the focus list.

GOOG was a HCPG pick from last night's news letter.

It fired off on the open, but I waited for price to consolidate the early move. Eventually, GOOG formed a bullish flag on the 15 min. for a full extension.

7 comments:

Ashish said...

Hi Jamie,

Does the political talk of a new financial transactions tax of between 0.05%-0.25% on every trade concern you?

I feel that if the measure is passed into law, it would pretty much kill day trading as a profession?

Thanks in advance,
Ash

Jamie said...

Hi Ashish,

Yes, the Robin Hood tax for traders does bother me because the trade unions who are proposing it don't really understand who the tax will hurt. They think it would punish the big Wall St. firms for past excesses, but, in fact, it will hurt individual investors/traders more.

Here in Canada, it has absolutely no support. Our PM doesn't want the G20 summit to be sidetracked on this issue, which he doesn't support. Hopefully, other G20 members will come round to his point of view.

Day Tradr said...

Jamie,

Any swing trade candidates on your WL?

Jamie said...

Day Tradr,

The beginning of earnings season, is a good time to unwind existing swing positions. Markets usually sell the news as was the case with GOOG Thursday and GE BAC Friday.

The SEC complaint against GS eclipsed earnings, thus moderate profit taking on the open intensified into all out selling across all sectors.

This is a good opportunity to wait in the sidelines as strong stocks pullback. I was planning on selling my AAPL swing before earnings anyway.

Strong WL stocks wait for pullback - FSLR, BIDU, AAPL, PRGO, APKT, AMZN, CNQ, CLF.

Weak WL stocks wait for capitulation or a base - POT (approaching 200 SMA), AGU, STEC (base forming at $14).

In the meantime we can trade VXX as volatility is in play.

Jim said...

Jamie,

Good point on trading volatility. Friday's action was great.

Jamie said...

Hey Jim,

Yeah, markets were too complacent. The GS story brings the excitement back into trading!

吳怡迪 said...

It's great!!..................................................